Indiana Administrative Code
Title 68 - INDIANA GAMING COMMISSION
Article 1 - GENERAL PROVISIONS
Rule 4 - Contracts
Section 4-5 - Related party transactions
Universal Citation: 68 IN Admin Code 4-5
Current through September 18, 2024
Authority: IC 4-33-4; IC 4-35-4
Affected: IC 4-33; IC 4-35
Sec. 5.
(a) Related party transactions are those between a casino licensee or a casino license applicant and at least one (1) of the following:
(1) A related party.
(2) A relative.
(3) A dependent.
(b) Unless otherwise directed by the executive director, the internal control procedures for disclosure and approval of related party contracts or transactions do not apply to the following transactions:
(1) Transactions between a
casino licensee or a casino license applicant and a supplier
licensee.
(2) The payment of
dividends to shareholders.
(3)
Scheduled repayments of related party debt.
(c) A related party transaction shall comply with the internal control procedures set forth in section 4 of this rule and the following provisions:
(1) A related party
transaction or series of related transactions reasonably anticipated to exceed
fifty thousand dollars ($50,000) in a twelve (12) month period shall be subject
to approval by the board of directors, the owner, or a designee of the
equivalent level. The duty to approve related party transactions in an amount
greater than fifty thousand dollars ($50,000) shall not be delegated below this
level of personnel.
(2) A written
favorable fairness opinion from a reputable and independent organization
knowledgeable in the area and approved by the executive director or the
commission must be provided prior to execution for the related party contracts,
transactions, or series of transactions expected to exceed five million dollars
($5,000,000) unless otherwise directed by the executive director.
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