California Business and Professions Code

§ 10232.45

BPC § 10232.45 Effective Jan 1, 2016Div. 4 · Part 1 · Ch. 3 · Art. 5

Statute text

(a)Any broker subject to the provisions of Section 10232.3 or Article 6 (commencing with Section 10237) shall make reasonable efforts to ensure all of the following with respect to the offer or sale of notes or interest in notes to be secured by a lien on real property or a business opportunity:

(1)All persons to whom notes or interests are sold can be reasonably assumed to have the capacity to understand the fundamental aspects of the investment, by reason of their educational, business, or financial experience.

(2)All persons to whom notes or interests are sold can bear the economic risk of the investment.

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Legislative history

Amended by Stats. 2015, Ch. 263, Sec. 2. (SB 647) Effective January 1, 2016.