2023 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.