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 260.140.116.5 - Admission into Partnership

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Sales by Partnership. Purchasers should
						be recognized as participants not later than 15 days after the release of their
						funds from impound, if purchasers' funds are impounded. Otherwise, purchasers
						should be recognized as participants not later than the last day of the
						calendar month following the date the partnership accepted the subscription.
						All subscriptions shall be accepted or rejected by the partnership within 30
						days of their receipt; if rejected, all subscription monies should be returned
						to the subscriber within 10 business days.
(b) Assignees and Substituted Partners. The
						partnership shall recognize an assignment not later than the first day of the
						fiscal quarter following the date the notice of assignment and other required
						documentation is received and accepted by the general partner. The partnership
						shall admit substitute limited partners on the first day of each fiscal
						quarter. If the partnership received actual notice of a transfer, it must
						inform a transferee in writing within 45 days of receipt of such notice whether
						or not the transferee will be recognized as possessing all of the rights of a
						limited partner.
(c) Participants
						holding program interests by assignment from entities holding limited
						partnership interests in a program for the purpose of assigning all or a
						portion of such interests to persons investing in such program (hereinafter the
						"Assignor") shall be expressly granted the same rights as if they were limited
						partners except as prohibited by applicable local law, including but not
						limited to, the rights enumerated under Sections
						260.140.116.1 to
						260.140.116.8 of these Rules.
The assignment agreement and prospectus shall provide
						  that the Assignor's management shall have fiduciary responsibility for the
						  safekeeping and use of all funds and assets of the assignees, whether or not in
						  the Assignor management's possession or control, and that the management of the
						  Assignor shall not employ, or permit another to employ such funds in any manner
						  except for the exclusive benefit of the assignees. In addition, the agreement
						  shall not permit the assignees to contract away the fiduciary duty owed to the
						  assignees by the Assignor's management under the common law of
						  agency.
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
2. Amendment and new subsection (c) filed 5-18-92; operative
						  6-17-92 (Register 92, No. 22).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.