N.Y. General Business Law 575 – Bond required
§ 575. Bond required. 1. At the time of filing each registration statement, the trading stamp company must also file with the secretary of state a bond payable to the people of the state of New York and duly executed by the company and a corporate surety qualified to do business in this state; such bond shall be conditioned upon the performance by the trading stamp company of its obligation to redeem trading stamps issued by retailers in this state when they are duly presented for redemption by the rightful holders.
Terms Used In N.Y. General Business Law 575
- Fiduciary: A trustee, executor, or administrator.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
- Secretary: means the secretary of state. See N.Y. General Business Law 570
- Trading stamp: means any stamp or similar device issued in connection with the retail sale of merchandise or service, as a cash discount or for any other marketing purpose, which entitles the rightful holder, on its due presentation for redemption, to receive merchandise, service or cash. See N.Y. General Business Law 570
- Trading stamp company: means any person engaged in distributing trading stamps for retail issuance by others, or in redeeming trading stamps for retailers, in any manner. See N.Y. General Business Law 570
2. The principal sum of the bond required by this article shall be as follows: if the company has not previously done business as a trading stamp company in this state, or if the company's gross receipts from such business during its last fiscal year was not in excess of one hundred thousand dollars the principal sum shall be ten thousand dollars; for each additional one hundred thousand dollars, or fraction thereof, of gross receipts from such business in this state, an additional ten thousand dollars, but such bond shall not exceed one hundred fifty thousand dollars.
3. On the effective date of each new bond, any and all liability on all bonds previously filed under this article shall terminate, and all rightful holders of trading stamps who prosecute their claims under this article shall prosecute such claims solely against the new bond and only by filing proofs of claim with the secretary of state in the manner provided in this article.
4. In lieu of the bond required by this section, the trading stamp company may post with the secretary of state (a) money equal to the amount of the bond otherwise required or (b) securities equal to one hundred twenty percent of the bond otherwise required. Such securities shall be of the same kinds and classes as those in which the comptroller may invest the funds of the state pursuant to § 98 of the state finance law, or in which a fiduciary may invest funds he holds for investment pursuant to subparagraphs A through I of subparagraph (1) of paragraph (a) of section 11-2.2 of the Estates, Powers and Trusts Law.