Bon-Ton Stores Premium Finance Agreement Order Issued -- The U.S. Bankruptcy Court issued an order (Second) authorizing the Bon-Ton Stores to enter into a Commercial Premium Finance Agreement with AFCO Premium Credit. The order states, "The Debtors are authorized and directed to pay AFCO all sums due pursuant to the PFA. Upon funding of the premiums that are subject of the PFA (the Financed Policies') by AFCO, AFCO shall be deemed to have a first and only priority security interest in any and all unearned premiums and dividends which may become payable under the Financed Policies for whatever reason. In the event that the Debtors default in any payment obligation under any outstanding loan made by AFCO under the PFA, AFCO shall have the absolute right to enforce all of its rights under the PFA and applicable state law, including to cancel any or all of the Financed Policies, without further order of this Court and to collect and retain all unearned premiums for the Financed Policies to be applied to any outstanding amounts under the PFAs."
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