(a)(1) No facility manager shall consummate a material debt transaction that involves either of the following without the prior approval of the commission:

1. (A) Any agreement that provides for any borrowing for a purpose other than capital and maintenance expenditures; or

2. (B) a guarantee of debt of an affiliate, whether signing a note or otherwise, an assumption of the debt of an affiliate, or an agreement to impose a lien on the approved gaming facility to secure the debts of an affiliate.

   1. (2) A transaction not specified in this subsection shall not require the approval of the commission.

      1. (b) In reviewing any material debt transaction specified in paragraph (a)(1), whether the transaction would deprive the facility manager of financial stability shall be considered by the commission, taking into account the financial condition of the affiliate and the potential impact of any default on the gaming facility manager.

(Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)