Section 575. Bond required

1.  At  the time of filing each registration
  statement, the trading stamp company must also file with  the  secretary
  of  state a bond payable to the people of the state of New York and duly
  executed by the company and a corporate surety qualified to do  business
  in  this  state;  such bond shall be conditioned upon the performance by
  the trading stamp company of its obligation  to  redeem  trading  stamps
  issued  by  retailers  in  this  state  when they are duly presented for
  redemption by the rightful holders.
    2. The principal sum of the bond required by this article 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  receipts  from
  such  business  during  its  last  fiscal  year was not in excess of one
  hundred thousand  dollars  the  principal  sum  shall  be  ten  thousand
  dollars;  for  each additional one hundred thousand dollars, or fraction
  thereof, of  gross  receipts  from  such  business  in  this  state,  an
  additional  ten  thousand  dollars,  but  such bond shall not exceed one
  hundred fifty thousand dollars.
    3. On the effective date of each new bond, any and  all  liability  on
  all  bonds  previously filed under this article shall terminate, and all
  rightful holders of trading stamps who prosecute their claims under this
  article shall prosecute such claims solely against the new bond and only
  by filing proofs of claim with the secretary  of  state  in  the  manner
  provided in this article.
    4.  In  lieu  of  the bond required by this section, the trading stamp
  company may post with the secretary of state  (a)  money  equal  to  the
  amount  of  the  bond  otherwise required or (b) securities equal to one
  hundred twenty percent of the bond otherwise required.  Such  securities
  shall be of the same kinds and classes as those in which the comptroller
  may  invest  the  funds of the state pursuant to section ninety-eight of
  the state finance law, or in which a fiduciary may invest funds he holds
  for investment pursuant to subparagraphs A through I of subparagraph (1)
  of paragraph (a) of section 11-2.2 of the  Estates,  Powers  and  Trusts
  Law.