Section 303. 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 harness 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 paragraph a 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 paragraph
  a  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  harness  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.