205 CMR 116.03 - Waivers
(1) The commission may, in its discretion,
waive qualification requirements for the following persons under the following
conditions:
(a) In the case of applicant
corporations and holding, intermediary and subsidiary corporations, those
persons holding less than 5% of the common stock of the company;
(b) In the case of institutional investors,
if the institutional investor holds up to 15% of the stock of the applicant,
holding, intermediary or subsidiary company;
(c) In the case of persons involved in the
financing of the gaming establishment provided:
1. A lender to an applicant or licensee that
is obtaining financing for the construction or operation of a Category 1 or
Category 2 facility shall be required to be licensed, unless the following
apply:
a. The lender is in the business of
providing debt or equity capital to individuals or entities;
b. The loan is in the ordinary course of the
lender's business; and
c. The
lender does not have the ability to control or otherwise influence the affairs
of the applicant or licensee.
2. A lender that is required to be licensed
may lend to an applicant or licensee if the lender has filed a completed
application in accordance with 205 CMR and has received lender authorization
from the commission or bureau.
3. A
person that acquires a debt instrument issued by an applicant or licensee in a
public or exempt private offering shall not be required to be licensed if:
a. The person does not have any right or
ability to control or influence the affairs of the licensee; and
b. The person'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
205 CMR 116.00.
4. Notwithstanding any provision
to the contrary in
205 CMR 116.00, the
commission may require the licensure of any person that holds a debt instrument
issued by an applicant or licensee if the commission has reason to believe that
the person would not satisfy the requirements of 205 CMR or M.G.L. c. 23K;
or
(d) In the case of
any person that, in the opinion of the commission cannot exercise control or
provide direction to a gaming licensee or applicant for a gaming licensee or a
holding, intermediary or subsidiary company thereof.
(2) In determining whether to waive
qualification requirements under 205 CMR 116.03(l), the commission shall
consider whether the person 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.
(3) Any person may seek a waiver under 205
CMR 116.03(l) by filing a petition with the Commission pursuant to
205 CMR
102.03(4): Waivers and
Variances; provided, however, that the commission or the bureau may require the
submission of any such information deemed necessary to act on the request for a
waiver or, at any time, if the commission or the bureau has reason to believe
that the person would not satisfy any of the requirements of 205 CMR or M.G.L.
c. 23K.
(4) Any party granted a
waiver under 205 CMR 116.03 which subsequently anticipates engaging in any
activity that will or could influence or affect the affairs or operations of
the applicant or the holding, intermediary or subsidiary company thereof, shall
provide not less than 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 applicant or the holding, intermediary or subsidiary company thereof
unless and until the commission issues a determination of suitability under
205 CMR 115.00: Phase 1 and
New Qualifier Suitability Determination, Standards and Procedures for said
party.
Notes
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