(a) In the case of a milk dealer who terminates his participation in the producers security fund pursuant to section 258-b(4)(c) of the law or ceases to do business as a milk dealer in a manner requiring the filing of producer security, such milk dealer's pro rata share of the fund shall be as determined pursuant to section 43.6 of this Part at the close of the license year when the dealer's participation in the fund is terminated. The commissioner shall pay such a milk dealer his pro rata share of the producers security fund after he is satisfied through audit or other information that the dealer has paid in full for all milk purchased, received or handled from producers or cooperatives during the period in which he participated in the fund, including any payments to a producer settlement or equalization fund for an order promulgated under section 258-m or 258-n of the law.

(b) A milk dealer who sells or transfers his milk business in its entirety to another milk dealer or to a person who has applied for a milk dealer's license may assign his interest in the producers security fund, as determined pursuant to subdivision (a) of this section to such milk dealer or person if the latter is already participating or has filed notice of his intent to participate in the fund. Any interest in the producers security fund assigned to a milk dealer or other person shall be applied to his required initial payment to the fund and the balance of such interest shall remain with the fund for the account of such dealer or person. The assignment of any interest in the producers security fund by a milk dealer shall be subject to approval by the commissioner and shall be conditioned on the assignee assuming full responsibility for any claims arising from the failure of such assigning dealer to pay for milk purchased, received or handled during the period in which he participated in the fund.