§ 58-47 Medallion Transfers – Tort Claims.
RCNY § 58-47
(a)Applicability.
(1)This 35 RCNY § 58-47 applies: (i) To all Transferees other than Administrators and Legatees.
(ii)To all Transferors other than an Administrator/operator making a distribution to a Legatee.
(2)This 35 RCNY § 58-47 does not apply to Secured Lender Recipients.
(b)Provisions for Satisfaction of Tort Liabilities.
(3)No transfer of the Taxicab Medallion(s) can occur until: (i) The bond is posted (ii) The Escrow Amount is established and the escrow agent has given an undertaking to the Chairperson to establish and hold the escrow account on the terms required by this 35 RCNY § 58-47 and to notify the Chairperson within five days after the escrow account has been established, or (iii) It is determined by the Chairperson that neither a bond nor an escrow account is required.
(4)Secured Lender Recipients must create an escrow account in the amount of the Secured Lender Escrow Amount.
(c)Determining the Amount of the Escrow Account.
(i)The Transferor must provide adequate mail notice, as described in subdivision (3) below, to the holder of each potential Excess Claim. The notice must state the following: A. Whether the Transferor believes the holder's claim is a potential Excess Claim and the dollar amount (including $0) that Transferor proposes to establish for that claimant's claim. B. That the claimant has 30 days from the date of the notice to object to the amount by sending a written response to the Transferor (with a copy to the Commission, attention Legal Department Transfer Division); the response must state the basis for claimant's objection to the proposed Escrow Amount. C. That if the Commission does not receive the claimant's objection within the 30 day period, the Commission will consider the claimant to have accepted the Transferor's proposal regarding the Escrow Amount to be established for the claim. D. That claimant's acceptance of or failure to object to the Transferor's proposed Escrow Amount will not affect any rights, claims or remedies the claimant has directly against the Transferor.
(iii)For potential claimants disclosed by a Tort Letter, adequate notice will be considered given if the following steps are taken, as necessary: A. Notice is sent to the address disclosed in, by or through the Tort Letter or to any counsel of record disclosed in, by or through the Tort Letter B. If neither the claimant's address nor counsel of record is disclosed by the Tort Letter, Transferor must consult with the insurers providing the Tort Letter to ascertain an address for claimant or for claimant's counsel of record and notice must be sent to any address provided by the insurer C. If a recipient of the notice at this address (or any subsequent recipient who is neither the claimant or claimant's counsel) provides a subsequent address for claimant or claimant's counsel, notice must be mailed to all subsequently provided addresses D. If no address can be obtained for the claimant or claimant's counsel or representative, public notice of the contents of the notice must be placed in the New York Times and The New York Law Journal as a public notice for one business day.
(iv)The Transferor must provide the Chairperson with proof of all mailings by providing: A. A copy of the mailing receipts B. An affidavit or affirmation under penalty of perjury verifying the mailings.
(6)Finalizing the Escrow Amount. If the parties have not reached agreement: (i) The Chairperson will make a final determination of the required Escrow Amount for each claim, as follows: A. Any Escrow Amount determined by OATH will be the Escrow Amount for that claim; B. When the claimant has not objected, the Chairperson's determination will be based on the Transferor's proposed Escrow Amount for the claim; C. If the claimant and the Transferor have come to a written agreement, the Chairperson's determination will be based on that agreement.
(d)When the Escrow Amount Cannot Be Reasonably Determined.
(e)The Escrow Account When Amount Is Determinable.
