R 432.1501 Applicability of part; transfer of ownership interest; limitation.

Rule 501. (1) An interest in a person applying for or holding a casino license or supplier license may only be transferred in accordance with this part. Except as stated in subrules (3) and (5) of this rule, the following persons must receive board approval before transferring the interest: (a) A person that transfers or acquires greater than a 5% interest in a person that has applied for or holds a casino license or supplier license in this state. (b) A person that will, as a result of an acquisition approved by the board, have acquired an interest totaling greater than 5% in a person that has applied for or holds a casino license or supplier license. (2) Before or when the board approves a transfer of interest, it shall determine that the person acquiring the interest is eligible and suitable under the standards set forth in the act and these rules, unless the board grants the person an institutional-investor waiver under these rules or under section 6c of the act, MCL 432.206c. (3) A transfer of interest to an institutional investor that acquires or will have acquired, on completion of the transfer, less than 15% of the equity securities of a person that applies for or holds a casino license or supplier license may occur without first receiving board approval but is subject to other requirements of this part. (4) The organizational documents of all persons who have applied for or hold a casino license or supplier license must contain a provision stating that transfers of ownership interests in the applicant or licensee may only be made in accordance with this rule. (5) A transfer of interest in a supplier licensee may occur without first receiving board approval if the transfer is between persons the board has found eligible, qualified, and suitable for licensure during the licensing period where the transfer occurs. In those cases, approval of the transfer must be requested no later than 30 days after the transfer, and the executive director may decide the application. If approval is denied, the transferee shall divest itself of the interest within 30 days after the date of the order denying approval.