senate Bill S4366A

Enhances regulatory efficiency and efficacy in the banking law and general business law; repealer

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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

  • 22 / Mar / 2013
    • REFERRED TO BANKS
  • 05 / Jun / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 05 / Jun / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 05 / Jun / 2013
    • PRINT NUMBER 4366A
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1527
  • 20 / Jun / 2013
    • SUBSTITUTED BY A7213A

Summary

Enhances regulatory efficiency and efficacy in the banking law and general business law.

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Bill Details

See Assembly Version of this Bill:
A7213A
Versions:
S4366
S4366A
Legislative Cycle:
2013-2014
Law Section:
Banking Law
Laws Affected:
Rpld §28-b sub 2, amd Bank L, generally; amd §520-c, Gen Bus L

Sponsor Memo

BILL NUMBER:S4366A

TITLE OF BILL: An act to amend the banking law and the general
business law, in relation to enhancing regulatory efficiency and
efficacy; to repeal certain provisions of the banking law relating
thereto

PURPOSE OF THE BILL: The purpose of this bill is to amend the Banking
Law and General Business Law to enhance regulatory efficiency and
efficacy.

SUMMARY OF PROVISIONS:

Section 1 would amend Banking Law § 24 to, among other things, clarify
that extension of the 90 day period for the examination and approval
of an organization certificate is within the sole discretion of the
Superintendent of Financial Services (Superintendent).

Section 2 would amend Banking Law § 25(1) and (3) with respect to the
approval of authorization certificates.

Section 3 would repeal Banking Law § 28-b (2), which concerned an
outdated committee created by its enacting legislation.

Section 4 would make minor clarifying changes to Banking Law § 28-b.

Section 5 would repeal superfluous language in Banking Law § 28-b (5).

Section 6 would amend Banking Law § 75-g (1) and add a new subdivision
to increase the number of ATM compliance reports that must be filed by
banking institutions from 1 to 2 per year. it also would authorizes
the Superintendent to require that such reports be filed
electronically and that a banking institution whose quarterly
compliance report indicated any failure to comply with the ATM safety
standards, file an additional written report by the eleventh business
day after the original report indicating whether each failure has been
corrected.

Section 7 would amend the penalty provisions of § 75-j to make clear
that the obligation to correct violations within 10 business days
applies equally to each of the quarterly compliance reports.

Section 8 would amend § 103 to reflect that Fannie Mae is no longer an
instrumentality of the Federal Government and to provide flexibility
for further changes to the status of federal or state agencies or
instrumentalities.

Section 9 would amend Banking Law § 591 to provide the Superintendent
with the authority to require electronic filing of license
applications or renewals by mortgage bankers.

Section 10 would amend Banking Law § 591-a to provide the
Superintendent with the authority to require electronic filing of
registration applications or renewals by mortgage brokers.

Section 11 would amend General Business Law § 520-c to allow the
Department of Financial Services to make available information on


credit cards more cost-effectively than is required by current law and
to require credit card issuers to place their telephone information in
a location where it will not be confused with the number of the
Department of Financial Services.

Section 12 would provide for an immediate effective date, except for

Section 11 of the bill which will take effect 90 days thereafter.

EXISTING LAW: Banking Law § 24 provides the procedures and standards
relating to the Superintendent's investigation of an organization
certificate.

Banking Law § 25 provides the procedures to be followed by the
Superintendent when issuing an organization certificate.

Banking Law § 28 provides the procedures for a banking organization to
change its principal office designation.

Banking Law § 75-g sets forth reporting requirements for banking
institutions that operate automated teller facilities. Banking Law
75-j authorizes the Department to impose civil penalties after the
banking institution has been "found-to be in violation," and the
institution fails to correct the violation within 10 business days.
It also contains penalties for failure to file required reports or for
filing reports with inaccurate information or omissions.

Banking Law § 103 limits the amount a bank may lend in various
situations.

Article 12-D of the Banking Law provides for the regulation of
mortgage bankers, mortgage brokers and mortgage loan servicers.

Banking Law § 591 governs the application process for licenses under
Article 12-D for mortgage bankers.

Banking Law § 591-a governs the application process for registration
under Article 12-D for mortgage brokers.

