Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On December 22, 2010, Bluegreen Corporation (“the Company”) entered into a new timeshare receivables purchase facility with Quorum Federal Credit Union (“Quorum”). The Quorum facility allows for the sale of timeshare notes receivable on a non-recourse basis, pursuant to the terms of the facility and subject to certain conditions precedent. Quorum has agreed to purchase eligible timeshare receivables from the Company or certain of its subsidiaries up to an aggregate $20 million purchase price through August 31, 2011 at an 80% advance rate and at a program fee rate of 8% per annum, and at terms to be agreed upon through December 22, 2011. Eligibility requirements for receivables sold include, amongst others, that the obligors under the timeshare notes receivable sold be members of Quorum at the time of the note sale. The facility contemplates the ability of Quorum to purchase additional receivables subject to advance rates, fees and other terms to be agreed upon from time to time over and above the initial $20 million commitment, pursuant to the terms of the facility and subject to certain conditions precedent. Bluegreen or a subsidiary, as applicable, will receive all of the excess cash flows generated by the receivables transferred to Quorum under the facility (excess meaning after customary payment of fees and return of amounts invested by Quorum under the facility on a pro-rata basis as borrowers make payments on their timeshare loans).

While ownership of any timeshare receivables financed through the Quorum facility will be considered transferred and sold to Quorum for legal purposes, the transfer of these timeshare receivables will be accounted for as a secured borrowing for financial accounting purposes.