§ 4024 — Registration; bond

Vermont § 4024

• Jurisdiction: Vermont
• Title 9: Title 9: Commerce and Trade
• Ch. 103: Chapter 103: Trading Stamps

Text

(a) A trading stamp company shall not issue or distribute trading stamps in this State after September 1, 1959 until it has filed simultaneously with the Secretary of State on forms specified by him or her:
(1) A statement of registration accompanied by representative samples of its stamps, stamp collection books, stamp redemption catalogues, and stamp distribution and redemption agreement forms currently used or proposed to be used in this State. Each statement shall provide the following information:
(A) the name and principal address of the company;
(B) the state of its incorporation or origin;
(C) the names and addresses of its principal officers, partners, or proprietors;
(D) the address of its principal office in this State where the stamps shall be redeemable in cash;
(E) the name and address of its principal officer, employee, or agent in this State;
(F) the addresses of the places where its stamps are redeemable in cash in this State in addition to its principal office in this State;
(G) a short form of its balance sheet, as at the end of its last fiscal year before the filing, certified by an independent or certified public accountant;
(H) unless the principal sum of the bond required by this chapter to be filed by the company is the maximum amount required by this chapter, a statement of its gross income from its business in this State as a trading stamp company during the last fiscal year, certified by an independent or certified public accountant; and
(I) the date when the company first began doing business in this State.
(2) A bond payable to this State and duly executed by the company and a corporate surety qualified to do business in the State, which is conditioned upon the performance by the company of its obligation to redeem in merchandise, service, or cash, at the option of the rightful holder, trading stamps issued by retailers in this State, when they are duly presented for redemption by the rightful holders.
(b) The principal sum of the bond 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 the business in this State during its last fiscal year was not in excess of $250,000.00, $25,000.00; if the gross income exceeded $250,000.00 but was not in excess of $500,000.00, $50,000.00; if the gross income exceeded $500,000.00 but was not in excess of $750,000.00, $75,000.00; and if the gross income exceeded $750,000.00, $100,000.00.
(c) The statement of registration and the bond shall be filed with the Secretary of State on or before September 1, 1959 and annually thereafter on or before July 1 of each year. The trading stamp company shall pay a registration fee of $250.00 to the Secretary of State at the time of filing each registration statement. The bond shall be effective for the registration year next following, unless the company gives notice of its intention to cease the distribution and redemption of trading stamps in this State.
(d) On the effective date of each new bond, any and all liability on all bonds previously filed under this chapter shall end and all rightful holders of trading stamps who prosecute their claims under this chapter shall prosecute the claims solely against the new bond and only by filing proofs of claim with a court of record in the manner provided in this chapter.

Legislative History

(Added 1959, No. 240, § 4, eff. Sept. 1, 1959.)