N.Y. Comp. Codes R. & Regs. tit. 18 § 729.7

Current through Register Vol. 46, No. 51, December 18, 2024

Section 729.7 - Initial stock loans

(a) The commission may make stock loans available to licensees who are promoted, appointed, or transferred to operate vending facilities. The commission, after consideration of the size and projected volume of sales of a vending facility, will determine the amount, method and term of repayment for initial stock loans. Any loan made pursuant to this Part must be used solely for the purchase of merchandise to be sold at the vending facility to which the blind licensee has been promoted or appointed.

(b) The licensee must grant to the commission a security interest in the licensee's inventory, including all goods, merchandise and other tangible personal property presently owned or thereafter acquired and held for sale in the licensee's business during the period of the loan.

(c) The licensee must keep the inventory and proceeds thereof free from any adverse liens, security interests, or encumbrances, and in good condition and must not waste or destroy any of the inventory or proceeds.

(d) The licensee must appoint the commission as agent for the purpose of preparing and filing one or more financing statements pursuant to the Uniform Commercial Code of the State to perfect the security interest given and agree that the same may be filed in the Office of the Secretary of State and, as applicable, the appropriate county clerk's office, without the licensee's signature.

(e) At the option of the commission, all obligations of the licensee become immediately due and payable without notice or demand upon the occurrence of any of the following events of default:

(1) default in the payment or performance of any obligation of the licensee for any obligation to the holder of the loan; and

(2) death, dissolution, termination of existence, insolvency, business failure, or the appointment of a receiver of any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceedings under any bankruptcy or insolvency laws by or against, any maker, endorser, or guarantor.

Upon the occurrence of any such events or defaults, and at any time thereafter, the commission may exercise the remedies of a secured party under the Uniform Commercial Code of the State.

N.Y. Comp. Codes R. & Regs. Tit. 18 § 729.7