(a)

1. (1) As used in this section, “licensee” means any person to whom a valid casino license, mobile gaming system, or an intercasino-linked system, manufacturer’s, distributor’s, or disseminator’s license, or a service provider license has been issued.
2. (2) The term does not include a person licensed solely as a holder of a security or other ownership interest in, as an officer, director, or key employee of, or due to any other relationship with, a licensed operation.

(b)

1. (1) Any licensee that receives, accepts, or makes use of any cash, property, credit, guaranty, benefit, or any form of security loaned to, leased to, or provided for or on behalf of the licensee or an officer, director, agent, employee, or stockholder of the licensee, in a transaction required to be reported under this part, must report the transaction to the Arkansas Racing Commission in the manner required by this part within thirty (30) days after the end of the calendar quarter in which the transaction is consummated.
2. (2) A transaction is considered consummated the earlier of the contract date or the date the cash, property, credit, guaranty, benefit, or security is received.

(c) Except as provided in this part, each of the following transactions must be reported to the commission, if the dollar amount of the transaction or the fair market value of the assets involved exceeds three hundred thousand dollars ($300,000) or the average monthly payment exceeds thirty thousand dollars ($30,000):

1. (1) Leases, including leaseback transactions and capital leases;
2. (2) Deposits received by the licensee pursuant to an arrangement for use of space at the licensee’s establishment;
3. (3) Installment purchase contracts; and
4. (4) Property donated to the licensee.

(d) Except as provided in this part, each of the following transactions must be reported to the commission if the dollar amount of the transaction exceeds thirty thousand dollars ($30,000):

1. (1) Loans, mortgages, and trust deeds;
2. (2) Capital contributions and loans by a person who is a stockholder, partner, or proprietor of the licensee;

3. (3) Safekeeping deposits which:

   1. (A) Are made by an individual beneficially owning, directly or indirectly, a ten-percent or greater interest in the licensee;
   2. (B) Are commingled with the licensee’s funds;
   3. (C) Are left for more than ten (10) days; and
   4. (D) At any time during that period, aggregate to an amount greater than twenty-five percent (25%) of cash in the cage;
4. (4) Lines of credit;
5. (5) Accounts payable and accrued expenses due to unaffiliated persons where the payment terms or actual length of payments exceed twelve (12) months;
6. (6) Conversions of accounts payable, accrued expenses, or other liabilities to notes payable;
7. (7) Debts forgiven by a lender;
8. (8) Guaranties received by the licensee; and
9. (9) Accruals of salary due to an individual directly or indirectly owning an interest in the licensee where the accrual period exceeds ninety (90) days.

(f) The following transactions need not be reported to the commission regardless of the dollar amount of the transaction, fair market value of the assets involved, or average monthly payment:

1. (1) Draws against a previously reported extension of credit;
2. (2) Except for items specifically described in this part, goods or services that are exchanged for other goods or services of an affiliate of the licensee;
3. (3) Short-term cash loans which have a payback period of fewer than seven (7) days and are provided to the licensee on a regularly recurring basis, provided the terms and conditions of the arrangement have not changed, and provided the initial loan or financing arrangement has been reported;
4. (4) Loans and other financing activities that were reviewed during an investigation which resulted in commission action, provided the terms and conditions of the arrangements have not changed;
5. (5) Financing of gaming devices or associated equipment installed and used during a trial period authorized pursuant to this part;
6. (6) Funds received by the licensee in satisfaction of accounts or notes receivable;
7. (7) Purchases or leases of gaming devices and associated equipment where the seller or lessor is a licensed manufacturer or distributor, and the financing is not provided by a third party;

8. (8)

   1. (A) Cash, property, credit, services, guaranty, benefit, or any form of security loaned to or provided for or on behalf of the licensee by a licensed affiliate, licensed subsidiary, or registered parent of the licensee.
   2. (B) However, such financing from a stockholder, partner, unlicensed affiliate, or proprietor of the licensed operation must be reported;
9. (9) Assessments for property taxes or other improvements by, or accruals for taxes due to, a government entity;
10. (10) Payments of gaming winnings over time to patrons;
11. (11) Deposits or payments received by the licensee in conjunction with a convention or similar event;
12. (12) Leases, including leaseback transactions and capital leases, where the lease term, including any extensions or renewals, does not exceed ninety (90) days; and
13. (13) Financing activity that has been filed and administratively approved by the commission pursuant to this part.

(h)

1. (1) The report to the commission required by this section must include:

   1. (A) The names and addresses of all parties to the transaction;
   2. (B) The amount and source of the funds, property, or credit received or applied;
   3. (C) The nature and amount of security provided by or on behalf of the licensee;
   4. (D) The purpose of the transaction; and
   5. (E) Any additional information the commission may require.
2. (2) For transactions reported pursuant to requirements of this part, the report must also identify the dates of each loan or contribution.

3. (3) The report must be:

   1. (A) Made on a form provided or approved by the commission;
   2. (B) Accompanied by a fully executed copy of the financing agreement; and
   3. (C) Signed by an owner or key employee as defined in this part.

(i) In the event a party to any transaction reportable pursuant to this part is a person other than the reporting licensee or a financial institution or related subsidiary, or a publicly traded company, the report must be accompanied by a supplemental filing which must include that person’s:

1. (1) Federal tax identification number or Social Security number;
2. (2) Date of birth;
3. (3) Banking references;
4. (4) Source of funds; and
5. (5) Any additional information the commission may require.