Section 260.140.118.3 - Reinvestment of Cash Available for Distribution from Operations and Proceeds on Disposition of Property(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.Cal. Code Regs. Tit. 10, § 260.140.118.3
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.
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).