S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4979

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  FOLEY  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to the operation  of  auto-
  mated teller machines by entities other than banking institutions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new article 14-A  to
read as follows:
                              ARTICLE 14-A
       REGISTERED AUTOMATED TELLER MACHINE OPERATORS AND NETWORKS
SECTION 800. DEFINITIONS.
        801. REGISTRATION REQUIRED.
        802. REGISTRATION OF NETWORKS.
        803. APPLICATION  TO REGISTER AS AN OPERATOR OF AUTOMATED TELLER
               MACHINES.
        804. CHANGES OF CONTROL.
        805. EXAMINATION  OF  BOOKS,  ACCOUNTS,  AND  RECORDS;  INVESTI-
               GATIONS.
        806. VIOLATIONS AND PENALTIES.
        807. SUSPENSION OR REVOCATION OF REGISTRATION
        808. REQUIRED DISCLOSURES TO CUSTOMERS.
        809. RULES AND REGULATIONS.
        810. SEVERABILITY.
  S 800. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHER-
WISE INDICATES, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
  1.  "BANKING  INSTITUTION" SHALL MEAN ANY BANK, TRUST COMPANY, SAVINGS
BANK, SAVINGS ASSOCIATION, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION OR
FOREIGN BANKING CORPORATION  LICENSED,  CHARTERED,  OR  INCORPORATED  OR
OTHERWISE FORMED PURSUANT TO FEDERAL OR ANY STATE LAW.
  2. "AUTOMATED TELLER MACHINE" SHALL MEAN AN ELECTRONIC DEVICE OPERATED
BY A PERSON WHICH, IN CONJUNCTION WITH A PROCESSOR AND NETWORK, ALLOWS A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11555-01-9
              

S. 4979                             2

CUSTOMER  TO  DEBIT  AN ACCOUNT IN EXCHANGE FOR DISPENSING CASH AND THAT
MAY ALLOW A CUSTOMER TO EFFECTUATE OTHER ACCOUNT TRANSACTIONS;  PROVIDED
HOWEVER  SUCH  TERM  SHALL NOT BE DEEMED TO INCLUDE ANY AUTOMATED TELLER
MACHINE  OR  SIMILAR ELECTRONIC DEVICE OPERATED BY A BANKING INSTITUTION
OR A SUBSIDIARY OR SERVICE  CORPORATION  OF  A  BANKING  INSTITUTION,  A
POINT-OF-SALE  TERMINAL,  OR  A COMPUTER TERMINAL OWNED OR OPERATED BY A
CUSTOMER TO ACCESS HIS OR HER DEPOSIT ACCOUNT WITHIN A BANKING  INSTITU-
TION.
  3.  "OPERATE" SHALL MEAN TO CONNECT AN AUTOMATED TELLER MACHINE TO ONE
OR MORE NETWORKS.
  4. "NETWORK" SHALL MEAN AN ELECTRONIC SYSTEM  FOR  TRANSMITTING  ITEMS
AND  MESSAGES  BETWEEN  BANKING  INSTITUTIONS, PROCESSORS, AND AUTOMATED
TELLER MACHINES OR SIMILAR ELECTRONIC DEVICES.
  5. "OPERATOR" SHALL MEAN A PERSON THAT OPERATES  AN  AUTOMATED  TELLER
MACHINE  AND WHO, BY VIRTUE OF THE SPONSORSHIP OF A BANKING INSTITUTION,
IS ADMITTED AS A PARTICIPANT INTO ONE OR MORE NETWORKS.
  6. "PERSON" SHALL MEAN AN INDIVIDUAL, PARTNERSHIP, CORPORATION, LIMIT-
ED LIABILITY COMPANY OR LIMITED LIABILITY  PARTNERSHIP,  ASSOCIATION  OR
ANY OTHER ENTITY, OTHER THAN A BANKING INSTITUTION.
  7.  "PROCESSOR"  SHALL  MEAN  ANY  PERSON  WHO OR WHICH ELECTRONICALLY
ACQUIRES FINANCIAL DATA EMANATING FROM AN AUTOMATED TELLER  MACHINE  AND
RELAYS THAT DATA TO A NETWORK.
  8.  "SERVICING  AGENT" SHALL MEAN A PERSON WHO CONTRACTS WITH A REGIS-
TERED OPERATOR TO PROVIDE CUSTOMER RELATIONS,  FINANCIAL  RECORDKEEPING,
OR ANY OTHER SERVICE IN REGARD TO AN AUTOMATED TELLER MACHINE.
  9. "ELECTRONIC" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN
SECTION  THREE  HUNDRED TWO OF THE STATE TECHNOLOGY LAW AS RENUMBERED BY
CHAPTER FOUR HUNDRED THIRTY-SEVEN OF THE LAWS OF TWO THOUSAND FOUR.
  10. "CUSTOMER" SHALL MEAN AN INDIVIDUAL WHO CONDUCTS, OR  ATTEMPTS  TO
CONDUCT,  THROUGH  USE  OF AN AUTOMATED TELLER MACHINE, A DEBIT OR OTHER
FINANCIAL TRANSACTION PERTAINING TO HIS OR HER ACCOUNT OR ACCOUNTS AT  A
BANKING  INSTITUTION  OR PERTAINING TO THE USE OF ANY OTHER TYPE OF CARD
WHICH MAY BE USED TO OBTAIN CASH FROM SUCH MACHINE.
  S 801. REGISTRATION REQUIRED. NO PERSON THAT IS SPONSORED BY A BANKING
INSTITUTION AND UPON SUCH SPONSORSHIP IS ADMITTED INTO A  NETWORK  AS  A
BANKING INSTITUTION-SPONSORED PARTICIPANT SHALL, ON OR AFTER JUNE FIRST,
TWO  THOUSAND  TEN, OPERATE AN AUTOMATED TELLER MACHINE, IF SUCH MACHINE
IS LOCATED WITHIN THIS STATE, WITHOUT  FIRST  BEING  REGISTERED  BY  THE
SUPERINTENDENT  AS  AN OPERATOR OF AUTOMATED TELLER MACHINES PURSUANT TO
THIS ARTICLE; PROVIDED HOWEVER THAT THE REGISTRATION PROVISIONS OF  THIS
SECTION SHALL NOT APPLY TO A SUBSIDIARY OF A BANKING INSTITUTION.
  S  802.  REGISTRATION  OF  NETWORKS. ANY NETWORK TRANSMITTING ITEMS OR
MESSAGES BETWEEN BANKING INSTITUTIONS, PROCESSORS AND  AUTOMATED  TELLER
MACHINES OF REGISTERED OPERATORS SHALL REGISTER WITH THE SUPERINTENDENT.
THE  SUPERINTENDENT  SHALL  PRESCRIBE  BY  REGULATION THE METHOD OF SUCH
REGISTRATION AND ANY REQUIREMENTS RELATING THERETO.  ANY  SUCH  NETWORKS
SHALL  NOT  BE  SUBJECT  TO ANY OTHER PROVISIONS OF THIS CHAPTER, EXCEPT
SECTIONS THIRTY-NINE AND FORTY-FOUR OF THIS CHAPTER AND AS OTHERWISE MAY
BE REQUIRED BY THIS  ARTICLE.  NO  REGISTERED  OPERATOR  SHALL  TRANSMIT
MESSAGES  OR  ITEMS  UPON OR THROUGH NETWORKS THAT ARE NOT REGISTERED BY
THE SUPERINTENDENT AND DO NOT MAINTAIN OPERATIONAL AND PERFORMANCE STAN-
DARDS ACCEPTABLE TO THE SUPERINTENDENT.
  S 803. APPLICATION TO REGISTER AS  AN  OPERATOR  OF  AUTOMATED  TELLER
MACHINES.  1. UPON THE FILING OF AN APPLICATION FOR REGISTRATION, IF THE
SUPERINTENDENT  SHALL  FIND  THE  FINANCIAL  RESPONSIBILITY, EXPERIENCE,
CHARACTER, AND GENERAL FITNESS OF THE APPLICANT, AND OF THE OFFICERS AND

S. 4979                             3

DIRECTORS THEREOF IF THE APPLICANT IS 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
PURPOSE OF THIS ARTICLE, THE SUPERINTENDENT SHALL THEREUPON REGISTER THE
APPLICANT  AS  AN  OPERATOR  OF  AUTOMATED  TELLER  MACHINES AND ISSUE A
CERTIFICATE ATTESTING TO SUCH REGISTRATION IN DUPLICATE. THE SUPERINTEN-
DENT SHALL TRANSMIT ONE COPY OF SUCH CERTIFICATE TO  THE  APPLICANT  AND
FILE  ANOTHER  IN  HIS OR HER OFFICE. IF THE SUPERINTENDENT SHALL NOT SO
FIND, THE SUPERINTENDENT SHALL NOT REGISTER  SUCH  APPLICANT  AND  SHALL
NOTIFY  THE APPLICANT OF SUCH DENIAL IN WRITING. SUCH REGISTRATION SHALL
REMAIN IN FULL FORCE AND EFFECT UNTIL IT IS SURRENDERED  BY  THE  REGIS-
TERED  OPERATOR  OR  REVOKED  OR  SUSPENDED  PURSUANT  TO  THIS CHAPTER,
PROVIDED THAT SUCH REGISTRATION SHALL BE SUSPENDED UPON  NOTICE  BY  THE
SUPERINTENDENT  FOR FAILURE TO PAY ANY ASSESSMENT CHARGED TO SUCH REGIS-
TERED OPERATOR PURSUANT TO SECTION SEVENTEEN OF THIS  CHAPTER  UPON  THE
DATE ANY SUCH PAYMENT IS DUE. UPON SUCH SUSPENSION, NO REGISTERED OPERA-
TOR SHALL OPERATE OR ESTABLISH ANY AUTOMATED TELLER MACHINE.
  2.  THE  SUPERINTENDENT  MAY REFUSE TO ISSUE A CERTIFICATE PURSUANT TO
THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR  ANY  PERSON
WHO IS A DIRECTOR, OFFICER, PARTNER, EMPLOYEE OR SUBSTANTIAL STOCKHOLDER
OF  OR  CONSULTANT  TO  SUCH APPLICANT (I) HAS BEEN CONVICTED OF A CRIME
INVOLVING AN ACTIVITY WHICH IS A FELONY  UNDER  THIS  CHAPTER  OR  UNDER
ARTICLES ONE HUNDRED FIFTY-FIVE, ONE HUNDRED SEVENTY, ONE HUNDRED SEVEN-
TY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE HUNDRED EIGHTY, ONE HUNDRED EIGHT-
Y-FIVE,  ONE  HUNDRED NINETY, TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF
THE PENAL LAW OR ANY COMPARABLE FELONY UNDER THE LAWS OF ANY OTHER STATE
OR THE UNITED STATES, PROVIDED THAT SUCH CRIME  WOULD  BE  A  FELONY  IF
COMMITTED AND PROSECUTED UNDER THE LAWS OF THIS STATE, OR (II) HAS HAD A
REGISTRATION  REVOKED  BY THE SUPERINTENDENT, OR (III) HAS BEEN A DIREC-
TOR, PARTNER, OR SUBSTANTIAL STOCKHOLDER OF AN ENTITY WHICH  HAS  HAD  A
REGISTRATION REVOKED BY THE SUPERINTENDENT, OR (IV) HAS BEEN AN EMPLOYEE
OR  OFFICER  OF, OR A CONSULTANT TO, AN ENTITY WHICH HAS HAD A REGISTRA-
TION REVOKED BY THE SUPERINTENDENT WHERE SUCH  PERSON  SHALL  HAVE  BEEN
FOUND  BY  THE  SUPERINTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH
SUCH REVOCATION. THE TERM "SUBSTANTIAL  STOCKHOLDER"  AS  USED  IN  THIS
ARTICLE  SHALL BE DEEMED TO REFER TO A PERSON WHO POSSESSES, DIRECTLY OR
INDIRECTLY, THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT
AND POLICIES OF A CORPORATION OR ANY OTHER ENTITY, WHETHER  THROUGH  THE
OWNERSHIP OF VOTING STOCK OF ANY CORPORATION OR THROUGH THE OWNERSHIP OF
VOTING  STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR OTHERWISE. THE
POWER TO SO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLICIES
OF A CORPORATION SHALL BE PRESUMED TO EXIST IF ANY PERSON,  DIRECTLY  OR
INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR
MORE OF THE VOTING STOCK OF ANY CORPORATION.
  3. APPLICATION FOR A REGISTRATION REQUIRED UNDER THIS ARTICLE SHALL BE
IN  WRITING,  UNDER  OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTEN-
DENT, AND SHALL CONTAIN THE FOLLOWING INFORMATION:
  (A) THE EXACT NAME OF THE APPLICANT AND, IF INCORPORATED OR  OTHERWISE
FORMED, THE DATE AND THE STATE OF SUCH INCORPORATION OR FORMATION;
  (B)  THE  COMPLETE BUSINESS ADDRESS OF THE PRINCIPAL OFFICE FROM WHICH
BUSINESS IS TO BE CONDUCTED, AND WHERE THE  BOOKS  AND  RECORDS  OF  THE
APPLICANT  ARE  MAINTAINED  AND  TO  BE  MAINTAINED, SHOWING THE STREET,
NUMBER IF ANY, THE ZIP CODE, AND THE MUNICIPALITY OR COUNTY;
  (C) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT, IF AN  INDIVIDUAL
OR,  IF  A  PARTNERSHIP, OF ITS PARTNERS OR, IF A CORPORATION OR ASSOCI-

S. 4979                             4

ATION, OF THE DIRECTORS, AND PRINCIPAL  OFFICERS  THEREOF,  AND  OF  ANY
STOCKHOLDER OWNING TEN PER CENTUM OR MORE OF AND CLASS OF ITS STOCK; AND
  (D)  SUCH  OTHER  PERTINENT  INFORMATION  AS  THE  SUPERINTENDENT  MAY
REQUIRE.
  4. EACH REGISTRATION ISSUED PURSUANT TO THIS ARTICLE SHALL  STATE  THE
PRINCIPAL  BUSINESS  ADDRESS OF SUCH REGISTERED OPERATOR AND SHALL FULLY
STATE THE NAME OF SUCH REGISTERED OPERATOR AND THE DATE AND PLACE OF ITS
INCORPORATION OR FORMATION IF APPLICABLE. SUCH REGISTRATION SHALL NOT BE
TRANSFERABLE OR ASSIGNABLE. IN THE EVENT THE LOCATION AT WHICH THE PRIN-
CIPAL PLACE OF BUSINESS IS TO BE CONDUCTED SHALL BE CHANGED, THE  REGIS-
TERED OPERATOR SHALL FORTHWITH NOTIFY THE SUPERINTENDENT WHO SHALL THER-
EUPON ATTACH TO THE REGISTRATION SETTING FORTH SUCH CHANGED LOCATION.
  5.  UPON  ANY  CHANGE  OF  THE  OFFICERS, PARTNERS OR DIRECTORS OF ANY
REGISTERED OPERATOR, SUCH REGISTERED OPERATOR SHALL SUBMIT TO THE SUPER-
INTENDENT THE NAME, ADDRESS AND OCCUPATION OF EACH NEW OFFICER,  PARTNER
OR  DIRECTOR,  AND  PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTENDENT
MAY REQUIRE.
  S 804. CHANGES OF CONTROL. 1. IT SHALL BE  UNLAWFUL  EXCEPT  WITH  THE
PRIOR  APPROVAL  OF  THE SUPERINTENDENT FOR ANY ACTION TO BE TAKEN WHICH
RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A REGISTERED OPERATOR.
PRIOR TO ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL
OF THE BUSINESS OF A REGISTERED OPERATOR SHALL MAKE WRITTEN  APPLICATION
TO THE SUPERINTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS
THE  SUPERINTENDENT  MAY  PRESCRIBE  AS NECESSARY OR APPROPRIATE FOR THE
PURPOSE OF MAKING THE DETERMINATION REQUIRED BY SUBDIVISION TWO OF  THIS
SECTION.
  2.  THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE
OF CONTROL OF A REGISTERED OPERATOR IN ACCORDANCE WITH THE PROVISIONS OF
SECTION EIGHT HUNDRED THREE OF THIS ARTICLE RELATING TO REGISTRATION  OF
OPERATORS.  IF THE SUPERINTENDENT DISAPPROVES SUCH APPLICATION, OR IF NO
SUCH APPLICATION HAS BEEN MADE, UPON CONSUMMATION OF THE ACQUISITION  OF
CONTROL,  THE  CERTIFICATE  OF THE REGISTERED OPERATOR SHALL BECOME NULL
AND VOID AND THE APPLICANT OR SUCH REGISTERED  OPERATOR,  WHICHEVER  HAS
POSSESSION  OF SUCH CERTIFICATE, SHALL FORTHWITH SURRENDER TO THE SUPER-
INTENDENT THE REGISTRATION THERETOFORE IN EFFECT.
  3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF APPOINTMENT  OR  QUALI-
FICATION  THEREOF  AND  FOR SUCH ADDITIONAL PERIOD OF TIME AS THE SUPER-
INTENDENT MAY PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS  ONE
AND  TWO  OF  THIS SECTION SHALL NOT APPLY TO THE TRANSFER OF CONTROL BY
OPERATION OF LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF
ONE WHO HAS CONTROL OF A REGISTERED  OPERATOR.  THEREAFTER,  SUCH  LEGAL
REPRESENTATIVE  SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND
TWO OF THIS SECTION. THE PROVISIONS OF SUCH SUBDIVISIONS SHALL BE APPLI-
CABLE TO AN APPLICATION MADE UNDER SUCH SECTION  BY  A  LEGAL  REPRESEN-
TATIVE.  THE  TERM "LEGAL REPRESENTATIVE", FOR PURPOSES OF THIS SECTION,
SHALL MEAN ONE DULY APPOINTED BY A COURT OF  COMPETENT  JURISDICTION  TO
ACT  AS  EXECUTOR,  ADMINISTRATOR,  TRUSTEE,  COMMITTEE,  CONSERVATOR OR
RECEIVER, INCLUDING ONE WHO SUCCEEDS  A  LEGAL  REPRESENTATIVE  AND  ONE
ACTING   IN  AN  ANCILLARY  CAPACITY  THERETO  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SUCH COURT APPOINTMENT.
  4. AS USED IN THIS SECTION, 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 REGISTERED OPERATOR, WHETHER THROUGH
THE OWNERSHIP OF VOTING STOCK OF SUCH REGISTERED OPERATOR OR THROUGH THE
OWNERSHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES  SUCH  POWER  OR
OTHERWISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY OR

S. 4979                             5

INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR
MORE OF THE VOTING STOCK OF ANY REGISTERED OPERATOR, BUT NO PERSON SHALL
BE  DEEMED TO CONTROL A REGISTERED OPERATOR SOLELY BY REASON OF BEING AN
OFFICER  OR  DIRECTOR  OF SUCH REGISTERED OPERATOR OR PERSON. THE SUPER-
INTENDENT MAY IN HIS OR HER DISCRETION, UPON APPLICATION OF A REGISTERED
OPERATOR OR ANY PERSON WHO, DIRECTLY OR INDIRECTLY,  OWNS,  CONTROLS  OR
HOLDS  WITH POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO
VOTE ANY VOTING STOCK OF SUCH REGISTERED OPERATOR, DETERMINE WHETHER  OR
NOT  THE  OWNERSHIP, CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES
OR WOULD CONSTITUTE CONTROL OF SUCH REGISTERED OPERATOR FOR PURPOSES  OF
THIS SECTION.
  S 805. EXAMINATION OF BOOKS, ACCOUNTS, AND RECORDS; INVESTIGATIONS. 1.
(A)  FOR THE PURPOSE OF DISCOVERING VIOLATIONS OF THIS ARTICLE OR SECUR-
ING INFORMATION LAWFULLY REQUIRED HEREUNDER, THE SUPERINTENDENT  MAY  AT
ANY  TIME,  AS  OFTEN  AS  MAY  BE DETERMINED, EITHER PERSONALLY OR BY A
PERSON DULY DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE  THE  BUSINESS
AND  EXAMINE  THE  BOOKS,  ACCOUNTS,  RECORDS, AND FILES USED THEREIN OF
EVERY REGISTERED OPERATOR AND ANY  SERVICING  AGENT  OR  PROCESSOR  WITH
RESPECT  TO ANY CONTRACTS OR AGREEMENTS THAT SUCH AGENT OR PROCESSOR MAY
HAVE WITH ANY SUCH REGISTERED OPERATOR. FOR  THAT  PURPOSE,  THE  SUPER-
INTENDENT  AND DULY DESIGNATED REPRESENTATIVES SHALL HAVE FREE ACCESS TO
THE OFFICES AND PLACE OF BUSINESS,  BOOKS,  ACCOUNTS,  PAPERS,  RECORDS,
FILES,  SAFES AND VAULTS, AND LOCATIONS OF ALL AUTOMATED TELLER MACHINES
OF SUCH REGISTERED OPERATOR, SERVICING AGENT OR PROCESSOR.
  (B) WHENEVER A REGISTERED OPERATOR, OR ANY SUBSIDIARY OR AFFILIATE  OF
SUCH  REGISTERED  OPERATOR,  CAUSES  TO BE PERFORMED FOR SUCH REGISTERED
OPERATOR, BY CONTRACT OR OTHERWISE, ANY SERVICES RELATED TO, DIRECTLY OR
INDIRECTLY, THE AUTOMATED TELLER MACHINES WHICH SUCH REGISTERED OPERATOR
OPERATES, SUCH PERFORMANCE SHALL BE SUBJECT TO REGULATION  AND  EXAMINA-
TION  BY  THE SUPERINTENDENT TO THE SAME EXTENT AS IF SUCH SERVICES WERE
BEING PERFORMED BY THE REGISTERED OPERATOR ITSELF  AND  SUCH  REGISTERED
OPERATOR SHALL NOTIFY THE SUPERINTENDENT OF THE EXISTENCE OF THE SERVICE
RELATIONSHIP  WITHIN  THIRTY  DAYS  AFTER  THE  MAKING  OF  SUCH SERVICE
CONTRACT OR THE PERFORMANCE OF THE SERVICE, WHICHEVER OCCURS FIRST.
  (C) FOR PURPOSES OF EVALUATING THE OPERATIONS AND PERFORMANCE  OF  ANY
REGISTERED  NETWORK,  THE  SUPERINTENDENT SHALL INVESTIGATE THE BUSINESS
AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS,  AND  FILES  USED  THEREIN  OF
EVERY  REGISTERED  NETWORK. THE EXPENSES INCURRED IN MAKING ANY INVESTI-
GATIONS AND EXAMINATIONS  OF,  OR  FOR  SPECIAL  SERVICES  PERFORMED  ON
ACCOUNT OF, ANY REGISTERED NETWORK SHALL BE ASSESSED AGAINST AND PAID BY
THE REGISTERED NETWORK FOR WHICH THEY WERE INCURRED OR PERFORMED.
  2.  ALL  REPORTS OF INVESTIGATIONS AND OTHER REPORTS RENDERED PURSUANT
TO THIS SECTION, AND ALL  CORRESPONDENCE  AND  MEMORANDA  CONCERNING  OR
ARISING  OUT  OF  SUCH  INVESTIGATIONS  OR  REPORTS,  INCLUDING ANY DULY
AUTHENTICATED COPY OR COPIES THEREOF IN  POSSESSION  OF  ANY  REGISTERED
OPERATOR,  SERVICING  AGENT,  PROCESSOR  OR  REGISTERED NETWORK SHALL BE
CONFIDENTIAL COMMUNICATIONS AND SUBJECT TO THE PROVISIONS OF SUBDIVISION
TEN OF SECTION THIRTY-SIX OF THIS CHAPTER.
  3. ANY REGISTERED OPERATOR OR REGISTERED NETWORK THAT  FAILS  TO  MAKE
ANY  REPORT  REQUIRED BY THE SUPERINTENDENT PURSUANT TO THIS ARTICLE, ON
OR BEFORE THE DAY DESIGNATED FOR THE MAKING THEREOF,  FAILS  TO  INCLUDE
THEREIN  ANY  PRESCRIBED  MATERIAL,  OR INCLUDES ANY FALSE OR MISLEADING
INFORMATION THEREIN, SHALL BE SUBJECT TO SUCH ENFORCEMENT AND  PENALTIES
AS MAY BE PRESCRIBED BY THIS CHAPTER.
  S  806.  VIOLATIONS  AND  PENALTIES.  1.  A  REGISTERED  OPERATOR THAT
VIOLATES ANY PROVISION OF THIS ARTICLE OR OTHER APPLICABLE PROVISIONS OF

S. 4979                             6

THIS CHAPTER, OR ANY RULE OR REGULATION PRESCRIBED BY THE SUPERINTENDENT
PURSUANT TO THIS ARTICLE OR OF ANY OTHER LAW, RULE OR REGULATION OF THIS
STATE OR THE FEDERAL GOVERNMENT OR THAT THROUGH ANY UNFAIR, UNCONSCIONA-
BLE,  OR DECEPTIVE PRACTICE CAUSES ACTUAL DAMAGE TO A CUSTOMER, SHALL BE
SUBJECT TO SECTIONS THIRTY-NINE AND  FORTY-FOUR  OF  THIS  CHAPTER,  AND
SUSPENSION  OR  REVOCATION  OF  THE  OPERATOR'S REGISTRATION PURSUANT TO
SECTION EIGHT HUNDRED SEVEN OF THIS ARTICLE.
  2. A PERSON THAT OPERATES AN AUTOMATED TELLER MACHINE PURSUANT TO THIS
ARTICLE WITHOUT BEING REGISTERED BY THE SUPERINTENDENT SHALL  BE  GUILTY
OF A CLASS A MISDEMEANOR.
  3. A PERSON THAT OPERATES A MACHINE THAT WOULD OTHERWISE BE CONSIDERED
AN  AUTOMATED  TELLER MACHINE PURSUANT TO THIS ARTICLE, EXCEPT THAT SUCH
MACHINE IS NOT OPERATED IN CONJUNCTION WITH A NETWORK, SHALL  BE  GUILTY
OF A CLASS C FELONY.
  4.  NOTHING  IN  THIS  ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW
RIGHT OF ANY PERSON, REGISTERED OPERATOR OR REGISTERED NETWORK TO  BRING
ANY ACTION IN ANY COURT FOR ANY ACT, OR THE RIGHT OF THE STATE TO PUNISH
ANY PERSON, OPERATOR OR NETWORK FOR VIOLATION OF ANY LAW.
  5. IF ANY UNREGISTERED PERSON OPERATES AN AUTOMATED TELLER MACHINE, OR
A MACHINE THAT WOULD OTHERWISE BE CONSIDERED AN AUTOMATED TELLER MACHINE
PURSUANT  TO  THIS  ARTICLE, EXCEPT THAT SUCH MACHINE IS NOT OPERATED IN
CONJUNCTION WITH A NETWORK, HE OR SHE SHALL BE LIABLE TO ANY PERSON  FOR
A  SUM  OF  MONEY NOT LESS THAN AN AMOUNT EQUAL TO ANY MONETARY LOSS AND
ANY OTHER DAMAGES AND EXPENSES INCURRED BY SUCH PERSON AS  A  RESULT  OF
THE  THEFT OF SUCH PERSON'S PERSONAL IDENTIFICATION AND ACCOUNT INFORMA-
TION THAT RESULTS FROM THE USE, OR  ATTEMPTED  USE,  OF  SUCH  AUTOMATED
TELLER  MACHINE, NOR MORE THAN FOUR TIMES SUCH SUM. SUCH SUM MAY BE SUED
FOR AND RECOVERED BY ANY PERSON FOR HIS OR HER BENEFIT USE  AND  BENEFIT
IN ANY COURT OF COMPETENT JURISDICTION.
  S  807.  SUSPENSION OR REVOCATION OF REGISTRATION. 1. AFTER NOTICE AND
HEARING, THE  SUPERINTENDENT  MAY  FINE  SUCH  REGISTERED  OPERATOR  AND
SUSPEND OR REVOKE AN OPERATOR'S REGISTRATION IF HE OR SHE FINDS THAT:
  (A)  THROUGH A COURSE OF CONDUCT, THE REGISTERED OPERATOR HAS VIOLATED
ANY PROVISIONS OF THIS ARTICLE OR ANY  OTHER  APPLICABLE  PROVISIONS  OF
THIS CHAPTER, OR ANY RULE OR REGULATION PRESCRIBED BY THE SUPERINTENDENT
PURSUANT TO THIS ARTICLE OR OF ANY OTHER LAW, RULE OR REGULATION OF THIS
STATE OR THE FEDERAL GOVERNMENT;
  (B)  ANY FACT OR CONDITION EXISTS, WHICH IF IT HAD EXISTED AT THE TIME
OF THE ORIGINAL APPLICATION FOR SUCH REGISTRATION, WOULD HAVE  WARRANTED
THE SUPERINTENDENT IN REFUSING ORIGINALLY TO ISSUE SUCH REGISTRATION; OR
  (C)  THE  COMMISSION  BY  A REGISTERED OPERATOR OF A CRIME AGAINST THE
LAWS OF THIS STATE OR ANY OTHER STATE OR OF THE UNITED STATES  INVOLVING
MORAL  TURPITUDE  OR  FRAUDULENT OR DISHONEST DEALING, OR THE ENTRY OF A
FINAL JUDGMENT AGAINST A REGISTERED OPERATOR  IN  A  CIVIL  ACTION  UPON
GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT.
  2.   PENDING AN INVESTIGATION OR A HEARING FOR THE SUSPENSION OR REVO-
CATION OF A REGISTRATION ISSUED TO AN OPERATOR PURSUANT TO THIS ARTICLE,
THE SUPERINTENDENT MAY TEMPORARILY SUSPEND SUCH REGISTRATION FOR A PERI-
OD NOT TO EXCEED NINETY DAYS, PROVIDED  THE  SUPERINTENDENT  SHALL  FIND
THAT SUCH A TEMPORARY SUSPENSION IS IN THE PUBLIC INTEREST.
  3.  ANY REGISTERED OPERATOR MAY SURRENDER ITS REGISTRATION CERTIFICATE
BY DELIVERING TO  THE  SUPERINTENDENT  WRITTEN  NOTICE  THAT  IT  HEREBY
SURRENDERS  SUCH  CERTIFICATE,  BUT SUCH SURRENDER SHALL NOT AFFECT SUCH
REGISTERED OPERATOR'S CIVIL OR CRIMINAL  LIABILITY  FOR  ACTS  COMMITTED
PRIOR TO SUCH SURRENDER. IF SUCH SURRENDER IS MADE AFTER THE ISSUANCE BY
THE  SUPERINTENDENT OF A STATEMENT OF CHARGES AND NOTICE OF HEARING, THE

S. 4979                             7

SUPERINTENDENT MAY PROCEED AGAINST THE REGISTERED OPERATOR  AS  IF  SUCH
SURRENDER HAD NOT TAKEN PLACE.
  4.  EVERY REGISTRATION ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN
FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED  OR
SUSPENDED  IN  ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE, BUT
THE SUPERINTENDENT SHALL HAVE AUTHORITY TO REINSTATE A SUSPENDED  REGIS-
TRATION CERTIFICATE OR TO ISSUE A NEW CERTIFICATE TO A REGISTERED OPERA-
TOR  WHOSE  REGISTRATION SHALL HAVE BEEN REVOKED IF NO FACT OR CONDITION
THEN EXISTS WHICH WOULD HAVE WARRANTED THE  SUPERINTENDENT  IN  REFUSING
ORIGINALLY TO ISSUE SUCH REGISTRATION UNDER THIS ARTICLE.
  5.  WHENEVER THE SUPERINTENDENT SHALL REVOKE OR SUSPEND A REGISTRATION
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 HIS OR HER OFFICE AND SHALL FORTHWITH SERVE
THE OTHER COPY UPON THE REGISTERED  OPERATOR.  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 PURSU-
ANT TO THIS SECTION MUST BE MADE WITHIN THIRTY DAYS  FROM  THE  DATE  OF
SUCH ORDER OF SUSPENSION OR REVOCATION.
  S  808.  REQUIRED DISCLOSURES TO CUSTOMERS. 1. DISCLOSURE OF PERTINENT
INFORMATION. A  REGISTERED  OPERATOR  SHALL  CLEARLY  AND  CONSPICUOUSLY
DISCLOSE  ON  A  SIGN POSTED ON THE AUTOMATED TELLER MACHINE OR IN CLEAR
VIEW OF A CUSTOMER VIEWING SUCH MACHINE:
  (A) THE NAME OF THE REGISTERED OPERATOR;
  (B) A DISCLAIMER INDICATING THAT THE  REGISTERED  OPERATOR  IS  NOT  A
BANKING INSTITUTION;
  (C) THE NAME, ADDRESS, AND TWENTY-FOUR-HOUR TOLL-FREE TELEPHONE NUMBER
WHERE A CUSTOMER MAY DIRECT INQUIRIES OR COMPLAINTS;
  (D) A STATEMENT THAT THE OPERATOR IS REGISTERED BY THE BANKING DEPART-
MENT, AND THE ADDRESS AND A TOLL-FREE TELEPHONE NUMBER OF THE DEPARTMENT
WHERE INQUIRIES OR COMPLAINTS MAY BE DIRECTED.
  2.  FEE  DISCLOSURE.  A REGISTERED OPERATOR SHALL NOT CHARGE A FEE FOR
USE OF AN AUTOMATED TELLER MACHINE UNLESS SUCH  OPERATOR  COMPLIES  WITH
THE  FEE  DISCLOSURE REQUIREMENTS OF SECTION THREE HUNDRED NINETY-NINE-Y
OF  THE  GENERAL  BUSINESS  LAW,  AS  ADDED  BY  CHAPTER  FOUR   HUNDRED
NINETY-FIVE OF THE LAWS OF NINETEEN HUNDRED NINETY-NINE.
  3.  RECEIPT FOR TRANSACTION. AN AUTOMATED TELLER MACHINE SHALL PROVIDE
A RECEIPT FOR THE TRANSACTION THAT SHALL INCLUDE THE FOLLOWING  INFORMA-
TION IN A CLEAR AND CONSPICUOUS MANNER:
  (A) THE AMOUNT OF THE TRANSACTION;
  (B) THE AMOUNT OF ANY FEE IMPOSED BY THE REGISTERED OPERATOR;
  (C)  THE TOTAL AMOUNT DEBITED TO THE CUSTOMER'S ACCOUNT, INCLUDING ANY
FEE IMPOSED BY THE REGISTERED OPERATOR;
  (D) THE DATE AND TIME OF THE TRANSACTION;
  (E) A NUMBER OR CODE THAT IDENTIFIES  THE  CUSTOMER  AND  THE  ACCOUNT
ACCESSED IN A MANNER THAT ENSURES THE CUSTOMER'S PRIVACY; AND
  (F)    THE LOCATION, OR A NUMBER OR CODE THAT IDENTIFIES THE LOCATION,
OF THE AUTOMATED TELLER MACHINE.
  S 809. RULES AND REGULATIONS. IN ADDITION TO SUCH POWERS AS MAY OTHER-
WISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHOR-
IZED  AND  EMPOWERED  TO  PROMULGATE  REGULATIONS  CONSISTENT  WITH  THE
PURPOSES OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO:
  1.  SUCH  RULES  AND  REGULATIONS, IN CONNECTION WITH THE OPERATION OF
AUTOMATED TELLER MACHINES, AS MAY BE NECESSARY OR APPROPRIATE TO QUALIFY
THE TERMS AND CONDITIONS OF AGREEMENTS WITH OR CONTRACTS BETWEEN  REGIS-

S. 4979                             8

TERED  OPERATORS AND SERVICE AGENTS OR PROCESSORS IN ORDER TO ENSURE THE
PROTECTION OF CUSTOMERS USING AUTOMATED TELLER MACHINES IN THIS STATE;
  2.  SUCH  RULES  AND REGULATIONS AS MAY BE NECESSARY OR APPROPRIATE TO
DEFINE IMPROPER OR FRAUDULENT PRACTICES AND OPERATIONAL AND  PERFORMANCE
STANDARDS  APPLICABLE  TO  THE  ACTIVITIES  OF  REGISTERED OPERATORS AND
REGISTERED NETWORKS FOR THE PURPOSE OF PREVENTING, AMONG OTHER  CRIMINAL
ACTS,  THE  OCCURRENCE  OF  MONEY  LAUNDERING  AND CUSTOMER IDENTITY AND
ACCOUNT INFORMATION THEFT;
  3. SUCH RULES AND REGULATIONS AS MAY BE NECESSARY  OR  APPROPRIATE  TO
REQUIRE  REGISTERED OPERATORS AND REGISTERED NETWORKS TO MAKE REPORTS OF
INFORMATION IN SUCH FORM AND UPON SUCH DATES AS PRESCRIBED BY THE SUPER-
INTENDENT; AND
  4. SUCH RULES AND REGULATIONS AS MAY BE NECESSARY  OR  APPROPRIATE  TO
INTERPRET, IMPLEMENT OR ENFORCE THE PROVISIONS OF THIS ARTICLE.
  S 810. SEVERABILITY. IF ANY WORD, PHRASE, CLAUSE, SENTENCE, PARAGRAPH,
SECTION OR PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPE-
TENT  JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR
OR INVALIDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS OPERA-
TION TO THE WORD, PHRASE, CLAUSE, SENTENCE, PARAGRAPH, SECTION  OR  PART
THEREOF  DIRECTLY  INVOLVED  IN  THE CONTROVERSY IN WHICH JUDGMENT SHALL
HAVE BEEN RENDERED.
  S 2. Section 22 of the banking law, as amended by chapter 553  of  the
laws of 2007, is amended to read as follows:
  S 22.  Fingerprints.  (a)  Notwithstanding any other provision of law,
every applicant for a license, authorization or registration under arti-
cles nine, nine-A,  eleven-B,  twelve-B,  twelve-C,  twelve-D,  twelve-E
[and],  thirteen-B  AND  FOURTEEN-A  of this chapter and every applicant
filing an application to acquire control of any licensee or  registrant,
as the case may be, under such articles shall submit simultaneously with
an  application, his or her fingerprints in such form and in such manner
as specified by the division of criminal justice services,  but  in  any
event,  no less than two digit imprints. The superintendent shall submit
such fingerprints to the division of criminal justice services  for  the
purpose  of  conducting a criminal history search and returning a report
thereon in accordance with the procedures and  requirements  established
by the division pursuant to the provisions of article thirty-five of the
executive  law,  which shall include the payment of the prescribed proc-
essing fees. The superintendent shall request that the  division  submit
such  fingerprints to the federal bureau of investigation, together with
the processing fees prescribed  by  such  bureau,  for  the  purpose  of
conducting  a criminal history search and returning a report thereon. An
applicant OR REGISTRANT shall not be required to submit his or her fing-
erprints as required by this subdivision if such applicant OR REGISTRANT
(i) is already subject to regulation by the department and the applicant
OR REGISTRANT has submitted such fingerprints to  the  department,  such
fingerprints  have  been  submitted  to the division of criminal justice
services for the purpose of conducting a criminal history search, and  a
report  of  such  search  has  been received by the department from such
division; or (ii) is subject to regulation by a federal bank  regulatory
agency  and has submitted such fingerprints to such agency which has had
a criminal history search conducted of such individual  and  has  shared
such  information  or  its determination resulting from such search with
the department; or (iii) is an officer or stockholder of  a  corporation
whose  common  or preferred stock is registered on a national securities
exchange, as provided in an act of congress of the United  States  enti-
tled  the  "Securities Exchange Act of 1934", approved June sixth, nine-

S. 4979                             9

teen hundred thirty-four, as amended, or such other exchange  or  market
system  as  the  superintendent  shall  approve  by  regulation, and has
submitted such fingerprints to such exchange or market system which  has
had  a  criminal  history  search  conducted  of such individual and has
shared such information or its determination resulting from such  search
with  the  department;  provided,  however,  that the superintendent may
subsequently require such applicant OR REGISTRANT to submit his  or  her
fingerprints  if  the superintendent has a reasonable basis for updating
the information or determination resulting from the report of the crimi-
nal history search conducted at the  request  of  such  federal  banking
agency, exchange or market system.
  (b) The superintendent shall also, concurrent with an investigation of
a  licensee  or registrant, or an authorized individual, pertaining to a
violation of this chapter, submit such fingerprints to the  division  of
criminal  justice  services  for  the  purpose  of conducting a criminal
history search and returning a report thereon and through  the  division
to  the federal bureau of investigation for the purpose of a fingerprint
check of such licensee, registrant or authorized individual.
  (c) For purposes of this section, "applicant"  OR  "REGISTRANT"  shall
include  a  natural person or such principal, officer, director, trustee
or stockholder of any other entity as may be designated  by  the  super-
intendent.    Notwithstanding  any  other provision of this article, the
superintendent shall not access criminal history  data  or  information,
unless any agency from which the superintendent receives directly crimi-
nal history data or information has entered into a use and dissemination
agreement with the superintendent consistent with the provisions of this
section.
  S  3.  Subdivisions  1,  2  and 5 of section 39 of the banking law, as
amended by chapter 472 of the laws of  2008,  are  amended  to  read  as
follows:
  1.  To  appear  and  explain  an apparent violation. Whenever it shall
appear to the superintendent that any banking organization, bank holding
company, registered mortgage broker, licensed  mortgage  banker,  regis-
tered  mortgage  loan  servicer,  authorized  mortgage  loan originator,
licensed lender, licensed casher of checks, REGISTERED OPERATOR OF AUTO-
MATED TELLER MACHINES, REGISTERED NETWORK, licensed sales finance compa-
ny, licensed insurance premium finance agency, licensed  transmitter  of
money, licensed budget planner, out-of-state state bank that maintains a
branch  or branches or representative or other offices in this state, or
foreign banking corporation licensed by the superintendent to  do  busi-
ness  or maintain a representative office in this state has violated any
law or regulation, he or she may, in his or  her  discretion,  issue  an
order  describing  such  apparent  violation  and requiring such banking
organization, bank holding company, registered mortgage broker, licensed
mortgage banker, authorized mortgage loan originator,  licensed  lender,
licensed  casher  of  checks,  REGISTERED  OPERATOR  OF AUTOMATED TELLER
MACHINES, REGISTERED NETWORK, licensed sales finance  company,  licensed
insurance   premium  finance  agency,  licensed  transmitter  of  money,
licensed budget planner, out-of-state state bank that maintains a branch
or branches or representative or other offices in this state, or foreign
banking corporation to appear before him or her, at  a  time  and  place
fixed  in  said  order,  to  present  an  explanation  of  such apparent
violation.
  2. To discontinue unauthorized or unsafe and unsound practices.  When-
ever it shall appear to the superintendent that  any  banking  organiza-
tion,  bank  holding company, registered mortgage broker, licensed mort-

S. 4979                            10

gage banker, registered mortgage loan servicer, authorized mortgage loan
originator, licensed lender, licensed casher of checks, REGISTERED OPER-
ATOR OF AUTOMATED TELLER MACHINES, REGISTERED  NETWORK,  licensed  sales
finance  company,  licensed  insurance  premium finance agency, licensed
transmitter of money, licensed budget planner, out-of-state  state  bank
that  maintains  a branch or branches or representative or other offices
in this state, or foreign banking corporation  licensed  by  the  super-
intendent  to  do  business  in  this state is conducting business in an
unauthorized or unsafe and unsound manner, he or she may, in his or  her
discretion,  issue  an  order directing the discontinuance of such unau-
thorized or unsafe and unsound practices, and fixing a time and place at
which such banking organization, bank holding company, registered  mort-
gage  broker,  licensed mortgage banker, registered mortgage loan servi-
cer, authorized mortgage  loan  originator,  licensed  lender,  licensed
casher  of  checks,  REGISTERED  OPERATOR  OF AUTOMATED TELLER MACHINES,
REGISTERED NETWORK, licensed sales finance company,  licensed  insurance
premium  finance  agency, licensed transmitter of money, licensed budget
planner, out-of-state state bank that maintains a branch or branches  or
representative or other offices in this state, or foreign banking corpo-
ration  may voluntarily appear before him or her to present any explana-
tion in defense of the practices directed in said order to be discontin-
ued.
  5. To keep books and accounts as prescribed. Whenever it shall  appear
to the superintendent that any banking organization, bank holding compa-
ny,  registered  mortgage  broker,  licensed mortgage banker, registered
mortgage loan servicer, authorized mortgage  loan  originator,  licensed
lender,  licensed  casher  of  checks,  REGISTERED OPERATOR OF AUTOMATED
TELLER MACHINES, REGISTERED NETWORK,  licensed  sales  finance  company,
licensed  insurance  premium  finance  agency,  licensed  transmitter of
money, licensed budget planner, agency or branch of  a  foreign  banking
corporation licensed by the superintendent to do business in this state,
does  not keep its books and accounts in such manner as to enable him or
her to readily ascertain its true condition, he or she may,  in  his  or
her discretion, issue an order requiring such banking organization, bank
holding  company,  registered mortgage broker, licensed mortgage banker,
registered mortgage loan servicer, authorized mortgage loan  originator,
licensed lender, licensed casher of checks, REGISTERED OPERATOR OF AUTO-
MATED TELLER MACHINES, REGISTERED NETWORK, licensed sales finance compa-
ny,  licensed  insurance premium finance agency, licensed transmitter of
money, licensed budget planner, or foreign banking corporation,  or  the
officers  or agents thereof, or any of them, to open and keep such books
or accounts as he or she may, in his or her  discretion,  determine  and
prescribe  for the purpose of keeping accurate and convenient records of
its transactions and accounts.
  S 4. Paragraph (a) of subdivision 1 of section 44 of the banking  law,
as  amended  by  chapter  472 of the laws of 2008, is amended to read as
follows:
  (a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after notice and a hearing, require any safe deposit  company,  licensed
lender,  licensed  casher  of  checks,  licensed  sales finance company,
licensed insurance  premium  finance  agency,  licensed  transmitter  of
money,  licensed mortgage banker, registered mortgage broker, REGISTERED
OPERATOR OF AUTOMATED TELLER MACHINES,  REGISTERED  NETWORK,  authorized
mortgage  loan originator, registered mortgage loan servicer or licensed
budget planner to pay to the people of this  state  a  penalty  for  any

S. 4979                            11

violation  of  this  chapter, any regulation promulgated thereunder, any
final or temporary order issued pursuant to section thirty-nine of  this
article, any condition imposed in writing by the superintendent or bank-
ing board in connection with the grant of any application or request, or
any written agreement entered into with the superintendent.
  S 5. This act shall take effect on the one hundred eightieth day after
it  shall  have become a law; provided, however, that sections three and
four of this act shall take effect on the same  date  and  in  the  same
manner  as  section 25 of chapter 472 of the laws of 2008, takes effect;
provided that the superintendent of banks is  authorized  to  promulgate
any  and all rules and regulations and take any other measures necessary
to implement this act on its effective date  on  or  before  such  date,
including  providing  for the registration of current operators of auto-
mated teller machines and networks as defined pursuant to this act on or
before June 1, 2010.