Legislation
SECTION 7-201
Sale of certain licensed taxicabs
General Obligations (GOB) CHAPTER 24-A, ARTICLE 7, TITLE 2
§ 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.
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.