Massachusetts § 14Q - Redemption of stamps; defaults; procedure

§ 14Q. Redemption of stamps; defaults; procedure

Section 14Q. In the event a trading stamp company defaults in the performance of its obligation to redeem trading stamps, any rightful holder shall be entitled to file within three months after such default a complaint with the state treasurer. Upon the filing of any such complaint the state treasurer shall forthwith make a determination whether there has been a default. If he shall determine that there has been such a default he shall give notice of such determination by publishing the same in three consecutive publications of one or more newspapers published in the city of Boston and having general circulation throughout the commonwealth and therein require that proof of all claims for breach of the obligation upon the performance of which the bond is conditioned shall be filed with him, together with the trading stamps upon which the claim is based, within three months after the date of the first such publication. The state treasurer promptly after the expiration of such period shall determine the validity of all claims so filed. Thereupon the state treasurer 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, and the state treasurer shall make an equitable distribution of the proceeds of the bond to such claimants and shall destroy the trading stamps so filed with him.