N.Y. Comp. Codes R. & Regs. tit. 9 § 5301.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 5301.4 - Waiver of licensing or qualification requirements by commission

(a) The commission may in its discretion waive the licensing or qualification requirement for any of the following:

(1) qualified institutional investors and passive investors as defined in section 5300.1 of this Title;

(2) in the case of gaming facility applicant or licensee corporations and holding, intermediary and subsidiary corporations of said applicant or licensee corporations, those persons holding less than five percent of the voting securities of the company;

(3) a lender to a gaming facility applicant or licensee that is obtaining financing for the construction or operation of the gaming facility shall be required to be licensed unless each of the following applies:

(i) the lender is in the business of providing debt or equity capital to individuals or entities;

(ii) the loan is in the ordinary course of the lender's business; and

(iii) the lender does not have the ability to control or otherwise influence the affairs of the gaming facility applicant or licensee;

(4) a party that acquires a debt instrument issued by a gaming facility applicant or licensee in a public or exempt private offering shall not be required to be licensed if:

(i) the party does not have a right or ability to control or influence the affairs of the gaming facility applicant or licensee; and

(ii) the party's acquisition of the debt instrument is in the ordinary course of business and is not part of a plan or scheme to avoid the requirements of this section.

(b) In determining whether to waive qualification requirements, the commission shall consider whether the party seeking the waiver obtained its interest for investment purposes only and does not have any intention to influence or affect the affairs of the applicant or any affiliated companies thereof.

(c) A party may seek a waiver by filing with the commission:

(1) the applicable waiver certification form available on the commission's website; and

(2) any additional information deemed necessary by the commission to act on the request for a waiver.

(d) The commission shall investigate each waiver request. A deposit may be required to be paid by the requester of a waiver in advance as a condition precedent to the commission beginning or continuing its investigation. After all investigative fees and costs have been paid by the requester of a waiver, any balance remaining is refunded to the applicant.

(e) If a waiver is granted, the commission shall prepare a letter granting the waiver and setting forth the waiver conditions, including the duration of such waiver.

(f) Any party granted a waiver under this part that subsequently anticipates engaging in any activity that will or could influence or affect the affairs or operations of the gaming facility applicant or licensee or the holding, intermediary or subsidiary company thereof, shall provide at least 30 days notice to the commission of such intent and the party shall not exercise any influence or effect on the affairs or operations of the gaming facility applicant or licensee or the holding, intermediary or subsidiary company thereof unless and until the commission issues a determination of suitability under section 5301.5 of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5301.4

Adopted New York State Register September 30, 2015/Volume XXXVII, Issue 39, eff.9/30/2015

Amended New York State Register December 28, 2022/Volume XLIV, Issue 52, eff. 12/28/2022