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 260.140.115.4 - Expenditure of Net Proceeds

While the net proceeds of an offering are awaiting investment in real property, the net proceeds may be temporarily invested in short-term highly liquid investments where there is appropriate safety of principal, such as U.S. Treasury Bonds or Bills. Any proceeds of the offering of program interests not invested within the later of two years from the date of effectiveness of the qualification or one year after the termination of the offering, or, if permitted by the Commissioner, six months from the last scheduled mandatory deferred payment date (except for necessary operating capital) shall be distributed pro rata to the partners as a return of capital.

1. Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No. 4).
2. Amendment filed 5-18-92; operative 6-17-92 (Register 92, No. 22).

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.