reglab/statecodes huggingface dataset:
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

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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.
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 260.140.115.5 - Special Reports

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Within 60 days after the end of each quarter during
						  which there have been real property acquisitions, a "Special Report" (which may
						  be part of the quarterly report) shall be sent to all participants until the
						  proceeds of the offering are committed or returned to the investors in
						  accordance with Section
						  260.140.115.4 of these rules. The
						  report shall contain the following information:
(a) the location and a description of the
						general character of all materially important real properties acquired or
						presently intended to be acquired by or leased to the program, during the
						quarter,
(b) the present or
						proposed use of such properties and their suitability and adequacy for such
						use,
(c) the terms of any material
						lease affecting the property,
(d)
						the proposed method of financing, including estimated down payment, leverage
						ratio, prepaid interest, balloon payment(s), prepayment penalties, due-on-sale
						or encumbrance clauses and possible adverse effects thereof and similar details
						of the proposed financing plan,
(e)
						a statement that title insurance and any require construction, permanent or
						other financing and performance bonds or other assurances with respect to
						builders have been or will be obtained on all properties acquired,
						and
(f) a statement of the amount
						of proceeds in the program which remain uncommitted or unexpended, stated as
						both a dollar amount and percentage of the total amount of the offering
						proceeds of the program.
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
2. Amendment and new subsection (f) filed 5-18-92; operative
						  6-17-92 (Register 92, No. 22).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 260.140.115.6 - Multiple Programs

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The method for allocating the acquisition of properties
						  among two or more programs of the same sponsor seeking to acquire similar types
						  of properties shall be reasonable. The method shall be described in the
						  prospectus.
1.
						  Repealer and new section 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.
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 260.140.115.7 - Multiple Programs. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						  Repealer filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
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 260.140.116.1 - Meetings

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Meetings of the limited partners to vote upon any
						  matters on which the limited partners are authorized to take action under the
						  partnership agreement may be called at any time by the general partner(s) or
						  one or more limited partners holding not less than 10% of the outstanding
						  limited partnership interests. Upon request in writing to the general
						  partner(s) by any person(s) entitled to call a meeting, the general partner(s)
						  shall cause notice to be given to the limited partners that a meeting will be
						  held at a time requested by the person(s) calling the meeting, not less than 15
						  nor more than 60 days after receipt of the request. Written notice of the
						  meeting shall be given either personally or by first class mail not less than
						  10 nor more than 60 days before the date of the meeting to the limited
						  partners. Included with the notice shall be a detailed statement of the action
						  proposed, including a verbatim statement of the wording of any resolution
						  proposed for adoption by the limited partners and of any proposed amendment to
						  the partnership agreement. The partnership will provide for proxies or written
						  consents which specify a choice between approval and disapproval of each matter
						  to be acted upon at the meeting. A majority of the limited partnership
						  interests entitled to vote, represented in person or by proxy, shall constitute
						  a quorum at a meeting of the limited partners.
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 260.140.116.2 - Voting Rights of Limited Partners

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General Requirement.
(1) Without the necessity for concurrence by
						the general partner(s), a majority of the outstanding limited partnership
						interests may vote to (A) amend the partnership agreement, (B) remove the
						general partner(s), (C) elect a new general partner(s), (D) approve or
						disapprove the sale of all or substantially all of the assets of the
						partnership other than in the ordinary course of its business and (E) dissolve
						the partnership.
(2) Without
						concurrence of a majority of the outstanding limited partnership interests, the
						general partner(s) may not (A) amend the partnership agreement except for those
						amendments which do not adversely affect the rights of the limited partners,
						(B) voluntarily withdraw as a general partner, (C) appoint a new general
						partner(s), (D) sell all or substantially all of the assets of the program
						other than in the ordinary course of the program's business, (E) cause the
						merger or other reorganization of the program or (F) dissolve the partnership.
						Notwithstanding clause (C) of paragraph (2), an additional general partner may
						be appointed without obtaining the consent of the participants if the addition
						of such person is necessary to preserve the tax status of the program, such
						person has no authority to manage or control the program under the program
						agreement, there is no change in the identity of persons who have authority to
						manage or control the program, and the admission of such person as an
						additional general partner does not materially adversely affect the
						participants. Any amendment to the partnership agreement which modifies the
						compensation or distributions to which a general partner is entitled or which
						affects the duties of a general partner may be conditioned upon the consent of
						the general partner. If the law of the state of formation provides that the
						program will dissolve upon termination of a general partner(s) unless the
						remaining general partner(s) continues the existence of the program, the
						program agreement shall obligate the remaining general partner(s) to continue
						the program's existence; and if there will be no remaining general partner(s),
						the termination of the last general partner shall not be effective for a period
						of at least 120 days during which time a majority of the outstanding program
						interests shall have the right to elect a general partner who shall agree to
						continue the existence of the program. The partnership agreement should provide
						for a successor general partner where the only general partner of the program
						is an individual.
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 260.140.116.3 - Reports to Limited Partners