General Business Law § 520-c requires the Superintendent to conduct an
annual survey of information with respect to credit cards, such as
annual percentage rates, annual fees, per-transaction charges, late
payment fees and grace period, and to make such information available
to members of the public.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

STATEMENT IN SUPPORT: This bill updates the statutory framework for
the regulation of banking and related entities subject to the
jurisdiction of the Department of Financial Services. Most of the
amendments remove outdated references and make other non-substantive
changes in the Banking Law to reflect the current environment within
which financial services now operate.

FISCAL IMPLICATIONS: There are no fiscal implications to the State
from this bill.


EFFECTIVE DATE: This bill would take effect immediately, except for
Section 11 of the bill which will take effect 90 days thereafter.

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

                                 4366--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 22, 2013
                               ___________

Introduced  by Sen. GRIFFO -- (at request of the Department of Financial
  Services) -- read twice and ordered printed, and when  printed  to  be
  committed  to  the  Committee on Banks -- reported favorably from said
  committee and committed to  the  Committee  on  Finance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  banking  law  and  the general business law, in
  relation to enhancing regulatory efficiency and  efficacy;  to  repeal
  certain provisions of the banking law relating thereto

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

  Section 1. Section 24 of the banking law, as amended by chapter 684 of
the laws of 1938, subdivision 1 as amended by chapter 453 of the laws of
1960, subdivision 2 as amended by chapter  419  of  the  laws  of  1996,
subdivision 3 as amended by chapter 52 of the laws of 1944, subdivisions
1,  2 and 3 as further amended by section 104 of part A of chapter 62 of
the laws of 2011 and subdivision 4 as amended by chapter 608 of the laws
of 1996, is amended to read as follows:
  S 24. Investigation by superintendent;  refusal  or  approval;  filing
certificate.  1. Within ninety days after the date when any organization
certificate or private banker's certificate shall have  been  filed  for
examination,  the  superintendent, if [he] THE SUPERINTENDENT shall find
after investigation and examination  of  what  [he]  THE  SUPERINTENDENT
deems  to  be the best sources of information [at his command] AVAILABLE
that the character, responsibility and general fitness of the person  or
persons  named in such certificate are such as to command confidence and
warrant belief that the business of the proposed corporation or  private
banker will be honestly and efficiently conducted in accordance with the
intent  and purpose of this chapter, and that the public convenience and
advantage will be promoted by  allowing  such  proposed  corporation  or
private  banker  to  engage  in  business,  shall  [submit] APPROVE such

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09014-02-3

S. 4366--A                          2

certificate [to the superintendent of financial services  together  with
all  papers,  correspondence  and  other  information  in his possession
relating thereto, including the results of  his  investigation  and  his
recommendation  in  the  matter]. [Such] AN EXTENSION OF SUCH NINETY DAY
period [of ninety days]  may  be  [extended]  REQUESTED,  by  a  written
[consent]  REQUEST  executed  by a majority of the persons from whom the
superintendent received such organization certificate or  private  bank-
er's  certificate,  for such additional reasonable period of time as may
be required for applicants to comply with  conditions  precedent  stipu-
lated  by the superintendent as being a prerequisite to his [recommenda-
tion to the superintendent of financial services] OR HER APPROVAL.   THE
SUPERINTENDENT, IN THE SUPERINTENDENT'S SOLE DISCRETION, SHALL DETERMINE
WHETHER TO GRANT SUCH AN EXTENSION.
  2.  [If  three-fifths of the members of the board, after consideration
of all relevant information available to them, shall vote for  approval,
the]  THE  superintendent[, if he is still satisfied, upon the consider-
ations set forth in subdivision one of this section, that such  proposed
corporation  or  private  banker  should be permitted to engage in busi-
ness,] shall [approve such certificate and] ALSO endorse  upon  each  of
the  duplicates the date of such approval. [He] THE SUPERINTENDENT shall
forthwith cause notice of such approval to  be  given  to  the  proposed
incorporators  or  private  banker and one of the duplicate certificates
[to] SHALL be filed in the office of the department and the other in the
office of the clerk of the county in which the principal office of  such
proposed  corporation  or  private banker is to be located. In a case in
which a private banker certificate is submitted  to  the  superintendent
for  the  purpose of continuing the business in connection with a change
in its partnership, the superintendent shall approve the private  banker
certificate  [without  any  action  by  the  superintendent of financial
services] upon making a determination that the private banker should  be
permitted  to  continue  its  business based upon the considerations set
forth in subdivision one of this section.
  3. If [three-fifths of the members of the superintendent of  financial
services shall not vote for approval, or if] the superintendent[, either
prior or subsequent to the submission of such certificate to the board,]
is  not  satisfied, upon the considerations set forth in subdivision one
of this section, that such proposed corporation or private banker should
be permitted to engage in business, the superintendent shall refuse such
certificate and shall endorse thereon  the  date  of  such  refusal  and
return  one  of  the duplicates to the proposed incorporators or private
banker from whom such certificate was received.
  4. The provisions of this section shall not apply to any  organization
certificate  required to be filed in the office of the superintendent by
SECTION ONE HUNDRED THIRTY-SIX,  BY  section  two  hundred  sixty-b,  by
section  four  hundred ten, by section four hundred eleven or by section
four hundred eighty-six of this chapter.
  S 2. Subdivisions 1 and 3 of section 25 of the banking  law,  subdivi-
sion  1  as amended by chapter 512 of the laws of 1977 and subdivision 3
as amended by chapter 561 of the laws of 1946, are amended  to  read  as
follows:
  1.  If  the  superintendent  shall  find that a corporation or private
banker, the certificate of which has been approved and filed as provided
in section twenty-four of this article, has in good faith complied  with
all  the  requirements of law and fulfilled all the conditions precedent
to commencing business imposed by this chapter, [he] THE  SUPERINTENDENT
shall,  within  ninety  days after the date of such approval, [or within

