729.7 initial stock loans.
(a) The commission may make stock loans available to licensees who are
promoted, appointed, or transferred to operate vending facilities. The commission, after
consideration of the size and projected volume of sales of a vending facility, will
determine the amount, method and term of repayment for initial stock loans. Any loan made
pursuant to this Pan must be used solely for the purchase of merchandise to be sold at the
vending facility to which the blind licensee has been promoted or appointed.
(b) The licensee must grant to the commission a security interest in
the licensee's inventory, including all goods, merchandise and other tangible personal
property presently owned or thereafter acquired and held for sale in the licensee's
business during the period of the loan.
(c) The licensee must keep the inventory and proceeds thereof free from
any adverse liens, security interests, or encumbrances, and in good condition and must not
waste or destroy any of the inventory or proceeds.
(d) The licensee must appoint the commission as agent for the purpose
of preparing and filing one or more financing statements pursuant to the Uniform
Commercial Code of the State to perfect the security interest given and agree that the
same may be filed in the Office of the Secretary of State and, as applicable, the
appropriate county clerk's office, without the licensee's signature.
(e) At the option of the commission, all obligations of the licensee
become immediately due and payable without notice or demand upon the occurrence of any of
the following events of default:
(1) default in the payment or performance of
any obligation of the licensee for any obligation to the holder of the loan; and
(2) death, dissolution, termination of
existence, insolvency, business failure, or the appointment of a receiver of any part of
the property of, assignment for the benefit of creditors by, or the commencement of any
proceedings under any bankruptcy or insolvency laws by or against, any maker, endorser, or
guarantor.
Upon the occurrence of any such events or defaults, and at any time thereafter, the
commission may exercise the remedies of a secured party under the Uniform Commercial Code
of the State.