N.Y. General Obligations Law § 7-201: Sale of certain licensed taxicabs

§ 7-201. Sale of certain licensed taxicabs. Notwithstanding any other

law a bank, trust company, national bank, licensed lender or credit

union which has made a loan to the owner of a licensed taxicab, and has

taken as collateral a security agreement wherein the debtor pledges the

licensed taxicab as security for the repayment of the loan as prescribed

by the uniform commercial code, and in turn the secured party has filed

a financing statement in the proper filing offices, and default has

occurred in payment of the debt by the debtor, the secured party, if

possession has been had of the licensed taxicab must dispose of said

licensed taxicab for use and operation as a licensed taxicab pursuant to

law. When the secured party takes possession of such licensed taxicab it

shall immediately notify the licensing agency.

The purchaser of such licensed taxicab at sale hereunder, or his

vendee shall have the same rights in respect of the use and operation

thereof as a licensed taxicab as he would be entitled to under the law

pursuant to which such taxicab was licensed if he were the purchaser

thereof at a voluntary sale. Said sale shall be conditioned upon the

approval by the licensing or supervisory agency of the purchaser as an

owner of such taxicab. In making such determination, the licensing or

supervisory agency shall use the same procedure and standards as if the

purchaser thereof was a purchaser at a voluntary sale and such approval

shall not be arbitrarily withheld by the licensing or supervisory

agency. In the event such approval is not granted by the licensing or

supervisory agency, said sale shall be declared a nullity, all monies

paid hereunder, shall be returned to the purchaser at said sale. Such

sale shall continue until a purchaser acceptable to the licensing or

supervisory agency is obtained or the vehicle is otherwise disposed of

according to law.

As used herein the term licensed taxicab shall mean a vehicle carrying

passengers for hire and licensed by any county, city, town, village or

any other such licensing agency, to operate as a taxicab within any such

jurisdiction.