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

   1. (a) Selection of the security;
   2. (b) Collection of payments due under the securities;
   3. (c) Advancement of delinquent payments;
   4. (d) Decisions regarding default and foreclosure;
   5. (e) Any other activity by the seller whereby management and control is exercised over the investment for the purchaser; or
   6. (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.

Statutory/Other Authority

ORS 59.045 & 59.285

Statutes/Other Implemented

ORS 59.035 & 59.045

History

FCS 1-1992, f. 1-31-92, cert. ef. 2-1-92
FCS 4-1990, f. & cert. ef. 8-21-90, Renumbered from 815-037-0039
FCS 16-1988(Temp), f. & cert. ef. 11-21-88
FCS 7-1988, f. 3-22-88, cert. ef. 3-25-88, Renumbered from 815-030-0042
FCS 4-1987(Temp), f. 9-24-87, cert. ef. 9-28-87