(a) Application. An Applicant/Transferee must file a completed application in the form prescribed by the Chairperson.
(b) Payment of Fees. An Applicant/Transferee must pay the following fees:
(1) A transfer fee of Fifty Dollars ($50).
(2) An administrative charge of $160.
(3) The licensing and inspection fees required under 35 RCNY § 58-07.
(c) Proof of Identity. An individual Transferee and all Business Entity Persons of a Business Entity Transferee must:
(1) Provide proof of identity in the form specified in 35 RCNY § 58-04(a), and
(2) Disclose any trade name under which the Transferee intends to operate.
(d) Owner-Must-Drive Proof. If the Transferee is acquiring an interest in a Medallion from an Independent Taxicab Owner, Transferee must provide the Valid License number of the person who will fulfill the service requirements of the Owner-Must-Drive Rule in 35 RCNY § 58-05(d).
(e) Proof of Vehicle Ownership. Transferee must provide proof that Transferee has or will have an appropriate vehicle, by providing either:
(i) A bill of sale of a vehicle eligible to be used as a Taxicab (see 35 RCNY Chapter 67, Taxicab Hack-Up), or
(ii) An affidavit specifying that the Transferee will have a vehicle to be used as a Taxicab within the seven days following the effective date of the transfer (see 35 RCNY § 58-43(b)(7), above).
(f) Payment of Fines and Fees. An Applicant/Transferee must provide proof of payment of any outstanding fines or fees owed to the Commission, the Parking Violations Bureau (or their successors) by the Transferee or any Business Entity Persons of a Business Entity Transferee.
(g) Source of Funds.
(1) An Applicant/Transferee must provide documentation in a form satisfactory to the Chairperson detailing the sources of the funds, if any, Transferee is using to purchase the Medallion, including:
(i) Copies of bank account passbooks or bank statements;
(ii) Affidavit explaining cash sums and deposits over $10,000 paid to or by the Transferee within six months prior to the date of submission of this documentation;
(iii) Affidavits from donors of any gifts;
(iv) Statements from secured and/or unsecured lenders detailing amounts lent, security if any, and terms of payment; and
(v) Copies of IRS Form 8300 filed by any Broker in connection with funds received in the context of the transaction.
(2) If the transfer is by gift or is for less than Market Value, the Transferee must produce a waiver letter from the NYC Department of Finance along with any documentation referred to in the waiver.
(h) Additional Documents Required from Corporate Transferee Applicants. Any corporate Applicant/Transferee or any Applicant seeking to purchase an interest in a corporation must provide, for that corporation:
(1) All newly formed corporations must include a copy of the certificate of incorporation and the filing receipt of the certificate of incorporation.
(2) Established corporations can include the documents described in (i) above alternatively, they can include a certified copy of the certificate of incorporation.
(3) All corporations must include a copy of the resolution or action by the incorporators, shareholders or directors electing officers of the corporation.
(4) All corporations must include a list of stockholders, with the number of shares owned by each.
(i) Additional Documents Required for Partnerships. Any partnership Transferee Applicant or any Applicant seeking to purchase an interest in a partnership must provide for that partnership:
(1) A copy of the certificate of partnership
(2) A list of the partners, including the percentage owned by each.
(j) Additional Documents Required for Limited Liability Companies. Any LLC Transferee Applicant or any Applicant seeking to purchase an interest in an LLC must provide for that LLC:
(1) A copy of the articles of organization
(2) A copy of the operating agreement
(3) A list of the members, with the percentage owned by each.
(k) Additional Document Required from a Foreign Business Entity. Any Business Entity not organized under the laws of the State of New York must also provide proof of authorization to operate in New York.
