§ 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.