What is a True Party Interest in New York?
True Party of Interest includes, but is not limited to the following:
a: applicant or licensee’s sole proprietor, partner (whether limited or general), member,
manager, president, vice president, secretary, treasurer, officer, board member, trustee, director,
or a person with equivalent title to each of the foregoing;
b: Stockholder of applicant or licensee;
c: each person that makes up the ownership structure of each level of ownership for an
applicant or licensee that has a multilevel ownership structure, including, but not limited to,
subsidiaries, affiliates, parents, shells, and holding companies;
d: person with a right to receive aggregate payments in a calendar year, as part of a risk sharing or services agreement, that exceeds the greater of: 1) 10% of gross revenue, 2) 50% of net profit of a licensee, 3) $100,000 from the licensee in a calendar year;
e) person with a financial interest in the applicant or licensee;
(f) person that has authority to or exercises control over the applicant or licensee;
(g) person that assumes responsibility for the debts of the applicant or licensee; or
(h) spouse of any individual in clause (a) and (b) herein; and
(ii) does not include a person, without limitation who:
- (a) receives payment for rent on a fixed basis under a lease or rental agreement relating to applicant or licensee. The Office may investigate a landlord in situations where a rental payment has been waived or deferred;
- (b) receives a bonus or commission from the applicant or licensee based on the individual’s sales, so long as the commission does not exceed ten percent of the sales of the applicant or licensee in any given bonus or commission period, unless otherwise determined by the Office. Commission-based compensation agreements shall be in writing;
- (c) contracts with the applicant or licensee to receive a commission for the sale of the business or real property;
- (d) consults receiving a flat or hourly rate of compensation from the applicant or licensee under a contractual agreement, unless such compensation exceed the limits set forth in this Chapter;
- (e) is a goods and services contractor, as long as the applicant or licensee retains the right to and controls the business;
- (f) is a financial institution;
- (g) is a financier; or
- (h) others as may be determined by the Office.
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