California CodesBusiness and Professions Code - BPCDivision 8 — Special Business RegulationsChapter 5 — The Gambling Control ActArticle 7 — Restrictions on Certain TransactionsSection 19906
(a) A contract for the sale of a gambling enterprise shall state whether any outstanding gaming chips from the seller will be honored by the purchaser. If the contract does not require the purchaser to honor the outstanding gaming chips used by the seller, then the contract shall indicate what provisions have been made for the redemption of outstanding gaming chips as of the closing date of the sale.
(b) Prior to any action of the commission on the proposed contract for sale of the gambling enterprise, the department shall determine the amount of the seller’s outstanding gaming chip liability. The seller shall satisfy the commission that the amount of liability is safeguarded by a surety bond, escrow account, or other form of security sufficient to guarantee the availability of funds for the redemption of outstanding gaming chips. The seller shall give notice to the patrons of the gambling enterprise in order to provide an adequate opportunity for redemption of any outstanding gaming chips.
Notes
Requires a gambling-enterprise sale contract to state whether the buyer will honor the seller's outstanding gaming chips or, if not, how they will be redeemed as of closing. Before commission action, requires the department to determine chip liability and the seller to secure adequate redemption funds through bond, escrow, or other security and give patrons adequate redemption notice.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 19906 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-5/article-7/section-19906