b'For RentalsMexico levies a 16 percent value-added tax (called IVA) on the amount of the rental price. Under Mexican law, the member renting his/her villa is responsible for reporting the transaction and paying the tax to the Mexican government. CVI has noresponsibility to collect and remit any tax payments in a private transaction in which it is not involved, and Club Cascadas de Baja has no responsibility for any rentals not being honored.Private transactions may be subject to personal income tax in both Mexico and the country of residence of the member. We recommend consulting tax agents in both Mexico and in the members home country.Inprivaterentaltransactions,inwhichthememberrentinguniquevacation villas doesnotknowtheotherparty,anissueoftrustmayarise.This occurs when the renter must pay the member before the member instructs TPI to notify the guest name update. This issue must be worked out between the two parties.The Clubs by-laws 2.2 Occupancy state Any member may permit his Villa to be occupied by other persons (), but such member shall be responsible for any loss, damage, destruction or violation of this Declaration, or the Rules and Regulations (except of the part of an Exchange User) which occurs during such occupancy as if such member were occupying the Villa.3435'