SECTIONS 19900-19905 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 19900-19905

19900. (a) Except as may be provided by regulation of the
commission, the following security interests shall not be enforced
without the prior approval of the commission and compliance with
regulations adopted pursuant to subdivision (b):
(1) In a security issued by a corporation that is a holder of a
gambling license in this state.
(2) In a security issued by a holding company that is not a
publicly traded corporation.
(3) In a security issued by a partnership, limited partnership, or
limited liability company that is a holder of a gambling license in
this state.
(b) The commission shall adopt regulations establishing the
procedure for the enforcement of a security interest. Any remedy
provided by the regulations for the enforcement of the security
interest is in addition to any other remedy provided by law.

19901. It is unlawful for any person to sell, purchase, lease,
hypothecate, borrow or loan money, or create a voting trust agreement
or any other agreement of any sort to, or with, any licensee in
connection with any controlled gambling operation licensed under this
chapter or with respect to any portion of the gambling operation,
except in accordance with the regulations of the commission.

19902. When any person contracts to sell or lease any property or
interest in property, real or personal, under circumstances that
require the approval or licensing of the purchaser or lessee by the
commission pursuant to subdivision (a) of Section 19853, the contract
shall not specify a closing date for the transaction that is earlier
than the expiration of 90 calendar days after the submission of the
completed application for approval for licensing. Any provision of a
contract that specifies an earlier closing date is void for all
purposes, but the invalidity does not affect the validity of any
other provision of the contract.

19903. When any person contracts to sell or lease any property or
interest in property, real or personal, under circumstances that
require the approval or licensing of the purchaser or lessee by the
commission pursuant to subdivision (a) of Section 19853, the contract
shall contain a provision satisfactory to the commission regarding
responsibility for the payment of any fees due pursuant to any
subsequent deficiency determinations made under this chapter that
shall encompass any period of time before the closing date of the
transaction.

19904. The purported sale, assignment, transfer, pledge, or other
disposition of any security issued by a corporation that holds a
gambling license, or the grant of an option to purchase that
security, is void unless approved in advance by the commission.

19905. Every owner licensee that is involved in a transaction for
the extension or redemption of credit by the licensee, or for the
payment, receipt, or transfer of coin, currency, or other monetary
instruments, as specified by the commission, in an amount,
denomination, or amount and denomination, or under circumstances
prescribed by regulations, and any other participant in the
transaction, as specified by the commission, shall, if required by
regulation, make and retain a record of, or file with the department
a report on, the transaction, at the time and in the manner
prescribed by regulations.