N.J. Admin. Code § 19:43A-8.8

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:43A-8.8 - Powers, authorities, and duties of conservators

(a) Upon his or her appointment, the conservator shall become vested with the title of all the property of the former or suspended licensee relating to the casino and the approved hotel, subject to any and all valid liens, claims, and encumbrances.

(b) The conservator shall have the duty to conserve and preserve the assets so acquired to the end that such assets shall continue to be operated on a sound and business-like basis.

(c) Subject to the general supervision of the Commission and pursuant to any specific order it may deem appropriate, a conservator shall have power to:

1. Take into his or her possession all the property of the former or suspended licensee relating to the casino and the approved hotel, including its books, records, and papers;

2. Institute and defend actions by or on behalf of the former or suspended licensee;

3. Settle or compromise with any debtor or creditor of the former or suspended licensee, including any taxing authority;

4. Continue the business of the former or suspended licensee and to that end enter into contracts, borrow money, and pledge, mortgage, or otherwise encumber the property of the former or suspended licensee as security for the repayment of the conservator's loans; provided, however, that such power shall be subject to any provisions and restrictions in any existing credit documents;

5. Hire, fire, and discipline employees;

6. Review all outstanding agreements to which the former or suspended licensee is a party that fall within the purview of Section 104.b of the Act and advise the Commission as to which, if any, of such agreements should be the subject of scrutiny, examination, or investigation by the Commission; and

7. Do all further acts as shall best fulfill the purposes of the Act.

(d) Except during the pendency of a suspension or during the pendency of an appeal from any action or event set forth in Sections 31(a) or (b) of P.L. 1978, c. 7, which precipitated the conservatorship or in instances in which the Commission finds that the interests of justice so require, the conservator, subject to the prior approval of and in accordance with such terms and conditions as may be prescribed by the Commission, and after appropriate prior consultation with the former licensee as to the reasonableness of such terms and conditions, shall endeavor to and be authorized to sell, assign, convey, or otherwise dispose of in bulk, subject to any and all valid liens, claims, and encumbrances, all the property of a former licensee relating to the casino and the approved hotel only upon written notice to all creditors and other parties in interest and only to such persons who shall be eligible to apply for and shall qualify as a casino licensee in accordance with the provisions of the Act.

1. Prior to any such sale, the former licensee shall be granted, upon request, a summary review by the Commission of such proposed sale.

2. As an incident of its prior approval, pursuant to this subsection, of the sale, assignment, conveyance, or other disposition in bulk of all property of the former licensee relating to the casino and the approved hotel, the Commission may, in its discretion, require that the purchaser thereof assume in a form and substance acceptable to the Commission all of the outstanding debts of the former licensee that arose from or were based upon the operation of either or both the casino or the approved hotel.

(e) The Commission may direct that the conservator, for an indefinite period of time, retain the property and continue the business of the former or suspended licensee relating to the casino and the approved hotel. During such period of time or any period of operation by the conservator, he or she shall pay when due, without in any way being personally liable, all secured obligations and shall not be immune from foreclosure or other legal proceedings to collect the secured debt, nor with respect thereto shall such conservator have any legal rights, claims, or defenses other than those which would have been available to the former or suspended licensee.

N.J. Admin. Code § 19:43A-8.8

Adopted by 47 N.J.R. 1653(a), effective 7/6/2015