Ohio Administrative Code|Rule 3772-29-01 | Approval for debt transactions.

                                                
(A) In seeking approval for a debt transaction under
		  section 3772.28 of the Revised Code, the casino operator must submit a written
		  request at least thirty days in advance of any consideration at a meeting held
		  under section 3772.02 of the Revised Code. "Debt" means, but is not
		  limited to, any bond, loan, mortgage, trust, deed (when committed in any form
		  as collateral), note, debenture, subordination, guaranty, letter of credit,
		  security agreement, pledge, chattel mortgage, or any other form of
		  indebtedness.
(B) The request must contain the following:
(1) The names and addresses of all
			 parties to the debt transaction;
(2) The amount of the funds
			 involved;
(3) The type of debt
			 transaction;
(4) The source of the funds to be
			 obtained;
(5) All sources of collateral, including
			 but not limited to all assets pledged by the casino operator as security for
			 the debt transaction;
(6) The purpose of the debt
			 transaction;
(7) The terms of the debt
			 transaction;
(8) All filings and documents that must
			 be submitted to any regulatory agency in association with the debt
			 transaction;
(9) An executive summary of the debt
			 transaction, including but not limited to:
(a) All material terms of the debt
				transaction;
(b) An explanation of the projected debt to equity ratio
				after entering into the proposed debt transaction;
(c) An explanation of the
				projected annual debt service after entering into the proposed debt transaction
				as compared to current annual debt service;
(d) An explanation of the terms and procedures in case of
				default by the casino operator;
(e) An explanation of the process used to select the
				persons involved in the debt transaction;
(f) A list of prior debt transactions between the casino
				operator and the persons involved in the debt transaction; and
(g) An explanation and supporting documentation of the due
				diligence conducted to ensure that the person the casino operator enters into a
				debt transaction with has the appropriate reputation, experience, and financial
				security;
(10) All documents that memorialize the
			 terms, conditions, and covenants of the debt transaction, including any
			 supporting documents referenced therein;
(11) A certification that the casino
			 operator holds a direct or indirect ownership or leasehold interest in the
			 casino facility;
(12) Any other information deemed
			 necessary by commission.
(C) A casino operator should clearly identify those
		  portions of the request for approval of debt transaction that it deems to be
		  confidential, proprietary commercial information, or trade secrets. The request
		  for approval of debt transaction will be open to public inspection to the
		  extent permitted by sections 149.43 and 3772.16 of the Revised
		  Code.
(D) Upon approval of a debt transaction, the casino
		  operator will report to the commission, on a quarterly basis, compliance with
		  the payment terms of the debt transaction. Further, any default, breach, or
		  acceleration under the terms, conditions, or covenants of a debt transaction
		  must be reported immediately to the commission. In the event of a default, any
		  enforcement of a security interest pursuant to the terms and conditions of a
		  debt transaction previously approved by the commission shall be reported
		  immediately to the commission by the person enforcing the security interest,
		  the casino operator, and, if applicable, the entity managing the casino
		  facility at the time of enforcement of the security interest.
(E) The casino operator will provide the commission copies
		  of any proposed amendments to a debt transaction. Any material change, as
		  determined by the commission, to the debt transaction is subject to further
		  commission approval.
(F) Within fifteen days after closing of a debt
		  transaction, and thereafter if requested by the commission, the casino operator
		  must file with the commission the list of the initial lenders or noteholders as
		  applicable.
(G) The commission may further request information not
		  specifically requested in this rule or in addition to that which is provided in
		  response to this rule. The casino operator will provide all information,
		  documents, certifications, and materials at the casino operators sole
		  expense and cost.


Last updated September 27, 2021 at 8:21 AM