§ 12-09 Surety Bond.
RCNY § 12-09
(a)Where the Commissioner of Finance in his discretion deems it necessary to protect revenues to be obtained under the law, he may require any operator required to collect the tax to file with him a bond, issued by a surety company authorized to transact business in New York State and approved by the Superintendent of Insurance of New York as to solvency and responsibility, in such amount as the Commissioner of Finance may fix, to secure the payment of any tax and/or penalties and interest due or which may become due from such operator. In the event that the Commissioner of Finance determines that an operator is to file such bond he shall give notice to such operator to that effect, specifying the amount of the bond required. The operator shall file such bond within five days after the giving of such notice, unless within such five days the operator shall request in writing a hearing before the Commissioner of Finance at which the necessity, propriety and amount of the bond shall be determined by the Commissioner of Finance. Such determination shall be final and shall be complied with within 15 days after the giving of notice thereof. In lieu of such bond, securities approved by the Commissioner of Finance, or cash in such amount as he may prescribe, may be deposited, and shall be kept in the custody of the Commissioner of Finance, who may at any time without notice to the depositor apply them to any tax and/or interest or penalties due, and for that purpose the securities may be sold by him at public or private sale without notice to the depositor thereof.
(b)As an alternative to filing a surety bond or depositing securities, the Commissioner of Finance may require or permit an operator required to collect the tax to deposit all taxes which become collectible in any banking institution located in the City, the deposits in which are insured by any agency of the federal government. Such deposits shall be made into and kept in a separate account, in trust and payable to the Commissioner of Finance, until payment over to the Commissioner of Finance. Such account shall remain open, and deposits made therein, until a notice of cancellation is given by the Commissioner of Finance.
