SECURITIES FILINGS FOR NOTE SYNDICATIONS, WHOLE AND FRACTIONAL NOTE OFFERINGS, AND OTHER DEBT SECURITIES IN CALIFORNIA
In recent years, it has become unclear whether offerings of real estate debt securities such as whole and fractional notes, notes hypothecations, borrower payment dependent notes, exemptedunder California Corporations Code §25102(f) were required to file a Limited Offering Exemption Notice or “LOEN” filing once or per loan.
The California Department of Business Oversight (the “DBO”) has finally provided clarity that all lenders or brokers who offer debt securities under the securities exemption set forth under California Corporations Code §25102(f) are required to file a “LOEN” Filing for each loan or debt security.
For example, if a lender seeks to offer whole and fractionalized notes to multiple beneficiaries / investors per loan utilizing the California Corporations Code §25102(f) securities exemption, they must ensure that they file a LOEN filing for each loan prior to or upon closing.
LOEN filings can be processed online via the DBO’s docqnet portal and the filing fees are on a sliding scale at a maximum of $300.
If you are interested in pursuing a debt offering under California Corporations Code §25102(f) or any other securities exemption, or you are interested in compliance for your existing debt securities offering, please contact Kevin Kim at (949)535-1439.
Company Name: Geraci Law Firm
Contact Person: Kevin Kim, Esq.
Email: Send Email
Phone: (949) 535-1439
Country: United States