This bill has been amended

Bill S3727A-2009

Relates to licensed lenders, licensed cashers of checks, sales finance companies, premium finance companies, budget planners, and transmitters of money; repealer

Relates to licensed lenders, licensed cashers of checks, sales finance companies, premium finance companies, budget planners, and transmitters of money.

Details

  • Versions
  • Sponsor:
  • Multi-sponsor(s):
  • Co-sponsor(s):
  • Committee:
  • Law Section:
  • Law:

Actions

  • Jan 6, 2010: REFERRED TO BANKS
  • Jun 21, 2009: PRINT NUMBER 3727A
  • Jun 21, 2009: AMEND AND RECOMMIT TO BANKS
  • Mar 30, 2009: REFERRED TO BANKS

Votes

VOTE: COMMITTEE VOTE: - Banks - Jun 9, 2010
Ayes (17): Foley, Onorato, Breslin, Krueger, Klein, Adams, Stewart-Cousins, Kruger, Diaz, Savino, Peralta, Farley, Johnson O, DeFrancisco, Bonacic, Golden, Marcellino
Nays (1): Ranzenhofer
Excused (1): Morahan

Memo

 BILL NUMBER:  S3727A

TITLE OF BILL :

An act to amend the banking law, in relation to licensed lenders, licensed cashers of checks, sales finance companies, premium finance companies, budget planners and transmitters of money; and to repeal certain provisions of such law relating thereto

PURPOSE :

This bill would modernize the articles of the Banking Law ("BL") covering "licensed financial services" providers, including licensed lenders, licensed cashers of checks, sales finance companies, premium finance agencies, budget planners and money transmitters.

SUMMARY OF PROVISIONS :

Section 1 of the bill amends BL § 340 to increase the size of loans that require registration of the lender as a licensed lender, while eliminating the exemptions for entities that lend at interest rates below the general State rates. An exemption is added for lenders making no more than five loans at any time outstanding, as long as the aggregate amount does not exceed $100,000. A definition regarding when loans are solicited in this State also is added.

Section 2 of the bill adds a new definition section to make use of the article easier. In particular, it adds definitions of "person" and "control."

Section 3 of the bill amends BL § 341 (3) to change the reference to the annual license fee to a reference to the appropriate section of the law. BL § 341(5) is amended to change the capital requirement from one that is calculated on a per branch basis to one calculated on a company-wide basis (although the number of branches may still be relevant) and clarifies that the Superintendent has discretion to require a higher amount.

Section 4 of the bill makes various technical changes throughout BL § 342 to include limited liability companies as applicants and to clarify when an application is deemed complete. It also clarifies that the capital requirement is calculated under BL § 341 (5), rather than on a branch-by-branch basis.

Section 5 of the bill makes conforming changes (recognizing the existence of LLCs) to BL § 343(1).

Section 6 of the bill amends BL § 345 to conform it to the changes made in BL § 340-a (i.e. it deletes the definitions of "person" and "control", which were moved to a new definition section).

Section 7 of the bill makes changes to conform BL § 347 to the changes being made to other provisions of the BL related to grounds of suspension and termination of licenses. In particular, it moves to BL § 347(1) some language that applies to both suspensions and revocations that previously appeared in § 347(2) (which applies only to suspensions). The bill adds to BL § 347(2), which deals with good cause suspensions, a definition of "good cause" that appears in the other BL articles dealing with licensed financial services firms. Also, the period during which a licensed lender may be suspended is expanded to 90 days from 30 days.

Section 7 of the bill also amends BL § 347(2) to provide that the Superintendent may suspend a firm without a hearing for failure to make payments required by the BL (which would include assessments, fees or penalties or restitution ordered in accordance with the BL). Finally, it states that the Superintendent may suspend a firm without a hearing for other failures where there can be no factual question that should be tried by a hearing examiner, including failure to file any report required by the BL, filing a petition in bankruptcy, or having an involuntary bankruptcy petition filed against the firm (and not dismissed in 30 days).

Section 7 of the bill also amends BL § 347(3) to provide that, if the licensee has cured all deficiencies set forth in the suspension order within 90 days after the date of the suspension, the licensee's license may be reinstated; however, if the licensee has not cured the deficiencies and the deficiencies are pursuant to paragraph (b) or (c) of BL 347(2), the license will automatically terminate by operation of law. BL § 347(4) deals with voluntary surrenders of licenses, and makes clear that surrender of a license becomes effective only upon the written approval of the Superintendent and that such surrender does not affect the licensee's obligations to the Superintendent for assessments, fees or administrative actions with respect to any period before the surrender. The changes in BL §§ 347(5) and 347(6) are conforming changes that recognize the new termination provisions. Finally, BL § 347(8) makes clear that, when a license has been terminated by operation of law, the Superintendent must notify the licensee that the license has terminated and that the licensee may not engage in the licensed business.

Section 8 of the bill repeals the first two unnumbered paragraphs of BL § 356, which are no longer needed because BL § 340, as amended, requires all persons making qualifying loans in New York to be registered.

Section 9 of the bill begins the amendments to Article IX-A of the BL (check cashers). A definition of "person" is added to BL § 366( 1) and technical changes are made to other definitions to use this new definition.

Section 10 of the bill makes technical changes to BL § 367 to incorporate the new definition of "person" and to recognize the existence of licensees that are limited liability companies. BL § 367(2) is amended to recognize the use of limited liability companies. In BL § 367(4), the Superintendent is given flexibility to modify the amount of liquid assets required for a check cashing location that is a "limited station."

Section 11 of the bill amends BL § 369(1) to clarify the meaning of the existing section, and is not intended to create new requirements or delete old requirements. A new 369(1-a) contains language taken from elsewhere in BL § 369 concerning the "3/10 of a mile" protected area around a check casher office.

Section 12 of the bill amends BL § 3 70-a to provide the Superintendent with flexibility in processing of applications under this article by measuring the approval time from the date the application became complete.

Section 13 of the bill amends the suspension, revocation and surrender provisions with respect to check cashers, and makes them consistent with the similar provisions for other types of licensed financial services firms as discussed above with respect to § 347. The amendment includes provisions with respect to suspensions "for cause", for failure to pay assessments and other amounts due, failure to file reports, and the filing of a petition in bankruptcy. The bill also makes the section gender-neutral.

Section 14 of the bill amends BL § 374(1) (the exemption from registration as a check casher) to make minor conforming changes. Section 15 of the bill begins the amendments to Article 11-B (sales finance companies). It amends certain definitions in BL § 491 to conform them to each other. The section also makes clear that the term "retail installment obligation" includes an agreement no matter where entered into if it is executed by the buyer in this State and if solicited in person by a salesperson or other person acting on his or her own behalf or that of the seller. Similarly, the definition of "sales finance company" is amended to make clear that the article applies to agreements wherever entered into if they are executed by the buyer in New York and if they are solicited in person by a salesperson or other person acting on his or her own behalf or on behalf of the seller. Also, the types of transactions to which this article applies is clarified, and the existence of a safe harbor for secondary transactions is clarified. The bill also makes the section gender neutral.

Section 16 of the bill amends BL §§ 492(1) and 492(2) to clarify when banking institutions are exempt from coverage of the law and to clarify the procedure for an application for a sales finance company license.

Section 17 of the bill makes changes to BL § 492-a(2) to clarify when a change of control application must be approved.

Section 18 repeals BL § 493(7) and amends BL § 493(4) to clarify the circumstances when a license terminates.

Section 19 of the bill amends the suspension, revocation and surrender provisions with respect to sales finance companies, and makes them consistent with the similar provisions for other types of licensed financial services firms as discussed above with respect to § 347. This includes provisions with respect to suspensions "for cause", for failure to pay assessments and other amount due, failure to file reports, and the filing of a petition in bankruptcy. It also extends from 30 to 90 days the amount of time for which the Superintendent may suspend a license while conducting an investigation. Technical changes also are made to the provisions of BL § 495 regarding termination of a license by the Superintendent and when a licensee may surrender its license.

Section 20 of the bill repeals BL §§ 497(3) and 497(4), which are outdated provisions.

Section 21 of the bill amends BL § 499 to make the section gender neutral.

Section 22 of the bill begins the amendments of Article XII-B of the BL (Insurance Premium Finance Agencies). It amends the definition of a bank contained in § 554 to cover all banking institutions.

Section 23 of the bill amends BL § 555 to conform to the newly defined "banking institutions" in BL § 554 without changing the institutions to which the section applies.

Section 24 of the bill repeals BL § 556(5), a transition provision dating from 1961; as outdated.

Section 25 of the bill amends BL § 558 to clarify when relocation fees are required.

Section 26 of the bill amends BL § 559, the suspension, revocation and surrender provisions with respect to premium finance agencies, and makes them consistent with the similar provisions for other types of licensed financial services firms as discussed above with respect to § 347. This includes provisions with respect to suspensions "for good cause", for failure to pay assessments and other amount due, failure to file reports, and the filing of a petition in bankruptcy. It also extends from 30 to 90 days the amount of time for which the Superintendent may suspend a license while conducting an investigation.

Section 27 of the bill repeals BL §§ 560(3) and 560(4). The substance of these provisions has previously been moved to BL §§ 7 and § 36(10), respectively.

Section 28 of the bill repeals BL § 562, since the subject matter (hearings and investigations) is already covered in Article II.

Section 29 of the bill amends BL § 563 to make the section gender neutral.

Section 30 of the bill amends BL § 576 to clarify the ability of the Superintendent to provide notice by electronic means.

Section 31 of the bill amends BL § 577 to eliminate outdated language.

Section 32 of the bill amends BL § 580 to eliminate outdated language and to clarify when fees for branch offices are required.

Section 33 of the bill amends BL § 581 to clarify that the time period for approving an application runs from the time the application is deemed complete.

Section 34 of the bill amends BL § 583-a to clarify when the Superintendent must act on an application.

Section 35 of the bill amends BL § 584, the suspension, revocation and surrender provisions with respect to budget planners, and makes them consistent with the similar provisions for other types of licensed financial services firms as discussed above with respect to § 347. This includes provisions with respect to suspensions "for good cause", for failure to pay assessments and other amounts due, failure to file reports, the filing of a petition in bankruptcy, and failure to maintain the bond required under BL § 580. It also extends from 30 to 90 days the amount of time for which the Superintendent may suspend a license while conducting an investigation. The effect of the revocation, surrender or termination of a license also is clarified.