S. 4366--A                          3

such longer period thereafter as he may permit pursuant  to  the  second
sentence  of  this  subdivision,  but in no case after the expiration of
that period,] issue [under his hand] and EXECUTE UNDER the official seal
of  the  department,  in triplicate, an authorization certificate to the
person or persons named in  such  organization  certificate  or  private
banker's  certificate.  [The] NOTWITHSTANDING THE PRECEDING SENTENCE, IF
THE SUPERINTENDENT DETERMINES IT IS CONSISTENT WITH THE  DECLARATION  OF
POLICY  CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent may
extend the period within which [he] THE  SUPERINTENDENT  may  issue  the
authorization  certificate  by  (I)  an  additional [sixty] NINETY days,
provided, however, that he OR SHE shall have determined that such exten-
sion of time is needed for raising capital,  for  fulfilling  any  other
condition  precedent  to  the commencement of business or for satisfying
any other requirement of organization, whether  imposed  by  statute  or
regulation[,  and that such extension is consistent with the declaration
of policy contained in section ten of this  chapter]  OR  OTHERWISE,  OR
(II)  SUCH  LONGER  PERIOD  OF TIME AS HE OR SHE SHALL DEEM APPROPRIATE,
PROVIDED, HOWEVER, THAT HE OR SHE SHALL HAVE  DETERMINED  THAT  EXTRAOR-
DINARY  CIRCUMSTANCES  EXIST. Such authorization certificate shall state
that the corporation or private banker named therein has  complied  with
the provisions of this chapter and that it is authorized to transact the
business  specified  therein.    Such authorization certificate shall be
conclusive evidence that all conditions precedent  have  been  fulfilled
and  that  the corporation has been formed under this chapter, except in
an action or special proceeding brought by  the  superintendent  or  the
attorney  general.  The superintendent shall cause one of the triplicate
authorization certificates to  be  transmitted  to  the  corporation  or
private  banker  thereby  authorized to commence business, another to be
filed in the office of the department, and the third to be filed in  the
county  clerk's  office  in  which  the  organization certificate or the
private banker's certificate has been filed. The copies of the  authori-
zation  certificate  filed  in the offices of the superintendent and the
county clerk shall be attached to the copies of the organization certif-
icate or private banker's certificate previously filed and such  certif-
icates shall be recorded in the records of incorporation therein.
  3. Any corporation which shall not commence business within six months
after  the  date on which its authorization certificate is issued by the
superintendent shall forfeit its rights and privileges as a  corporation
and its corporate powers shall cease and determine unless the time with-
in  which such business may be commenced has been extended by the super-
intendent.  Upon satisfactory cause being shown, the superintendent  may
grant  [an extension for a period of not more than one year] ONE OR MORE
EXTENSIONS. Such extension shall be granted by order executed, transmit-
ted and filed in the manner provided for an authorization certificate in
subdivision one of this section.
  S 3. Subdivision 2 of section 28-b of the banking law is REPEALED.
  S 4. The opening paragraph and subparagraph 12  of  paragraph  (a)  of
subdivision  3 of section 28-b of the banking law, as amended by chapter
315 of the laws of 2008, and as further amended by section 104 of part A
of chapter 62 of the laws of 2011, are amended to read as follows:
  When taking any action on an application OR NOTICE made by  a  banking
institution under (I) section one hundred five, two hundred twenty-four,
two  hundred  forty,  or  three hundred ninety-six of this chapter for a
branch office [or under], (II) section one hundred  ninety-one  of  this
chapter  for a public accommodation office [or under], (III) section six
hundred one-b of this chapter for approval [or disapproval] of a  merger

