976                                 Laws of Maryland                         [Ch. 650

B. A bond payable to this State and duly executed by the company
and a corporate surety qualified to do business therein, which is
conditioned upon the performance by the 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.

(b)  In the event the company defaults in performing such obli-
gations, all rightful holders of such trading stamps of such company
shall be entitled to make claim against such bond. Retailers in
possession of trading stamps for issuance to their customers shall
also be deemed rightful holders entitled to make such claim.

(c)  In the event the company defaults in the performance of its
obligation to redeem trading stamps, any rightful holder may file
within three months after such default a complaint with the Secre-
tary of State. Upon the filing of any such complaint the Secretary
of State shall forthwith make a determination whether there has
been a default. If the Secretary of State shall determine that there
has been such a default he shall give notice of such determination to
the company and if such default is not corrected within 10 days
shall publish notice of such default in three consecutive publications
of one or more newspapers having general circulation throughout
this State and therein require that proof of all claims for redemp-
tion of the trading stamps of the company 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
Secretary of State promptly after the expiration of such period
shall determine the validity of all claims so filed. Thereupon the
Secretary of State shall be paid by the surety such amount as shall
be necessary to satisfy all valid claims so filed, together with reason-
able administrative costs incident to the determination and payment
of such claims, not exceeding, in the aggregate, however, the prin-
cipal sum of the bond. The Secretary of State shall promptly there-
after make an equitable distribution of the proceeds of the bond, less
such reasonable administrative costs, to such claimants and shall
destroy the trading stamps so surrendered.

(d)  The principal sum of the bond shall be as follows: Where the
company has not previously done business as a trading stamp com-
pany in this State, or if the company's gross income from such
business in this State during its last fiscal year was not in excess
of two hundred and fifty thousand dollars, twenty-five thousand
dollars; if such gross income exceeded two hundred and fifty thou-
sand dollars but was not in excess of five hundred, thousand dollars,
fifty thousand dollars; if such gross income exceeded five hundred
thousand dollars but was not in excess of seven hundred and fifty
thousand dollars, seventy-five thousand dollars; and if such gross
income exceeded seven hundred and fifty thousand dollars, one hun-
dred thousand dollars.

(e)  On the effective date of each such new bond any and all lia-
bility on all bonds previously filed hereunder shall terminate, and all
rightful holders of trading stamps who shall prosecute their claims
hereunder shall prosecute such claims solely against the new bond
and only by filing proofs of claim with the Secretary of State in the
manner hereinbefore provided.

(f)  The statement of registration and the bond shall be filed with
the Secretary of State on or before July 1, 1959, and annually there-