Section 36 of the bill amends BL § 586 to clarify that electronic storage of records is permissible.

Section 37 of the bill begins the amendments to Article XIII-B (Money Transmitters). It amends BL § 641 to clarify when banking institutions are exempt from coverage of the article and when New York persons are subject to the protections of this article.

Section 38 of the bill amends BL § 642, the suspension, revocation and surrender provisions with respect to money transmitters, and makes them consistent with the similar provisions for other types of licensed financial services firms with respect to § 347. This includes provisions with respect to suspensions "for good cause", for failure to pay assessments and other amounts due, failure to file reports, the filing of a petition in bankruptcy, and failure to maintain the bond or securities required under BL § 643 or the investments required by BL § 651. It also extends from 30 to 90 days the amount of time for which the Superintendent may suspend a license while conducting an investigation.

Section 39 of the bill repeals outdated language in the bond provisions of BL §643.

Section 40 of the bill repeals BL § 647 to eliminate outdated language.

Section 41 of the bill amends BL § 651 to increase the amount of the required bond for money transmitters from 80% to 90% of the net carrying value of outstanding instruments.

Section 42 of the bill amends BL § 657 to clarify when and how required payments into the money transmitter insurance fund are calculated.

Section 43 of the bill provides the effective date.

EXISTING LAW :

BL § 340 requires registration as a licensed lender where a person is engaged in the business of making loans in the principal amount of $25,000 or less for loans to an individual for personal, family, household or investment purposes and in a principal amount of $50,000 or less for business and commercial purposes. The amendment changes these thresholds to $50,000 and $100,000. In addition, the current law requires registration if a person solicits loans "within this state." The amendment makes clear when solicitation occurs within this state. The current law exempted persons from registration if their loans were isolated, incidental or occasional. The amendment replaces that standard with a numerical threshold - i.e. the number of loans made in any one year is not more than five loans and the aggregate amount of loans outstanding at any one time does not exceed $100,000.

Article IX did not previously have a definition section. The definitions in BL § 340-a are moved from BL § 345(1).

BL § 341(3) provides that licensed lenders will pay not only the investigation fee but also the annual license fees provided for in BL § 17. The words "and annual license fee" would be deleted, since Section 17 provides for several fees.

Current BL § 341 (5) requires "liquid assets" of at least $50,000 at each location specified in the application for a license. The amendment would require total net worth of at least $50,000, or such other amount as may be determined by the Superintendent.

BL §342 does not provide for licensed lenders organized as limited liability companies. The amendment would recognize that licensed lenders may be organized in that form. Like BL §341(5), this section required an applicant to have liquid assets of at least $50,000 in each location and is being amended to require total net worth of at least $50,000 or such other amount as may be determined by the Superintendent. This section did not previously refer to termination of licenses. Previously, this section provided that, if an application was denied or withdrawn the Superintendent would return the license fee and retain only the investigation fee. Finally, this section requires the Superintendent to approve or deny an application for a master license within 90 days of filing.

BL § 343 does not provide for licensed lenders organized as limited liability companies.

BL § 345 contains definitions of "person" and "control." Those definitions are now moved to new BL § 340-a.

BL § 347 did not previously have subdivisions. Although the section allowed the Superintendent to suspend a license for good cause shown there was no definition of "good cause." The section currently allows the Superintendent to suspend a license for good cause for 30 days. The amendment would extend the suspension for 90 days, unless the licensee cures the violation before that time. The amendment also adds a list of grounds for suspensions, including any failure to make required payments to the Department 30 days after the due date, failure to file any required report by the 30th day after the due date, the filing of a voluntary petition in bankruptcy and the filing of an involuntary petition in bankruptcy that is not dismissed within 30 days. In addition, if the cause of such suspension has not been cured within 90 days after the date of the suspension order (including making overdue payments or filings), then the license is deemed automatically terminated. Article IX does not currently provide for licenses to terminate other than by revocation after a hearing.

BL § 356 currently limits the amount that a person not licensed as a licensed lender may charge or receive as interest on a loan to a person in the state. These provisions would be eliminated, since the amendments to BL § 340 would make out-of-state lenders that make covered loans to New York residents subject to Article IX, unless they met the de minimis test.

BL §§ 497(3) and 497(4) currently cover examination expenses and the confidentiality of examination reports. However, those provisions are also founds in BL §§ 17 and 36(10). Consequently, they are being deleted here.

BL § 554(2) currently defines a bank, trust company, private banker, investment company, or national bank with a principal office in New York as a "bank," The amendment would expand on the included institutions and change the term to "banking institution," which is the term used for such a group of institutions elsewhere in the BL.

BL § 555(1) previously referred to "lending institutions." The section would be amended to use the defined term "banking institution."

BL §556(5) previously contained transition provisions for licensing as a premium finance agency that dated from 1960. The amendment eliminates them.

BL §558 concerns change of address notices for premium finance agencies. It previously required only a notice to the Superintendent without a fee. Under the amendment, a change of address requires a written application and involves a fee prescribed in BL § 18-a.

BL § 559 covers grounds for suspension or revocation of a license. It currently authorizes suspension or revocation for failure to pay the annual license fee. The amendment broadens the grounds to failure to pay any sum of money lawfully demanded by.the Superintendent. In addition, the amendment adds the "good cause" bases for 90 day suspensions found in other Articles covering licensed financial service providers, along with the same definition of "good cause". Additional grounds for suspension include any failure to make required payments to the Department by the 30th day after the due date, failure to file any required report by the 30th day after the due date, the filing of a voluntary petition in bankruptcy and the filing of an involuntary petition in bankruptcy that is not dismissed within 30 days. In addition, if the cause of such suspension has not been cured within 90 days after the date of the suspension order (including making overdue payments or filings), then the license is deemed automatically terminated. Article XII-B does not currently provide for licenses to terminate other than by revocation after a hearing.

BL §§ 560(3) and 560(4) address examination expenses and the confidentiality of examination reports. However, those provisions are also founds in BL §§ 17 and 36(10). Consequently, they are being deleted here.

BL § 576 provides for 10 days' written notice of the cancellation of the insurance policy to be mailed to certain persons. New § 576(4) would allow notice to be delivered by other means, including electronic means, as long as the delivery method includes evidence of receipt, including a receipt created and maintained in electronic form.

BL § 577(a) refers to a rate of interest prescribed by the banking board under BL § 14-a, or, if no such rate has been prescribed, 6% per annum. However, a fixed rate of 16% has been set forth in that section, and the amendment reflects this change.

BL § 580(3) does not require payment of a fee for the opening of a branch by a Budget Planner. The amendment authorizes the charging of such a fee. The last sentence of BL . 580(4) is a transition provision that applied in 1975 when the provisions regarding surety bonds took effect. It is now outdated and is being deleted.

BL § 581 provides that the Superintendent must approve or deny an application for a Budget Planner license within 90 days of the filing of the application. The amendment would have the 90 days begin to run from the date the application is deemed complete by the Superintendent.

BL § 583-a provides that the Superintendent must approve or deny an application for a change of control of a Budget Planner within 90 days after the date the application is filed with the Superintendent. The amendment would have the 90 days begin to run from the date the application is deemed complete by the Superintendent.

BL § 584 covers the procedures for suspensions and revocations of licenses of Budget Planners. Although the section allows the Superintendent to suspend a license for good cause shown there is no definition of "good cause." The amendment supplies a definition, which is based in part on the definition in § 495. The section currently allows the Superintendent to suspend a license for good cause for 30 days. The amendment would extend the suspension for 90 days, unless the licensee cures the violation before that time. The amendment also adds a list of grounds for suspension, including any failure to make required payments to the Department 30 days after the due date, failure to file any required report by the 30th day after the due date, the filing of a voluntary petition in bankruptcy and the filing of an involuntary petition in bankruptcy that is not dismissed within 30 days. In addition, if the cause of such suspension has not been cured within 90 days after the date of the suspension order (including making overdue payments or filings), then the license is deemed automatically terminated. Article XII-C does not currently provide for licenses to terminate other than by revocation after a hearing.

BL § 584(5) currently provides that a Budget Planner may surrender a license by delivering written notice to the Superintendent, but that surrender does not affect the licensee's civil or criminal liability for acts committed prior to the surrender. The amendment adds that surrender of a license does not affect the licensee's obligations to the superintendent for assessments, fees or administrative actions with respect to the period before such surrender. It also makes clear that a surrender of a license does not become effective until approved in writing by the Superintendent.

BL § 586 currently permits books and records to be maintained in photographic reproductions as well as in paper form. The amendment would authorize records to be maintained in electronic reproductions, as well.

BL § 641(1) requires registration as a Money Transmitter if a person is in the business of selling or issuing checks or receiving money for transmission. It has routinely been interpreted as not requiring out-of-state money transmitters to register unless they had a place or business or agents in New York. The amendment makes clear that an out-of-state money transmitter must register if it engages in business in this state, and that the definition of engaging in such business occurs when the money transmitter induces a person who is a resident or is located in New York to enter into a transaction by any means, including the mail, electronic mail, telephone, radio, television, the internet or any other electronic means.

BL § 643 contains an outdated transitional provision.

BL § 647 contains transitional language that is outdated.

BL § 651 provides that a money transmitter must have a surety bond in the amount of 80% of the net carrying value of outstanding instruments. The amendment would raise the required amount to 90% of net carrying value.

BL § 657 prohibits the amount assessed against any uninsured money transmitter from exceeding two per cent of the New York instruments insured. The amendment decreases the fee to one percent of the annual volume of New York instruments for the preceding calendar year or $125,000, whichever is less.

LEGISLATIVE HISTORY :

This is a new proposal.

STATEMENT IN SUPPORT :

The amendments made in this proposal are largely technical in nature.

In addition, the reach of Article XIII-B is expanded to cover all situations where money transmission services are extended to persons located in New York, even though the vendor is located in another state. Where out-of-state money transmitters without a physical presence or agents in New York are soliciting and doing business with persons located in New York, this state has an interest in consumer protection that will be addressed if such out-of-state money transmitter must be registered here.

These amendments are needed in the Department's view because of the evolution in financial services and the risks that these services pose for consumers.

BUDGET IMPLICATIONS :

This bill would not have an impact on state finances.

