§ 643. Bond or securities. 1. As a condition for the issuance and\nretention of the license, applicants for a license and other licensees\nshall, within thirty days after notice by the superintendent, or such\nlonger or shorter period as he or she shall prescribe, file with the\nsuperintendent one or more corporate surety bond or bonds, as required\nbelow, in form satisfactory to him or her and issued by a bonding\ncompany or insurance company authorized to do business in this state.\nOne bond shall be in favor of the superintendent and in such principal\namount as he or she shall determine is necessary or desirable for the\nprotection of the purchasers and holders of New York instruments sold or\nto be sold by the applicant or licensee, provided, however, that until\nJune first, nineteen hundred seventy-seven, the principal amount of such\nbond shall be no less than two hundred ten thousand dollars and on and\nafter June first, nineteen hundred seventy-seven, the principal amount\nof such bond shall be no less than five hundred thousand dollars. If the\napplicant or licensee intends to engage or engages in the sale of New\nYork traveler's checks, such applicant or licensee shall file with the\nsuperintendent a separate bond. Said bond shall be in favor of the\nsuperintendent and in such principal amount as he or she shall determine\nis necessary or desirable for the protection of the purchasers and\nholders of the New York traveler's checks sold or to be sold by the\napplicant or licensee; provided, however, that the principal amount of\nsuch bond shall not be less than seven hundred fifty thousand dollars,\nunless the superintendent, for good cause shown, shall have determined\nthat a lesser amount will adequately protect the purchasers and holders\nof the New York traveler's checks sold or to be sold by such applicant\nor licensee.\n In making any determination under this subdivision, the superintendent\nmay take into account the financial condition of the licensee, the\nnumber of locations in this state at which the licensee, either directly\nor through agents, transacts the business of selling New York\ninstruments or New York traveler's checks, the controls imposed on such\nagents or, and the possible exposure of purchasers and holders of New\nYork instruments and New York traveler's checks to loss in the event of\nthe insolvency, bankruptcy or other financial impairment of the\nlicensee. The proceeds of each bond shall constitute a trust fund for\nthe exclusive benefit of the purchasers and holders of the New York\ninstruments and New York traveler's checks, as the case may be. Except\nas otherwise provided in the following sentence, in the event of the\ninsolvency or bankruptcy of any licensee, the proceeds of the bond or\nbonds held for the exclusive benefit of the purchasers and holders of\nNew York instruments and the proceeds of the bond or bonds held for the\nexclusive benefit of the purchasers and holders of New York traveler's\nchecks shall be paid to the superintendent forthwith for disposition in\naccordance with the provisions of this article. If any New York\ninstruments have been assigned to the fund, the proceeds of the bond\nheld for the exclusive benefit of the purchasers and holders of New York\ninstruments shall constitute a trust fund for the benefit of, and shall\nbe payable to, the fund to the extent of such assignment. From time to\ntime, the superintendent may require, upon thirty days notice or such\nlonger or shorter period as he or she shall prescribe, that such bond or\nbonds be increased if he or she shall determine that such increase is\nnecessary or desirable for the protection of the purchasers and holders\nof New York instruments and New York traveler's checks.\n 2. The licensee shall give notice to the superintendent by registered\nor certified mail of any action which shall be brought against him and\nof any judgment which shall be entered against him by such purchaser or\nholder of a
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.