§ 516. Moneys of corporations; disposition of net revenues. 1. The
monetary transactions of the corporation and the keeping of its books
and accounts shall be under the supervision of the board of directors
who shall be subject to the general and specific jurisdiction of the
state board and to audit by the comptroller.

2. After payment of all of the costs of the corporation's functions,
net revenue remaining to the corporation shall be divided among the
participating counties in accordance with the following provisions:

a. Fifty percent of such revenue distributed among the participating
counties on the basis of the proportion of the total off-track
pari-mutuel wagering accepted by the corporation during the previous
period that originated in the branch offices located in each
participating county;

b. Fifty percent of such revenue on the basis of population, as
defined as the total population in each participating county shown by
the latest preceding decennial federal census completed and published as
a final population count by the United States bureau of the census
preceding the commencement of the calendar year in which such
distribution is to be made; and

c. A participating county containing a city electing to participate in
the management and revenues of a corporation under subdivision two of
section five hundred two of this article shall distribute revenue
received under paragraphs a and b of this subdivision to such city
according to the proportion such city's population bears to the county's
population.

2-a. The net revenue remaining to the corporation shall be distributed
quarterly, not more than thirty days after the close of the calendar
quarter, unless, each off-track betting corporation's board shall
determine once annually, that such net revenue remaining to the
corporation shall be distributed to participating counties and cities on
an annual, or bi-annual basis, to be distributed not more than thirty
days after the close of the calendar year, or the close of the bi-annual
year (January-June and July-December). No such determination shall be
made prior to the board's receipt of an annual written approval, to such
specified annual, or bi-annual payment schedule, between each off-track
betting corporation and the governing bodies of each participating
counties and cities within such applicable region.

3. The comptroller and his legally authorized representative are
authorized to and shall from time to time but at least once annually,
examine the accounts and books of the corporation, including its
receipts, disbursements, contracts, leases, sinking funds, investments
and any other records and papers relating to its financial standing.

4. The corporation shall have power, notwithstanding the provisions of
this section, to contract with the holders of any of its bonds as to the
custody, collection, securing, investment and payment of any moneys of
the corporation or any moneys held in trust or otherwise for the payment
of bonds in any way to secure bonds, and to carry out any such contract
notwithstanding that such contract may be inconsistent with the previous
provisions of this section.

5. Moneys held in trust or otherwise for the payment of bonds or in
any way to secure bonds and deposits of such moneys may be secured in
the same manner as moneys of the corporation, and all banks and trust
companies are authorized to give such security for such deposits.