N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 303

§ 303. Filing of information concerning stock transfers; necessity for\nboard's approval. 1. Whenever a transfer of stock of any association or\ncorporation which is licensed under this article, or of any association\nor corporation which leases to such licensee the track at which it\nconducts pari-mutuel harness races, or which owns twenty-five percent or\nmore of the stock of such licensee shall be made, there shall be filed\nsimultaneously with the association or corporation which issued such\nstock the following:\n a. In duplicate, an affidavit executed by the transferee stating that\nhe is to be the sole beneficial owner thereof, and whether or not he (i)\nhas been convicted of a crime involving moral turpitude, (ii) has been\nengaged in bookmaking or other forms of illegal gambling, (iii) has been\nfound guilty of any fraud or misrepresentation in connection with racing\nor breeding, (iv) has been guilty of any violation or attempt to violate\nany law, rule or regulation of any racing jurisdiction for which\nsuspension from racing might be imposed in such jurisdiction, or (v) has\nviolated any rule, regulation or order of the board; if the transferee\nis not, or is not to be, the sole beneficial owner thereof, then there\nshall be annexed to said affidavit of the transferee, and expressly\nstated in such affidavit to be deemed a part thereof, a true and\ncomplete copy, or if oral, a complete statement of all the terms, of the\nagreement or understanding pursuant to which the stock is to be so held\nby the transferee, including a detailed statement of the interest\ntherein of each person who is to have any interest therein; and at the\nsame 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 board; to each of which affidavits shall be\nannexed, 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 board\none of each of said duplicate affidavits.\n 2. If, after the filing of any affidavit hereinabove required to be\nfiled, there be any change in the status of any such affiant with\nrespect to any of the matters set forth in subparagraph (i), (ii),\n(iii), (iv) or (v) of paragraph a of subdivision one of this section of\nthe affidavit theretofore filed by him, such affiant shall forthwith\nfile with the association or corporation with which his affidavit was so\nfiled a new affidavit, executed by him in duplicate, setting forth such\nchange of status, and the association or corporation shall forthwith\nfile one of said affidavits with the board.\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 hereinabove provided, the\nrecord owner of such stock, and each person whose interest therein has\nbeen so attempted to be changed or created, shall file with the\nassociation or corporation which 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 subparagraphs (i), (ii), (iii), (iv) and (v) of paragraph\na of subdivision one of this section, unless then required pursuant to\nsubdivision two of this section, and one copy thereof shall forthwith be\nfiled by the association or corporation with the board.\n 4. The board may, upon application to it for good cause shown, waive\ncompliance with subdivisions one, two and three of this section.\n 5. If the board determines that it is inconsistent with the public\ninterest, convenience or necessity, or with the best interests of racing\ngenerally, that any person continue to be a stockholder of record, or\nthe 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 which leases to such licensee the\ntrack at which it conducts pari-mutuel harness racing or which owns\ntwenty-five percent or more of the stock of such licensee, the board\nshall have full power and authority to order or direct each such\nstockholder or beneficial owner irrespective of the time when such\nstockholder or beneficial owner acquired his stock or interest therein\nto dispose of such stock or interest within a period of time to be\nspecified by the board, which period the board shall have full power and\nauthority to extend from time to time.\n 6. If the board 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 board at\nwhich the board will hear such person in reference thereto. The action\nof the board in making any such order or direction shall be reviewable\nin the courts of this state in the manner provided by, and subject to\nthe provisions of article seventy-eight of the civil practice law and\nrules.\n 7. Upon application of the board, 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 board under subdivision five of this\nsection.\n 8. In case of conflict between this section and article eight of the\nuniform commercial code, this section shall control.\n