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The limited partners shall receive the following
						  reports:
(a) In the case of a program
						registered under Section
						12 of the Securities Exchange Act
						of 1934, within 60 days after the end of each quarter of the program, a report
						containing:
(1) a balance sheet, which may be
						unaudited;
(2) a statement of
						income for the quarter then ended, which may be unaudited;
(3) a statement of cash flows for the quarter
						then ended, which may be unaudited; and
(4) other pertinent information regarding the
						program and its activities during the quarter covered by the
						report.
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 260.140.116.4 - Records

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every limited partner shall at all times have access to
						  the records of the partnership and may inspect and copy any of them. A list of
						  the names and addresses of all of the limited partners shall be maintained as
						  part of the books and records and shall be mailed to any limited partner upon
						  request. A reasonable charge for copy work may be imposed by the
						  partnership.
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.
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 260.140.116.6 - Redemption of Limited Partnership Interests

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Ordinarily, the partnership and the sponsor may not be
						  obligated to redeem or repurchase any of its limited partnership interests,
						  although the partnership and the sponsor may not be precluded from purchasing
						  such outstanding limited partnership interests, if such purchase does not
						  impair the capital or operation of the partnership. Notwithstanding the
						  foregoing, a real estate limited partnership may provide for mandatory
						  redemption rights under the following circumstances:
(a) Death or legal incapacity of the owner,
						or
(b) A substantial reduction in
						the owner's net worth or income (defined to mean an involuntary loss of not
						less than 50% in income or net worth during the year in which redemption
						occurs) provided that (1) the limited partnership has sufficient cash to make
						the purchase, (2) the purchase will not be in violation of applicable legal
						requirements and (3) not more than 15% of the outstanding units are purchased
						in any year. Where the purchase price is not mutually agreed upon, the matter
						shall be submitted to arbitration.
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.
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

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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.
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 260.140.116.8 - Assessments and Defaults

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
						Assessments will not be allowed for non-specified programs. In the case of
						specified programs, assessments shall be permitted only when specific
						circumstances demonstrate a need. If the anticipated cash flow from property
						(after payment of debt service and all operating expenses) is not sufficient to
						pay taxes and/or special assessments imposed by governmental or
						quasi-government units, the program agreement may include a provision for
						assessments to meet such deficiencies. Assessments must be limited to the
						foregoing obligations, and all amounts derived from such assessments must be
						applied only to satisfaction of said obligations.
(b) In the event of a default in the payment
						of assessments by a participant a program's interest shall not be subject to
						forfeiture, but may be subject to a reasonable penalty for failure to meet the
						participant's commitment. Provided that the arrangements are fair, this may
						take the form of reducing the participant's proportionate interest in the
						program, subordinating the interest to that of nondefaulting partners, a forced
						sale complying with applicable procedures for notice of sale, the lending of
						the amount necessary to meet such commitment by the other participants or a
						fixing of the value of such interest by independent appraisal or other suitable
						formula with provision for a delayed payment for the interest not beyond a
						reasonable period, but a debt security issued for such interest should not have
						a claim prior to that of the other investors in the event of
						liquidation.
(c) A participant
						shall be reinstated to his full status as a limited partner upon payment of the
						delinquent assessment with interest at the maximum rate allowed by law within
						30 days of the date of default. A default shall occur upon failure to pay an
						assessment within a 30-day period from the date of the notice imposing the
						assessment.
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
						  subsection (a) 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.
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 260.140.116.9 - Dividend Reinvestment Plans

