Section 260.140.114.14 - Program Indebtedness(a) Following termination of the offering, total indebtedness incurred by the program shall at no time exceed the sum of 80% of the aggregate purchase price of properties that have not been refinanced, and 80% of the aggregate fair market value of all refinanced properties, as determined by the lender as of the date of refinancing.(b) For purposes of this Section only, "indebtedness" shall include the principal of any loan together with any interest that may be deferred pursuant to the terms of the loan agreement which exceeds 5% per annum of the principal balance of such indebtedness (excluding contingent participations in income and/or appreciation in the value of the program property); and shall exclude any indebtedness incurred by the program for necessary working capital.Cal. Code Regs. Tit. 10, § 260.140.114.14
1. New section filed 5-18-92; operative 6-17-92 (Register 92, No. 22).
2. Editorial correction moving "Non-specified property programs" subheading to section 260.140.115.1 and amendment of HISTORY 1. (Register 92, No. 34). Note: Authority cited: Section 25610, Corporation Code. Reference: Section 25140, Corporation Code.
1. New section filed 5-18-92; operative 6-17-92 (Register 92, No. 22).
2. Editorial correction moving "Non-specified property programs" subheading to section 260.140.115.1 and amendment of History 1. (Register 92, No. 34).