1. (a) Ordinarily, the program may not be mandatorily obligated to redeem or repurchase any of the units of the program, although the program need not be precluded from purchasing such outstanding units if the purchase does not impair the capital or the operations of the program. Notwithstanding the foregoing, the program may obligate itself to redeem units under terms which comply with Section 260.140.116.6 of these rules.
2. (b) Provisions in the partnership agreement or other documents which require the unit owner to sell his unit or give the program or any other person the right to repurchase such unit, irrespective of the desire of the owner to sell, will not be approved.

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).