§ 41-9.1-24 - Institutional investors or institutional lenders. - Rhode Island Statutes

SECTION 41-9.1-24

   § 41-9.1-24  Institutional investors orinstitutional lenders. – (a) Requirements of disclosure or of being suitable or qualified with respectto an institutional investor or institutional lender, pursuant to theprovisions of this chapter and the rules adopted pursuant thereto, shall bedeemed to have been complied with upon submission of documentation by thecasino licensee applicant, casino licensee, permittee or the institution, asappropriate, sufficient to establish qualifications as an institutionalinvestor or institutional lender as defined herein and it is determined that:

   (1) It owns, holds, or controls publicly traded securitiesissued by a casino licensee applicant, casino licensee, permittee or holding,intermediate or parent company of a casino licensee applicant, casino licenseeor permittee in the ordinary course of business for investment purposes.

   (2) It does not intend to exercise influence over the affairsof the issuer of such securities, nor over any licensed or permitted subsidiaryof the issuer of such securities, in the future, and that it agrees to notifythe state lottery division, in writing, within thirty (30) days if such intentshould change.

   (b) The exercise of voting privileges with regard to publiclytraded securities shall not be deemed to constitute the exercise of influenceover the affairs of the issuer of such securities.

   (c) The state lottery division may rescind the presumption ofsuitability for an institutional lender or institutional investor at any timeif the institutional lender or investor exercises or intends to exerciseinfluence or control over the affairs of the casino licensee applicant, thecasino licensee, permittee, or a holding, intermediate, or parent company ofthe casino licensee applicant, the casino licensee or permittee.

   (d) This section shall not be construed to preclude the statelottery division from investigating the suitability or qualifications of aninstitutional investor or institutional lender should the state lotterydivision become aware of facts or information which may result in suchinstitutional investor or institutional lender being found unsuitable ordisqualified.