# WAC 388-835-0015: WAC 388-835-0015. What is a "beneficial owner"? > Washington · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0015 ## Section - **Citation:** WAC 388-835-0015 - **Heading:** WAC 388-835-0015. What is a "beneficial owner"? - **Jurisdiction:** Washington - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Washington Administrative Code / Title 388 / Chapter 388-835 / Section 388-835-0015 ## Text A beneficial owner is any person who: (1) Has or shares, by contract, arrangement, understanding, relationship, or otherwise, the power to: (a) Vote or direct the voting of an ownership interest; and/or (b) Invest, including the power to dispose of or direct the disposition of an ownership interest. (2) Creates or uses a trust, proxy, power of attorney, pooling arrangement, or any other contract, arrangement, or device to divest a beneficial owner of their ownership or prevent the vesting of their ownership in order to evade the reporting requirements of this chapter; (3) Has the right to acquire a beneficial ownership interest within sixty days of one of the following occurring: (a) Exercising any option, warrant, or right; (b) Converting an ownership interest; (c) Revoking a trust, discretionary account, or similar arrangement; or (d) Automatically terminating a trust, discretionary account, or similar arrangement. (e) Any person acquiring an ownership interest by exercising (a), (b) or (c) of this subsection must be deemed the beneficial owner of that interest. (4) In the ordinary course of business, according to a written pledge agreement, becomes a pledge of an ownership interest. A pledge must not be deemed the beneficial owner of a pledged ownership interest except when all of the following conditions are met: (a) The pledge must follow all the steps in the pledge agreement and: (i) Declare a default and determine the power to vote; (ii) Direct the vote; or (iii) Dispose of the pledged ownership interest; or (iv) Direct how the disposition of the pledged ownership interest will take place. (b) The agreement must: (i) Be bona fide; (ii) Not change or influence a provider's control; and (iii) Not be related to any transaction attempting to change or influence a provider's control. (c) The agreement, before default, cannot grant the pledge the power to: (iii) Dispose of the pledged ownership interest; or (iv) Direct how the disposition of the pledged ownership interest will take place. (b) The agreement must: (i) Be bona fide; (ii) Not change or influence a provider's control; and (iii) Not be related to any transaction attempting to change or influence a provider's control. (c) The agreement, before default, cannot grant the pledge the power to: (i) Vote or direct the vote of the pledged ownership interest; or (ii) Dispose or direct the disposition of the pledged ownership interest except where credit is extended and the pledge is a broker or dealer. ## Nearby sections - [WAC 388-835-0005 WAC 388-835-0005. What is the purpose of this chapter?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0005.md) - [WAC 388-835-0010 WAC 388-835-0010. What terms and definitions are important to understanding this chapter?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0010.md) - [WAC 388-835-0015 WAC 388-835-0015. What is a "beneficial owner"?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0015.md) - [WAC 388-835-0020 WAC 388-835-0020. What is a "change in ownership"?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0020.md) - [WAC 388-835-0025 WAC 388-835-0025. How can lease agreements be terminated?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0025.md) - [WAC 388-835-0030 WAC 388-835-0030. What is a "qualified therapist"?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0030.md) - [WAC 388-835-0035 WAC 388-835-0035. Does DSHS grant exemptions to these rules?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0035.md) - [WAC 388-835-0040 WAC 388-835-0040. What general requirements apply to ICF/MR care facilities?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0040.md) - [WAC 388-835-0045 WAC 388-835-0045. What are the minimum staff requirements for an ICF/ID facility?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0045.md) - [WAC 388-835-0050 WAC 388-835-0050. What general requirements apply to the quality of ICF/ID services?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0050.md) - [WAC 388-835-0055 WAC 388-835-0055. What are the resident's rights if DSHS decides that they are no longer eligible for ICF/ID services?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0055.md) - [WAC 388-835-0060 WAC 388-835-0060. What are DSHS responsibilities when it decides to redetermine a resident eligibility for ICF/ID services?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0060.md) - [WAC 388-835-0065 WAC 388-835-0065. Do residents always have a right to a hearing?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0065.md) - [WAC 388-835-0070 WAC 388-835-0070. What requirements apply to the placement of individuals in an ICF/ID facility?](https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0070.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_WA_ADC_388_835_0015. Check the current official text before relying on it. Not legal advice.