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What happens if I do not give my consent to the EB-5 regional center when they seek to redeploy my funds after the original loan term is over?

I am an investor with a pending EB-5 application with an I-526 approval. The PPM from the original document was silent on the redeployment issue once the original loan term is over. What happens if I withdraw my I-526 soon and refuse to consent to the redeployment of my funds? Are they obligated to return the funds to me or can they redeploy the funds without my consent in that scenario?

Answers

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    Robert V Cornish Jr

    Securities Attorney
    Answered on

    You need a securities attorney to review your offering documents to ascertain what the terms of redeployment provide. There may be broad language upon which the developer is relying that conflicts with the governing law of the transaction. There may be other things going on here, all of which may also be governed by the withdrawal and timing of your I-526.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Someone needs to review the fine print of your project documents to advise you.

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    Micol Mion Gordon

    Immigration Attorney
    Answered on

    The contract you signed with the regional center should have a provision about the methodology for the return of funds in case your I-526 is denied or if you withdraw the application. Thus you first should consult the agreement. If the agreement is silent also on this issue, then you should contact the RC to inquire about the procedure and timeline for the return of funds.