S. 4366--A                          4

or  purchase of assets, or [taking any action on a notice submitted by a
banking institution] (IV) under section one hundred five-a, two  hundred
forty-a  or  three  hundred  ninety-six-a of this chapter for the use or
installation  of  an automated teller machine, point-of-sale terminal or
similar electronic facility or on any other  application  OR  NOTICE  to
which  the  superintendent  of financial services shall by rule or regu-
lation make applicable the provisions of this section,  the  superinten-
dent  shall  take  into  account, among other factors, an assessment, in
writing, of the record of performance  of  the  banking  institution  in
helping  to meet the credit needs of its entire community, including low
and moderate-income neighborhoods, consistent with safe and sound opera-
tion of the banking institution. Such assessment and any written  commu-
nications  from the department of financial services to a banking insti-
tution relating to such assessment shall be made available to the public
upon request, provided that nothing contained in this subdivision  shall
be deemed to alter, amend or affect the provisions of subdivision ten of
section thirty-six of this chapter. In making such assessment the super-
intendent  shall  review  all  reports  and  documents filed pursuant to
subdivision one  of  this  section  and  any  signed,  written  comments
received  by the superintendent which specifically relate to the banking
institution's performance in helping to meet the  credit  needs  of  its
community.  In addition, the superintendent shall consider the following
factors in assessing a banking institution's record of performance:
  (12) Other factors that, in the judgment of  the  superintendent  [and
superintendent  of  financial services], reasonably bear upon the extent
to which a banking institution is helping to meet the  credit  needs  of
its  entire community, including, without limitation, the banking insti-
tution's participation in credit counseling services.
  S 5. Subdivision 5 of section 28-b of the banking  law,  as  added  by
chapter 361 of the laws of 1984 and as further amended by section 104 of
part A of chapter 62 of the laws of 2011, is amended to read as follows:
  5. The superintendent [of financial services] is hereby authorized and
empowered[,  by  a  three-fifths vote of all its members,] to promulgate
rules and regulations  effectuating  the  provisions  of  this  section,
including  any  rules  and  regulations providing that the assessment of
banking institutions referred to in subdivision three  of  this  section
shall be made on a graduated numerical basis.
  S  6.  Subdivision  1  of section 75-g of the banking law, as added by
chapter 9 of the laws of 1996 and as designated by section 4-a of part A
of chapter 57 of the laws of 1998, is amended and a new subdivision 2 is
added to read as follows:
  1. [Within one year after the effective date of this article, and each
year thereafter,] BY THE FIFTEENTH DAY OF JANUARY AND JULY OF EACH  YEAR
(OR THE FOLLOWING BUSINESS DAY IF SUCH DAY IS NOT A BUSINESS DAY), every
banking institution which [has] HAD an automated teller machine facility
which [is] WAS in operation on [such date and such date every year ther-
eafter]  THE FIFTEENTH DAY OF THE PRECEDING MONTH shall submit a written
COMPLIANCE report to the department on a form prescribed by  the  super-
intendent,  certifying that such automated teller machine facility is in
compliance with the provisions  of  this  article  or  any  variance  or
exemption  that  has been granted, or if such facility is not in compli-
ance with such provisions, [such report shall state] STATING the  manner
in which such facility fails to meet such requirements[, the reasons for
such  non-compliance  and  a  plan  to  remedy any such non-compliance].
NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR  ANY  OTHER
LAW  TO  THE  CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT SUCH REPORTS

