New York Laws
Article 12 - Tax on Transfers of Stock and Other Corporate Certificates
270 - Amount of Tax.

(a) A sale, agreement to sell, memorandum of sale, or delivery or
transfer of shares or certificates of stock or any certificates taxable
under this section, made on an organized securities exchange within this
state registered with the securities and exchange commission of the
United States, of less than one hundred shares and less than the unit of
trading on such exchange, by any person, firm, company, association or
corporation registered with such exchange, and engaged thereon, as
dealer in less than the unit of trading;
(b) An agreement evidencing the deposit of certificates as collateral
security, which certificates are not actually sold, or such certificates
so deposited, or transfers of such certificates to the person with whom
they are deposited as collateral security or to a nominee of such person
or from one nominee of such person to another, provided the same
continue to be held by such person or nominee or nominees as collateral
security as aforesaid, or the retransfer of such certificates to the
depositor;
(c) Transfers or deliveries of certificates pursuant to a statutory
provision, to a trustee or public officer to secure the performance of
obligations, or retransfers or redeliveries of such certificates to the
transferer or depositor;
(d) Transfers of certificates from the name of a fiduciary to a
nominee of such fiduciary, or from one nominee of such fiduciary to
another, provided the same continue to be held by such nominee or
nominees for the same purpose for which they would be held if retained
by such fiduciary, or from the nominee to such fiduciary;
(e) Transfers of certificates from the name of the owner thereof to a
custodian where the certificates are to be held or disposed of by such
custodian for and subject to the instructions of the owner, or from the
name of such custodian to the owner by whom the certificates were
transferred to such custodian, or from the name of such custodian to a
nominee of such custodian, or from one nominee of such custodian to
another, provided the same continue to be held by such nominee or
nominees for the same purpose for which they would be held if retained
by such custodian, or from the nominee to such custodian;
(f) Mere loans of stock or certificates, or the return thereof;
(g) Deliveries or transfers from the name of the owner to a broker
for sale, or deliveries by or transfers from the name of a broker to a
customer for whom and upon whose order he has purchased the same;
(h) Deliveries or transfers of shares or certificates from a
corporation to its registered nominee, or from one registered nominee of
such corporation to another such nominee, provided the shares or
certificates continue to be held by such nominee for the same purpose

for which they would be held if retained by such corporation, or from
such nominee to such corporation.
(i) Transfers or deliveries of shares or certificates upon the
instructions of a broker, whether doing business as a corporation,
partnership or individually, from his name or from the name of his
customer to such broker's registered nominee for the purpose of holding
such shares or certificates subject to the instructions of a clearing
corporation affiliated with any securities exchange in this state, as
agent for such broker, and transfers or deliveries upon the instructions
of such clearing corporation from the name of such broker's registered
nominee to such broker or customer. For the purposes of this paragraph,
the term "broker" shall include any banking corporation or trust company
incorporated under the laws of this or another state of the United
States and any bank organized under the laws of the United States.
(j) Transfers or deliveries of shares or certificates upon the
instructions of a depositor in a system for the central handling of
securities (including the clearing and settling of securities
transactions) (a) established by a national securities exchange or
association registered with the securities and exchange commission of
the United States or (b) maintained by a clearing corporation as defined
in 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 for the
purpose of holding such shares or certificates, as agent for such
depositor, and transfers or deliveries upon the instructions of any such
depositor from the name of the registered nominee of such system to same
depositor, customer or nominee. For the purposes of this paragraph, a
"depositor" shall include such securities exchanges or associations,
registered under a statute of the United States such as the Securities
Exchange Act of 1934 as amended, and their affiliated clearing
corporations, such banks, trust companies, investment companies,
insurance companies and other financial organizations as are subject to
supervision or regulation pursuant to the provisions of federal or state
banking laws or state insurance laws and such brokers, dealers and
investment companies as are registered under the Securities Exchange Act
of 1934 as amended, or the Investment Company Act of 1940 as amended, if
the foregoing individuals or organizations have been accepted by such
system for the central handling of securities as participants therein.
(k) Transfers or deliveries of shares or certificates upon the
instructions of a depositor in a system for the central handling of
securities as described in paragraph (j) of this subdivision from the
name of the nominee of any such system to the name of the nominee of
another such system, provided the same continue to be held by the
nominee of such other system for the same purpose as previously held for
such depositor by the nominee of such other system.
(l) Where the sale, agreement of sale, memorandum of sale, delivery
or transfer of a security is effected in a manner which would not
otherwise subject such transaction to a tax, the tax shall not apply
solely by reason of the receipt or payment of cash in this state as part
of a system for the central handling of securities described in
paragraph (j) of this subdivision or the making of an accounting,
bookkeeping or similar entry in records maintained in this state as part
of such system. The tax commission shall prescribe rules and regulations
to effectuate the purposes of this paragraph and paragraphs (i), (j) and
(k) of this subdivision, and shall have all the rights and powers as set
forth in section two hundred seventy-six of this chapter to examine any
transactions or records of any nature of such system.

6. The tax imposed by this section shall not apply to shares or
certificates of stock, or certificates of rights to stock, or
certificates of deposit representing certificates of the character taxed
by this article, in any domestic association, company or corporation,
even though a record of the transfer is made in the stock book kept in
compliance with section ten of the stock corporation law, if the
transfer is made upon the books of such association, company or
corporation regularly kept at a transfer office or by a transfer agent
outside the state, provided the keeping of such books outside the state
is necessary or convenient for the transaction of the ordinary business
affairs of such association, company or corporation and is approved by
the tax commission, and neither the sale, nor the agreement to sell, nor
the memorandum of sale, nor the delivery is made in this state and no
act necessary to effect the transfer (other than the making of a record
in the stock book kept in compliance with section ten of the stock
corporation law) is done in this state.
7. As used in this section, the term "registered nominee" means any
person registered with the tax commission in accordance with such rules
and regulations as it shall prescribe.
8. Nothing in this section contained shall be construed to impose a
tax upon sales, agreements to sell, memoranda of sales, deliveries or
transfers of shares or certificates
(a) issued under a noncorporate investment trust agreement of the
fixed type and no such sale, agreement to sell, memorandum of sale,
delivery or transfer shall result in imposing a tax under this section
on the securities held in such an investment trust; or
(b) of an investment trust between the investment trust and an
underwriter, between an underwriter and a dealer in securities or
between an underwriter or dealer and an investor. As used in this
paragraph, the term "investment trust" means an investment trust of the
management type, the shareholders of which are, upon reasonable notice,
entitled to require the investment trust to redeem or repurchase their
shares or certificates for their proportionate interest in the property
of the investment trust, or the cash equivalent thereof, less a discount
of not more than three per centum thereof, and the term "underwriter"
means a person, firm or corporation who has entered into an agreement
with such investment trust to effectuate, alone or through others, sales
of shares or certificates of the investment trust.