2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 4 - Quarter Horse Racing and Breeding › 403 - Filing of Information Concerning Stock Transfers; Necessity for Commission Approval.

§ 403. Filing of information concerning stock transfers; necessity for
  commission  approval.  1.  Whenever  there is a transfer of stock of any
  association or corporation that is licensed under this  article,  or  of
  any association or corporation that leases to such licensee the track at
  that  it  conducts  pari-mutuel  quarter  horse  races,  or  which  owns
  twenty-five percent or more of the stock of such licensee,  there  shall
  be  filed simultaneously with the association or corporation that issued
  such stock the following:
a. In duplicate, an affidavit executed by the transferee stating  that
  he or she is to be the sole beneficial owner thereof, and whether or not
  he  or  she (i) has been convicted of a crime involving moral turpitude,
  (ii) has been engaged in bookmaking or other forms of illegal  gambling,
  (iii)  has  been  found  guilty  of  any  fraud  or misrepresentation in
  connection with  racing  or  breeding,  (iv)  has  been  guilty  of  any
  violation  or  attempt  to  violate  any  law, rule or regulation of any
  racing jurisdiction for which suspension from racing might be imposed in
  such jurisdiction, or (v) has violated any rule, regulation or order  of
  the  commission;  if  the  transferee  is not, or is not to be, the sole
  beneficial owner thereof, then there shall be annexed to said  affidavit
  of the transferee, and expressly stated in such affidavit to be deemed a
  part thereof, a true and complete copy, or if oral, a complete statement
  of  all  the  terms, of the agreement or understanding pursuant to which
  the stock is to be so held  by  the  transferee,  including  a  detailed
  statement  of  the  interest  therein  of each person who is to have any
  interest therein; and at the same time.
b. In duplicate, an affidavit executed by each  person  for  whom  the
  said  stock,  or any interest therein, is to be held by said transferee,
  setting forth whether or not the affiant (i) has  been  convicted  of  a
  crime involving moral turpitude, (ii) has engaged in bookmaking or other
  forms  of  illegal gambling, (iii) has been found guilty of any fraud or
  misrepresentation in connection with racing or breeding, (iv)  has  been
  guilty  of  any  violation  or  attempt  to  violate  any  law,  rule or
  regulation of any racing jurisdiction for which suspension  from  racing
  might  be  imposed  in  such jurisdiction, or (v) has violated any rule,
  regulation or order of the commission; to each of which affidavits shall
  be annexed, and expressly stated in such affidavit to be deemed  a  part
  thereof,  a  true and complete copy, or if oral, a complete statement of
  all the terms of the agreement or understanding pursuant  to  which  the
  stock is to be so held by the transferee, including a detailed statement
  of  the  interest  therein  of  each  person who is to have any interest
  therein.
c. Said association or  corporation  shall  forthwith  file  with  the
  commission one of each of said duplicate affidavits.
2.  If,  after  the  filing  of  any affidavit required to be filed by
  subdivision one of this section, there is any change in  the  status  of
  any  such  affiant  with  respect  to  any  of  the matters set forth in
  paragraph a or b of subdivision one of this section,  of  the  affidavit
  filed  by  such affiant, then such affiant shall forthwith file with the
  association or corporation with which his or her affidavit was so  filed
  a new affidavit, executed by him or her in duplicate, setting forth such
  change  of  status,  and  the association or corporation shall forthwith
  file one of said affidavits with the commission.
3. Whenever any change  shall  be  made  in  the  amount,  nature,  or
  otherwise,  of the interest of any person having an interest in stock of
  any such association or  corporation,  or  any  new  interest  shall  be
  created therein, without a transfer thereof as provided in this section,
  the  record  owner of such stock, and each person whose interest therein
  has been so attempted to be changed or  created,  shall  file  with  the

  association  or  corporation  that  issued  such  stock,  in  duplicate,
  affidavits as provided by paragraphs a and b of subdivision one of  this
  section,  except  that  such  affidavits  need  not  include the matters
  referred  to  in  paragraph  a  or b of subdivision one of this section,
  unless then required pursuant to subdivision two of  this  section,  and
  one  copy  thereof  shall  forthwith  be  filed  by  the  association or
  corporation with the commission.
4. The commission may, upon application to it for  good  cause  shown,
  waive compliance with subdivisions one, two and three of this section.
5.  If  the  commission  determines  that  it is inconsistent with the
  public interest, convenience or necessity, or with the best interests of
  racing generally, that any person continue to be a stockholder of record
  or the beneficial owner of any interest in stock standing in the name of
  another, in any association or corporation licensed under this  article,
  or  of  any  association or corporation that leases to such licensee the
  track at which it conducts pari-mutuel quarter horse racing or that owns
  twenty-five  percent  or  more  of  the  stock  of  such  licensee,  the
  commission  shall  have full power and authority to order or direct each
  such stockholder or beneficial owner irrespective of the time when  such
  stockholder  or  beneficial  owner acquired his or her stock or interest
  therein to dispose of such stock or interest within a period of time  to
  be  specified  by the commission, which period the commission shall have
  full power and authority to extend from time to time.
6. If the commission shall make any order or direction as provided  in
  subdivision  five of this section, the person aggrieved thereby shall be
  given notice of the time and place of a hearing before the commission at
  which the board will hear such person in reference thereto.  The  action
  of  the  commission  in  making  any  such  order  or direction shall be
  reviewable in the courts of this state in the manner  provided  by,  and
  subject to the provisions of article seventy-eight of the civil practice
  law and rules.
7. Upon application of the commission, the supreme court of this state
  shall  have  jurisdiction  to  issue  final  orders, on notice and after
  hearing, commanding any person to comply  with  the  provisions  of  the
  orders  or directions issued by the commission under subdivision five of
  this section.
8. In case of conflict between this section and article eight  of  the
  uniform commercial code, this section shall control.