Current through Register Vol. 54, No. 44, November 2, 2024
Section 1027.8 - Additional application requirements(a)Agreement of sale. The agreement of sale required under this chapter must include the information required by the Authority, including the following: (1) The parties to the transaction.(2) A description of the transaction.(3) The identification number of each right subject to sale.(4) The total consideration for the sale and for each right transferred if the sale involves multiple rights in United States dollars, and any payment terms required by the Authority, including the following:(i) The assumption of any loan or debt.(ii) Contingencies and nonmonetary consideration.(iii) Monetary consideration.(5) An acknowledgement initialed by all parties that the agreement is subject to the laws and jurisdiction of the Commonwealth, the act, this part and orders of the Authority.(b)Execution of agreement of sale. The proposed agreement of sale must be signed at one time by all parties before the Director or a designee on or before the date the SA-1 is filed.(c)Removal of liens. If a notice of lien relating to a medallion which is the subject of a proposed sale was filed under 13 Pa.C.S. (relating to Uniform Commercial Code), the Authority will not approve a medallion sale until evidence of a lien's removal is submitted, unless the Authority is notified by the lienholder that the lien will be satisfied from the proceeds of the sale.(d)Continuing service. The owner of the rights subject to sale shall confirm that the rights will remain in active service pending review of the application, unless prohibited or authorized for suspension by a provision of this part or an order of the Authority.(e)Notice.(1) A notice of applications will be published in the Pennsylvania Bulletin as provided in § 1003.53 (relating to applications requiring notice).(2) The parties to the sale will receive notices related to the SA-1 as provided in § 1001.51 (relating to service by the Authority).(f)Loan documents.(1) Any consideration identified in subsection (a)(4) that is provided to a proposed buyer must be evidenced in the form of written agreements. For example, the loaning of cash money to a proposed buyer by a bank must be confirmed through loan documents executed by the borrowing party.(2) The documents required under paragraph (1) shall be submitted to the Director at the time the SA-1 is filed, except that specific financial information that cannot be known until on or about the closing date for the sale may be left blank. The final loan documents must be executed at the closing on the sale.