R 432.1509 Debt transactions requiring board approval; process.

Rule 509. (1) A person that holds a casino license in this state, or a holding company or affiliate that has control of a person that holds a casino license in this state, may not close on any debt transaction affecting the capitalization or financial viability of its Michigan gambling operation or casino operation without first receiving the approval of the board. A person applying for a casino license in this state shall immediately notify the board upon entering into any debt transaction affecting the capitalization or financial viability of its proposed Michigan gambling operation or casino operation. The board shall consider debt transactions in determining the suitability of a person to be granted or to hold a casino license in this state. (2) A person that holds a casino license in this state, or a holding company or affiliate of a person that holds a casino license in this state, shall submit, in writing, a request for approval of a debt transaction that is subject to this rule. The procedure for requesting approval shall be as follows: (a) A person shall submit the request for approval not less than 10 days before a scheduled meeting of the board. The executive director shall place the request for approval of a debt transaction on the agenda of the board meeting. (b) A representative of the person requesting approval of the debt transaction shall be present at the board meeting to answer any questions posed by the board, the executive director, or his or her designee. (3) The request for approval of a debt transaction shall contain, at a minimum, all of the following information: (a) The names and addresses of all parties to the debt transaction. (b) The amount of the funds involved. (c) The type of debt transaction. (d) The source of the monies obtained by the person requesting approval of the debt transaction. (e) All sources of collateral. (f) The purpose of the debt transaction. (g) The terms of the debt transaction. (h) All filings that must be submitted to any regulatory agency in association with the debt transaction. (i) An executive summary of the debt transaction. (j) Other information deemed necessary by the executive director or the board to ensure compliance with the act and these rules.