N.Y. PML Law § 403 — New York Code / Act PML / Article 4 / Section 403
Filing of information concerning stock transfers; necessity for commission approval
Status: in_force

§ 403. Filing of information concerning stock transfers; necessity for\ncommission approval. 1. Whenever there is a transfer of stock of any\nassociation or corporation that is licensed under this article, or of\nany association or corporation that leases to such licensee the track at\nthat it conducts pari-mutuel quarter horse races, or which owns\ntwenty-five percent or more of the stock of such licensee, there shall\nbe filed simultaneously with the association or corporation that issued\nsuch stock the following:\n  a. In duplicate, an affidavit executed by the transferee stating that\nhe or she is to be the sole beneficial owner thereof, and whether or not\nhe or she (i) has been convicted of a crime involving moral turpitude,\n(ii) has been engaged in bookmaking or other forms of illegal gambling,\n(iii) has been found guilty of any fraud or misrepresentation in\nconnection with racing or breeding, (iv) has been guilty of any\nviolation or attempt to violate any law, rule or regulation of any\nracing jurisdiction for which suspension from racing might be imposed in\nsuch jurisdiction, or (v) has violated any rule, regulation or order of\nthe commission; if the transferee is not, or is not to be, the sole\nbeneficial owner thereof, then there shall be annexed to said affidavit\nof the transferee, and expressly stated in such affidavit to be deemed a\npart thereof, a true and complete copy, or if oral, a complete statement\nof all the terms, of the agreement or understanding pursuant to which\nthe stock is to be so held by the transferee, including a detailed\nstatement of the interest therein of each person who is to have any\ninterest therein; and at the same time.\n  b. In duplicate, an affidavit executed by each person for whom the\nsaid stock, or any interest therein, is to be held by said transferee,\nsetting forth whether or not the affiant (i) has been convicted of a\ncrime involving moral turpitude, (ii) has engaged in bookmaking or other\nforms of illegal gambling, (iii) has been found guilty of any fraud or\nmisrepresentation in connection with racing or breeding, (iv) has been\nguilty of any violation or attempt to violate any law, rule or\nregulation of any racing jurisdiction for which suspension from racing\nmight be imposed in such jurisdiction, or (v) has violated any rule,\nregulation or order of the commission; to each of which affidavits shall\nbe annexed, and expressly stated in such affidavit to be deemed a part\nthereof, a true and complete copy, or if oral, a complete statement of\nall the terms of the agreement or understanding pursuant to which the\nstock is to be so held by the transferee, including a detailed statement\nof the interest therein of each person who is to have any interest\ntherein.\n  c. Said association or corporation shall forthwith file with the\ncommission one of each of said duplicate affidavits.\n  2. If, after the filing of any affidavit required to be filed by\nsubdivision one of this section, there is any change in the status of\nany such affiant with respect to any of the matters set forth in\nparagraph a or b of subdivision one of this section, of the affidavit\nfiled by such affiant, then such affiant shall forthwith file with the\nassociation or corporation with which his or her affidavit was so filed\na new affidavit, executed by him or her in duplicate, setting forth such\nchange of status, and the association or corporation shall forthwith\nfile one of said affidavits with the commission.\n  3. Whenever any change shall be made in the amount, nature, or\notherwise, of the interest of any person having an interest in stock of\nany such association or corporation, or any new interest shall be\ncreated therein, without a transfer thereof as provided in this section,\nthe record owner of such stock, and each person whose interest therein\nhas been so attempted to be changed or created, shall file with the\nassociation or corporation that issued such stock, in duplicate,\naffidavits as provided by paragraphs a and b of subdivision one of this\nsection, except that such affidavits need not include the matters\nreferred to in paragraph a or b of subdivision one of this section,\nunless then required pursuant to subdivision two of this section, and\none copy thereof shall forthwith be filed by the association or\ncorporation with the commission.\n  4. The commission may, upon application to it for good cause shown,\nwaive compliance with subdivisions one, two and three of this section.\n  5. If the commission determines that it is inconsistent with the\npublic interest, convenience or necessity, or with the best interests of\nracing generally, that any person continue to be a stockholder of record\nor the beneficial owner of any interest in stock standing in the name of\nanother, in any association or corporation licensed under this article,\nor of any association or corporation that leases to such licensee the\ntrack at which it conducts pari-mutuel quarter horse racing or that owns\ntwenty-five percent or more of the stock of such licensee, the\ncommission shall have full power and authority to order or direct each\nsuch stockholder or beneficial owner irrespective of the time when such\nstockholder or beneficial owner acquired his or her stock or interest\ntherein to dispose of such stock or interest within a period of time to\nbe specified by the commission, which period the commission shall have\nfull power and authority to extend from time to time.\n  6. If the commission shall make any order or direction as provided in\nsubdivision five of this section, the person aggrieved thereby shall be\ngiven notice of the time and place of a hearing before the commission at\nwhich the board will hear such person in reference thereto. The action\nof the commission in making any such order or direction shall be\nreviewable in the courts of this state in the manner provided by, and\nsubject to the provisions of article seventy-eight of the civil practice\nlaw and rules.\n  7. Upon application of the commission, the supreme court of this state\nshall have jurisdiction to issue final orders, on notice and after\nhearing, commanding any person to comply with the provisions of the\norders or directions issued by the commission under subdivision five of\nthis section.\n  8. In case of conflict between this section and article eight of the\nuniform commercial code, this section shall control.\n