S. 4366--A                          5

AND ANY OTHER REPORTS REQUIRED BY THIS SECTION SHALL BE  MADE  BY  ELEC-
TRONIC  MEANS, UNLESS THE SUPERINTENDENT, IN HIS OR HER SOLE DISCRETION,
GRANTS A WAIVER OF SUCH ELECTRONIC FILING REQUIREMENTS, UPON GOOD  CAUSE
SHOWN.
  2.  IF  ANY  COMPLIANCE  REPORT  REQUIRED  BY  SUBDIVISION ONE OF THIS
SECTION INDICATES ANY FAILURE TO MEET THE REQUIREMENTS OF THIS  ARTICLE,
SUCH  BANKING  INSTITUTION  SHALL SUBMIT A WRITTEN REPORT TO THE DEPART-
MENT, ON A FORM PRESCRIBED BY THE  SUPERINTENDENT,  NO  LATER  THAN  THE
ELEVENTH  BUSINESS  DAY  FOLLOWING  SUCH  COMPLIANCE  REPORT, INDICATING
WHETHER EACH SUCH FAILURE HAS BEEN CORRECTED AND, FOR ANY  FAILURE  THAT
HAS  NOT  BEEN  CORRECTED,  THE REASON FOR SUCH FAILURE AND THE EXPECTED
CORRECTION DATE. IF ANY SUCH FAILURE SHALL NOT HAVE BEEN CORRECTED WITH-
IN TEN BUSINESS DAYS OF THE FILING DATE  OF  THE  APPLICABLE  COMPLIANCE
REPORT,  SUCH  BANKING INSTITUTION SHALL, PROMPTLY AFTER CORRECTING SUCH
FAILURE, SUBMIT A WRITTEN REPORT TO THE  DEPARTMENT  WITH  THE  DATE  OR
DATES OF EACH SUCH CORRECTION.
  S  7.  Subdivision 1 of section 75-j of the banking law, as amended by
section 11 of part O of chapter 59 of the laws of 2006,  is  amended  to
read as follows:
  1.  Any  banking institution found to be in violation of any provision
of section seventy-five-c of this article IN A COMPLIANCE  REPORT  UNDER
SECTION SEVENTY-FIVE-G OF THIS ARTICLE OR OTHERWISE FOUND BY THE DEPART-
MENT  TO  BE  IN VIOLATION OF ANY PROVISION OF SECTION SEVENTY-FIVE-C OF
THIS ARTICLE shall correct the violation within ten business days  after
such  finding.    Where  a  banking  institution  fails to correct [said
violation within such period of time] ANY VIOLATION OF  A  PROVISION  OF
SECTION  SEVENTY-FIVE-C  OF  THIS ARTICLE WITHIN TEN BUSINESS DAYS AFTER
THE FILING OF SUCH REPORT OR A FINDING OF VIOLATION BY  THE  DEPARTMENT,
the  superintendent  may  in  a  proceeding  after notice and a hearing,
require [any] SUCH banking institution to pay  a  civil  penalty  in  an
amount  as  determined  pursuant  to section forty-four of this chapter,
provided, however, that the aggregate  penalty  for  all  offenses  with
respect to any one automated teller machine facility in any one proceed-
ing  shall not exceed an amount as determined pursuant to section forty-
four of this chapter. For the purposes of this article,  each  violation
of section seventy-five-c of this article shall be considered a separate
and distinct violation.
  S  8.  Paragraphs  (a)  and (c) of subdivision 1 of section 103 of the
banking law, as amended by chapter 1 of the laws of 1983 and as  further
amended  by section 104 of part A of chapter 62 of the laws of 2011, are
amended to read as follows:
  (a) The limitations in this subdivision shall not  apply  to  (1)  any
loan to the extent that the United States, this state or any city, coun-
ty,  town, village or school district of this state, [any federal inter-
mediate credit bank, Federal National Mortgage Association, any  federal
land  bank,  any  bank  for cooperatives organized under the laws of the
United States, any national mortgage association, any federal home  loan
bank,  the  Small  Business  Administration]  or any [other] department,
agency or instrumentality of the United States or this state  designated
by  the  superintendent  [of  financial services] by general or specific
regulation [upon a three-fifths vote of all its members], has agreed  to
pay  the  principal  and interest thereof, or has guaranteed payment (by
guaranty or commitment to purchase or otherwise) of such  principal  and
interest,  or  is  committed  to  supply, by loan, subsidy or otherwise,
funds sufficient to pay such principal and interest,  or  has  otherwise
pledged  its  faith  and  credit  for  the payment of such principal and