EFFECTIVE DATE : This bill would take effect immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 3727--A 2009-2010 Regular Sessions IN SENATE March 30, 2009 ___________
Introduced by Sen. FOLEY -- (at request of the Banking Department) -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to licensed lenders, licensed cashers of checks, sales finance companies, premium finance companies, budget planners and transmitters of money; and to repeal certain provisions of such law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 340 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: S 340. Doing business without license prohibited. No person [or other entity] shall engage in the business of making loans IN NEW YORK in the principal amount of [twenty-five] FIFTY thousand dollars or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of [fifty] ONE HUNDRED thousand dollars or less for business and commercial [loans, and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law to charge if he were not a licensee hereunder except as authorized by this article and] PURPOSES without first obtaining a license from the superintendent. For the purposes of this section, a person [or entity] shall be considered as engaging in the business of making loans in New York, and subject to the licensing and other requirements of this article, if it solicits loans in [the amounts prescribed by this section within] this state BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELECTRONIC MAIL, TELEPHONE, RADIO, TELEVISION, THE INTERNET OR ANY OTHER ELECTRONIC MEANS, and, in connection with such solicitation, makes loans to indi- viduals then resident OR LOCATED in this state OR, IN THE CASE OF LOANS FOR BUSINESS OR COMMERCIAL PURPOSES, HAVING A PLACE OF BUSINESS WITHIN
THIS STATE, except that no person [or entity] shall be considered as engaging in the business of making loans in this state on the basis of [isolated, incidental or occasional] transactions which otherwise meet the requirements of this section IF THE NUMBER OF LOANS MADE IN ANY ONE YEAR BY ANY SUCH PERSON IS NOT MORE THAN FIVE LOANS AND THE AGGREGATE AMOUNT OF LOANS OUTSTANDING AT ANY ONE TIME DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS. Nothing in this article shall apply to licensed collateral loan brokers. S 2. The banking law is amended by adding a new section 340-a to read as follows: S 340-A. DEFINITIONS. WHEN USED IN THIS ARTICLE: 1. THE TERM "PERSON" MEANS ANY INDIVIDUAL OR LEGAL ENTITY, INCLUDING ANY CORPORATION, PART- NERSHIP, ASSOCIATION OR LIMITED LIABILITY COMPANY. 2. THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLI- CIES OF A PERSON, WHETHER BY MEANS OF THE OWNERSHIP OF THE VOTING STOCK OR EQUITY INTERESTS OF SUCH PERSON OR OF ONE OR MORE PERSONS CONTROLLING SUCH PERSON, BY MEANS OF A CONTRACTUAL ARRANGEMENT, OR OTHERWISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR HOLDS WITH THE POWER TO VOTE TEN PERCENT OR MORE OF THE VOTING STOCK OR EQUITY INTERESTS OF A LICENSEE OR OF ANY OTHER ENTI- TY THAT DIRECTLY OR INDIRECTLY CONTROLS SUCH PERSON. S 3. Subdivisions 3 and 5 of section 341 of the banking law, as amended by chapter 494 of the laws of 1998, are amended to read as follows: 3. In addition to the investigation fee [and annual license fee] every licensee hereunder shall pay to the superintendent the sums provided to be paid under the provisions of section seventeen of [the banking law] THIS CHAPTER. 5. The applicant shall also prove, in form satisfactory to the super- intendent, that the applicant has available for the operation of such business [at the location or locations specified in the application liquid assets] NET WORTH of at least fifty thousand dollars OR SUCH AMOUNT AS MAY BE DETERMINED BY THE SUPERINTENDENT. This amount shall be maintained for the period within which the licensee makes loans in the amounts prescribed in section three hundred forty of this article [at such location]. S 4. Section 342 of the banking law, as amended by chapter 494 of the laws of 1998, is amended to read as follows: S 342. Conditions precedent to issuing license; procedure where appli- cation denied. Upon the filing of such application and the payment of such fees, if the superintendent shall find that the financial responsi- bility, experience, character, and general fitness of the applicant, and of the members thereof if the applicant be a partnership [or], associ- ation OR LIMITED LIABILITY COMPANY, and of the officers and directors thereof if the applicant be a corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly, and efficiently within the purposes of this article, and if the superintendent shall find that the applicant has available for the operation of such business [at each specified location liquid assets of at least fifty thousand dollars] SUCH AMOUNT AS CALCULATED IN ACCORDANCE WITH SUBDIVISION FIVE OF SECTION THREE HUNDRED FORTY-ONE OF THIS ARTICLE, the superintendent shall thereupon execute a master license, and if applicable one or more supplemental licenses, to make loans in accordance with the provisions of this arti-
cle at the location or locations specified in the said application. The superintendent shall transmit one copy of such license or licenses to the applicant and file the same in the office of the department. Each such license shall remain in full force and effect until it is surren- dered by the licensee or [revoked or] suspended, REVOKED OR TERMINATED as [hereinafter] HEREIN provided; if the superintendent shall not so find, a master license shall not be issued and the superintendent shall notify the applicant of the denial. If an application is denied or with- drawn the superintendent shall [return to the applicant the sum paid by the applicant as a license fee, retaining] RETAIN the investigation fee to cover the costs of investigating the application. The superintendent shall approve or deny every application for a master license hereunder within ninety days from the [filing thereof with the said fees] DATE THE APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT. S 5. Subdivision 1 of section 343 of the banking law, as amended by chapter 494 of the laws of 1998, is amended to read as follows: 1. A license shall state the address at which the business is to be conducted and shall state fully the name of the licensee, and if the licensee is a partnership [or], association OR LIMITED LIABILITY COMPANY, the names of the members thereof, and if a corporation, the date and place of its incorporation. A master license shall be kept conspicuously posted in the principal place of business of the licensee and a supplemental license shall be conspicuously posted at the location identified in the license. No master or supplemental license shall be transferable or assignable. S 6. The second undesignated paragraph of subdivision 1 of section 345 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: [As used in this subdivision, (a) the term "person" includes an indi- vidual, partnership, corporation, association or any other organization and (b) the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether by means of the ownership of the voting stock or equity interests of such person or of one or more persons controlling such person, by means of a contractual arrangement, or otherwise. Control shall be presumed to exist if any person directly or indirectly owns, controls or holds with the power to vote ten per centum or more of the voting stock or equity interests of the person desirous of continuing to maintain and operate a licensee's place of business or of any entity which directly or indirectly controls such person.] The superintendent may, upon the application of a licensee or any [such] person [or entity], determine whether or not the ownership, control or holding of such voting stock or equity interests constitutes or would constitute control for purposes of this subdivision. S 7. Section 347 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: S 347. Grounds for [revocation or] suspension, REVOCATION OR TERMI- NATION of license; procedure. [The] 1. IN ADDITION TO THE AUTHORITY SET FORTH IN SUBDIVISION TWO OF THIS SECTION, THE superintendent may suspend or revoke any license issued [hereunder] UNDER THIS ARTICLE if, AFTER NOTICE AND A HEARING the superintendent shall find that: (a) The licensee has failed to pay any sum of money lawfully demanded by the superintendent or to comply with any demand, ruling, or require- ment of the superintendent; (b) The licensee has violated any provisions of this article, the act of congress entitled "Truth in Lending Act" and the regulations there-
under, as such act and regulations may from time to time be amended, or of any rule or regulation lawfully made by the superintendent; (c) Any fact or condition exists which, if it had existed at the time of the original application for such license, [clearly] would have warranted the superintendent in refusing originally to issue such license; (d) The licensee has engaged in the business of a sales finance compa- ny and has done or failed to do any act, except the failure to pay the fees required, which would be grounds for the suspension or revocation of its license pursuant to section four hundred ninety-five of this chapter were it required to obtain such a license. THE SUPERINTENDENT MAY REVOKE OR SUSPEND ONLY THE PARTICULAR LICENSE WITH RESPECT TO WHICH GROUNDS FOR REVOCATION OR SUSPENSION MAY OCCUR OR EXIST, OR, IF THE SUPERINTENDENT SHALL FIND THAT SUCH GROUNDS FOR REVO- CATION OR SUSPENSION ARE OF GENERAL APPLICATION TO ALL OFFICES, OR TO MORE THAN ONE OFFICE, OPERATED BY SUCH LICENSEE, THE SUPERINTENDENT SHALL REVOKE OR SUSPEND ALL OF THE LICENSES ISSUED TO SUCH LICENSEE OR SUCH NUMBER OF LICENSES AS SUCH GROUNDS APPLY TO, AS THE CASE MAY BE. 2. (A) The superintendent may [on] FOR good cause [shown], without notice or A hearing, [suspend] ISSUE AN ORDER SUSPENDING any license ISSUED PURSUANT TO THIS ARTICLE for a period not exceeding [thirty] NINETY days, pending investigation. [The superintendent may revoke or suspend only the particular license with respect to which grounds for revocation or suspension may occur or exist, or, if the superintendent shall find that such grounds for revo- cation or suspension are of general application to all offices, or to more than one office, operated by such licensee, the superintendent shall revoke or suspend all of the licenses issued to such licensee or such number of licenses as such grounds apply to, as the case may be.] "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO MAKE ANY PAYMENTS AS REQUIRED BY THIS CHAPTER. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; OR (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION IN BANKRUPTCY; OR (III) UPON NOTICE AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY. 3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO THIS ARTICLE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTEN- DENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPER- INTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE
DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY. 4. Any licensee may surrender any license by delivering to the super- intendent written notice that the licensee thereby surrenders such license, but such surrender shall not affect such licensee's civil or criminal liability for acts committed prior to such surrender, OR ITS OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRA- TIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SURRENDER. SUCH SURREN- DER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT. 5. No revocation [or], suspension, TERMINATION or surrender of any license shall impair or affect the obligation of any pre-existing lawful contract between the licensee and any borrower. 6. Every license issued hereunder shall remain in force and effect until it shall have been surrendered, revoked, TERMINATED, or suspended in accordance with the provisions of this article, but the superinten- dent shall have authority to reinstate suspended licenses or to issue new licenses to a licensee whose license or licenses shall have been revoked OR TERMINATED if no fact or condition then exists which clearly would have warranted the superintendent in refusing originally to issue such license under this article. 7. Whenever the superintendent shall revoke or suspend a license issued pursuant to this article, the superintendent shall execute a written order to that effect. The superintendent shall file one copy of such order in the office of the department and serve a copy upon the licensee, which order may be reviewed in the manner provided by article seventy-eight of the civil practice law and rules. Such special proceed- ing for review as authorized by this section must be commenced within thirty days from the date of such order of suspension or revocation. 8. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A LICENSED LENDER IN THIS STATE. S 8. Section 356 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: S 356. [Restrictions on certain loans by non-licensees, interests, other charges; loans] LOANS made outside this state. [No person or other entity, other than a licensee under this article, shall directly or indirectly charge, contract for, or receive any interest, discount, or consideration greater than the person or other entity would be permitted by law to charge if it were not a licensee hereunder upon a loan not exceeding the maximum amounts prescribed in section three hundred forty of this article. The foregoing prohibition shall apply to any person or other entity who or which, by any device, subterfuge, or pretense whatsoever shall charge, contract for, or receive greater interest, consideration, or charges than is authorized by the laws of this state for any such loan, use, or forbearance of money, goods, or things in action or for any such loan, use, or sale of credit.]
