NY Rac, Pari-Mut Wag & Breeding L § 216 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 2 - Thoroughbred Racing and Breeding 216 - Disposition of Racing Facilities or Certain Assets.

§  216.  Disposition  of  racing  facilities or certain assets. 1. Any   franchised corporation desiring to grant,  give,  devise,  or  sell  any   assets  including  tangible and intangible assets, racing facilities and   real estate shall apply to the commission and to the franchise oversight   board for approval of such  disposition,  provided,  however,  that  the   approval  of  such  commission and such board shall not be necessary for   the sale of property, other than real property, that  is  appropriately,   customarily  and usually sold by the association in the normal course of   its business. If in the judgment of the  commission  and  the  franchise   oversight  board,  acting individually, the public interest, convenience   or necessity and the best interest of racing will be served thereby, the   commission and franchise oversight  board  shall  each  enter  an  order   granting approval of such disposition and of the terms thereof.2.  Such  franchised  corporation  during the term of such a franchise   shall not pledge, mortgage or otherwise encumber any  of  the  racetrack   facilities  or  properties  acquired  after  the  effective date of this   subdivision  without  the  prior  written  approval  of  the   franchise   oversight board.The  franchised  corporation may incur indebtedness, including without   limitation,  the  issuance  of  non-convertible   debt   securities   in   connection  therewith,  and  grant  liens  on  and security interests in   assets and interests, including without limitation, the revenue  streams   referred  to herein, except that any debt incurred or funds raised shall   be used to promote racing at the franchise  racetracks.  The  franchised   corporation  shall not create any lien or security interest in any asset   that runs with the franchise, such as  the  simulcasting  contract,  the   repayment  of  which  would extend beyond the term of the franchise. All   incurrence of debt or grant of liens or security  interests  other  than   those   arising   within   the  ordinary  course  of  business  such  as   materialmen's and mechanics' liens first require  the  approval  of  the   franchise oversight board.3.  The  state through the urban development corporation may borrow to   fund racetrack capital improvements at Aqueduct racetrack, Belmont  Park   racetrack  and  Saratoga  race  course  and  borrow  on  behalf  of  the   franchised corporation pursuant to franchise  oversight  board  approval   secured  against  the franchised corporation's right to receive payments   for racetrack capital improvements pursuant to subdivision f of  section   sixteen  hundred twelve of the tax law, provided, however, the indenture   shall restrict the use of net proceeds to capital  expenditures  at  the   racetrack  and provided further that any such borrowing shall be secured   only by such future stream of  racetrack  capital  improvement  payments   payable to the franchised corporation. The urban development corporation   shall initially borrow funds necessary for approved capital expenditures   in years one through five and then at appropriate times as determined by   the  franchise  oversight  board for years six through ten, years eleven   through fifteen, years  sixteen  through  twenty  and  years  twenty-one   through  twenty-five.  The  amount  of  borrowing  for  approved capital   expenditures shall not exceed the amount that would have been  paid  out   for  facility  improvements  in  the  event the full payment pursuant to   subdivision f of section sixteen hundred twelve of the tax law for  that   purpose was made.