2023 New York Laws › GBS - General Business › Article 29-E - Trading Stamps › 576 - Claims by Rightful Holders of Trading Stamps.

§  576.  Claims by rightful holders of trading stamps. 1. If a trading
  stamp company defaults in the redemption of its  stamps  when  they  are
  duly  presented  for  redemption  by residents of this state who are the
  rightful holders of such  stamps,  all  such  holders  of  such  trading
  stamps, including retailers in possession of such stamps for issuance to
  customers,  shall  be entitled to make claim against such bond. Any such
  rightful holder of trading  stamps  may,  after  such  default,  file  a
  complaint  with  the  secretary  of  state,  who  shall forthwith make a
  determination whether there  has  been  a  default.  If  said  secretary
  determines  that  there has been a default, he shall give notice of such
  determination to the company and,  if  such  default  is  not  corrected
  within  ten  days,  he  shall  publish  notice  of such default in three
  consecutive publications  of  one  or  more  newspapers  having  general
  circulation  throughout this state and therein require that proof of all
  claims for redemption of the trading stamps of  such  company  be  filed
  with  him,  together  with  the  trading  stamps upon which the claim is
  based, within six months after the date of the first  such  publication.
  The  secretary  of state shall acknowledge receipt of all trading stamps
  submitted with such claims and determine the validity of all  claims  so
  filed  promptly  after  the  expiration  of  such  period. Thereupon the
  secretary shall be paid by the surety such  amount,  not  exceeding  the
  principal  sum  of  the bond, as shall be necessary to satisfy all valid
  claims so  filed.  The  secretary  shall  promptly  thereafter  make  an
  equitable distribution of the proceeds of the bond to such claimants and
  shall destroy the trading stamps so surrendered.
2.  The  assertion of a claim by holders of trading stamps against the
  bond of a defaulting trading stamp  company  pursuant  to  this  section
  shall not affect or impair any other rights or remedies such holders may
  have  against  such company under any other statute or at common law. In
  the pursuit of any such right or  remedy,  the  receipt  issued  by  the
  secretary  of  state for trading stamps received in connection with such
  claims asserted pursuant to this section shall be evidence that  persons
  having  such  receipts  were  holders  of  such  stamps  prior  to their
  surrender to the secretary.
3. The costs and other charges incurred by the secretary of  state  in
  performing  the  duties  set  forth  in  this section shall constitute a
  proper charge against the trading stamp company which has defaulted, or,
  in the event of the trading stamp company's failure to pay, against  the
  bond  filed  by that company, and shall constitute a prior claim against
  such company or such bond, except that in no event shall the  surety  be
  liable  for  such  charge  and all other valid claims as an aggregate in
  excess of the principal sum of the bond.