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A program may offer participants the opportunity to
						  elect to have cash distributions reinvested in program interests to be issued
						  by the program or subsequent programs pursuant to a reinvestment plan if the
						  following conditions are met:
(a) The
						program interests to be issued by the program and subsequent programs in which
						the participants reinvest are qualified under the Corporate Securities Law of
						1968 or exempted therefrom.
(b)
						Counsel for the program submits an opinion that the pooling of the funds for
						reinvestment does not create a security.
(c) The subsequent program has substantially
						identical investment objectives as the initial program.
(d) The participants are free to elect or
						revoke reinvestment within a reasonable time and such right is fully disclosed
						in the offering documents.
(e)
						Prior to each reinstatement the participants receive a current updated
						disclosure document which contains at a minimum the following information:
(1) The minimum investment amount.
(2) The type or source of proceeds (e.g. cash
						available for distribution from operations or cash from sale and refinancing of
						properties) which may be reinvested.
(3) The tax consequences of the reinvestment
						to the participants.
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 › Disclosure and Marketing Requirements › Section 260.140.117.1 - Sales Promotional Efforts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Advertising. All advertising shall
						conform to the standards of Section
						260.302.
(b) Group Meetings. All advertisements of and
						oral or written invitations to "seminars" or other group meetings at which
						program interests are to be described, offered or sold shall clearly indicate
						that the purpose of such meeting is to offer such program interests for sale,
						the minimum purchase price thereof, and the name of the sponsor, underwriter,
						or selling agent. No cash, merchandise or other item of more than nominal value
						shall be offered as an inducement to any prospective participant to attend any
						such meeting. In connection with the offer or sale of program interests, no
						general offer shall be made of "free" or "bargain price" trips to visit
						property in which the program or proposed program has invested or intends to
						invest. All written or prepared audio-visual presentations (including scripts
						prepared in advance for oral presentations) to be made at such meetings must be
						submitted in advance to the Commissioner not less than 3 business days prior to
						the first use thereof.
(c)
						Subsections (a) and (b) shall not apply to meetings consisting only of
						representatives of securities broker-dealers.
(d) Sketches and photographs of properties
						acquired by the program or proposed to be acquired by the program may be
						included in the offering circular or supplements thereto. The photographs of
						properties acquired by previous programs of the same or affiliated issuers
						should appear only when they are representative of the type of property the
						program seeks to acquire. The following caveat should be prominently featured
						in the presentation of the foregoing information:
"This property was acquired by a prior affiliated
						  partnership, and is representative of the type of properties which (name of
						  program) may acquire."
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Disclosure and Marketing Requirements › Section 260.140.117.2 - Offerings Registered with the Securities and Exchange Commission

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
With respect to offerings registered with the
						  Securities and Exchange Commission under the Securities Act of 1933, as
						  amended, and qualified with the Commissioner by coordination, a prospectus
						  which is part of a registration statement which has been declared effective by
						  such Commission shall be deemed to comply with all requirements as to form of
						  these Rules; provided however, that the Commissioner reserves the right to
						  exercise discretion to require additional disclosure of
						  substance.
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Disclosure and Marketing Requirements › Section 260.140.117.3 - Contents of Prospectus

