Definition of Subscription Agreement

Subscription agreement is an application signed by the purchaser of an interest in a DPP. An investor in a limited partnership does not become an investor until the general partner signs the subscription agreement.

Applying "Subscription Agreement" to Securities Exams:

Unlike common stock, interests in limited partnerships are not freely transferable. All limited partners and substitute limited partners must be accepted by the general partner. All limited partners must read and sign the partnership agreement and all limited partners must be accepted by the general partner when they counter sign the partnership agreement.

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