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STATE OF NEW YORK v. INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA

305 A.D.2d 916 (2003)

762 N.Y.S.2d 116

STATE OF NEW YORK, Respondent, v. INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, Defendant and Third-Party Plaintiff-Appellant. HSBC BANK USA, Third-Party Defendant-Respondent.

Appellate Division of the Supreme Court of the State of New York, Third Department.

Decided May 22, 2003.

Peters, J.

Herkimer Wholesale Company, a licensed cigarette wholesaler and tax agent, purchased tax stamps on credit from plaintiff and, pursuant to Tax Law § 471 (1) and § 1103 (a) (2), secured a bond from National Union Fire Insurance Company of Pittsburgh in the amount of $1.7 million which named plaintiff as an obligee. Subsequently, defendant assumed liability for the bond and increased it to $2.2 million.

Third-party defendant, HSBC Bank USA...

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