New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter I - Franchise and Certain Business Taxes
Subchapter G - Stock Transfer Tax
Part 51 - Transfers
Section 51.2 - Transfers pursuant to instructions on magnetic or punched tape, etc
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(b) Any instruction on magnetic or punched tape, discs, cards or other media or by wire or wireless transmission of any broker or dealer in securities, or of any bank, national banking association, trust company or system for the central handling of securities, or the nominees of such system, when authorized by this section, shall contain either the name of or a unique alphabetic or numeric symbol identifying each broker, dealer, bank, national banking association, trust company or system for the central handling of securities to which such instruction relates. The use of such instruction shall be supervised by a responsible officer or employee thereof and shall constitute any certification thereof pursuant to this Subchapter as if such certification was set forth in full in the form prescribed by this Subchapter together with any and all rights, duties, obligations and liabilities, including those of all persons who would have been required to affix their signature or a facsimile thereof to such certification. Such certification shall be used solely pursuant to the provisions of this Subchapter. The transfer agent or other party whose records contain the unique alphabetic or numeric symbol under this paragraph is responsible for identifying the party to whom such symbol refers.
(c) Any instruction in lieu of an exemption certificate required by or referred to in Part 54 of this Title, in the case of transfers through a system for the central handling of securities effected pursuant to instructions on magnetic or punched tape, discs, cards or other media, or by wire or wireless transmission, must include either the name of or a unique alphabetic or numeric symbol identifying the broker, bank, national banking association or trust company or dealer in securities maintaining a regular place of business in the State of New York who or which is a depositor in any such system. The transfer agent or other party whose records contain the unique alphabetic or numeric symbol under this subdivision is responsible for identifying the party to whom such symbol refers.
(d) The field in an instruction on magnetic or punched tape, discs, cards or other media, or an instruction by wire or wireless transmission allowed pursuant to the provisions of this section may not be used for any other purpose nor may the unique alphabetic or numeric character so provided for be used within such field for any other purpose other than as provided for by this section.
(e) If an instruction is inserted on magnetic or punched tape, discs, cards or other media, or an instruction by wire or wireless transmission, as provided for by this section, the facsimile signature otherwise required by section 54.1 of this Title shall not be required.
(f) In the case of a transfer or delivery of certificates effected pursuant to instructions on magnetic or punched tape, discs, cards or other media, or by wire or wireless transmission, a broker, dealer in securities, corporation, transfer agent or other such entity effecting such transfer or delivery shall not be required to retain such tape, discs, cards or other mode or means of transmission of such instructions, provided such broker, dealer, corporation, transfer agent or entity retains a copy or record of such instructions and, provided the commissioner consents thereto pursuant to the provisions of section 276 of the Tax Law, for the remainder of the four- year period of retention applicable to the original documents under such section. Severe penalties attach to a failure to comply with these requirements. See Part 2402 of this Title for taxpayer record retention formats.