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

The exemption under ORS 59.035 (Transactions exempt from registration)(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 (Treatment of certain transactions)(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 (Definitions for Oregon Securities Law)(1)(b) guarantees the real estate paper or agrees to buy back or otherwise replace the real estate paper in the event of default.

Source: Rule 441-035-0020 — Transactions Ineligible Under ORS 59.035(7) Exemption, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=441-035-0020.

Last Updated

Jun. 8, 2021

Rule 441-035-0020’s source at or​.us