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Banks and Robbers Swapping Roles
For a printable version of this release, please click here.
November 1998 - In the past it was the banks who worried about robbers. Now it is publishers who worry about court condoned and sanctioned robbery by banks. This form of "legal theft" happens en masse every time a book distributor files, or is forced into bankruptcy. Micro-publishing company Too Lazy For You Livestock & Literary Company recently had 14% of the first printing of Cowboy Romance confiscated by First State Bank of Fort Collins, Colorado when Bighorn Booksellers filed for bankruptcy. When he first learned of Bighorn's failure, 2lazy4U's owner immediately contacted the bank and was informed their books are now the property of the bank. Upon sending a letter and copy of his contract to the bank's attorneys, he was informed that the contract had no basis of his company's ownership of the books.
According to Colorado's Uniform Commercial Code that even if the contract clearly states in plain English that the books are "under consignment" the bank has the right to sell the books and use the proceeds to pay the "primary" creditors (which are mainly the banks themselves). The publisher is designated as a "secondary" creditor and will only recieve a portion of the books' value IF there is anything left of the spoils once the banks and lawyers are finished with their feeding frenzy.
A publsher's only protection from this legalized theft is in knowing the Uniform Commercial Code in each and every state where they have a distributor. In the case of Colorado, if a publisher files a UCC financing statement with the Colorado Secretary of State when acquiring a distributor they may then lay claim to their books by giving notice to the bank of that filing.
2lazy4U is currently in the process of filing a suit in small claims court for the remainder of their books bieng held by First State Bank of Fort Collins under precadence of section sec. 557 of the bankruptcy laws which allow grain farmers the right to their grain held in elevators which go bankrupt.
Mr. Kinford invites all publishers with books confiscated in this proceding to contact and join him saying "We have but two choices.... Sit here like a deer caught in the headlights or take action to make changes"
Bob Kinford
Too Lazy For You Livestock & Literary Co.
(505) 891-0588
bob@2lazy4U.com
http://www.2lazy4U.com
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