(a) Closing Deadlines.
(1) Within ninety days after the bid opening, each winning Bidder must close on his or her Medallion(s). If the winning Bidder is unable to close within that period, Bidder must complete the following no later than ninety days after the bid opening:
(i) Deposit twenty-five thousand dollars ($25,000) in a form of payment acceptable under 35 RCNY § 52-40(b)(2) for each Medallion covered by the winning bid; and
(ii) Provide the Chairperson with proof of purchase of a vehicle eligible for Hack-Up (see 35 RCNY Chapter 67) in the form of a certificate of origin, a certificate of title, a bill of sale, or a signed sales contract.
(2) All purchases of Medallions must close by no later than ninety days after bid opening unless extended by the Chairperson for reasonable cause shown.
(3) All closing dates are subject to the approval of the Chairperson.
(4) No closing date can be scheduled until the winning Bidder has done the following:
(i) Demonstrated compliance with all of the requirements for issuance and ownership of a Taxicab License; and
(ii) Submitted proof of purchase of a vehicle eligible for Hack-Up in the form of a certificate of origin, a certificate of title, a bill of sale, or a signed sales contract.
(5) A winning Bidder's failure to comply with the provisions in this subdivision will result in the disqualification of the winning bid.
(b) Additional Pre-Closing Requirements. Each winning Bidder must complete the following prior to closing:
(1) Submit all documentation required by the Chairperson.
(2) Clear outstanding fines and penalties.
(3) Submit fingerprint records as directed by the Chairperson unless the Bidder has electronic fingerprints already on file with the Commission.
(c) Post-Closing Requirement. Hack-Up each Medallion sold under this Subchapter no later than the fifth business day following the day of the closing on the sale of the Medallion, unless extended by the Chairperson for reasonable cause shown.
(d) Payment. The winning Bidder will be responsible for payment of the following:
(1) The balance of the purchase price (the bid amount, minus any deposits);
(2) Any applicable taxes;
(3) Two years' worth of license and inspection fees (as provided in 35 RCNY § 58-07); and
(4) Any other fees due. No Medallion transfer tax will be collected for the initial Medallion issuance.
(e) Disposition of Deposits.
(1) All deposits of winning Bidders will be credited toward the sale price.
(2) If the winning Bidder is not qualified to hold a license, the deposit will be refunded.
(3) A winning Bidder who does not attempt to meet the requirements of this Subchapter, including a winning Bidder who fails to comply with the Closing Deadlines, will lose all deposits made under 35 RCNY § 65-06.
(4) Deposits of non-winning and non-responsive Bidders will be returned by the Chairperson if possible.
(i) A deposit made under 35 RCNY § 65-06 that is not returnable to the Bidder will be deemed forfeited by the Bidder and will be retained by the Commission after the Chairperson has made two unsuccessful attempts to return the deposit, by certified mail, return receipt requested, to the address listed by the Bidder on the bid form.
(5) Deposits submitted with bids that achieve Reserve Status will be held until those bids are converted to winning bids or until the sales have closed for all Lots of Medallions of the type for which the bid was made.
(f) Disqualification.
(1) A winning Bidder's failure to meet the Closing Deadlines provided in this section will result in the disqualification of that Bidder as to that winning bid and the forfeiture of deposits made under 35 RCNY § 65-06 for that winning bid.
(2) A winning Bidder whose bid is disqualified due to Bidder's failure to meet the Closing Deadlines established here will also be disqualified and will have all deposits made under 35 RCNY § 65-06 forfeited with respect to any Reserve Status Bids that Bidder may have.
(3) A winning Bidder who has more than one winning bid or Reserve Status Bid (including any bids assigned to a Business Entity in which that Bidder is a Business Entity Person) must close first on his or her highest winning bid and then in descending order of each next highest winning bid(s).
(4) A winning Bidder who has more than one winning bid or Reserve Status Bid (including any bids assigned to a Business Entity in which that Bidder is a Business Entity Person) may not avoid closing on the higher winning bid(s) by failing to meet Closing Deadlines. In such a case, the winning Bidder will be disqualified first on the lowest of his or her winning bids and then in ascending order on each of the next lowest winning bids. The deposits made under 35 RCNY § 65-06 for the disqualified bids will be forfeited.
(Amended City Record 3/4/2016, eff. 4/3/2016)