New York Laws
Article 12-A - Tax on Gasoline and Similar Motor Fuel
283-D - Registration of Wholesalers of Motor Fuel.

(b) Bond or other security. The commissioner may require a wholesaler
of motor fuel seeking a registration to file with the department 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 this state or other security acceptable to the commissioner,
in such amount as the commissioner may fix to secure the performance by
such wholesaler of motor fuel of the duties and responsibilities
required (i) pursuant to this article and (ii) pursuant to articles
twenty-eight and twenty-nine of this chapter with respect to motor fuel.
The commissioner may require that such a bond or other security be filed
before a wholesaler of motor fuel is registered, and the amount thereof
may be increased at any time when in the commissioner's judgment the
same is necessary. If securities are deposited as security under this
subdivision, such securities shall be kept in the joint custody of the
comptroller and the commissioner and may be sold by the commissioner if
it becomes necessary so to do in order to recover against such
wholesaler of motor fuel but no such sale shall be had until after such
wholesaler of motor fuel shall have had opportunity to litigate the
validity of the liability if it elects to do so. Upon any such sale the
surplus, if any, above the sums due shall be returned to such wholesaler
of motor fuel. The department, when authorized by the wholesaler of
motor fuel, shall furnish information regarding the registration of the
wholesaler of motor fuel and any other information which the wholesaler
of motor fuel authorizes it to disclose.
(c) Refusal to register. For the purposes of determining whether to
refuse an application for registration under this section, the
references in subdivision two of section two hundred eighty-three of
this article to employees or shareholders under a duty to file a return
under or pursuant to the authority of this article or pay the taxes
imposed by or pursuant to the authority of this article on behalf of the
applicant or another person shall be deemed to also include an employee
under a duty to file a return or pay taxes under or pursuant to the
authority of this article on behalf of such applicant or other person.

In addition to the grounds specified in section two hundred eighty-three
of this article, the commissioner may refuse to register an applicant
where the commissioner ascertains that the applicant, an officer,
director or partner of the applicant, a shareholder directly or
indirectly owning more than ten percent of the number of shares of stock
of such applicant (where such applicant is a corporation) entitling the
holder thereof to vote for the election of directors or trustees, or an
employee or shareholder of such applicant who, as such employee or
shareholder is under a duty to file a return under or pursuant to the
authority of this article or to pay the taxes imposed by or pursuant to
the authority of this article on behalf of the applicant; (1) has
committed any of the acts or omissions which are, or was convicted as,
specified in subdivision (d) of this section within the preceding five
years; or (2) was an officer, director or partner of another person, or
who directly or indirectly owned more than ten percent of the shares of
stock of another person (where such other person is a corporation)
entitling the holder thereof to vote for the election of directors or
trustees, or who was an employee or shareholder of another person under
a duty to file a return under or pursuant to the authority of this
article or pay the taxes imposed by or pursuant to the authority of this
article on behalf of such other person at the time such other person
committed any of the acts or omissions which are, or was convicted as,
specified in subdivision (d) of this section within the preceding five
years.
(d) Cancellation or suspension of registration. The grounds for a
cancellation or suspension of a registration under this section as a
wholesaler of motor fuel are the same as those grounds specified in
section two hundred eighty-three of this article and, in addition to
such grounds, the following grounds relating to this article shall
apply:
(1) A registration as a wholesaler of motor fuel may be cancelled or
suspended if the commissioner determines that a registrant or an
officer, director or partner of the registrant, a shareholder directly
or indirectly owning more than ten percent of the number of shares of
stock of such registrant (where such registrant is a corporation)
entitling the holder thereof to vote for the election of directors or
trustees, or an employee or shareholder of such registrant under a duty
to file a return under or pursuant to the authority of this article or
to pay the taxes imposed by or pursuant to the authority of this article
on behalf of the registrant
(A) fails to file or maintain in full force and effect a bond or other
security when required pursuant to subdivision (b) of this section or
when the amount thereof is increased,
(B) fails to comply with any of the provisions of this article or any
rule or regulation adopted pursuant to this article by the commissioner,
(C) knowingly aids and abets another person in violating any of the
provisions of this article or any rule or regulation adopted pursuant to
this article by the commissioner,
(D) transfers its registration as a wholesaler of motor fuel without
the prior written approval of the commissioner,
(E) with respect to a wholesaler of motor fuel which is a corporation,
has been dissolved pursuant to section two hundred three-a and
subdivision (d) of section three hundred ten of this chapter,
(F) commits fraud or deceit in his, her or its operations as a
wholesaler of motor fuel or has committed fraud or deceit in procuring
his, her or its registration,
(G) has impersonated any person represented to be a wholesaler of
motor fuel under this article but not in fact registered as a wholesaler
of motor fuel, or
(H) has knowingly aided and abetted the distribution of motor fuel, by
any person which such registrant or such other person knows has not been
registered by the commissioner as required under this article.
(2) A registration as a wholesaler of motor fuel may be cancelled or
suspended if the commissioner determines that a registrant or an
officer, director or partner of the registrant, a shareholder directly
or indirectly owning more than ten percent of the number of shares of
stock of such registrant (where such registrant is a corporation)
entitling the holder thereof to vote for the election of directors or
trustees, or an employee or shareholder of such registrant under a duty
to file a return under or pursuant to the authority of this article or
to pay the taxes imposed by or pursuant to the authority of this article
on behalf of the registrant, was an officer, director or partner of
another person or was a shareholder directly or indirectly owning more
than ten percent of the number of shares of stock of another person
(where such other person is a corporation) entitling the holder thereof
to vote for the election of directors or trustees, or was an employee or
shareholder of another person under a duty to file a return under or
pursuant to the authority of this article or to pay the taxes imposed by
or pursuant to the authority of this article on behalf of such other
person at the time such other person committed any of the acts specified
in paragraph one of this subdivision within the preceding five years.
(e) Cancellation or suspension of registration prior to a hearing. The
grounds for cancelling or suspending a registration as a wholesaler of
motor fuel prior to a hearing shall be the same as those specified in
subdivision five of section two hundred eighty-three of this article
and, in addition to such grounds, the following grounds relating to this
article shall apply:
(1) the failure to file a return within ten days of the date
prescribed for filing a return under this article if the registrant
shall have failed to file such return within ten days after the date the
demand therefor is sent by registered or certified mail to the address
of the wholesaler of motor fuel given in its application, or an address
substituted therefor as provided in subdivision five of section two
hundred eighty-three of this article,
(2) the failure to continue to maintain in full force and effect at
all times the bond or other security required to be filed pursuant to
subdivision (b) of this section, provided, however, that if a surety
bond is cancelled prior to expiration, the commissioner may after
considering all the relevant circumstances make such other arrangements,
and may require the filing of such other bond or other security as it
deems appropriate,
(3) the transfer of a registration as a wholesaler of motor fuel
without the prior written approval of the commissioner, or
(4) with respect to a wholesaler of motor fuel which is a corporation,
the dissolution or annulment of such corporation pursuant to section
three hundred ten of this chapter.