R 431.1070 Leases; validity; terms.

Rule 1070. (1) Horses may be raced under a lease if the lease agreement is submitted in a manner and form prescribed by the executive director and is approved by the stewards. For the purposes of racing a horse in this state, the stewards may at any time suspend or revoke their approval of a lease upon a determination that the lease is not in the best interest of racing. (2) For racing purposes, a lease must not be approved by the stewards unless all of the following provisions are complied with: (a) The lessee and lessor are licensed as owners. (b) Each of the signatures of the lessor and lessees on the lease agreement are subscribed and sworn to before a notary public. (c) A horse is not leased more than once per calendar year without approval of the stewards. (d) Conditions of the lease specify, as to parties to the lease, whether the subject horse may be entered to be claimed. If the lessor agrees that the subject horse may be entered to be claimed, conditions of the lease shall specify the minimum price for which the subject horse can be entered and to whom the claiming price is payable. (e) Conditions of the lease specify that upon claim of the subject horse, the lease terminates and all rights in and to such horse pass to the claimant as a bona fide purchaser. (f) The lease completely divests the lessors of further control or direction of the racing performance of such horse while under lease, and the lease ensures that the resultant program listing of the lessee will not mislead the betting public by reason of the absence in the program listing of the name of a person or persons who possess a beneficial interest in such leased horse.