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INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA v. HSBC BANK USA

37 A.D.3d 251 (2007)

829 N.Y.S.2d 511

INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, Respondent, v. HSBC BANK USA, Appellant.

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

Decided February 15, 2007.

Nonparty Herkimer Wholesale Company Inc. (Herkimer) was a licensed cigarette wholesaler and tax agent. Plaintiff, Insurance Company of the State of Pennsylvania (ICSP), had issued a bond to guarantee the payment by Herkimer to the State of New York of tax receipts in Herkimer's possession. Due to Herkimer's insolvency, the State brought an action against ICSP for payment on the bond (see State of New York v Insurance Co. of State of Pa., 305 A.D.2d...

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