§ 4-15 Agents; Credit and Performance Bonds.
RCNY § 4-15
(a)The Commissioner of Finance may appoint as an agent to affix stamps to be used in paying the tax imposed by the law any person who has been appointed by the State Tax Commission to affix stamps used in payment of the tax imposed by Article 20 of the State Tax Law. Each agent so appointed will be assigned a distinctive number to be used by him in the cancellation of stamps and for other purposes when necessary and said number will be the same as that assigned to such agent by the State Tax Commission. An agent shall at all times have the right to appoint the person in his employ who is to affix the stamps to any cigarettes under his control. Such agent shall purchase stamps from banks to which he has been assigned.
(b)(1) At the discretion of the Commissioner of Finance agents may be permitted to pay for the purchase of such stamps within thirty days after the date of purchase, provided a surety bond satisfactory to the Commissioner of Finance is filed with him.
(2)A bond to secure the payment of sums due from an agent shall be on a form prescribed by the Commissioner of Finance and shall be issued by a surety company which is approved by the Superintendent of Insurance as to solvency and responsibility and which is authorized to transact business in the State of New York. Such bond, which must be filed in triplicate, shall secure the amount of credit for which application is made, and shall continue in full force and effect until a certificate has been issued by the Commissioner of Finance to the effect that all monies due the City for the purchase of stamps have been paid in full.
(3)In addition to the credit bond described in paragraph (2) of this subdivision, an agent may be required to file with the Commissioner of Finance a surety bond issued by a surety company described in paragraph (2), in such amount as he deems appropriate, guaranteeing the proper discharge and performance of his duties as agent.
(c)A nonresident agent, that is, one located outside the City of New York, may likewise be appointed by the Commissioner of Finance for the purpose of purchasing and affixing stamps for cigarettes. Nonresident agents desiring to purchase stamps on credit may be permitted to do so, in the discretion of the Commissioner of Finance, in the same manner, and subject to the same conditions, as described in subdivision (b) of this section, in such amount as the Commissioner of Finance may deem appropriate, guaranteeing the proper discharge and performance of his duties as a nonresident agent. Such nonresident agent must agree to submit his books of account and records for examination during reasonable business hours.
(d)In lieu of the bonds described in the preceding subdivisions, an agent may deposit with the Commissioner of Finance his personal bond together with securities, approved by the Commissioner of Finance, in such amounts as he may require. Such securities shall be kept in the custody of the Commissioner of Finance. Securities so deposited may be sold by the Commissioner of Finance, should it become necessary to do so, to recover any sums due from an agent pursuant to this section but no such sale shall be had until an agent shall have had an opportunity to be heard regarding the validity of any tax or the amount due, or to have a court determination, as provided by the law or these regulations. Upon any such sale the surplus, if any, above the sums due shall be returned to such agent.
(e)No credit for the purchase of stamps shall be granted in excess of the amount secured by a credit bond or collateralized personal bond.
(f)If, on June 30, 1982, an agent has outstanding a sum due for stamps purchased on credit, which sum is not fully secured by a credit bond or collateralized personal bond, such agent shall, on the first day of each of the next forty succeeding months, reduce the sum which is not so secured by an amount equal to two and one-half percent of such unsecured sum by paying such amount in cash or by tendering a credit bond or collateralized personal bond, as described in the preceding subdivisions, in such amount. Provided, however, that the Commissioner of Finance in implementing the foregoing reduction in unsecured credit shall have the authority to make minor adjustments to the foregoing percentage to adjust for the purchase of stamps in full rolls and provided further, however, that all of such unsecured credit shall be eliminated within the foregoing period of forty months.
(g)In the event that the agent fails to remit any amount owed for stamps purchased on credit (with or without a credit bond or other security) when due, then, in such event, all or any part of the amounts then owing for credit purchases of stamps shall, at the option of the Commissioner of Finance, become immediately due and payable, the extension of credit to the agent shall immediately terminate, and no further sales to the agent will be made until such time as remittance in full is received for all such amounts so declared to be due and the Commissioner of Finance approves the restoration of credit and the making of sales to the agent.
(h)No person shall sell or offer for sale any stamps issued under the law, except by written permission of the Commissioner of Finance.
