In view of the limited transferability, the relative lack of liquidity, the high risk of loss or the specific tax orientation of many oil and gas programs, suitability standards which are reasonably related to the risks to be undertaken, will be required for the participants, and they must be set forth in a writing to be executed by all participants. It will be the responsibility of the sponsor and the persons selling units to see that units are sold only to participants meeting the applicable suitability standards.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Editorial correction adding Note filed 11-8-82 (Register 82, No. 46).