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The prospectus shall meet the requirements of Guide 5
						  of the Securities and Exchange Commission. Foreign limited partnerships shall
						  make additional disclosures as required by Section
						  260.140.116.2(c),
						  if applicable. The description of the method for allocating the acquisition of
						  properties by two or more programs of the same sponsor shall meet the
						  requirements of Section
						  260.140.115.6. The prospectus
						  shall contain a full description of the terms, consequences, and risks to
						  participants and the program of any mandatory deferred payments. The
						  Commissioner may require additional disclosure if, in the Commissioner's
						  opinion, specific facts concerning the offering require it.
1.
						  Amendment of subsection (k) filed 3-12-74; effective thirtieth day thereafter
						  (Register 74, No. 11).
2. Amendment filed 1-27-84; effective
						  thirtieth day thereafter (Register 84, No. 4).
3. 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.
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 › Disclosure and Marketing Requirements › Section 260.140.117.4 - Forecasts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
						presentation of predicted future results of operations of real estate programs
						shall be permitted but not required for specified property programs investing
						primarily in improved property and shall be prohibited for non-specified
						property programs or specified property programs investing primarily in
						unimproved land. The prospectus cover must contain in boldface type one of the
						following applicable statements:
(1) For
						specified property programs:
FORECASTS ARE CONTAINED IN THIS PROSPECTUS. ANY
						  PREDICTIONS AND REPRESENTATIONS, WRITTEN OR ORAL, WHICH DO NOT CONFORM TO THOSE
						  CONTAINED IN THE PROSPECTUS SHALL NOT BE PERMITTED.
(2) For non-specified property and unimproved
						land programs:
THE USE OF FORECASTS IN THIS OFFERING IS PROHIBITED.
						  ANY REPRESENTATIONS TO THE CONTRARY AND ANY PREDICTIONS, WRITTEN OR ORAL, AS TO
						  THE AMOUNT OR CERTAINTY OF ANY PRESENT OR FUTURE CASH BENEFIT OR TAX
						  CONSEQUENCE WHICH MAY FLOW FROM AN INVESTMENT IN THIS PROGRAM IS NOT
						  PERMITTED.
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 › Disclosure and Marketing Requirements › Section 260.140.117.5 - Opinions of Counsel

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The application for qualification shall contain a
						  favorable ruling from the Internal Revenue Service or an opinion of counsel to
						  the effect that the issuer will be taxed as a "partnership" and not as an
						  "association" for federal income tax purposes. An opinion of counsel shall be
						  in form and substance satisfactory to the Commissioner and shall be unqualified
						  except to the extent permitted by the Commissioner. However, an opinion of
						  counsel may be based one reasonable assumptions, such as:
(1) facts or proposed operations as set forth
						in the offering circular or prospectus and organizational documents;
(2) the absence of future changes in
						applicable laws;
(3) the securities
						offered are paid for;
(4)
						compliance with certain procedures such as the execution and delivery of
						certain documents and the filing of a certificate of limited partnership or an
						amended certificate; and
(5) the
						continued maintenance of or compliance with certain financial, ownership, or
						other requirements by the issuer or general partner(s). The Commissioner may
						request from counsel as supplemental information such supporting legal
						memoranda and an analysis as he shall deem appropriate under the circumstances.
						To the extent the opinion of counsel or Internal Revenue Service ruling is
						based on the maintenance of or compliance with certain requirements or
						conditions by the issuer or general partner(s), the offering circular or
						prospectus shall contain representations that such requirements or conditions
						will be met and the partnership agreement shall, to the extent practicable,
						contain provisions requiring such compliance. There shall be included also an
						opinion of counsel to the effect that the securities being offered are duly
						authorized or created and validly issued interests in the issuer, and that the
						liability of the public investors will be limited to their respective total
						agreed upon investment in the issuer. The Commissioner may request an opinion
						of counsel concerning tax benefits flowing to the partnership when this appears
						necessary for the protection of investors.
1.
						  Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Miscellaneous Provisions › Section 260.140.118.2 - Reserves

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The program agreement shall provide that adequate
						  reserves for normal repairs, replacements and contingencies be maintained by
						  retention of a reasonable percentage of proceeds from the offering and regular
						  receipts. Normally, not less than 3% of the proceeds of the offering will be
						  considered adequate as an initial reserve fund.
1.
						  Renumbering and amendment of former section
						  260.140.118.2 to section
						  260.140.118.1; and renumbering and
						  amendment of former section
						  260.140.118.3 to section
						  260.140.118.2 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.
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 › Miscellaneous Provisions › Section 260.140.118.3 - Reinvestment of Cash Available for Distribution from Operations and Proceeds on Disposition of Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
						Reinvestment of cash available for distribution from operations or proceeds
						from a disposition or refinancing of property is allowed so long as sufficient
						cash will be distributed to investors to pay any resulting state or federal
						income tax. The amount to be distributed may be determined upon an assumption
						that all investors are in a specified tax bracket.
(b) Reinvestment does not include placements
						of funds held as reserves or short-term deposits (90 days or less) to fund
						distributions to investors.
1.
						  Renumbering and amendment of former Section
						  260.140.118.3 to Section
						  260.140.118.2; and renumbering and
						  amendment of former Section
						  260.140.118.4 to Section
						  260.140.118.3 filed 1-27-84;
						  effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Miscellaneous Provisions › Section 260.140.118.5 - Legend Condition