S. 4366--A                          6

interest; or (2) any loan secured by not less than a like amount  (BASED
ON  THEIR  PRINCIPAL  AMOUNT OR MARKET VALUE, WHICHEVER IS LOWER, AT THE
TIME THE LOAN IS MADE) of direct obligations [(based on their  principal
amount  or  market  value,  whichever  is lower, at the time the loan is
made)] of the United States or of this state or  of  any  city,  county,
town,  village  or  school district of this state or of any such depart-
ment, agency or instrumentality of the United States or this state[;  or
(3) when authorized by the superintendent, any loan to a savings bank of
this  state  or a corporation all of the capital stock of which is owned
by not less than twenty savings banks of this state] OR  BY  OBLIGATIONS
OTHERWISE  FULLY  GUARANTEED  AS TO PRINCIPAL AND INTEREST BY THE UNITED
STATES.
  (c) Loans (exclusive of any loan described in paragraph  (a)  of  this
subdivision)  to  any  state other than the state of New York, or to any
foreign nation, the New York State  thruway  authority,  the  Triborough
bridge  and tunnel authority, The Port of New York Authority, a railroad
corporation, a  municipal  corporation  of  this  state,  a  corporation
subject  to  the  jurisdiction  of  a  public service commission of this
state, or any international lending facility or  public  benefit  corpo-
ration  designated  by  the  superintendent  [of  financial services] by
[general or specific] regulation [upon a three-fifths vote  of  all  its
members], may equal but not exceed twenty-five per centum of the capital
stock, surplus fund and undivided profits of such bank or trust company.
  S  9.  Subdivision  1  of  section 591 of the banking law, as added by
chapter 571 of the laws of 1986, paragraph (b) as amended by chapter 164
of the laws of 2003, is amended to read as follows:
  1. The application for a license to be a mortgage banker shall  be  in
writing,  under  oath, and in the form prescribed by the superintendent.
NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR  ANY  OTHER
LAW  TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION
FOR, OR RENEWAL OF, A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR
APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE,  BE  MADE  OR  EXECUTED  BY
ELECTRONIC  MEANS,  INCLUDING  THROUGH  THE  NATIONAL MORTGAGE LICENSING
SYSTEM AND REGISTRY OR OTHER ENTITIES DESIGNATED BY THE  NATIONAL  MORT-
GAGE  LICENSING  SYSTEM  AND REGISTRY IF HE OR SHE DEEMS IT NECESSARY TO
ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS  ARTICLE.  The
application shall contain the name and complete business and residential
address  or  addresses  of the applicant. If the applicant is a partner-
ship, association, corporation or other form of  business  organization,
the  application shall contain the names and complete business and resi-
dential addresses of each member, director and principal officer  there-
of.  Such application shall also include a description of the activities
of the applicant, in such detail and for such  periods,  as  the  super-
intendent may require; including:
  (a)  An  affirmation  of financial solvency noting such capitalization
requirements as may be required by the  superintendent,  and  access  to
such credit as may be required by the superintendent;
  (b)  The  fingerprints of the applicant, which may be submitted to the
division of criminal justice services and the federal bureau of investi-
gation for state and national criminal history record checks;
  (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.

