§ 2792.13. Undivided Interests Subdivisions -Impound of Funds.

All funds received from prospective buyers to be applied to the purchase of undivided subdivision interests, including community apartment projects and stock cooperatives and limited equity housing cooperatives, shall be deposited and held intact in an escrow depository acceptable to the Real Estate Commissioner until bona fide offers have been obtained for the purchase of a prescribed percentage of all of the interests being offered for sale.

In the event that the prescribed percentage of offers have not been obtained within two years from the date of the issuance of the public report, or such other period as the commissioner may approve, all funds theretofore collected shall be promptly returned by the escrow depository to owners without deduction.

The prescribed percentage shall be determined by the commissioner based upon the facts and circumstances of each such offering. Ordinarily this percentage shall be not less than 60% of the interests being offered for sale provided, however, that the commissioner may prescribe a lesser percentage if the plan of the offering includes other financial arrangements to lessen the possibility of foreclosure of a non-delinquent interest on account of the delinquencies of other owners.

HISTORY

1. New section filed 9-17-65; effective thirtieth day thereafter (Register 65, No. 17).

2. Amendment filed 12-10-71; effective thirtieth day thereafter (Register 71, No. 50).

3. Amendment filed 6-30-80; effective thirtieth day thereafter (Register 80, No. 28).