S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 9, 2013
Introduced by Sen. SAMPSON -- 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 mail-loan checks
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 2 and 3 of section 9-t of the banking law, as
added by chapter 309 of the laws of 2002, are amended and a new subdivi-
sion 4 is added to read as follows:
2. Any lending institution which issues mail-loan checks shall:
(a) include on the face of each check issued to a non-customer a writ-
ten statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC
ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
ing or accepting a mail-loan check for deposit may require more than one
form of identification;
(b) make no reference on the outside of the envelope containing a
mail-loan check that indicates that a check is enclosed within such
(c) provide that all mail-loan checks shall be non-transferable; and
(d) include THE TRANSACTION FEE AND INTEREST RATE AND an expiration
date of not more than six months on the mail-loan check, AS WELL AS ANY
ADDITIONAL INFORMATION THAT THE SUPERINTENDENT MAY REQUIRE.
3. NO LENDING INSTITUTION SHALL ISSUE A MAIL-LOAN CHECK, EXCEPT IN
RESPONSE TO A REQUEST OR APPLICATION THEREFOR.
4. FAILURE TO DESTROY OR RETURN A MAIL-LOAN CHECK SHALL NOT CONSTITUTE
ACCEPTANCE OF THE CHECK.
5. Any lending institution which mails a mail-loan check in violation
of the provisions of this section shall be liable for a civil penalty
not to exceed five hundred dollars for each such violation.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.