N.Y. Tax Law § 422: Bonds of distributors

§ 422. Bonds of distributors. The tax commission may require any

distributor to file with the department of taxation and finance a bond

issued by a surety company approved by the superintendent of financial

services as to solvency and responsibility and authorized to transact

business in the state or other security acceptable to the tax

commission, in such amount as the tax commission may fix, to secure the

payment of any sums due from such distributor pursuant to this article.

The tax commission may require that such a bond or other security be

filed before a distributor is registered, or at any time when in its

judgment the same is necessary as a protection to the revenues under

this article. If securities are deposited as security under this

subdivision, such securities shall be kept in the joint custody of the

comptroller and the commissioner of taxation and finance and may be sold

by the tax commission if it becomes necessary so to do in order to

recover any sums due from such distributor pursuant to this article; but

no such sale shall be had until after such distributor shall have had

opportunity to litigate the validity of any tax if it elects so to do.

Upon any such sale, the surplus, if any, above the sums due under this

article, shall be returned to such distributor.