23 CAR § 358-703 – Transfer of interest to stranger to license

(a) Except as and to the extent provided in this part pertaining to emergency situations, no individual who is the owner of any interest in a licensed gaming operation shall in any manner whatsoever transfer any interest therein to any person, firm, or corporation not then an owner of an interest therein, and no such transfer shall become effective for any purpose until the proposed transferee or transferees shall have made application for and obtained all licenses required by The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, and this part, or have been found to be individually qualified to be licensed, as appropriate.
(b) Applications for a transfer of interest to a stranger to the license, except the granting of a possessory security interest in equity securities of a licensee or of a holding company subject to this part, shall be made by the transferee applying for licensing or registration under the rules thereunder as appropriate, as provided in this part.
(c)
1. (1) Evidence of the transferor’s agreement to transfer the interest applied for must accompany the application.
2. (2) Licensing or registration of the transferee shall be deemed to constitute approval of the transfer by the Arkansas Racing Commission.
(d)
1. (1) Applications for approval of the granting of a possessory security interest shall be made in writing to the commission.
2. (2) The application shall set forth all material facts relating to the transaction and be accompanied by copies of the documents evidencing the transaction.
3. (3) An application will not ordinarily be granted unless such documents include the following:
  1. (A) The physical location of the certificates evidencing the transaction shall at all times remain within the territorial boundaries of the State of Arkansas; and
  2. (B)
(i) The holder of said certificates shall not surrender possession of the securities without the prior approval of the commission.
1. (ii) An approval of the granting of a possessory security interest shall be deemed to constitute approval of the transfer by the commission.
  1. (iii) No such approval, however, shall constitute permission to foreclose without a further order of the commission.