45:23-8 - Bond - New Jersey Statutes

45:23-8.  Bond    At the time of filing each registration statement, the trading stamp company  shall also file with the Secretary of State a bond payable to the people of the  State of New Jersey and duly executed by the company and a corporate surety  qualified to do business in this State.  Such bond shall be conditioned upon  the performance by the trading stamp company of its obligation to redeem  trading stamps issued by retailers in this State when they are duly presented  for redemption by the rightful holders.

    The principal sum of the bond required by this chapter shall be as follows:   if the company has not previously done business as a trading stamp company in  this State, or if the company's gross income from such business during its last  fiscal year was not in excess of $100,000.00 the principal sum shall be  $10,000.00;  for each additional $100,000.00, or fraction thereof, of gross  income from such business in this State during its last fiscal year, an  additional $10,000.00;  but such bond shall not exceed $150,000.00.

    On the effective date of each new bond, any and all liability on all bonds previously filed under this chapter shall terminate, and all rightful holders of trading stamps who prosecute their claims under said section shall prosecute  such claims solely against the new bond and only by filing proofs of claim with  the Secretary of State in the manner provided in this chapter.

     L.1964, c. 274, s. 9.