NEW MEXICO GAMING CONTROL BOARD

Special Board Meeting

May 27, 2005

MINUTES

The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a Special Board meeting at Gaming Control Board Headquarters, 4900 Alameda Blvd. NE.  Chair Carla Lopez called the meeting to order at approximately 9:40 am, on Friday May 27, 2005.  Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chair Carla Lopez declared a quorum.    Present were:  Don Dutton (by phone), David “Hossie” Sanchez, Carolyn Monroe, and Tony Knott.  General Counsel Frank Baca and Staff Counsel Angela Lucero were also in attendance.   

1          Chair Carla Lopez noted the special meeting was to discuss licensing matters. Commissioner Knott moved to go into closed executive session. Second: C. Monroe. Roll call: D. Dutton, H. Sanchez, C. Lopez, C. Monroe, T. Knott.

2          On Friday, May 27, 2005 at approximately 9:52 a.m.., a motion was made to go back into open session:  C. Monroe. Second: T. Knott. Roll Call: D. Dutton, H. Sanchez, C. Lopez, C. Monroe, T. Knott.

3          Compass Bank Request for Waiver of Prior Licensing Requirement; General Counsel noted the board was presented with the facts in closed executive session. There were no questions from the board. Commissioner Monroe moved to table the matter. Second: T. Knott. Roll Call: D. Dutton, H. Sanchez, C. Lopez, C. Monroe, T. Knott. Vote: 5-0. Chair clarified that at this point, since there has not been an issue with default on the security agreement, the board felt that granting the waiver would be a premature action. If it gets to the point where there is a default, Compass Bank would have to come back before the board to request the waiver. Michael Fietz from Compass Banks asked in what way Compass will be protected in entering into the agreement. General Counsel suggested a motion to accept the notification so a Decision and Order can be issued, assuring the bank and the licensee that they followed the necessary procedures, and no further action will be required until or unless a default occurs.  Mr. Fietz asked if Albuquerque Downs did default, if Compass Bank would then have to come back before the board. He noted that this would cause the security agreement to be not perfected. Chair responded that the bank has still complied with all requirements. Mr. Fietz replied that they cannot be sure that in the event of a default the bank would be able to go liquidate the collateral in the agreement. General Counsel replied that the bank would have to follow the process of Gaming Control Board rules in order to do so.  Commissioner Knott noted that there could be an instance where the bank will not be allowed to liquidate the collateral. Mr. Fietz replied that he understood the bank cannot own slot machines. Staff Counsel Angela Lucero noted that the bank could get a license and sell the machines on their own, or the board could grant the bank a temporary waiver, provided that the bank follows all the rules in selling the machines.  Mr. Knott clarified that the uncertainty lies with future boards. Commissioner Dutton noted that under the rules, this discussion would be premature. He noted that right now the only thing to do is wait until a default occurs, then proceed with the correct options according to the rules. General Counsel noted his agreement with Commissioner Dutton, showing that there is not a clause for pre-approval in the rules. General Counsel noted the rule can be changed or amended.  Commissioner Knott noted that previous boards did not allow gaming machines to be used as collateral. Mr. Fietz noted that the gaming machines are not technically collateral, as the security agreement is not perfected.  Commissioner Knott moved to accept the notice of licensee (The Downs of Albuquerque) entering into a commercial security agreement using gaming property as collateral pursuant to 15.1.21. Second: C. Monroe. Roll Call: D. Dutton, H. Sanchez, C. Lopez, C. Monroe, T. Knott. Vote: 5-0.

4          Election of Vice Chair

Commissioner Dutton nominated Carolyn Monroe for vice chair. Second: T. Knott. Roll Call: D. Dutton, H. Sanchez, C. Lopez, C. Monroe, T. Knott. Vote: 5-0. Commissioner Monroe accepted the position.

5    Adjournment

Chair Carla Lopez entertained a motion to adjourn. Motion: C. Monroe. Second: T. Knott. Vote: 5-0.

_________________________                                              ___________________

Carla C. Lopez, CPA, Esq.                                                              Date Approved