Or. Admin. Code § 441-035-0020

Current through Register Vol. 64, No. 1, January 1, 2025

Section 441-035-0020 - Transactions Ineligible Under ORS 59.035(7) Exemption

The exemption under ORS 59.035(7) is not available if the transaction includes an investment contract. An investment contract may be found in:

(1) The sale of fractional interests or pooled interests in real paper. Under ORS 59.350(2), a transaction with an entity formed substantially for the purpose of acquiring the real estate paper will be treated as the sale of a fractional interest or pooled investment.

(2) Any of the following activities by the seller or its affiliates:

(a) Selection of the security;

(b) Collection of payments due under the securities;

(c) Advancement of delinquent payments;

(d) Decisions regarding default and foreclosure;

(e) Any other activity by the seller whereby management and control is exercised over the investment for the purchaser; or

(f) The mortgage broker, broker-dealer, or person described in ORS 59.015(1)(b) guarantees the real estate paper or agrees to buy back or otherwise replace the real estate paper in the event of default.

Or. Admin. Code § 441-035-0020

FCS 4-1987(Temp), f. 9-24-87, ef. 9-28-87; Renumbered from 815-030-0042.1; FCS 7-1988, f. 3-22-88, cert. ef. 3-25-88; FCS 16-1988(Temp), f. & ef. 11-21-88; Renumbered from 815-037-0039; FCS 4-1990, f. & cert. ef. 8-21-90; FCS 1-1992, f. 1-31-92, cert. ef. 2-1-92

Stat. Auth.: ORS 59.045(1) & ORS 59.285

Stats. Implemented: ORS 59.035(7) & ORS 59.045(1)