§ 576 — Claims by rightful holders of trading stamps

§ 576. Claims by rightful holders of trading stamps. 1. If a trading\nstamp company defaults in the redemption of its stamps when they are\nduly presented for redemption by residents of this state who are the\nrightful holders of such stamps, all such holders of such trading\nstamps, including retailers in possession of such stamps for issuance to\ncustomers, shall be entitled to make claim against such bond. Any such\nrightful holder of trading stamps may, after such default, file a\ncomplaint with the secretary of state, who shall forthwith make a\ndetermination whether there has been a default. If said secretary\ndetermines that there has been a default, he shall give notice of such\ndetermination to the company and, if such default is not corrected\nwithin ten days, he shall publish notice of such default in three\nconsecutive publications of one or more newspapers having general\ncirculation throughout this state and therein require that proof of all\nclaims for redemption of the trading stamps of such company be filed\nwith him, together with the trading stamps upon which the claim is\nbased, within six months after the date of the first such publication.\nThe secretary of state shall acknowledge receipt of all trading stamps\nsubmitted with such claims and determine the validity of all claims so\nfiled promptly after the expiration of such period. Thereupon the\nsecretary shall be paid by the surety such amount, not exceeding the\nprincipal sum of the bond, as shall be necessary to satisfy all valid\nclaims so filed. The secretary shall promptly thereafter make an\nequitable distribution of the proceeds of the bond to such claimants and\nshall destroy the trading stamps so surrendered.\n 2. The assertion of a claim by holders of trading stamps against the\nbond of a defaulting trading stamp company pursuant to this section\nshall not affect or impair any other rights or remedies such holders may\nhave against such company under any other statute or at common law. In\nthe pursuit of any such right or remedy, the receipt issued by the\nsecretary of state for trading stamps received in connection with such\nclaims asserted pursuant to this section shall be evidence that persons\nhaving such receipts were holders of such stamps prior to their\nsurrender to the secretary.\n 3. The costs and other charges incurred by the secretary of state in\nperforming the duties set forth in this section shall constitute a\nproper charge against the trading stamp company which has defaulted, or,\nin the event of the trading stamp company's failure to pay, against the\nbond filed by that company, and shall constitute a prior claim against\nsuch company or such bond, except that in no event shall the surety be\nliable for such charge and all other valid claims as an aggregate in\nexcess of the principal sum of the bond.\n