“Rollup participant” means a finite-life limited partnership.
(a) Except as provided in subdivision (b) of Section 25014.6, a limited partnership has “finite-life” if both of the following apply:
(1) It operates as a conduit vehicle for investors to participate in the ownership of assets for a limited period of time.
(2) It has a policy or purpose of distributing to investors substantially all proceeds from the sale, financing, or refinancing of assets, whether for the term of the partnership or after an initial period of time following commencement of operations, rather than reinvesting those proceeds in the business.
(b) Rollup participant does not include any partnership registered under the Investment Company Act of 1940 or any business development company as defined in Section 80a-2(48) of Title 15 of the United States Code.
(Added by Stats. 1992, Ch. 1183, Sec. 2. Effective January 1, 1993.)