§ 543.15 What are the minimum internal control standards for lines of credit? ( a ) *Supervision.* Supervision must be provided as needed for lines of credit by an agent(s) with authority equal to or greater than those being supervised.
( b ) *Establishment of lines of credit policy.* ( 1 ) If a gaming operation extends lines of credit, controls must be established and procedures implemented to safeguard the assets of the gaming operation. Such controls must include a lines of credit policy including the following: ( i ) A process for the patron to apply for, modify, and/or re-establish lines of credit, to include required documentation and credit line limit;
( ii ) Authorization levels of credit issuer(s);
( iii ) Identification of agents authorized to issue lines of credit;
( iv ) A process for verifying an applicant's credit worthiness;
( v ) A system for recording patron information, to include: ( A ) Name, current address, and signature;
( B ) Identification credential;
( C ) Authorized credit line limit;
( D ) Documented approval by an agent authorized to approve credit line limits;
( E ) Date, time and amount of credit issuances and payments; and
( F ) Amount of available credit.
( vi ) A process for issuing lines of credit to: ( A ) Verify the patron's identity;
( B ) Notify the patron of the lines of credit terms, including obtaining patron's written acknowledgment of the terms by signature;
( C ) Complete a uniquely identified, multi-part, lines of credit issuance form, such as a marker or counter check, which includes the terms of the lines of credit transaction;
( D ) Obtain required signatures;
( E ) Determine the amount of the patron's available lines of credit;
( F ) Update the credit balance record at the time of each transaction to ensure that lines of credit issued are within the established limit and balance for that patron; and
( G ) Require the agent issuing the lines of credit to be independent of the agent who authorized the lines of credit.
( vii ) A policy establishing credit line limit exceptions to include the following: ( A ) Identification of the agent(s) authorized to permit a credit line limit to be exceeded;
( B ) Authorization thresholds; and
( C ) Required documentation.
( viii ) A policy governing increases and decreases to a patron's lines of credit account balances to include the following: ( A ) Documentation and record keeping requirements;
( B ) Independence between the department that receives the payment and the department that maintains custody of the credit balance for payments made by mail;
( C ) Collections;
( D ) Periodic audits and confirmation of balances; and
( E ) If a collection agency is used, a process to ensure documentation of increases and decreases to the lines of credit account balances.
( ix ) A policy governing write-offs and settlements to include: ( A ) Identification of agent(s) authorized to approve write-offs and settlements;
( B ) Authorization levels for write-offs and settlements of lines of credit instruments;
( C ) Required documentation for write-offs and settlements;
( D ) Independence between the agent who established the lines of credit and the agent writing off or settling the lines of credit instrument; and
( E ) Necessary documentation for the approval of write-offs and settlements and transmittal to the appropriate department for recording and deductibility.
( c ) *Variances.* The operation must establish, as approved by the TGRA, the threshold level at which a variance must be reviewed to determine the cause. Any such review must be documented.