Md. Code Regs. 09.10.06.33

Current through Register Vol. 51, No. 22, November 1, 2024

Section 09.10.06.33 - Funding

A. The application documents shall state the source of funds for the construction or operation of the racetrack.

B. If a source of funds listed under §A of this regulation is an equity contribution, the applicant shall disclose the:

(1) Amount of contribution;

(2) Terms of any commitment from that source; and

(3) If the contribution is other than cash or cash equivalent, the basis for valuing the noncash contribution.

C. If a source of funds listed under §A of this regulation is a debt contribution, the applicant shall disclose the:

(1) Amount of contribution;

(2) Terms of any commitment from that source; and

(3) If the contribution is other than cash or cash equivalent, the basis for valuing the noncash contribution.

D. The application documents shall include documents from which the Commission can conclude that financing for the racetrack is reasonably assured, such as a letter of commitment, and that the financing is conditioned only on conditions normal and customary to a sophisticated financing, such as acquisition of zoning variances, building permits, and other government approval.

E. The application documents shall describe alternate sources of funds for unexpected occurrences, such as cost overruns, nonreceipt of equity or debt funds, or overestimated revenues.

F. The application documents shall state the amount of working capital the applicant intends to have available for the first 6 weeks of racetrack operations, including funds for the payment of expenses for officials, drug testing, and purses.

G. Together with the funding disclosures under this regulation, the application documents shall show proof of the financial ability of the applicant to complete the project.

Md. Code Regs. 09.10.06.33