N.J. Admin. Code § 13:69C-5A.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:69C-5A.1 - Exceptions to qualification

(a) Qualification of persons as required in N.J.S.A. 5:12-85.1b and c shall apply unless the Director, by ruling upon written request, grants an exception as provided in this subchapter. No other exceptions to qualification are valid.

(b) All such requests shall contain, at a minimum:

1. A marking at the top of the writing clearly and prominently displaying the requested ruling;

2. Citations to the specific statute and rule under which the request is made and under which the Director has the authority to rule on the request;

3. The full name of the person for whom the ruling is requested, the person's full address, a full description of the person's business(es), the identity of the applicant or casino licensee with which the person has a relationship, and a full description of that relationship;

4. Pertinent facts and circumstances involved in the matter;

5. Reason(s) in support of the requested ruling;

6. Written and irrevocable acknowledgement that the person submits to the jurisdiction of the State of New Jersey, the Division, the Commission, the Casino Control Act and the rules promulgated thereunder;

7. A representation, in writing, that the person agrees to promptly comply with all requests for information by the Division; and

8. Any other information that the Director may direct.

(c) As to a request for waiver under N.J.S.A. 5:12-85.1d, the Director may waive the requirement for a person to qualify if:

1. With respect to a holding, intermediary and subsidiary company of an applicant or casino licensee, the person is a corporate officer, director, or a direct or indirect holder of a beneficial interest or ownership interest of five percent or more in such holding, intermediary or subsidiary company; and

2. The information as set forth in (b) above is submitted.

(d) As to a request for exemption under N.J.S.A. 5:12-85.1f, the Director may exempt a person from the requirement to qualify if:

1. It is established that the person is a bank or licensed lending institution acting in the ordinary course of business with respect to its relationship with the applicant or casino licensee; and

2. The information as set forth in (b) above is submitted.

(e) As to a request for waiver under N.J.S.A. 5:12-85.1g, the Director may waive the requirement for a person to qualify if:

1. It is established that the person is an institutional investor as defined in 5:12-27.1 and:

i. As to equity securities of a casino licensee's holding or intermediary companies, it is established that the person holds under 25 percent thereof; or

ii. As to debt securities of a casino licensee's holding or intermediary companies or another subsidiary company of the casino licensee's holding or intermediary companies which is related in any way to the financing of the casino licensee, it is established that the person holds under 25 percent of the outstanding debt of the company and under 50 percent of any issue thereof unless the full issue is in the amount of $ 150 million or less;

2. The information as set forth in (b) above is submitted;

3. It is established that the person's holdings of such securities were acquired for investment purposes only;

4. The person files a certified statement by an individual authorized to fully act on behalf of the person:

i. That the person has no intention of influencing or affecting the affairs of the issuer, the casino licensee or its holding or intermediary companies; and

ii. That the person specifically acknowledges all statutory conditions set forth in N.J.S.A. 5:12-85.1g and h and agrees to promptly comply with all such provisions, specifically including but not limited to, the provision to provide not less than 30 days notice to the Division before taking any action that may influence or affect the affairs of the issuer, the casino license or its holding or intermediary companies and files a completed Institutional Investor Form as set forth in 13:69A-5.6B; and

5. As to a request for the Director to waive the requirement for a person to qualify holding a percentage of 25 percent or more of equity securities of a casino licensee's holding or intermediary companies or 25 percent or more of the outstanding debt securities of the company or 50 percent or more of any issue thereof, the Director may waive if:

i. The person complies with (e)1 through 4 above; and

ii. The person establishes good cause to the satisfaction of the Director.

(f) In issuing a ruling, the Director, in the exercise of his or her discretion under N.J.S.A. 5:12-85.1.e, may decide not to require a person to qualify if:

1. It is established that the person holds less than 25 percent of financial instruments or evidences of indebtedness which bear relation to the casino operation or casino hotel premises;

2. The information as set forth in (b) above is submitted; and

3. The person acknowledges in writing that, consistent with the provisions of N.J.S.A. 5:12-85.1e, the person will be required to qualify pursuant to N.J.S.A. 5:12-85.1c if, in circumstances of default, foreclosure or other similar event, the person holds 10 percent or more of such instruments or evidences of indebtedness.

N.J. Admin. Code § 13:69C-5A.1

Amended by 50 N.J.R. 599(a), effective 1/16/2018