Guidelines in Buying Shares/Proprietary Membership Certificates of Resorts and Country Clubs

March 11, 1977GUIDELINES IN BUYING SHARES/PROPRIETARY MEMBERSHIP CERTIFICATES OF RESORTS AND COUNTRY CLUBSIn order to be properly and reasonably assured that the shares/proprietary membership certificates being bought by a would-be investor-member of a resort and country club, are from fully legitimate and financially sound sources, the following guidelines are hereby suggested:1) If the shares or proprietary membership certificates of the issuing corporation exceed 20 in number, the same should have been first registered with the Commission before being sold to the public, except when the same is exempted under its Rules on Registration and sale of proprietary rights, consisting of any of the following: cdrepa) When the issuer corporation has fully constructed its golf courses, clubs, resorts, recreational or athletic facilities and is no longer raising funds from the public;b) When the sales are made to less than twenty (20) persons;c) When the sales are made to persons who are clearly connected with the issuer corporation, such as sales to its employees as well as personnel of a sister or affiliated company who know the...