Any loan in an amount not exceeding the maximum amounts prescribed in section three hundred forty of this article for which a greater rate of interest, consideration, or charges than is permitted by the laws of this state has been charged, contracted for, or received, wherever made, shall not be enforced in this state and every person or other entity participating therein in this state shall be subject to the provisions of this article. An action to enforce any such loan made in any other state to a person then a resident of that state, who now resides in this state may be maintained in this state if the amount of interest, discount, consideration or other charge for such loan, demanded to be paid in such action, does not exceed that permitted to a licensee by section three hundred fifty-one of this article for a loan of the same amount repayable in the same manner. S 9. Subdivision 1 of section 366 of the banking law, as amended by chapter 849 of the laws of 1964, is amended and a new subdivision 4 is added to read as follows: 1. The term "licensed casher of checks" means any [individual, part- nership, unincorporated association or corporation] PERSON duly licensed by the superintendent of banks to engage in business pursuant to the provisions of this article. 4. THE TERM "PERSON" MEANS ANY INDIVIDUAL OR OTHER LEGAL ENTITY, INCLUDING ANY CORPORATION, PARTNERSHIP, ASSOCIATION OR LIMITED LIABILITY COMPANY. S 10. Subdivisions 1, 2 and 4 of section 367 of the banking law, subdivisions 1 and 2 as amended by chapter 151 of the laws of 1945 and subdivision 4 as amended by chapter 96 of the laws of 1981, are amended to read as follows: 1. No person[, partnership, association or corporation] shall engage in the business of cashing checks, drafts or money orders for a consid- eration without first obtaining a license from the superintendent. 2. Application for such license shall be in writing, under oath, and in the form prescribed by the superintendent, and shall contain the name, and the address both of the residence and place of business, of the applicant, and if the applicant is a co-partnership [or], associ- ation, OR LIMITED LIABILITY COMPANY of every member thereof, and if a corporation, of each officer and director thereof; also, if the business is to be conducted at a specific address, the address at which the busi- ness is to be conducted, and if the business is to be conducted from a mobile unit, the New York state registration number or other identifica- tion of such mobile unit and the area in which the applicant proposes to operate such mobile unit; and also such further information as the superintendent may require. 4. Every applicant shall prove, in form satisfactory to the super- intendent that he, SHE or it has available for the operation of such business, for each location and for each mobile unit specified in the application, liquid assets of at least ten thousand dollars, and every licensee shall continuously maintain for the operation of such business for each location and for each mobile unit liquid assets of at least ten thousand dollars. Notwithstanding the foregoing provisions of this subdivision, the superintendent, upon application by an applicant and for good cause shown, may permit a reduction from ten thousand dollars to not less than five thousand dollars of minimum liquid assets required for each location AND SUCH AMOUNT AS HE OR SHE SHALL DEEM APPROPRIATE FOR EACH LIMITED STATION. S 11. Subdivision 1 of section 369 of the banking law, as amended by chapter 233 of the laws of 2005, is amended to read as follows:
1. If the superintendent shall find that: (I) the financial responsibility, experience, character, and general fitness of the applicant, and of the members thereof if the applicant be a co-partnership [or], association OR LIMITED LIABILITY COMPANY, and of the officers and directors thereof if the applicant be a corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly, and effi- ciently within the purposes of this article, and [if the superintendent shall find that] (II) the granting of such application will promote the convenience and advantage of the area in which such business is to be conducted, and [if the superintendent shall find that] (III) the applicant has available for the operation of such business for each location and for each mobile unit specified in the application liquid assets of at least ten thousand dollars, PROVIDED THAT, THE SUPERINTENDENT, UPON APPLICATION BY AN APPLICANT AND FOR GOOD CAUSE SHOWN, MAY PERMIT A REDUCTION FROM TEN THOUSAND DOLLARS TO NOT LESS THAN FIVE THOUSAND DOLLARS OF MINIMUM LIQUID ASSETS REQUIRED FOR EACH LOCATION AND A REDUCTION TO SUCH AMOUNT AS THE SUPERINTENDENT SHALL DEEM APPROPRIATE FOR EACH LIMITED STATION, (IV) THE PRIMARY BUSINESS OF THE LICENSEE, AT THE LOCATION TO BE LICENSED, SHALL BE FINANCIAL SERVICES, AND (V) THE APPLICANT'S PROPOSED OFFICES COMPLY WITH SUBDIVISION ONE-A OF THIS SECTION, the superintendent shall thereupon execute a license in duplicate to permit the cashing of checks, drafts and money orders in accordance with the provisions of this article at the location or in the area specified in such application. In finding whether the application will promote the convenience and advantage to the public, the superintendent shall deter- mine whether there is a community need for a new licensee in the proposed area to be served. THE SUPERINTENDENT SHALL TRANSMIT ONE COPY OF SUCH LICENSE TO THE APPLICANT AND FILE ANOTHER IN THE OFFICE OF THE DEPARTMENT. 1-A. No license shall be issued to an applicant for a license, at a location to be licensed which is closer than one thousand five hundred eighty-four feet (three-tenths of a mile) from an existing licensee, MEASURED ON A STRAIGHT LINE ALONG THE STREET BETWEEN THE NEAREST POINT OF THE STORE FRONTS OF THE CHECK CASHING FACILITIES, except: (I) with the written consent of such existing licensee [or], (II) pursuant to subdivision three of section three hundred seventy of this article, subject to any restriction or condition as the superinten- dent may promulgate by regulation[; provided, however], (iii) the superintendent may permit a location to be licensed that is closer than three-tenths of a mile from an existing licensee provided THAT (A) such applicant engages in the cashing of checks, drafts or money orders only for payees of such checks, drafts or money orders that are other than natural persons at the location to be licensed and (B) such applicant was engaged in the cashing of such checks, drafts or money orders for payees that are other than natural persons at such location on or before the fourteenth day of July, two thousand four, and [provided further that upon licensing any such location by the super- intendent,] (C) SUCH LICENSE SHALL BEAR A LEGEND STATING THAT SUCH LOCATION IS RESTRICTED TO THE CASHING OF CHECKS, DRAFTS OR MONEY ORDERS ONLY FOR PAYEES THAT ARE OTHER THAN NATURAL PERSONS, AND (D) AFTER THE SUPERINTENDENT LICENSES SUCH LOCATION, such license as it pertains sole- ly to such location shall not be affected thereafter by any change of
control of such license pursuant to section three hundred seventy-a of this article, [provided that] AS LONG AS the licensee continues there- after to engage at that location in the cashing of checks, drafts or money orders only for payees that are other than natural persons [and provided further that such license shall bear a legend stating that such location is restricted to the cashing of checks, drafts or money orders only for payees that are other than natural persons]. The three-tenths of a mile distance requirement as set forth in this [section] SUBDIVI- SION shall not apply in cases where the existing licensee is a restricted location as authorized in the preceding sentence, or is any other licensed location that engages solely in the cashing of checks, drafts or money orders only for payees that are other than natural persons. [For purposes of this section, such distance shall be measured on a straight line along the street between the nearest point of the store fronts of the check cashing facilities. The primary business of the licensee, at the location to be licensed, shall be financial services. The superintendent shall transmit one copy of such license to the applicant and file another in the office of the department. Notwith- standing the foregoing provisions of this subdivision, the superinten- dent, upon application by an applicant and for good cause shown, may permit a reduction from ten thousand dollars to not less than five thou- sand dollars of minimum liquid assets required for each location.] S 12. Subdivision 2 of section 370-a of the banking law, as added by chapter 142 of the laws of 1992, is amended to read as follows: 2. The superintendent shall approve or disapprove the proposed change of control of a licensee in accordance with the provisions of subdivi- sions one and six of section three hundred sixty-nine of this article. The superintendent shall approve or disapprove the application in writ- ing within ninety days [after the date the application is filed with the superintendent] FROM THE DATE THE APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT. S 13. Section 373 of the banking law, as amended by chapter 485 of the laws of 1947, subdivision 1 as amended by chapter 432 of the laws of 2004, subdivision 2 as amended by chapter 132 of the laws of 1969, subdivision 3 as amended by chapter 310 of the laws of 1962 and subdivi- sion 5 as added by chapter 235 of the laws of 2008, is amended to read as follows: S 373. Acts prohibited; suspension or revocation of license; penal- ties. 1. (A) No licensee shall engage in the business of making loans of money, credit, goods or things or discounting of notes, bills of exchange, checks, or other evidences of debt pursuant to the provisions of article nine of this chapter, nor shall a loan business or the nego- tiation of loans or the discounting of notes, bills of exchange, checks or other evidences of debt be conducted on the same premises where the licensee is conducting business pursuant to the provisions of this arti- cle. (B) Except as otherwise provided by regulation of the superintendent, all checks, drafts and money orders shall be deposited in the licensee's bank account not later than the first business day following the day on which they were cashed. No licensee shall at any time cash or advance any moneys on a post-dated check or draft or engage in the business of transmitting money or receiving money for transmission; provided, howev- er, that a licensee may cash a check payable on the first banking busi- ness day following the date of cashing [(a)] (I) if such check is drawn by the United States, the state of New York, or any political subdivi- sion of the state of New York, or by any department, bureau, agency,
