---
kind: "section"
citation: "25 C.F.R. § 543.15"
title: "25"
number: "543.15"
heading: "What are the minimum internal control standards for lines of credit?"
url: "https://uscodex.org/cfr/25/543.15"
---

# §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.

## Notes

### Authority

Authority: 25 U.S.C. 2702(2), 2706(b)(1-4), 2706(b)(10).

### Source

Source: 77 FR 58712, Sept. 21, 2012, unless otherwise noted.