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
Rights and Obligations of Participants
Section 260.140.116.7 - Transferability of Limited Partnership Interests

Restrictions on assignment of program interests or on the substitution of a limited partner are generally disfavored and such restrictions will be allowed only if they are intended to preserve the tax status of the partnership or the characterization or treatment of income or loss. Any restriction must be affirmatively supported by an opinion of counsel or a demonstration by the program as to the necessity of such restriction based on the tax laws, regulations, rulings, notices or other official pronouncements governing the Internal Revenue Service. The program agreement shall require the general partner to eliminate or modify any restriction on substitution or assignment at such time as the restriction is no longer necessary.

1. Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No. 4).
2. Repealer and new section filed 5-18-92; operative 6-17-92 (Register 92, No. 22).
3. Change without regulatory effect amending section filed 9-25-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 39).

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