authority, instrumentality or officer, acting in his official capacity, of the United States or of the state of New York or of any political subdivision of the state of New York, or [(b)] (II) if such check is a payroll check drawn by an employer to the order of its employee in payment for services performed by such employee. (C) No licensee shall cash any check, draft or money order if the face amount for which it is drawn is in excess of fifteen thousand dollars; provided, however, that this restriction shall not apply to the cashing of checks, drafts or money orders drawn by the United States, any state thereof or any political subdivision of any such state, or by any department, bureau, agency, authority, instrumentality or officer, acting in his official capacity, of the United States, any state thereof or any political subdivision of any such state, or any banking institu- tion, or to any check or draft drawn by any insurance company, any broker or dealer registered with the securities and exchange commission, or any attorney for the settlement of claims, or to any check which has been certified by the banking institution on which it has been drawn; provided further, however, that any such restriction upon the maximum face amount that may be cashed by a licensee shall not apply to the cashing of checks, drafts or money orders by licensees for payees of such checks, drafts or money orders that are other than natural persons. For purposes of this subdivision, "banking institution" means any bank, trust company, savings bank, savings and loan association or credit union which is incorporated, chartered or organized under the laws of this state or any other state or the United States. 2. [The] IN ADDITION TO THE AUTHORITY SET FORTH IN SUBDIVISION THREE OF THIS SECTION, THE superintendent may suspend or revoke any license or licenses issued pursuant to this article if, after notice and a hearing, he OR SHE shall find that the licensee (a) has committed any fraud, engaged in any dishonest activities or made any misrepresentation; or (b) has violated any provisions of [the banking law] THIS CHAPTER or any regulation issued pursuant thereto, or has violated any other law in the course of [its or his] THE LICENSEE'S dealings as a licensed casher of checks; or (c) has made a false statement in the application for such license or failed to give a true reply to a question in such applica- tion; or (d) has demonstrated his, HER or its incompetency or untrust- worthiness to act as a licensed casher of checks; or (e) is not doing sufficient business pursuant to this article to justify the continuance of the license, or if he OR SHE shall find that any ground or grounds exist which would require or warrant the refusal of an application for the issuance of the license if such an application were then before [him] THE SUPERINTENDENT. Such a hearing shall be held in the manner and upon such notice as may be prescribed by the superintendent. [Pend- ing an investigation or a hearing for the suspension or revocation of any license or licenses issued pursuant to this article, the superinten- dent may temporarily suspend such license or licenses for a period not to exceed ninety days, provided the superintendent shall find that such a temporary suspension is in the public interest.] 3. (A) THE SUPERINTENDENT MAY FOR GOOD CAUSE, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERIOD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENTS AS REQUIRED BY THIS CHAPTER. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION IN BANKRUPTCY; (III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY; OR (IV) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS FAILED TO MAINTAIN THE REQUISITE CAPITAL LEVEL. 4. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI- SION THREE OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUD- ING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY. 5. Whenever the superintendent shall suspend or revoke a license issued pursuant to this article, he OR SHE shall forthwith execute a written order to that effect. The superintendent shall on the date such order is executed file one copy thereof in the office of the department and serve a second copy thereof on the licensee either personally or by mailing the same to the last known address of such licensee. Such order shall be subject to review by the supreme court in the manner provided in article seventy-eight of the civil practice law and rules; provided, however, that a special proceeding for review of such order must be commenced within thirty days from the date of such order of suspension or revocation and, provided further, that no stay shall be granted pend- ing the determination of the matter except on notice to the superinten- dent and for a period not exceeding thirty days. [4.] 6. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSI- NESS OF A LICENSED CHECK CASHER IN THIS STATE. 7. Any person[, partnership, association or corporation] and the several members, officers, directors, agents and employees thereof, who shall violate any of the provisions of this article, shall be guilty of a misdemeanor, and shall be punishable by imprisonment for not more than one year or by a fine of not more than five hundred dollars, or by both such fine and imprisonment. [5.] 8. Notwithstanding the provisions of subdivision [four] SEVEN of this section, any person[, partnership, association or corporation] and the several members, officers, directors, agents and employees thereof
who shall violate the provisions of subdivision one of section three hundred sixty-seven of this article shall be guilty of a class A misde- meanor. S 14. Subdivision 1 of section 374 of the banking law, as amended by chapter 582 of the laws of 2000, is amended to read as follows: 1. The provisions of this article shall not apply when checks, drafts or money orders are cashed, other than by a licensee, without a consid- eration or charge; nor when checks, drafts or money orders are cashed, other than by a licensee, as an incident to the conduct of any other lawful business where not more than one dollar is charged for cashing each check, draft or money order; nor shall the provisions of this arti- cle apply to any national bank, federal reserve bank, or to any person[, partnership, association, corporation or other organization] doing busi- ness under or pursuant to the provisions of this chapter, except a licensee under this article. S 15. Subdivisions 6-a, 6-b and 7 of section 491 of the banking law, subdivision 6-a as amended by chapter 289 of the laws of 1962, subdivi- sion 6-b as added by chapter 358 of the laws of 1958 and subdivision 7 as amended by chapter 837 of the laws of 1966, are amended to read as follows: 6-a. "Retail instalment obligation" or "obligation" means an agree- ment, entered into in this state, pursuant to which the buyer promises to pay, in instalments, the time sale price or prices of goods and/or services, or any part thereof. The term does not include [(a)] a retail instalment contract[, (b)] OR a retail instalment credit agreement [or (c) an obligation which is intended to be and is ultimately insured or guaranteed under title three of the act of Congress entitled "Service- men's Readjustment Act of 1944"]. THE TERM INCLUDES SUCH AN AGREEMENT WHEREVER ENTERED INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF SOLICITED IN PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR HER OWN BEHALF OR THAT OF THE SELLER. 6-b. "Retail instalment credit agreement" or "credit agreement" means an agreement entered into in this state, pursuant to which the buyer promises to pay, in instalments, his OR HER outstanding indebtedness from time to time to a retail seller, not evidenced by a retail instal- ment contract or obligation, for one or more items of goods or services, whenever purchased or obtained, which provides for a service charge and under which instalment payments apply to his OR HER outstanding indebt- edness from time to time. THE TERM INCLUDES SUCH AN AGREEMENT WHEREVER ENTERED INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF SOLICITED IN PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR HER OWN BEHALF OR THAT OF THE SELLER. 7. "Sales finance company" means a person engaged, in whole or in part, directly or indirectly, in the business of purchasing or otherwise acquiring retail instalment contracts, obligations or credit agreements made by and between other parties, or any interest therein. The term includes a retail seller of motor vehicles engaged, in whole or in part, in the business of holding retail instalment contracts acquired from retail buyers, [which have] IF THE NUMBER OF RETAIL INSTALMENT CONTRACTS ACQUIRED IN ANY ONE YEAR EXCEEDS FIVE SUCH CONTRACTS, OR IF THE aggre- gate unpaid time balances [of twenty-five] ON SUCH CONTRACTS EXCEED ONE HUNDRED thousand dollars or more at any one time, exclusive of contracts repurchased from a sales finance company or financing agency, under an agreement to repurchase in case of default entered into as an incident to the bona fide sale thereof to a sales finance company or financing agency. The term does not include the pledgee of an aggregate number of
contracts to secure a bona fide loan thereon, OR A SECONDARY HOLDER OF SUCH CONTRACTS. The term includes a person engaged, in whole or in part, directly or indirectly, in the business of entering into retail instalment credit agreements with retail buyers pursuant to subdivision eleven of section four hundred thirteen of the personal property law. FOR PURPOSES OF THIS ARTICLE, THE TERM "SECONDARY HOLDER" MEANS A PERSON THAT (I) ACQUIRES INSTALMENT SALES CONTRACTS, OR INTERESTS THEREIN, FROM PERSONS WHO ARE NOT RETAIL SELLERS WITH RESPECT TO SUCH CONTRACTS; (II) IS NOT ITSELF A RETAIL SELLER WITH RESPECT TO SUCH CONTRACTS; AND (III) DOES NOT SERVICE SUCH CONTRACTS, OR IN THE ORDINARY COURSE HAVE ANY CONTACT WITH THE OBLIGORS UNDER SUCH CONTRACTS; PROVIDED, HOWEVER, THAT ANY CONTACT BETWEEN A SECONDARY HOLDER AND AN OBLIGOR SHALL BE INITIATED SOLELY BY THE OBLIGOR. S 16. Subdivisions 1 and 2 of section 492 of the banking law, subdivi- sion 1 as amended by chapter 547 of the laws of 2008 and subdivision 2 as added by chapter 635 of the laws of 1956, are amended to read as follows: 1. No person, except a bank, savings bank, savings and loan associ- ation, trust company, private banker, credit union, OR investment compa- ny, organized under [article twelve of] this chapter [and authorized to accept deposits, national bank, federal savings association, federal credit union, or out-of-state state bank, as such term is defined in subdivision two of section two hundred twenty-two of this chapter], A BRANCH OR AGENCY OF A FOREIGN BANKING CORPORATION LICENSED BY THE SUPER- INTENDENT OR COMPTROLLER OF THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE, ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, INDUSTRIAL LOAN COMPANY, BANK OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES, or lender licensed TO CONDUCT BUSINESS pursuant to THE PROVISIONS OF article nine of this chapter, shall engage in the business of a sales finance company in this state without a license therefor obtained from the superintendent, as provided in this article. 2. [Application for a license required under this article shall be in writing, under oath, and in the form prescribed by the superintendent, and shall contain the following: (a) The exact name of the applicant and date of incorporation, if incorporated; (b) The complete address where the business is to be conducted, show- ing the street and number, if any, the office building and room number, if any, and the municipality and county; (c) If the applicant has one or more branches, subsidiaries or affil- iates operating in this state, the complete address of each such place of business; and (d) The name and resident address of the owner or partners of the applicant or, if a corporation or association, of the directors, trus- tees and principal officers, and of any stockholder owning twenty per centum or more of its stock; and (e) Such other pertinent information as the superintendent may require.] THE APPLICATION FOR A LICENSE TO BE A SALES FINANCE COMPANY SHALL BE IN WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTEN- DENT. THE APPLICATION SHALL CONTAIN THE NAME AND COMPLETE BUSINESS AND RESIDENTIAL ADDRESS OR ADDRESSES OF THE APPLICANT. IF THE APPLICANT IS A PARTNERSHIP, ASSOCIATION, CORPORATION OR OTHER FORM OF BUSINESS ORGAN- IZATION, THE APPLICATION SHALL CONTAIN THE NAMES AND COMPLETE BUSINESS AND RESIDENTIAL ADDRESSES OF EACH MEMBER, DIRECTOR AND PRINCIPAL OFFICER
