§ 276. Power of tax commission. Every person, firm, company,
association, corporation or business conducted by a trustee or trustees,
engaged in whole or in part in the making or negotiating of sales,
agreements to sell, deliveries or transfers of shares or certificates
taxable under this article, or conducting or transacting a brokerage
business, hereinafter in this section called "broker", shall keep or
cause to be kept at some accessible place within the state of New York,
a just and true book of account, in such form as may be prescribed by
the tax commission, wherein shall be plainly and legibly recorded in
separate columns (1) unless provided otherwise by rules and regulations
of the tax commission, providing for its recording in some other manner
in records kept by such broker, the date of receipt of every order for
every sale, agreement to sell, delivery or transfer of such shares or
certificates together with the name, class and number of shares to which
such order relates and the name and address (or other identification
which refers to records kept by such broker containing such name and
address) of the person placing the order; (2) the date of making every
sale, agreement to sell, delivery or transfer of such shares or
certificates, the name and the number of shares thereof, the selling
price, the date of the order or orders to which such transaction
relates; (3) the name and address (or other identification which refers
to records kept by such broker, containing such name and address) of the
seller or transferrer, and his resident or nonresident status, as
defined in the provisions of section two hundred seventy-a of this
chapter; (4) the name of the purchaser or transferee; (5) the face value
of the adhesive stamps affixed; and (6) the identifying number of the
bill or memorandum of sale used as provided for by section two hundred
and seventy of this chapter. This book shall also have recorded therein
each separate purchase of stock transfer stamps, showing the date, the
amount and from whom purchased.

Every association, company or corporation or business conducted by a
trustee or trustees shall keep or cause to be kept at some accessible
place within the state of New York a stock certificate book and a just
and true book of account, transfer ledger or register, in such form as
may be prescribed by the tax commission, wherein shall be plainly and
legibly recorded in separate columns, the date of making every transfer
of stock, or other certificates included within this article, the name
and number of shares thereof, the serial number of each surrendered
certificate, the name of the parties surrendering such certificate, the
serial number of the certificate issued in exchange therefor, the number
of shares covered by said certificate, the name of the party to whom
said certificate was issued and the face value of the stamps attached in
payment of the tax on the transfer of the certificate. Evidence of the
payment of the tax provided for by sections two hundred and seventy and
two hundred and seventy-a of this chapter shall be provided in one of
the following manners and not otherwise, to wit:

(a) By attaching to the certificate surrendered for transfer, the
stamps required for and any declaration permitted by paragraph (c) of
subdivision one of section two hundred seventy-a of this chapter with
respect to such transfer, or

(b) If the stamps and any such declaration are not attached to the
certificate, but are attached to the bill or memorandum of sale
effecting or evidencing the transfer of such certificate, by attaching
to said certificate the said bill or memorandum of sale with stamps and
declaration, if any, attached, or

(c) If the stamps and declaration, if any, covering the transfer are
attached to a bill or memorandum effecting a transfer of one or more
certificates or to one or more certificates included in said transfer, a
notation must be made upon such certificates, bill or memorandum, as the
case may be, clearly specifying and identifying the certificate or
certificates to the sale or transfer of which the said stamps and
declaration apply, or

(d) If the bill or memorandum bearing such stamps and declaration is
not attached to the surrendered certificate or certificates to which it
applies, a notation must be made upon such bill or memorandum stating
the serial number or numbers of the certificates to which said bill or
memorandum applies, as provided by section two hundred and seventy of
this chapter. It shall also retain and keep all surrendered or canceled
shares or certificates and all memoranda and any declarations relating
to the sale or transfer of any thereof. All such books of account,
transfer ledgers, registers and certificate books, shall be retained and
kept as aforesaid for a period of at least four years subsequent to the
date of the last entry made therein as herein required; and all such
surrendered or canceled shares or certificates, memoranda and
declarations relating to the sale or transfer of shares or certificates
taxable under this article, shall be retained and kept for a period of
at least four years from the date of the delivery thereof. For the
purpose of ascertaining whether the tax imposed by this article has been
paid, all such books of account, transfer ledgers, registers,
certificate books, surrendered or canceled shares or certificates and
memoranda and declarations relating to the sale or transfer thereof,
shall at all times between the hours of ten o'clock in the forenoon and
three o'clock in the afternoon, except Saturdays, Sundays and legal
holidays, be open to examination by the tax commission or its duly
authorized representative. The tax commission may consent to the
destruction of all surrendered or canceled shares or certificates and
all memoranda and any declarations relating to the sale or transfer
thereof provided the tax commission has completed an examination with
respect to the transactions to which such documents relate, is satisfied
that the original of such documents no longer need be preserved, a
record of such documents is recorded, copied or reproduced by any
process which accurately reproduces or forms a durable medium for
reproducing the original and such record is retained for the remainder
of the applicable four year period specified above and is open to
examination by the tax commission on the days and during the hours set
forth above.

The tax commission by a special proceeding in the supreme court may
enforce its right to examine such books of account, bills or memoranda
of sale or transfer, transfer ledger, register and certificate books and
surrendered or canceled shares or certificates and declarations or a
record of such shares or certificates and all memoranda and any
declarations relating to the sale or transfer thereof recorded, copied
or reproduced as herein provided. If the tax commission ascertains that
the tax provided for in this article has not been paid, the attorney
general, at the instance of the commission, shall bring an action in its
name as such tax commission, in any court of competent jurisdiction for
the recovery of such tax and for any penalty incurred by any person
under the provisions of this article.

Every person, firm, company, association or corporation or business
conducted by a trustee or trustees that shall fail to keep such book of
account or bills of memoranda of sale or transfer, or transfer ledger,
register or certificate book or surrendered or canceled shares or
certificates or declarations as herein required, or who alters, cancels,
obliterates or destroys any part of said records, except as herein
permitted, or makes any false entry therein, or who shall refuse to
permit the tax commission or any of its authorized representatives
freely to examine any of said books, records or papers at any of the
times herein provided, or who shall in any other respect violate any of
the provisions of this section shall be deemed guilty of a misdemeanor
and on conviction thereof shall for each and every such offense pay a
fine of not less than five hundred dollars nor more than five thousand
dollars, or be imprisoned not less than three months nor more than one
year, or both in the discretion of the court.