New York Codes, Rules and Regulations › Title 19 - DEPARTMENT OF STATE › Chapter XXXII - Division of Code Enforcement and Administration › Part 1210 - Manufactured Homes › Section 1210.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For the purposes of this Part:
(a) The term
acceptable deposit
				account control agreement
shall mean an agreement which identifies a
				deposit account having a balance of not less than $50,000 in the case of an
				applicant for certification as a manufacturer or a certificate holder certified
				as a manufacturer, not less than $25,000 in the case of an applicant for
				certification as a retailer or a certificate holder certified as a retailer,
				not less than $10,000 in the case of an applicant for certification as an
				installer or a certificate holder certified as an installer, and not less than
				$5,000 in the case of an applicant for certification as a mechanic or a
				certificate holder certified as a mechanic, and which grants the Department of
				State a security interest in and control of such deposit account; provided
				that:
(1) such agreement is in form provided
				by or otherwise acceptable to the Department of State; is executed by an
				applicant for certification or a certificate holder, as the depositor- debtor;
				is executed by the bank with which such deposit account is maintained, as
				depository; and includes:
(i) an agreement by
				the depository and the depositor-debtor that the Department of State may
				withdraw funds from the deposit account and apply such funds toward any
				permitted application, and that funds in the deposit account will be paid to
				the Department of State, upon written demand by the Department of State, for
				application by the Department of State toward any permitted
				application;
(ii) provisions
				granting the Department of State a security interest in the deposit account to
				secure the obligation of the depositor to pay the claims, pay the penalties,
				take the repairs or corrective actions, and satisfy the article 21-B orders and
				article 21-B judgments mentioned in subdivision (x) of this section, and to
				secure the right of the Department of State to withdraw funds from the account
				and to apply such funds toward any permitted applications;
(iii) provisions granting the Department of
				State control (as that term is used in article 9 of the Uniform Commercial
				Code) of the deposit account, including but not necessarily limited to an
				agreement by the depositor-debtor, the Department of State, and the depository
				that the depository will comply with instructions originated by the Department
				of State directing disposition of the funds in the account without further
				consent by the depositor- debtor;
(iv) an agreement by the depository that any
				security interest in, or right of recoupment or set off against, the account
				then held or thereafter acquired by the depository is and shall be subject and
				subordinate to the security interest granted to the Department of
				State;
(v) an agreement by the
				depositor-debtor and the depository that no withdrawal or other payment may be
				made from the account for any purpose (including but not limited to application
				toward any debt or obligation secured by or subject to any security interest or
				right of recoupment or set off now held or hereafter acquired by the
				depository), if such withdrawal or payment would cause the balance of the
				account to be reduced below the applicable minimum balance, without the written
				consent of the Department of State; and
(vi) such other certifications,
				acknowledgments, agreements, terms, and provisions as may be required by the
				Department of State;