California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 10 - Real Estate Programs
Disclosure and Marketing Requirements
Section 260.140.117.1 - Sales Promotional Efforts

(a) Advertising. All advertising shall conform to the standards of Section 260.302.

(b) Group Meetings. All advertisements of and oral or written invitations to "seminars" or other group meetings at which program interests are to be described, offered or sold shall clearly indicate that the purpose of such meeting is to offer such program interests for sale, the minimum purchase price thereof, and the name of the sponsor, underwriter, or selling agent. No cash, merchandise or other item of more than nominal value shall be offered as an inducement to any prospective participant to attend any such meeting. In connection with the offer or sale of program interests, no general offer shall be made of "free" or "bargain price" trips to visit property in which the program or proposed program has invested or intends to invest. All written or prepared audio-visual presentations (including scripts prepared in advance for oral presentations) to be made at such meetings must be submitted in advance to the Commissioner not less than 3 business days prior to the first use thereof.

(c) Subsections (a) and (b) shall not apply to meetings consisting only of representatives of securities broker-dealers.

(d) Sketches and photographs of properties acquired by the program or proposed to be acquired by the program may be included in the offering circular or supplements thereto. The photographs of properties acquired by previous programs of the same or affiliated issuers should appear only when they are representative of the type of property the program seeks to acquire. The following caveat should be prominently featured in the presentation of the foregoing information:

"This property was acquired by a prior affiliated partnership, and is representative of the type of properties which (name of program) may acquire."