2019 US Virgin Islands Code
Title 32 - Sports and Parks
Chapter 21 - Virgin Islands Casino and Resort Control Act of 1995
Article VIB - Interim Casino Authorization
§ 449. Provisions and application of trust agreement
(a)
(1) Where the applicant is not required to obtain a casino license, the trust agreement filed pursuant to section 447 of this title shall transfer and convey all of the applicant's present and future right, title and interest in the property described in section 447, including all voting rights in securities, to the trustee.
(2) Where the applicant is required to obtain a casino license, the trust agreement filed pursuant to section 447 shall transfer and convey to the trustee, if the applicant is a corporation, all outstanding equity securities of the corporation, and, if the applicant is other than a corporation, all outstanding interest in the applicant.
(3) The compensation for the service, costs and expenses of the trustee or trustees shall be stated in the trust agreement and shall be approved by the Commission.
(4) The trust agreement filed pursuant to section 447 shall, in all instances, contain such provisions as the Commission may deem necessary and desirable.
(b) With respect to applicants described in subsection (b) of section 447, if the Commission denies interim authorization, it shall order that the trust agreement become operative, or take such other action as may be appropriate in accordance with this act. With respect to all applicants under section 447, if the Commission grants interim authorization, it shall thereafter order that the trust agreement become operative at such time as it finds reasonable cause to believe that the applicant or any person required to be qualified in connection with the application may be found unqualified.
(c) While the trust agreement remains operative, the trustee shall exercise all rights incident to the ownership of the property subject to the trust, and shall be invested with all powers, authority and duties necessary to the unencumbered exercise of such rights, as provided in sections 492 through 502 of this title, except that the applicant shall have no right to participate in the earnings of the casino hotel or receive any return on its investment or debt security holdings during the time the trust is operative.
(d) The trust agreement, once operative, shall remain operative until the Commission finds the applicant qualified, or the Commission finds the applicant unqualified and the property subject to the trust is disposed of in accordance with subsection (e) of section 449 of this title except that the applicant may request the Commission to direct the trustee to dispose of the property subject to the trust, in accordance with that subsection (e), prior to a finding with respect to qualification. If the Commission denies qualification to a person subject to sections 447 through 451 of this title, the trustee shall endeavor and be authorized to sell, assign, convey, or otherwise dispose of all property subject to the trust to such persons as shall be appropriately licensed or qualified or shall obtain interim authorization in accordance with those sections. The disposition of trust property by the trustee shall be completed within 120 days of the denial of qualification, or within such additional time as the Commission may for good cause allow, and shall be conducted in accordance with sections 492 through 502, except that the proceeds of such disposition shall be distributed to the unqualified applicant only in an amount not to exceed the lower of the actual cost of the assets to such unqualified applicant; such assets calculated as if the investment had been made on the date the trust becomes operative, and any excess remaining proceeds shall be paid to the casino revenue fund.