S. 4366--A                          7

  S 10. Subdivision 1 of section 591-a of the banking law, as amended by
section 53 of part O of chapter 59 of the laws of 2006,  is  amended  to
read as follows:
  1.  An  application to become registered as a mortgage broker shall be
in writing, under oath, in such form  as  shall  be  prescribed  by  the
superintendent,  and  shall  be  accompanied  by the fingerprints of the
applicant. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW  OR
ANY  OTHER  LAW  TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN
APPLICATION FOR, OR RENEWAL OF, A LICENSE OR  ANY  OTHER  SUBMISSION  OR
APPLICATION  FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE OR
EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH  THE  NATIONAL  MORTGAGE
LICENSING  SYSTEM  AND  REGISTRY  OR  OTHER  ENTITIES  DESIGNATED BY THE
NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY IF HE OR  SHE  DEEMS  IT
NECESSARY  TO  ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS
ARTICLE. Such fingerprints shall be submitted to the division of  crimi-
nal  justice  services  for  a  state  criminal history record check, as
defined in subdivision one of section three thousand thirty-five of  the
education  law,  and  may be submitted to the federal bureau of investi-
gation for a national criminal history record  check.  Such  application
shall  contain the name and complete business and residential address or
addresses of the applicant, or if the applicant is a partnership,  asso-
ciation,  corporation  or other form of business organization, the names
and complete business and residential addresses of each member, director
and principal officer thereof. Such application shall  also  include  an
affirmation  of  financial  solvency noting such capitalization require-
ments as may be required by the superintendent, and such descriptions of
the business activities,  financial  responsibility,  educational  back-
ground  and  general  character  and  fitness of the applicant as may be
required by the superintendent. Such application shall be accompanied by
an investigation fee payable to the superintendent as prescribed  pursu-
ant to section eighteen-a of this chapter.
  S 11. Section 520-c of the general business law, as added by chapter 1
of  the  laws  of 1994, subdivisions 1, 2, 3 and 5 as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  S  520-c.  Credit information. 1. The department of financial services
shall establish A TELEPHONE NUMBER  AND  AN  AREA  ON  ITS  WEBSITE,  OR
PROVIDE A LINK ON SUCH SITE TO OTHER WEBSITES WITH a toll-free telephone
number  service  at  which  CUSTOMERS  MAY  OBTAIN information on annual
percentage rates, annual fees,  per-transaction  charges,  late  payment
fees,  overlimit  fees  and  grace  periods  for  credit  cards  [can be
obtained] TO THE EXTENT  READILY  AVAILABLE  TO  THE  DEPARTMENT.  Every
issuer  of  credit cards to natural persons residing in this state shall
set forth on each solicitation, application and monthly  billing  state-
ment  mailed  or  otherwise  presented to such persons, a notice stating
"New York residents may contact the New York state department of  finan-
cial  services  [to obtain a] BY TELEPHONE OR VISIT ITS WEBSITE FOR FREE
INFORMATION ON comparative [listing of]  credit  card  rates,  fees  and
grace  periods."  Such  notice  shall be printed on the same side as the
disclosure of rates, fees and charges, in case of the solicitations  and
applications,  and  on the same side as the notice of the balance of the
account and the amount due are printed, in the case of the monthly bill-
ing statement. The superintendent of financial services shall  prescribe
the  WEB  address and telephone number to be printed next to the notice.
The notice shall be in type no smaller than eight points.  THE TELEPHONE
NUMBER OF THE CREDIT CARD ISSUER SHALL APPEAR HIGHER UP ON THE PAGE  AND

S. 4366--A                          8

IN  THE TYPE AT LEAST AS LARGE AS THAT PROVIDED FOR THE TELEPHONE NUMBER
OF THE DEPARTMENT OF FINANCIAL  SERVICES.  Issuers  shall  include  such
notice  in  materials  sent to residents of this state as required under
this section commencing October first, nineteen hundred ninety-four.
  2.  [The  superintendent  of  financial  services  shall  develop  and
distribute to all issuers of credit cards,  no  more  than  thirty  days
after the effective date of this section, a form which shall be used for
the purpose of collecting information on annual percentage rates, annual
fees,  per-transaction  charges,  late  payment fees, overlimit fees and
grace periods governed by the terms of each type of credit card  offered
by  such issuer to natural persons residing in this state. Issuers shall
return the forms to the department of financial services no  later  than
one  hundred  fifty  days  after the effective date of this section, and
annually thereafter, but  no  later  than  April  first  of  each  year,
commencing in nineteen hundred ninety-five. The superintendent of finan-
cial services shall publish the information obtained from such forms and
make  it  available  to  New York residents upon request, commencing not
later than October first, nineteen  hundred  ninety-four,  and  annually
thereafter but not later than July first of each year.
  3.]  The  superintendent  of financial services is authorized to adopt
such rules and regulations as consistent with  the  provisions  of  this
section.
  [4.] 3. For the purposes of this section:
  (a) "Credit card" means any card issued pursuant to an agreement which
allows the holder of the card to obtain goods and services on the credit
of the issuer; and
  (b)  "Issuer" means any bank, trust company, savings bank, savings and
loan association, or branch of a foreign banking corporation the  depos-
its  of  which are insured by the federal deposit insurance corporation,
which is incorporated, chartered, organized or licensed under  the  laws
of  this  state  or  any  other state or the United States, which issues
credit cards to natural persons residing in this state.
  [5.] 4. The authority of  the  superintendent  of  financial  services
pursuant to sections thirty-nine and forty-four of the banking law shall
extend to violations of this section by any issuer.
  S  12.  This act shall take effect immediately; provided, however that
section eleven of this act shall take effect on the ninetieth day  after
it shall have become a law.

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