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
Requirements of Sponsors
Section 260.140.111.5 - Fiduciary Duty
The program agreement shall provide that the sponsor shall have fiduciary responsibility for the safekeeping and use of all funds and assets of the program, whether or not in the sponsor's possession or control, and that the sponsor shall not employ, or permit another to employ such funds or assets in any manner except for the exclusive benefit of the program. In addition, the program shall not permit the participant to contract away the fiduciary duty owed to the participant by the sponsor under common law.
1.
Renumbering and amendment of former section
260.140.118.1 to section
260.140.111.5 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.
