OAR 441-035-0020: Transactions Ineligible Under ORS 59.035(7) Exemption

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) 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) Any of the following activities by the seller or its affiliates: (a) Selection of the security; (b) Collection of payments due under the securities; (c) Advancement of delinquent payments; (d) Decisions regarding default and foreclosure; (e) Any other activity by the seller whereby management and control is exercised over the investment for the purchaser; or (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.