§4025. Claims, enforcement

Link to law: http://legislature.vermont.gov/statutes/section/09/103/04025
Published: 2015

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The Vermont Statutes Online



Commerce and Trade






4025. Claims, enforcement

(a) In the event

the company defaults in performing its obligations under this chapter, all

rightful holders of trading stamps of the company shall be entitled to make

claim against the bond filed under subdivision 4024(a)(2) of this title.

Retailers in possession of trading stamps for issuance to their customers shall

also be deemed rightful holders entitled to make a claim.

(b) If the

company defaults in the performance of its obligation to redeem trading stamps,

any rightful holder may file, within three months after the default, a

complaint in the Washington Superior Court. Upon the filing of a complaint, the

presiding judge shall, upon 10 days' notice in writing sent by certified mail

to the company, summarily hear and forthwith make a determination whether there

has been a default. If the presiding judge determines that there has been a

default, he or she shall give notice of the determination to the company and if

the default is not corrected within 10 days, he or she shall order the clerk of

the Court to publish notice of the default in three consecutive publications of

one or more newspapers having general circulation throughout this State and

therein require that proof of all claims for redemption of the trading stamps of

the company shall be filed with the Court, together with the trading stamps

upon which the claim is based, within three months after the date of the first

publication. Promptly after the expiration of that period, the Court shall

determine the validity of all claims so filed. Thereupon, the Court shall be

paid by the surety such amount as shall be necessary to satisfy all valid

claims so filed, not exceeding, however, the principal sum of the bond. Upon

the failure to pay the amount demanded, the Court shall notify the Attorney

General who shall bring an action in a Court of record, to recover the amount

demanded. Upon payment or recovery of the amount demanded, the clerk of the

Court shall promptly thereafter make an equitable distribution of the proceeds

of the bond to the claimants and shall promptly destroy the trading stamps so

surrendered. (Added 1959, No. 240, § 5, eff. Sept. 1, 1959; amended 1973, No.

193 (Adj. Sess.), § 3, eff. April 9, 1974.)