THEREOF. SUCH APPLICATION SHALL ALSO INCLUDE A DESCRIPTION OF THE ACTIV- ITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR SUCH PERIODS, AS THE SUPERINTENDENT MAY REQUIRE INCLUDING: (A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION REQUIREMENTS AS MAY BE PRESCRIBED BY THE SUPERINTENDENT, AND ACCESS TO SUCH CREDIT AS MAY BE PRESCRIBED BY THE SUPERINTENDENT; (B) AS PROVIDED IN SECTION TWENTY-TWO OF THIS CHAPTER, THE FINGER- PRINTS OF THE APPLICANT AND EACH MEMBER, DIRECTOR AND PRINCIPAL OFFICER OF THE APPLICANT AS THE SUPERINTENDENT MAY DETERMINE; (C) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, DIRECTORS OR PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWENTY-ONE YEARS OF AGE; (D) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, ITS MEMBERS, DIRECTORS OR PRINCIPALS AND OF ANY PERSON OWNING TEN PER CENTUM OR MORE OF THE APPLICANT AND IF SUCH PERSON IS A PARTNERSHIP, CORPO- RATION, ASSOCIATION OR OTHER FORM OF BUSINESS ORGANIZATION, SUCH ENTI- TY'S MEMBERS, DIRECTORS OR PRINCIPALS; AND (E) SUCH OTHER PERTINENT INFORMATION AS THE SUPERINTENDENT SHALL REQUIRE. S 17. Subdivision 2 of section 492-a of the banking law, as added by chapter 142 of the laws of 1992, is amended to read as follows: 2. The superintendent shall approve or disapprove the proposed change of control of a licensee in accordance with the provisions of subdivi- sion one of section four hundred ninety-three of this article. The superintendent shall approve or disapprove the application in writing within ninety days after the date the application is [filed with] DEEMED COMPLETE BY the superintendent. S 18. Subdivision 7 of section 493 of the banking law is REPEALED and subdivision 4, as amended by chapter 132 of the laws of 1969, is amended to read as follows: 4. Each license issued hereunder shall remain in full force and effect until it is surrendered by the licensee [or] revoked [or], TERMINATED OR suspended as provided in this [article] CHAPTER. S 19. Paragraph (e) of subdivision 1 and subdivision 7 of section 495 of the banking law are REPEALED, and subdivisions 2, 3, 4 and 5, as added by chapter 635 of the laws of 1956, subdivision 5 as amended by chapter 64 of the laws of 1958, are amended to read as follows: 2. [No] (A) EXCEPT AS PROVIDED FOR IN PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION, NO license UNDER THIS ARTICLE shall be suspended or revoked except after a hearing thereon. [The] WHERE A HEARING IS REQUIRED UNDER THIS SECTION, THE superintendent shall give the licensee at least ten days' written notice of the time and place of such hearing by [registered] CERTIFIED mail, RETURN RECEIPT REQUESTED, addressed to the principal place of business in this state of such licensee THEN APPEARING ON THE RECORDS OF THE SUPERINTENDENT. Any order suspending or revoking such license shall recite the grounds upon which it is based [and shall not be effective until ten days after written notice thereof has been sent by registered mail to the licensee at such principal place of business]. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSI- NESS OF A SALES FINANCE COMPANY IN THIS STATE. THE SUPERINTENDENT IN HIS OR HER DISCRETION MAY REVOKE OR SUSPEND ONLY THE PARTICULAR LICENSE WITH RESPECT TO WHICH GROUNDS FOR REVOCATION OR SUSPENSION MAY OCCUR OR EXIST; BUT IF HE OR SHE FINDS THAT GROUNDS FOR REVOCATION OR SUSPENSION ARE OF GENERAL APPLICATION TO ALL PLACES OF BUSINESS, OR TO MORE THAN
ONE PLACE OF BUSINESS, OPERATED BY SUCH LICENSEE, HE OR SHE SHALL REVOKE OR SUSPEND ALL OF THE LICENSES ISSUED TO SAID LICENSEE OR THOSE LICENSES TO WHICH THE GROUNDS FOR REVOCATION OR SUSPENSION APPLY, AS THE CASE MAY BE. (B) THE SUPERINTENDENT MAY FOR GOOD CAUSE, WITHOUT NOTICE OR A HEAR- ING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS ARTI- CLE FOR A PERIOD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGE- MENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENT AS REQUIRED BY THIS CHAPTER. (D) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO AUTHORITY PROVIDED BY THIS ARTICLE; OR (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION IN BANKRUPTCY; OR (III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY. 3. [The superintendent in his discretion may revoke or suspend only the particular license with respect to which grounds for revocation or suspension may occur or exist; but if he finds that grounds for revoca- tion or suspension are of general application to all places of business, or to more than one place of business, operated by such licensee, he shall revoke or suspend all of the licenses issued to said licensee or those licenses to which the grounds for revocation or suspension apply, as the case may be.] IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPEND- ING A LICENSE PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETER- MINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (C) OR (D) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REIN- STATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY. 4. Any licensee may surrender any license by delivering to the super- intendent written notice that such license is thereby surrendered, but such surrender shall not affect the licensee's civil or criminal liabil- ity for acts committed prior [thereto] TO SUCH SURRENDER OR ITS OBLI- GATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRATIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH SURREN- DER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT.
5. No suspension, revocation, TERMINATION or surrender of any license shall impair or affect the obligation of any instalment contract, obli- gation or credit agreement lawfully acquired previously thereto by the licensee. S 20. Subdivisions 3 and 4 of section 497 of the banking law are REPEALED. S 21. Section 499 of the banking law, as added by chapter 635 of the laws of 1956, is amended to read as follows: S 499. Violations and penalties. Any person who violates or partic- ipates in the violation of any provision of this article, or who know- ingly makes any incorrect statement of a material fact in any applica- tion, report or statement filed pursuant to this article, or who knowingly omits to state any material fact necessary to give the super- intendent any information lawfully required by him OR HER or refuses to permit any lawful investigation or examination, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than five hundred dollars or imprisoned for not more than six months or both, in the discretion of the court. S 22. Subdivision 2 of section 554 of the banking law is REPEALED and a new subdivision 2 is added to read as follows: 2. "BANKING INSTITUTION" MEANS A BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, TRUST COMPANY, PRIVATE BANKER, CREDIT UNION OR INVESTMENT COMPANY ORGANIZED UNDER THE BANKING LAW OF THIS STATE, A BRANCH OR AGEN- CY OF A FOREIGN BANKING CORPORATION LICENSED BY THE SUPERINTENDENT OR THE COMPTROLLER OF THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE, OR ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, INDUSTRIAL LOAN COMPANY OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES. S 23. Subdivision 1 of section 555 of the banking law, as amended by chapter 547 of the laws of 2008, is amended to read as follows: 1. No person except a [lending] BANKING institution [or], an author- ized insurer OR A LENDER LICENSED PURSUANT TO ARTICLE NINE OF THIS CHAP- TER shall engage in the business of a premium finance agency without a license therefor obtained from the superintendent, as provided in this article. S 24. Subdivision 5 of section 556 of the banking law is REPEALED. S 25. Section 558 of the banking law, as added by chapter 488 of the laws of 1960, is amended to read as follows: S 558. Change of location. Before any licensee changes any office [of his] to another location, [he] IT shall [give written notice thereof to] FILE A WRITTEN APPLICATION WITH the superintendent, who shall [without charge issue an endorsement indicating the change and the date thereof, which endorsement shall be attached to the license for such office and be authority for the operation of the business under such license at such new location] AFTER RECEIPT OF THE FEE PRESCRIBED IN SECTION EIGH- TEEN-A OF THIS CHAPTER ISSUE A NEW LICENSE FOR THE NEW OFFICE. S 26. Section 559 of the banking law, as added by chapter 488 of the laws of 1960, paragraph (a) of subdivision 1 as amended by chapter 474 of the laws of 1962, paragraph (b) of subdivision 1 as amended by chap- ter 1141 of the laws of 1969, subdivision 6 as amended by chapter 310 of the laws of 1962 and subdivision 7 as added by chapter 121 of the laws of 1993, is amended to read as follows: S 559. Grounds for revocation of license; procedure. 1. [The] IN ADDI- TION TO THE AUTHORITY PROVIDED BY SUBDIVISION TWO OF THIS SECTION, THE superintendent may [forthwith revoke or] suspend OR REVOKE any license
issued [hereunder if] UNDER THIS ARTICLE IF, AFTER NOTICE AND A HEARING, he OR SHE shall find that: (a) The licensee has failed to pay [the annual license fee or] any sum of money lawfully demanded, or to comply with any demand, ruling, or requirement of the superintendent lawfully made pursuant to and within the authority of this article; (b) The licensee has violated any provision of this article, the act of congress entitled "Truth in Lending Act" and the regulations there- under, as such act and regulations may from time to time be amended or any rule or regulation lawfully made by the superintendent under and within the authority of this article; (c) Any fact or condition exists which, if it had existed at the time of the original application for such license, clearly would have warranted the superintendent in refusing originally to issue such license. 2. (A) THE SUPERINTENDENT MAY, FOR GOOD CAUSE, WITHOUT NOTICE OR A HEARING, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERI- OD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENT AS REQUIRED BY THIS CHAPTER. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO AUTHORITY PROVIDED BY THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION IN BANKRUPTCY; OR (III) UPON NOTICE AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY. 3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI- SION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPER- INTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSI- NESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH BANK- RUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSU- ANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMAT- ICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY. 4. The superintendent may revoke or suspend only the particular license with respect to which grounds for revocation or suspension may
occur or exist, or, if he OR SHE shall find that such grounds for revo- cation or suspension are of general application to all offices, or to more than one office, operated by such licensee, he OR SHE shall revoke or suspend all of the licenses issued to such licensee or such number of licenses as such grounds apply to, as the case may be. [3.] 5. Any licensee may surrender any license by delivering to the superintendent written notice that he OR SHE thereby surrenders such license, but such surrender shall not affect such licensee's civil or criminal liability for acts committed prior to such surrender OR ITS OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRA- TIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH SURRENDER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPER- INTENDENT. [4.] 6. No revocation, TERMINATION or suspension or surrender of any license shall impair or affect the obligation of an insured under any lawful premium finance agreement previously acquired or held by the licensee. [5.] 7. Every license issued hereunder shall remain in force and effect until the same shall have been surrendered, revoked, [or] suspended OR TERMINATED in accordance with the provisions of this arti- cle, but the superintendent shall have authority to reinstate suspended licenses or to issue new licenses to a licensee whose license or licenses shall have been revoked OR TERMINATED if no fact or condition then exists which clearly would have warranted the superintendent in refusing originally to issue such license under this article. [6.] 8. Whenever the superintendent shall revoke or suspend a license issued pursuant to this article, he OR SHE shall forthwith execute in [triplicate] DUPLICATE a written order to that effect. The superinten- dent shall file one copy of such order in the office of the department, [file another in the office of the clerk of the county in which is located the place designated in such license] and forthwith serve the [third] SECOND copy upon the licensee, which order may be reviewed in the manner provided by article seventy-eight of the civil practice law and rules. Such special proceeding for review as authorized by this section must be commenced within thirty days from the date of such order of suspension or revocation. [7. The superintendent may, on good cause shown, or where there is a substantial risk of public harm, suspend any license issued pursuant to this article for a period not exceeding thirty days, pending investi- gation. "Good cause", as used in this subdivision, shall exist only when the licensee has defaulted or is likely to default in performing its financial engagements or engages in dishonest or inequitable practices which may cause substantial harm to the persons afforded the protection of this article.] 9. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A PREMIUM FINANCE AGENCY IN THIS STATE. S 27. Subdivisions 3 and 4 of section 560 of the banking law are REPEALED. S 28. Section 562 of the banking law is REPEALED. S 29. Subdivision 1 of section 563 of the banking law, as added by chapter 488 of the laws of 1960, is amended to read as follows: 1. Any person, including any member, officer, director or employee of a licensee, who violates or participates in the violation of any provision of this article, or who knowingly makes any incorrect state-