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
All program interests will normally be subject to the
						  restrictions on transferability as set forth in Section
						  260.141.11 of these
						  Rules.
1.
						  Amendment of subsection (d)(2) filed 3-12-74; effective thirtieth day
						  thereafter (Register 74, No. 11).
2. Renumbering and amendment of
						  former Section
						  260.140.118.5 to Section
						  260.140.118.4; and renumbering and
						  amendment of former Section
						  260.140.118.7 to Section
						  260.140.118.5 filed 1-27-84;
						  effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Miscellaneous Provisions › Section 260.140.118.6 - Impound

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The sale of program interests should normally be
						  subject to an impound.
1.
						  Repealer of former Section
						  260.140.118.6 and renumbering and
						  amendment of former Section
						  260.140.118.8 to Section
						  260.140.118.6 filed 1-27-84;
						  effective thirtieth day thereafter (Register 84, No.
						  4).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 › Miscellaneous Provisions › Section 260.140.118.7 - Legend Condition. [Renumbered]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						  Renumbering and amendment of Section
						  260.140.118.7 to Section
						  260.140.118.5 filed 1-27-84;
						  effective thirtieth day thereafter (Register 84, No.
						  4).
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 › Miscellaneous Provisions › Section 260.140.118.8 - Impound Condition. [Renumbered]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						  Renumbering and amendment of Section
						  260.140.118.8 to Section
						  260.140.118.6 filed 1-27-84;
						  effective thirtieth day thereafter (Register 84, No.
						  4).
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 › Partnership Agreement › Section 260.140.119.1 - Provisions of Partnership Agreement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The requirements and/or provisions of appropriate
						  portions of the following sections shall be included in a partnership
						  agreement:
260.140.111.4
260.140.111.5;
260.140.111.6;
260.140.113.3;
260.140.113.4;
260.140.113.5;
260.140.113.6;
260.140.113.7
260.140.113.8;
260.140.113.9;
260.140.114.1;
260.140.114.2;
260.140.114.3;
260.140.114.4;
260.140.114.5;
260.140.114.6;
260.140.114.7;
260.140.114.8;
260.140.114.9;
260.140.114.10;
260.140.114.13;
260.140.114.14;
260.140.115.3;
260.140115.4
260.140.115.5;
260.140.115.6;
260.140.116.1;
260.140.116.2;
260.140.116.3;
260.140.116.4;
260.140.116.5;
260.140.116.6;
260.140.116.8;
260.140.118.1;
260.140.118.3;
and 260.140.118.4.
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.
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 11 - Oil and Gas Interests › Section 260.140.120 - Application

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The rules in this subarticle shall govern the
						qualification of oil and gas programs in the form of limited partnerships
						(herein sometimes called "programs") and will be applied by analogy to oil and
						gas programs in other forms. While applications not conforming to the standards
						contained herein shall be looked upon with disfavor, where good cause is shown
						certain guidelines may be modified or waived by the
						Commissioner.
1.
						Repealer of Subarticle 11 (Sections
						260.140.120 -
						260.140.124), Article 4, and new
						Subarticle 11 (Sections
						260.140.120 -
						260.140.131.9), Article 4 filed
						12-6-74; effective thirtieth day thereafter (Register 74, No.
						49).
Note: Authority cited: Section
						  25610,
						  Corporations Code. Reference 25140, Corporations
						  Code.
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 11 - Oil and Gas Interests › Section 260.140.121 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following definitions are applicable to this
						subarticle.
(a) "Affiliate" means
(1) any person directly or indirectly
					 controlling, controlled by or under common control with another
					 person,
(2) a person owning or
					 controlling 10% or more of the outstanding voting securities of such other
					 person,
(3) any officer or director
					 of such other person and
(4) if
					 such other person is an officer or director, any company for which such person
					 acts in any such capacity.
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 11 - Oil and Gas Interests › Sponsor's Requirements › Section 260.140.122.1 - Experience

