N.Y. Comp. Codes R. & Regs. tit. 1 § 43.7

Current through Register Vol. 46, No. 45, November 2, 2024

Section 43.7 - Exemption from mandatory minimum surety bond

(a) A milk dealer may apply in writing to the commissioner to be exempted from filing a mandatory minimum surety bond pursuant to section 258-b(3)(c) of the law when such dealer elects to participate in the producers security fund or upon renewal of his milk dealer's license. Any such application must be filed not later than three months prior to the date the dealer intends to begin participating in the producers security fund or the date of license renewal and shall set forth the basis upon which an exemption is sought, including but not limited to current financial information.

(b) Notwithstanding the time established for milk dealers to apply for exemption from the mandatory minimum surety bond pursuant to subdivision (a) of this section, a milk dealer may apply not later than October 23, 1987 to be exempted from filing the initial such bond required pursuant to chapter 540 of the Laws of 1987.

(c) The criteria to be used in reviewing an applicant's financial condition, the viability of the producers security fund and the effect of the proposed exemption on security afforded producers shall include, but not be limited to, the following:

(1) the milk dealer's financial liquidity, indebtedness, equity in the business and tangible net worth, profitability, value of unencumbered real and other tangible assets located within New York State, value of milk purchases from New York State producers and in total, and payment practices, and such other factors as may be required to assess the applicant's financial condition;

(2) the balance in the producers security fund relative to the total value of milk secured by the fund and the value of milk on which exemption from the mandatory minimum surety bond is requested or has been granted;

(3) the amount of any producers claims pending against the producers security fund or which the commissioner has reason to believe will be filed against the fund; and

(4) the estimated amounts of payments and interest to be deposited or credited to the producers security fund and expenses or payments to be made from the fund during the next 12 months.

N.Y. Comp. Codes R. & Regs. Tit. 1 § 43.7