The franchised corporation may incur indebtedness, including without limitation, the issuance of non-convertible debt securities in connection therewith, and grant liens on and security interests in assets and interests, including without limitation, the revenue streams referred to herein, except that any debt incurred or funds raised shall be used to promote racing at the franchise racetracks. The franchised corporation shall not create any lien or security interest in any asset that runs with the franchise, such as the simulcasting contract, the repayment of which would extend beyond the term of the franchise. All incurrence of debt or grant of liens or security interests other than those arising within the ordinary course of business such as materialmen's and mechanics' liens first require the approval of the franchise oversight board.
N.Y. Rac. Pari-Mut. Wag. and Breed. Law § 216