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The general partner or its chief operating officers
						  shall have at least three years relevant oil and gas experience demonstrating
						  the knowledge and experience to carry out the stated program policies and to
						  manage the program operations. Additionally, the general partner or any
						  affiliate providing services to the program shall have had not less than four
						  years relevant experience in the kind of service being rendered or otherwise
						  must demonstrate sufficient knowledge and experience to perform the services
						  proposed. If any managerial responsibility for the program is to be rendered by
						  persons other than the general partner, then such persons must be identified in
						  the prospectus, their experience must be similar to that required of a general
						  partner and must be set out in the prospectus, and a contract setting forth the
						  basis of their relationship with the program must be filed with and not
						  disapproved by the Commissioner.
1.
						  Editorial correction adding NOTE filed 11-8-82 (Register 82, No.
						  46).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 11 - Oil and Gas Interests › Sponsor's Requirements › Section 260.140.122.2 - Net Worth

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
						financial condition of the general partner must be commensurate with any
						financial obligations assumed by it. The general partner must specifically have
						a minimum aggregate net worth at all times at least equal to the greater of (1)
						$100,000 or (2) the lesser of $1,000,000 or 5% of the total subscriptions made
						by participants in all existing programs organized by the general partner,
						including the one being offered.
(b) In determining the general partner's net
						worth, the value of proven reserves, as determined by an independent petroleum
						engineer, of oil, gas and other minerals owned by a general partner may be
						used. Notes and accounts receivables from all programs, interests in all
						programs, and all contingent liabilities will be scrutinized carefully to
						determine the appropriateness of their inclusion in the net worth
						computation.
(c) If more than one
						person acts or serves as general partner of a program, the net worth
						requirements may be met by aggregating the net worth of all such persons. In
						addition, the net worth of any guarantor of the general partner's obligations
						to or for the program may be included in the net worth computation, but only if
						the guarantor's liability is coextensive with that of the general
						partner.
1.
						  Editorial correction adding NOTE filed 11-8-82 (Register 82, No.
						  46).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 11 - Oil and Gas Interests › Sponsor's Requirements › Section 260.140.122.3 - Reports to Commissioner

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The partnership agreement shall require that the
						  sponsor file with the Commissioner, concurrently with their transmittal to
						  participants, a copy of each report made pursuant to Section
						  260.140.128.3 of these
						  rules.
1.
						  Editorial correction adding NOTE filed 11-8-82 (Register 82, No.
						  46).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 11 - Oil and Gas Interests › Participant Suitability › Section 260.140.123.1 - Suitability Standards

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In view of the limited transferability, the relative
						  lack of liquidity, the high risk of loss or the specific tax orientation of
						  many oil and gas programs, suitability standards which are reasonably related
						  to the risks to be undertaken, will be required for the participants, and they
						  must be set forth in a writing to be executed by all participants. It will be
						  the responsibility of the sponsor and the persons selling units to see that
						  units are sold only to participants meeting the applicable suitability
						  standards.
1.
						  Editorial correction adding NOTE filed 11-8-82 (Register 82, No.
						  46).
Note: Authority cited: Section
							 25610,
							 Corporations Code. Reference: Section
							 25140,
							 Corporations Code.
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 11 - Oil and Gas Interests › Participant Suitability › Section 260.140.123.2 - Presumptive Suitability Standards

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Unless circumstances warrant and the
						Commissioner allows another standard, suitability standards for participants
						shall be presumptively reasonable if all of the following criteria are met:
(1) the participant has a net worth of
						$200,000 or more (exclusive of home, furnishings and automobiles), or
(2) the participant has a net worth of
						$50,000 or more (exclusive of home, furnishings and automobiles) and had during
						the last tax year, or estimates that he will have during the current tax year,
						"taxable income" as defined in Section
						63 of the Internal Revenue Code of
						1954, as amended, some portion of which was or will be subject to federal
						income tax at a rate of 50% or more, without regard to the investment in the
						program.