2013 New York Consolidated Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 4 - (401 - 436) QUARTER HORSE RACING AND BREEDING
403 - Filing of information concerning stock transfers; necessity for board's approval.

 
    § 403. Filing of information concerning stock transfers; necessity for
  board's  approval. 1. Whenever a transfer of stock of any association or
  corporation which is licensed under this article, or of any  association
  or  corporation  which  leases  to  such  licensee the track at which it
  conducts pari-mutuel quarter horse  races,  or  which  owns  twenty-five
  percent or more of the stock of such licensee shall be made, there shall
  be filed simultaneously with the association or corporation which issued
  such stock the following:
    a.  In duplicate, an affidavit executed by the transferee stating that
  he is to be the sole beneficial owner thereof, and whether or not he (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 board; 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 board; 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 board
  one of each of said duplicate affidavits.
    2. If, after the filing of any affidavit hereinabove  required  to  be
  filed,  there  be  any  change  in  the  status of any such affiant with
  respect to any of the matters  set  forth  in  subparagraph  (i),  (ii),
  (iii),  (iv) or (v) of subdivision one of this section, of the affidavit
  theretofore filed by him, such affiant shall  forthwith  file  with  the
  association  or  corporation with which his affidavit was so filed a new
  affidavit, executed by him in duplicate, setting forth  such  change  of
  status,  and  the association or corporation shall forthwith file one of
  said affidavits with the board.
    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 hereinabove provided, 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  which  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  subparagraphs  (i),  (ii),  (iii),  (iv)  and  (v)  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 board.
    4.  The  board may, upon application to it for good cause shown, waive
  compliance with subdivisions one, two and three of this section.
    5. If the board 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 which leases to such licensee the
  track at which it conducts pari-mutuel quarter  horse  racing  or  which
  owns  twenty-five  percent  or  more  of the stock of such licensee, the
  board 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 stock or  interest  therein
  to  dispose  of  such  stock  or  interest within a period of time to be
  specified by the board, which period the board shall have full power and
  authority to extend from time to time.
    6. If the board 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  board  at
  which  the  board will hear such person in reference thereto. The action
  of the board 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  board, 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 board 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.