Suitability of persons acquiring beneficial or record ownership of any economic security or debt security in private investment company — Report of acquisition — Application — Penalty
Arkansas Constitution, Amendment 100, sec. 4
- (a) Each person who acquires beneficial ownership or record ownership of any direct or indirect interest in any economic security in a private investment company which is registered with the Arkansas Racing Commission may be required to be found suitable in the discretion of the commission.
- (b) Each person who acquires beneficial or record ownership of any direct or indirect interest in any debt security in a private investment company which is registered with the commission may be required to be found suitable in the discretion of the commission.
(c) Any person required by the commission or by this section to be found suitable shall:
- (1) Apply for a finding of suitability within thirty (30) days after the commission requests that the person do so; and
- (2) Together with the application, deposit with the commission a sum of money which, in the opinion of the commission, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application, and deposit such additional sums as are required by the commission to pay final costs and charges.
- (d) Any person required by the commission or this section to be found suitable who is found unsuitable by the commission shall not hold directly or indirectly the beneficial or record ownership of any economic security or debt security.
- (e) As used in this section, “debt security” means any instrument generally recognized as a corporate security representing money owed and reflected as debt on the financial statement of a legal entity.