(l) Documents Required from a Secured Lender Recipient. If the transfer is the result of a foreclosure or similar action by a creditor, the following documents must be provided:
(1) A hypothecation agreement, stock pledge or stock pledge agreement if the transfer is occurring by transfer of, or foreclosure upon, stock;
(2) A UCC Article 9 Foreclosure "Affidavit of Disbursements" showing that all claims have been satisfied or will be satisfied or acceptable documentation regarding any claims not satisfied;
(3) Copies of UCC-1 filings (including file stamp or file number) filed against the former Owner or Owner's interest in the Medallion;
(4) Copies of all security agreements involved in the transfer in respect of the lenders' interests in the Medallion;
(5) A bill of sale, if any, or proof of other transfer in connection with any security agreement;
(6) If the Medallion was sold in an auction, proof of advertisement of the auction together with the attendance sheet;
(7) If the Medallion was sold outright, a copy of the Notice of Sale.
(m) Affidavits Required by the Commission. Transferees must provide:
(1) An affidavit or affirmation under penalty of perjury, in a form approved by the Chairperson, that the Applicant does not rely upon the actions or determination of the Commission with respect to the Medallion; and
(2) Any other affidavit or affirmation regarding documentation required by the Chairperson.
(n) Lien Searches. An Applicant/Transferee must submit with the application:
(1) Copies of a NYS UCC lien search of the Transferor/Owner,
(2) Copies of a lawsuit and judgment search for all counties in which the transferor has been domiciled for the shorter of (i) five years, or (ii) length of time the transferor has owned the Medallion being transferred,
(3) Copies of all active records found in the search, and
(4) An affidavit or affirmation, under penalty of perjury, from the Applicant/Transferee and the transferor warranting that:
(i) They have reviewed and are familiar with the contents of all of the searches
(ii) All disclosed liens and judgments will be:
A. Satisfied prior to or from the proceeds of the transfer
B. Included in the escrow amount, or
C. Assumed by the Applicant.
(1) All Tort Letters from the transferor's insurer(s) during the shorter of
(i) Six years, or
(ii) The length of time the transferor has owned the Medallion up to and including the date the Medallion is put into storage or the date prior to the effective date of transfer.
(2) Any documentation that may be required regarding any potential Excess Claims that the Tort Letters may disclose.
(3) Any information held by the Applicant/Transferee or transferor regarding any potential Excess Claims.
(4) Any other information held by the Applicant/Transferee or Transferor that might be necessary to determine the Escrow Amount.
(p) Transferring the Technology System. The application must include the following information regarding the Technology System:
(1) Proof of Notice to the Technology System Provider.
(i) The Transferor must provide proof that notice of the transfer has been sent to the Technology System Provider that holds the contract to provide the Technology System for the Medallion being transferred.
(ii) The notice must be:
A. Sent at least 30 days prior to the proposed date of transfer (NOTE: The Technology System Provider can waive the 30-day requirement by signing the form)
B. Sent by certified mail, return receipt requested, and
C. Sent to the address specified in the contract
(iii) Proof of notice will be:
A. A copy of the Notice
B. A copy of the certified mail receipt, and
C. An affidavit or affirmation under penalty of perjury verifying the mailing
(2) Transferor's Statement of Intent. The Transferor must use a form approved by the Chairperson to:
(i) Provide a statement of Transferor's intent to
A. Cancel the contract with the Technology System Provider or
B. Assign the contract to the Transferee.
(ii) Provide a statement of Transferor's intent to:
A. Return the Technology System to the Technology System Provider,
B. Retain the Technology System, or
C. Transfer the Technology System to the Transferee.
(3) Transferee's Statement of Intent. The Transferee must use a form approved by the Chairperson to provide a statement of Transferee's intent to:
(i) Assume the Transferor's contract with the Technology System Provider, or
(ii) Identify the licensed Technology System Provider which the Transferee intends to use to provide the Technology System.
(q) Other Documentation. The Applicant must provide any other documentation required by the Chairperson in order to assist in the Chairman in determining whether the proposed Transferee meets the criteria for licensing and ownership of a Taxicab Medallion.
(Amended City Record 9/22/2016, eff. 10/22/2016; amended City Record 5/17/2018, eff. 6/16/2018)