Section 260.140.115.3 - Investment Restrictions and Objectives(a) Unimproved or non-income producing property shall not be acquired except upon terms which can be financed by the program proceeds or from cash available for distribution from operations. Investments in such property shall not exceed 25% of the gross proceeds of the offering. Properties which are expected to produce income within a reasonable period of time shall not be considered non-income producing. For purposes of this paragraph two years shall be deemed to be presumptively reasonable.(b) Investments in junior trust deeds, and other similar obligations shall be prohibited, except for junior trust deeds which arise from the sale of program properties.(c) The manner in which acquisitions will be financed, including the use of an all-inclusive note or wrap-around mortgage, and the amount of leverage to be employed shall be fully set forth in the statement of investment objectives.(d) The prospectus shall disclose whether the program will enter into joint venture arrangements and the projected extent thereof.Cal. Code Regs. Tit. 10, § 260.140.115.3
1. Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No. 4).
2. Amendment of section heading and subsection (a), repealer of subsection (c), and new subsections (c) and (d) filed 5-18-92; operative 6-17-92 (Register 92, No. 22). Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.
1. Amendment filed 1-27-84; effective thirtieth day thereafter (Register 84, No. 4).
2. Amendment of section heading and subsection (a), repealer of subsection (c), and new subsections (c) and (d) filed 5-18-92; operative 6-17-92 (Register 92, No. 22).