ment of a material fact in any application, report or statement filed pursuant to this article, or who knowingly omits to state any material fact necessary to give the superintendent any information lawfully required by him or HER OR refuses to permit any lawful investigation or examination, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than five hundred dollars or imprisoned for not more than six months or both, in the discretion of the court. S 30. Section 576 of the banking law is amended by adding a new subdi- vision 4 to read as follows: 4. IN ADDITION TO MAILING, NOTICES REQUIRED UNDER THIS SECTION MAY BE DELIVERED BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, PROVIDED THAT ANY SUCH DELIVERY EVIDENCES RECEIPT OF THE NOTICE BY THE ADDRESSEE. SUCH RECEIPT MAY BE CREATED AND MAINTAINED IN ELECTRONIC FORM. S 31. Subdivision (a) of section 577 of the banking law, as amended by chapter 1 of the laws of 1994, is amended to read as follows: (a) By any person at a rate of interest not greater than the rate [prescribed by the banking board pursuant to] SET FORTH IN section four- teen-a of this chapter[, or, if no rate has been so prescribed, six per centum per annum]; or S 32. Subdivisions 3 and 4 of section 580 of the banking law, subdivi- sion 3 as amended by section 50 of part O of chapter 59 of the laws of 2006 and subdivision 4 as added by chapter 629 of the laws of 2002, are amended to read as follows: 3. Upon original application for a license or licenses to operate one or more places of business, the applicant shall pay an investigation fee in an aggregate amount as prescribed pursuant to section eighteen-a of this chapter. No additional investigation fee shall be required for any subsequent application for a license unless such application is subse- quent to a denial of a license or to a revocation, suspension or surren- der of a license; PROVIDED, HOWEVER, THAT AN APPLICATION TO ESTABLISH A BRANCH OFFICE OF THE LICENSEE SHALL BE ACCOMPANIED BY THE FEE PRESCRIBED IN SECTION EIGHTEEN-A OF THIS CHAPTER. 4. As a condition for the issuance and retention of a budget planner license, and subject to such regulations as the superintendent shall prescribe, applicants for a license shall file with the superintendent a surety bond in form satisfactory to the superintendent issued by a bond- ing company or insurance company authorized to do business in this state. Except as provided hereunder, the principal amount of such bond shall be two hundred fifty thousand dollars. The superintendent may require a larger bond if he or she determines, in his or her sole discretion, that a licensee has engaged in a pattern of conduct result- ing in bona fide consumer complaints of misconduct and that such increased bond is necessary for the protection of consumers; or the superintendent may increase or decrease the amount of such bond or deposit based upon the applicant's or licensee's financial condition, business plan, and the actual or estimated aggregate amount of payments and fees paid by debtors to such licensee. In lieu of such bond, an applicant may keep on deposit with such banks, savings banks, savings and loan associations, trust companies, private bankers, national banks, federal savings banks, or federal savings and loan associations in the state as such licensee may designate and the superintendent may approve, interest-bearing bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of this state, or of a city, county, town, village, school district, or instrumentality of this state or guaranteed by this state, or dollar deposits, or such other assets or letters of
credit as the superintendent shall by rule or regulation permit. The proceeds of each bond or deposit shall constitute a trust fund to be used exclusively to reimburse payments by debtors that have not been properly distributed to creditors or to reimburse fees determined by the superintendent to be improperly charged or collected and, in the event of the insolvency, liquidation, or bankruptcy of such licensee, to pay outstanding banking department examination costs and assessments. [With- in ninety days after the effective date of this subdivision, each licen- see shall comply with the requirements of this subdivision.] S 33. Subdivision 1 of section 581 of the banking law, as amended by chapter 456 of the laws of 2006, is amended to read as follows: 1. Upon the filing of an application for a license, if the superinten- dent shall find that the financial responsibility, experience, charac- ter, and general fitness of the applicant, and of the officers and directors thereof are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fair- ly, and efficiently within the purposes of this article, he or she shall thereupon issue a license in duplicate to engage in budget planning in accordance with the provisions of this article. The superintendent shall transmit one copy of such license to the applicant and file another in the office of the banking department. Such license shall remain in full force and effect until it is surrendered by the licensee or revoked or suspended as hereinafter provided; if the superintendent shall not so find he or she shall not issue such license and he or she shall notify the applicant of the denial. The superintendent shall approve or deny IN WRITING every application for license hereunder within ninety days [from the filing thereof] AFTER THE DATE THE APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT. S 34. Subdivision 2 of section 583-a of the banking law, as added by chapter 142 of the laws of 1992, is amended to read as follows: 2. The superintendent shall approve or disapprove the proposed change of control of a licensee in accordance with the provisions of section five hundred eighty-one of this article. The superintendent shall approve or disapprove the application in writing within ninety days after the date the application is [filed with] DEEMED COMPLETE BY the superintendent. S 35. Section 584 of the banking law, as added by chapter 448 of the laws of 1975, paragraph (b) as amended and paragraph (c) of subdivision 1 as added by chapter 629 of the laws of 2002, is amended to read as follows: S 584. Grounds for suspension or revocation of license; procedure. 1. [The] IN ADDITION TO THE AUTHORITY SET FORTH IN SUBDIVISION TWO OF THIS SECTION, THE superintendent may SUSPEND OR revoke any license issued [hereunder if] UNDER THIS ARTICLE IF, AFTER NOTICE AND A HEARING he OR SHE shall find that: (a) The licensee has violated any provisions of this article, or of any rule or regulation made by the superintendent under and within the authority of this article; (b) Any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the superintendent in refusing originally to issue such license; or (c) The conviction of a licensee for a crime against the laws of this state or any other state or of the United States involving moral turpi- tude or fraudulent or dishonest actions, or the entry of a final judge- ment in a court of competent jurisdiction against the licensee in a civil action arising from fraud, misrepresentation, or deceit.
2. (A) The superintendent may, [on] FOR good cause [shown], [suspend] WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING any license ISSUED PURSUANT TO THIS ARTICLE for a period not exceeding [thirty] NINETY days, pending investigation. "GOOD CAUSE", AS USED IN THIS SUBDI- VISION, SHALL EXIST ONLY WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THE AUTHORITY OF THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENTS AS REQUIRED BY THIS CHAPTER. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU- ANT TO THE AUTHORITY OF THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; OR (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION IN BANKRUPTCY; (III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY; OR (IV) IMMEDIATELY UPON THE RECEIPT BY THE SUPERINTENDENT OF NOTICE THAT THE BOND REQUIRED PURSUANT TO SECTION FIVE HUNDRED EIGHTY OF THIS ARTICLE IS NO LONGER IN EFFECT. 3. [No] IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO THE AUTHORITY OF THIS ARTICLE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPERINTENDENT DETER- MINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITA- TION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED OR HAVING SUCH BOND REINSTATED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSI- NESS ON SUCH NINETIETH DAY. 4. (A) EXCEPT AS PROVIDED FOR IN SUBDIVISION TWO OF THIS SECTION, NO license shall be revoked or suspended except after notice and a hearing thereon. [4.] 5. Any licensee may surrender any license by delivering to the superintendent written notice that it thereby surrenders such license, but such surrender shall not affect such licensee's civil or criminal liability for acts committed prior to such surrender OR ITS OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRATIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH SURRENDER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT. [5.] 6. No revocation, suspension, TERMINATION or surrender of any license shall impair or affect the obligation of any pre-existing lawful contract between the licensee and any person. [6.] 7. Every license issued hereunder shall remain in force and effect until the same shall have been surrendered, revoked [or],
suspended OR TERMINATED in accordance with the provisions of this arti- cle, but the superintendent shall have authority to reinstate a suspended license or to issue a new license to a licensee whose license shall have been revoked if no fact or condition then exists which would have warranted the superintendent in refusing originally to issue such license under this article. [7.] 8. Whenever the superintendent shall revoke or suspend a license issued pursuant to this article, he OR SHE shall forthwith execute in duplicate a written order to that effect. The superintendent shall file one copy of such order in the office of the department of banking and shall forthwith serve the other copy upon the licensee. Any such order may be reviewed in the manner provided by article seventy-eight of the civil practice law and rules. Such application for review as authorized by this section must be made within thirty days from the date of such order of suspension or revocation. 9. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A BUDGET PLANNER IN THIS STATE. S 36. Subdivision 1 of section 586 of the banking law, as added by chapter 448 of the laws of 1975, is amended to read as follows: 1. The licensee shall keep and use in its business such books, accounts, and records as will enable the superintendent to determine whether such licensee is complying with the provisions of this article and with the rules and regulations lawfully made by the superintendent hereunder. Every licensee shall preserve such books, accounts, and records, for at least three years; provided, however, that preservation by photographic OR ELECTRONIC reproduction thereof [or records in photo- graphic form] shall constitute compliance with the requirements of this section. S 37. Subdivision 1 of section 641 of the banking law, as amended by chapter 677 of the laws of 2004, is amended to read as follows: 1. No person shall engage IN THIS STATE in the business of selling or issuing checks, or engage in the business of receiving money for trans- mission or transmitting the same, without a license therefor obtained from the superintendent as provided in this article, nor shall any person engage in such business as an agent, except as an agent of a licensee or as agent of a payee; provided, however, that nothing in this article shall apply to a bank, trust company, private banker, foreign banking corporation licensed pursuant to article two of this chapter or foreign banking company authorized to operate pursuant to the Interna- tional Banking Act of 1978 (12 USC 3101 et seq.), as amended, savings bank, savings and loan association, an investment company, a national banking association, federal reserve bank, corporation organized under the provisions of section twenty-five-a of an act of congress entitled the "Federal Reserve Act", federal savings bank, federal savings and loan association or state or federal credit union OR OUT-OF-STATE STATE BANK. A PERSON ENGAGES IN THIS STATE IN THE BUSINESS OF SELLING OR ISSUING CHECKS OR RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING THE SAME IF SUCH PERSON INDUCES ANOTHER PERSON WHO IS A RESIDENT OF, OR LOCATED IN, THIS STATE TO ENTER INTO A TRANSACTION BY SOLICITATION IN OR INTO THIS STATE BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELEC- TRONIC MAIL, TELEPHONE, RADIO, TELEVISION, THE INTERNET OR ANY OTHER ELECTRONIC MEANS.
