1. An executory prepaid contract automatically terminates if the seller or any performer
under the contract goes out of business, dies, becomes insolvent or bankrupt, makes
an assignment for the benefit of creditors or is otherwise unable to fulfill the obligations
under the contract unless, within 30 days after the going out of business, death,
insolvency or bankruptcy of the seller, or within any extension of time granted by
the Commissioner, the contract is assigned to a holder of a valid seller's certificate
of authority who agrees in writing to accept the liabilities under the contract and
agrees to fulfill all obligations set forth therein.
2. Upon any such termination, the money in the trust fund, including earned interest,
held by the trustee for the account of the buyer must be distributed by the trustee
to the buyer or to a qualified seller or performer assuming the outstanding contractual
liabilities, as authorized by the Commissioner.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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