Current through Register Vol. 46, No. 12, March 20, 2024
(a) Transfers or
deliveries upon the instructions of a depositor in a system for the central
handling of securities (including the clearing and settling of securities
transactions):
(1) established by a national
securities exchange or association registered with the Securities and Exchange
Commission of the United States; or
(2) maintained by a clearing corporation as
defined in subsection (3) of section 8-102 of the Uniform Commercial Code, from
the name of such depositor or his nominee or from the name of his customer or
the nominee of such customer to the registered nominee of any such system, are
exempt from tax when made for the purpose of holding such shares or
certificates, as agent for such depositor. Transfers or deliveries upon the
instructions of any such depositor from the name of the registered nominee of
such system to the same depositor, customer or nominee are similarly exempt.
(See section
55.2
of this Title for provisions relating to registrations of nominees.)
(b)
(1) In the case of registrations of transfers
exempt from tax under subdivision 5 of section
270 of
the Tax Law which are effected through any such system for the central handling
of securities established by a national securities exchange located in this
State, or maintained by a clearing corporation located in this State in which
capital stock is held by such a national securities exchange or by a
corporation subject to supervision or regulation pursuant to the provisions of
the banking or insurance laws of this State, a proper exemption certificate
must accompany both:
(i) the instructions of
the depositor to such system or its nominee directing the transfer of such
depositor's shares; and
(ii) the
system's or its nominee's instructions to the transfer agent, issuing
corporation or trustee issuing certificates subject to tax under article 12 of
the Tax Law for the transfer of depositors' shares.
(2) The exemption certificate referred to in
subparagraph (1)(ii) of this subdivision may be either the exemption
certificate of the depositor which accompanies the depositor's instructions to
the system or its nominee or an exemption certificate made by the system or its
nominee in reliance on the exemption certificate or certificates accompanying
its depositors' instructions to such system or its nominee. A single exemption
certificate by the system or its nominee, in reliance on the exemption
certificate or certificates accompanying its depositors' instructions to such
system or nominee, may be made with respect to exemption certificates submitted
to such system or its nominee by one or more depositors.
(c) Where a broker, dealer or investment
company registered under the Securities Exchange Act of 1934, as amended, or
the Investment Company Act of 1940, as amended, certifies to its affiliated
clearing corporation under section
52.2
of this Title that all of the entries in his account with such clearing
corporation as reflected in a daily statement of transactions represent
transactions subject to the stock transfer tax upon which the tax will be paid,
and/or transactions which come within one or more of the exemptions specified
in subdivision 5 of section
270 of
the Tax Law, and that evidence in proof of each such exemption is maintained by
the broker and is available for inspection by representatives of the
department, such certification shall be deemed to apply to all of the transfers
reflected on such daily statement which represent transfers exempt under any of
the provisions of subdivision 5 of section
270 of
the Tax Law.