S 38. Subdivisions 2, 5 and 6 of section 642 of the banking law, as amended by chapter 455 of the laws of 1993, are amended, and two new subdivisions 7 and 8 are added to read as follows: 2. The superintendent shall approve [conditionally] or deny every application for a license hereunder IN WRITING within ninety days [from the filing thereof. Such period of ninety days may be extended, by the written consent of the applicant, for such additional reasonable period of time as may be required to enable compliance with such requirements and conditions as may be provided by this article and the rules or regu- lations of the superintendent issued thereunder] AFTER THE DATE THE APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT. 5. [No] EXCEPT AS PROVIDED IN SUBDIVISION SIX OF THIS SECTION, NO license shall be suspended or revoked except after a hearing thereon. The superintendent shall give the licensee at least ten days' written notice of the time and place of such hearing by registered or certified mail addressed to the principal place of business of such licensee. Any order of the superintendent suspending or revoking such license shall state the grounds upon which it is based [and shall not be effective until ten days after written notice thereof has been sent by registered or certified mail to the licensee at such principal place of business, except that revocation by reason of the licensee's bond not being kept in full force and effect as required by this article, or by reason of failure to keep on deposit sufficient securities or funds as required by this article, may take effect immediately if the superintendent so orders]. 6. (A) The superintendent may, [on] FOR good cause [shown, or where there is a substantial risk of public harm, suspend] WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING any license issued pursuant to this article for a period not exceeding [thirty] NINETY days, pending inves- tigation. "Good cause", as used in this subdivision, shall exist only when the licensee has defaulted or is likely to default in performing its financial engagements or engages in dishonest or inequitable prac- tices which may cause substantial harm to the persons afforded the protection of this article. (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING THE LICENSE ISSUED HERE- UNDER UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENT AS REQUIRED BY THIS CHAPTER. (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED HERE- UNDER: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT A LICENSEE HAS FILED A PETITION IN BANKRUPTCY; (III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY; OR (IV) IMMEDIATELY UPON RECEIPT BY THE SUPER- INTENDENT OF NOTICE THAT THE LICENSEE HAS FAILED TO MAINTAIN THE BOND OR SECURITIES REQUIRED BY SECTION SIX HUNDRED FORTY-THREE OF THIS ARTICLE OR FAILED TO MAINTAIN THE INVESTMENTS REQUIRED BY SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. 7. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI-
SION SIX OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPER- INTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSI- NESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANK- RUPTCY PETITION DISMISSED OR REINSTATING SUCH BOND OR INCREASING THE VALUE OF SUCH INVESTMENTS. OTHERWISE, IN THE CASE OF A SUSPENSION PURSU- ANT TO SUBDIVISION TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETIETH DAY. 8. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A MONEY TRANSMITTER. S 39. Subdivision 1 of section 643 of the banking law, as amended by chapter 625 of the laws of 2004, is amended to read as follows: 1. As a condition for the issuance and retention of the license, applicants for a license and other licensees shall, within thirty days after notice by the superintendent, or such longer or shorter period as he or she shall prescribe, file with the superintendent one or more corporate surety bond or bonds, as required below, in form satisfactory to him or her and issued by a bonding company or insurance company authorized to do business in this state. One bond shall be in favor of the superintendent and in such principal amount as he or she shall determine is necessary or desirable for the protection of the purchasers and holders of New York instruments sold or to be sold by the applicant or licensee, provided, [however, that until June first, nineteen hundred seventy-seven, the principal amount of such bond shall be no less than two hundred ten thousand dollars and on and after June first, nineteen hundred seventy-seven,] THAT the principal amount of such bond shall be no less than five hundred thousand dollars. If the applicant or licensee intends to engage or engages in the sale of New York traveler's checks, such applicant or licensee shall file with the superintendent a separate bond. Said bond shall be in favor of the superintendent and in such principal amount as he or she shall determine is necessary or desirable for the protection of the purchasers and holders of the New York travel- er's checks sold or to be sold by the applicant or licensee; provided, however, that the principal amount of such bond shall not be less than seven hundred fifty thousand dollars, unless the superintendent, for good cause shown, shall have determined that a lesser amount will adequately protect the purchasers and holders of the New York traveler's checks sold or to be sold by such applicant or licensee. In making any determination under this subdivision, the superintendent may take into account the financial condition of the licensee, the number of locations in this state at which the licensee, either directly or through agents, transacts the business of selling New York instru- ments or New York traveler's checks, the controls imposed on such agents or, and the possible exposure of purchasers and holders of New York instruments and New York traveler's checks to loss in the event of the insolvency, bankruptcy or other financial impairment of the licensee. The proceeds of each bond shall constitute a trust fund for the exclu- sive benefit of the purchasers and holders of the New York instruments [and] OR New York traveler's checks, as the case may be. Except as otherwise provided in the following sentence, in the event of the insol- vency or bankruptcy of any licensee, the proceeds of the bond or bonds
held for the exclusive benefit of the purchasers and holders of New York instruments and the proceeds of the bond or bonds held for the exclusive benefit of the purchasers and holders of New York traveler's checks shall be paid to the superintendent forthwith for disposition in accord- ance with the provisions of this article. If any New York instruments have been assigned to the fund, the proceeds of the bond held for the exclusive benefit of the purchasers and holders of New York instruments shall constitute a trust fund for the benefit of, and shall be payable to, the fund to the extent of such assignment. From time to time, the superintendent may require, upon thirty days notice or such longer or shorter period as he or she shall prescribe, that such bond or bonds be increased if he or she shall determine that such increase is necessary or desirable for the protection of the purchasers and holders of New York instruments and New York traveler's checks. S 40. Section 647 of the banking law, as amended by chapter 455 of the laws of 1993, is amended to read as follows: S 647. Judicial review. [The refusal by the superintendent of an original license, in the case of an applicant which, prior to January first, nineteen hundred sixty-three, and upon the date of filing such application, has lawfully been engaged in this state in the business of selling or issuing checks or of receiving money for transmission or transmitting the same, and in] IN all cases INVOLVING the suspension or revocation of any license by the superintendent, SUCH SUSPENSION OR REVOCATION shall be subject to judicial review in the manner in such cases made and provided by law. S 41. Section 651 of the banking law, as amended by chapter 677 of the laws of 2004, is amended to read as follows: S 651. Investments. Every licensee shall at all times maintain permis- sible investments having (i) a market value, computed in accordance with generally accepted accounting principles, at least equal to the aggre- gate of the amount of all its outstanding payment instruments and all its outstanding traveler's checks or (ii) a net carrying value, computed in accordance with generally accepted accounting principles, at least equal to the aggregate of the amount of all its outstanding payment instruments and all its outstanding traveler's checks so long as the market value of such permissible investments is at least [eighty] NINETY per centum of the net carrying value. Notwithstanding the foregoing provisions of this section, the superintendent shall have the authority, for good cause shown, to exempt from the requirements of this section any licensee. S 42. Section 657 of the banking law, as amended by chapter 78 of the laws of 1977, is amended to read as follows: S 657. Payments to the fund. In the event the fund has borrowed any monies from the property and liability insurance security fund pursuant to the provisions of section six hundred fifty-eight of this [chapter] ARTICLE, and has any debt outstanding thereto, or in the event an unin- sured transmitter of money is declared, or declares itself, insolvent or defaults on its New York instruments, the fund shall levy an assessment upon each uninsured transmitter of money. The amount of such assessment shall be determined by the superintendent provided, however, that each uninsured transmitter of money shall be assessed ratably, in proportion to the average of the dollar amounts of the New York instruments issued by such uninsured transmitter of money outstanding at the end of each calendar quarter for the calendar year preceding that in which the assessment is made, and provided, further, that no such assessments shall be levied once the net value of the fund shall equal such amount
as the superintendent shall have determined to be necessary to protect the interests of the purchasers and holders of New York instruments. In making his OR HER determination, the superintendent shall consider the scope of the risk covered by the fund, the expenses incurred or expected to be incurred by the fund, the amount of any loans and advances to the fund, and the interest thereon. In no event shall the total amount so assessed in any one year against any uninsured transmitter of money pursuant to this section exceed [two per centum of the] ONE PERCENT OF THE ANNUAL VOLUME OF New York instru- ments of such uninsured transmitter of money [which were outstanding at the end of] FOR the calendar year preceding that in which such assess- ments are made or one hundred twenty-five thousand dollars, whichever is less. The net value of the fund shall be determined by deducting from the value of the assets of the fund the aggregate actual and estimated liabilities of the fund as determined by the superintendent. S 43. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus