senate Bill S3780A

Relates to the operation of automated teller machines by entities other than banking institutions

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / Mar / 2011
    • REFERRED TO BANKS
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 19 / Jan / 2012
    • AMEND AND RECOMMIT TO BANKS
  • 19 / Jan / 2012
    • PRINT NUMBER 3780A

Summary

Regulates the operation of automated teller machines by entities other than banking institutions; requires the registration of such machines, the examination of books, accounts and records, investigations, and also provides violations and penalties relating to the operation of such machines.

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Bill Details

Versions:
S3780
S3780A
Legislative Cycle:
2011-2012
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add Art 14-A §§800 - 810, amd §§22, 39 & 44, Bank L
Versions Introduced in 2009-2010 Legislative Cycle:
S4979

Sponsor Memo

BILL NUMBER:S3780A

TITLE OF BILL:
An act
to amend the banking law, in relation to the operation of
automated teller machines by entities other than banking institutions

PURPOSE:
To require non-bank operators of automated teller machines to register
with the Department of Financial Services prior to operating such
machines.

SUMMARY OF PROVISIONS:
This bill adds a new Article 14-A to the Banking Law to provide for
the registration and oversight of non-bank operators of automated
teller machines. The bill provides that, after June 1, 2008, no person
(other than a banking institution) shall operate an automated teller
machine without first being registered by the Superintendent of
Banks. ATM networks would also be required to register with the
superintendent.

Similar to other articles within the Banking Law, the bill establishes
provisions governing applications for approval, changes of control,
the examination of books, accounts and records, and the suspension or
revocation of an entity's authorization to operate.

A registered operator which violates the law or regulations, or which
causes actual damage through any unfair, unconscionable or deceptive
practice, is subject to the general supervisory powers of the
Superintendent and to the civil penalties applicable to any regulated
entity which violates the law. Operating a cash-dispensing machine
without being registered is a Class A misdemeanor.

The bill establishes a Class C felony penalty for situations where an
unregistered person sets up a machine that is not hooked up to an ATM
network. This penalty targets those instances where a machine is set
up solely for the purpose of fraudulently capturing the account and
PIN numbers of consumers. These unregistered operators shall also be
civilly liable to persons who suffer damages as a result of the theft
of personal identification and account information.

The bill also requires registered operators to post the following
information on or near a machine: the operator's name; a disclaimer
that the operator is not a banking institution; the name, address and
24 hour toll-free phone number for inquiries/complaints; and a
statement that the operator is registered by the Department of
Financial Services (and the Department's address/phone number to make
inquiries/complaints). Registered operators would also be required to
print certain information on a transaction receipt:
the transaction amount; the amount of the fee imposed by the operator;
the
total amount debited to customer's account; the date/time of
transaction; a number/code identifying the customer; and the location
(or a number/code which identifies the location) of the ATM machine.


The Superintendent of the Department of Financial Services is
authorized to promulgate regulations to implement this article,
including such regulations as may be necessary to qualify the terms
and conditions of agreements with or contracts between registered
operators and service agents or processors in order to ensure the
protection of customers, and such regulations as may be necessary 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 money
laundering and identity theft.

Finally, the bill amends certain general sections of law to ensure
that they apply to registered operators of nonbank ATMs. These
sections involve the fingerprinting of applicants (Section 22), the
applicability of certain general supervisory powers of the Department
of Financial Services (Section 39) and the imposition of civil
penalties for violations of the Banking Law (Section 44).

EXISTING LAW:
Independently owned ATMs are currently not regulated under New York law.

JUSTIFICATION:
Over the past decade, a major development in the ATM market has been
the growing presence and role of independently owned and operated
ATMs. As a result, ATMs have been placed in many more locations,
resulting in greater availability, convenience and options for the
public.

At the same time, there have been some questions and concerns about
the Possibility that abuses may occur in regard to these non-bank
machines. While the most common type of ATM fraud involves persons
who tamper with A legitimate bank or non-bank machine, there have
also been some cases In which persons set up ATMs and used them to
record and obtain personal Account information from consumers. They
then made up fake cards with this information and illegally withdrew
money from the bank accounts of these consumers.

There have also been concerns that some non-bank ATMs may not be
complying With the State's ATM fee disclosure requirements, and that
these ATMs may not clearly identify the machine's owner/operator,
making it difficult for the consumer to know who they should contact
if there is a problem.

This bill would help address these concerns by requiring non-bank ATM
operators to register with the State. It also codifies certain
industry "best practices" in regard to requirements for sponsorship
agreements, placement agreements and background checks. Finally, the
bill also establishes civil and criminal penalties for certain
violations involving non-bank ATMs.

LEGISLATIVE HISTORY:
S.4675 of 2005-06
S.5343 of 2007-08: Referred to Banks
S.4979 of 2009-10: Referred to Banks
S.3780 of 2011-12: Referred to Banks

FISCAL IMPLICATIONS:


There is no impact to the General Fund. Any increased regulatory costs
incurred by the Department of Financial Services are paid for by the
regulated industry.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

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

                                 3780--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 3, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 XIV-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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09851-02-2

S. 3780--A                          2

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
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.
  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  THIRTEEN,  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. 3780--A                          3

  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
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
ARTICLE 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

S. 3780--A                          4

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-
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

S. 3780--A                          5

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
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

S. 3780--A                          6

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
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

S. 3780--A                          7

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
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 DEPARTMENT, 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:

S. 3780--A                          8

  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-
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

S. 3780--A                          9

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-
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  123  of  the  laws of 2009, 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,  licensed  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,  licensed  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.

S. 3780--A                         10

  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-
gage banker, registered mortgage loan servicer, licensed  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, licensed 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 represen-
tative or other offices in this state, or  foreign  banking  corporation
may  voluntarily  appear before him or her to present any explanation in
defense of the practices directed in said order to be discontinued.
  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,  licensed  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, licensed  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 123 of the laws of 2009 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, 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

S. 3780--A                         11

OPERATOR  OF  AUTOMATED  TELLER  MACHINES,  REGISTERED NETWORK, licensed
mortgage loan originator, registered mortgage loan servicer or  licensed
budget  planner  to  pay  to  the people of this state a penalty for any
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
superintendent of financial services] 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 that the superintendent  of  finan-
cial  services  is  authorized to promulgate any and all rules and regu-
lations 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  automated  teller  machines  and
networks as defined pursuant to this act on or before June 1, 2013.

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