The sponsor shall maintain for a period of at least four years a record of the information obtained to indicate that a participant meets the suitability standards established in connection with the offer and sale of the program units. In addition, he must obtain a representation from each participant that he has purchased units for his own account or, in lieu of such representation, information indicating that the participants for whose account the purchase was made met such suitability standards. Such information may be obtained from the participant through inclusion of such statement in the writing described in Section 260.140.123.3 of these rules. If units are sold by a broker-dealer, the sponsor shall obtain a commitment from the broker-dealer to the effect that such broker-dealer will obtain and maintain in its files the record of information which otherwise would have been required of the sponsor.

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).