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
Non-Specified Property Programs
Section 260.140.115.3 - Investment Restrictions and Objectives
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Unimproved or non-income producing property shall not be acquired except upon terms which can be financed by the program proceeds or from cash available for distribution from operations. Investments in such property shall not exceed 25% of the gross proceeds of the offering. Properties which are expected to produce income within a reasonable period of time shall not be considered non-income producing. For purposes of this paragraph two years shall be deemed to be presumptively reasonable.
(b) Investments in junior trust deeds, and other similar obligations shall be prohibited, except for junior trust deeds which arise from the sale of program properties.
(c) The manner in which acquisitions will be financed, including the use of an all-inclusive note or wrap-around mortgage, and the amount of leverage to be employed shall be fully set forth in the statement of investment objectives.
(d) The prospectus shall disclose whether the program will enter into joint venture arrangements and the projected extent thereof.
1.
Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
4).
2. Amendment of section heading and subsection (a), repealer of
subsection (c), and new subsections (c) and (d) filed 5-18-92; operative
6-17-92 (Register 92, No. 22).
Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.
