N.Y. Comp. Codes R. & Regs. tit. 20 § 51.2

Current through Register Vol. 46, No. 51, December 18, 2024

Section 51.2 - Transfers pursuant to instructions on magnetic or punched tape, etc

(a)

(1) Notwithstanding any other provision of this Subchapter, 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, the person so effecting such transfer or delivery may insert in such instruction--in lieu of any required certification--an arabic numeral, as follows, or such other unique alphabetic or numeric character (see paragraph [2] of this subdivision).

(i) in the case of a transfer or delivery of certificates on which the tax will be paid through a clearing corporation, as provided in section 52.2 of this Title, the broker may insert in such instruction the arabic numeral "1", in lieu of the certification, required by subdivision (f) of such section, that the tax on the shares transferred will be paid through a clearing corporation;

(ii) in the case of a transfer or delivery of certificates, on which the tax will be paid other than by the use of stamps, by a dealer as provided in section 52.3 of this Title (whether or not such dealer employs a clearing agent), the dealer may insert in such instruction the arabic numeral "1", in lieu of the certification, required by subdivision (d) of such section, that the tax on the shares transferred will be paid directly to the commissioner;

(iii) in the case of a transfer or delivery of certificates by:

(a) a broker who is a member of a registered securities exchange within the State of New York which is registered with the Securities and Exchange Commission of the United States and who maintains a regular place of business within the State of New York;

(b) a bank, national banking association or trust company maintaining a regular place of business in the State of New York; or

(c) any dealer in securities maintaining a regular place of business in the State of New York, such person or entity may insert in such instruction the arabic numeral "2", in lieu of the certification of tax exemption required by section 54.1 of this Title; or

(iv) in the case of a transfer made by a depositor through a system for the central handling of securities (other than a depositor which qualifies under subparagraph [iii] of this paragraph), where such transfer is exempt from tax under paragraph (j) or (k) of subdivision 5 of section 270 of the Tax Law, such depositor may insert in such instruction the arabic numeral "3," in lieu of the certification of tax exemption required by section 54.1 of this Title.

(2) Upon a written request, the commissioner may approve (in writing) another unique alphabetic or numeric character to be used in such instruction in place of those prescribed by this section.

(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.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 51.2