LBD09629-12-0
A. 11325 2
YEAR BY ANY SUCH PERSON IS NOT MORE THAN FIVE LOANS AND THE AGGREGATE
AMOUNT OF LOANS OUTSTANDING AT ANY ONE TIME DOES NOT EXCEED ONE HUNDRED
THOUSAND DOLLARS. THE SUPERINTENDENT MAY EXEMPT FROM THE LICENSING AND
OTHER REQUIREMENTS OF THIS ARTICLE, ON SUCH TERMS AS HE OR SHE SHALL
DEEM CONSISTENT WITH THE PURPOSES OF SECTION TEN AND THIS ARTICLE, ANY
PERSON HE OR SHE DETERMINES IS NOT ENGAGED IN THE BUSINESS OF MAKING
LOANS IN THIS STATE, OTHER THAN AS AN INCIDENT TO ANOTHER LEGAL BUSINESS
ACTIVITY.
Nothing in this article shall apply to licensed collateral loan
brokers.
S 2. The banking law is amended by adding a new section 340-a to read
as follows:
S 340-A. DEFINITIONS. WHEN USED IN THIS ARTICLE: 1. THE TERM "PERSON"
MEANS ANY INDIVIDUAL OR LEGAL ENTITY, INCLUDING ANY CORPORATION, PART-
NERSHIP, ASSOCIATION OR LIMITED LIABILITY COMPANY.
2. THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY, OF
THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLI-
CIES OF A PERSON, WHETHER BY MEANS OF THE OWNERSHIP OF THE VOTING STOCK
OR EQUITY INTERESTS OF SUCH PERSON OR OF ONE OR MORE PERSONS CONTROLLING
SUCH PERSON, BY MEANS OF A CONTRACTUAL ARRANGEMENT, OR OTHERWISE.
CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON DIRECTLY OR INDIRECTLY
OWNS, CONTROLS OR HOLDS WITH THE POWER TO VOTE TEN PERCENT OR MORE OF
THE VOTING STOCK OR EQUITY INTERESTS OF A LICENSEE OR OF ANY OTHER ENTI-
TY THAT DIRECTLY OR INDIRECTLY CONTROLS SUCH PERSON.
S 3. Subdivisions 3 and 5 of section 341 of the banking law, as
amended by chapter 494 of the laws of 1998, are amended to read as
follows:
3. In addition to the investigation fee [and annual license fee] every
licensee hereunder shall pay to the superintendent the sums provided to
be paid under the provisions of section seventeen of [the banking law]
THIS CHAPTER.
5. The applicant shall also prove, in form satisfactory to the super-
intendent, that the applicant has available for the operation of such
business [at the location or locations specified in the application
liquid assets] NET WORTH of at least fifty thousand dollars OR SUCH
AMOUNT AS MAY BE DETERMINED BY THE SUPERINTENDENT. This amount shall be
maintained for the period within which the licensee makes loans in the
amounts prescribed in section three hundred forty of this article [at
such location].
S 4. Section 342 of the banking law, as amended by chapter 494 of the
laws of 1998, is amended to read as follows:
S 342. Conditions precedent to issuing license; procedure where appli-
cation denied. Upon the filing of such application and the payment of
such fees, if the superintendent shall find that the financial responsi-
bility, experience, character, and general fitness of the applicant, and
of the members thereof if the applicant be a partnership [or], associ-
ation OR LIMITED LIABILITY COMPANY, and of the officers and directors
thereof if the applicant be a corporation, are such as to command the
confidence of the community and to warrant belief that the business will
be operated honestly, fairly, and efficiently within the purposes of
this article, and if the superintendent shall find that the applicant
has available for the operation of such business [at each specified
location liquid assets of at least fifty thousand dollars] SUCH AMOUNT
AS CALCULATED IN ACCORDANCE WITH SUBDIVISION FIVE OF SECTION THREE
HUNDRED FORTY-ONE OF THIS ARTICLE, the superintendent shall thereupon
execute a master license, and if applicable one or more supplemental
A. 11325 3
licenses, to make loans in accordance with the provisions of this arti-
cle at the location or locations specified in the said application. The
superintendent shall transmit one copy of such license or licenses to
the applicant and file the same in the office of the department. Each
such license shall remain in full force and effect until it is surren-
dered by the licensee or [revoked or] suspended, REVOKED OR TERMINATED
as [hereinafter] HEREIN provided; if the superintendent shall not so
find, a master license shall not be issued and the superintendent shall
notify the applicant of the denial. If an application is denied or with-
drawn the superintendent shall [return to the applicant the sum paid by
the applicant as a license fee, retaining] RETAIN the investigation fee
to cover the costs of investigating the application. The superintendent
shall approve or deny every application for a master license hereunder
within ninety days from the [filing thereof with the said fees] DATE THE
APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT.
S 5. Subdivision 1 of section 343 of the banking law, as amended by
chapter 494 of the laws of 1998, is amended to read as follows:
1. A license shall state the address at which the business is to be
conducted and shall state fully the name of the licensee, and if the
licensee is a partnership [or], association OR LIMITED LIABILITY
COMPANY, the names of the members thereof, and if a corporation, the
date and place of its incorporation. A master license shall be kept
conspicuously posted in the principal place of business of the licensee
and a supplemental license shall be conspicuously posted at the location
identified in the license. No master or supplemental license shall be
transferable or assignable.
S 6. The second undesignated paragraph of subdivision 1 of section 345
of the banking law, as amended by chapter 22 of the laws of 1990, is
amended to read as follows:
[As used in this subdivision, (a) the term "person" includes an indi-
vidual, partnership, corporation, association or any other organization
and (b) the term "control" means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and
policies of a person, whether by means of the ownership of the voting
stock or equity interests of such person or of one or more persons
controlling such person, by means of a contractual arrangement, or
otherwise. Control shall be presumed to exist if any person directly or
indirectly owns, controls or holds with the power to vote ten per centum
or more of the voting stock or equity interests of the person desirous
of continuing to maintain and operate a licensee's place of business or
of any entity which directly or indirectly controls such person.] The
superintendent may, upon the application of a licensee or any [such]
person [or entity], determine whether or not the ownership, control or
holding of such voting stock or equity interests constitutes or would
constitute control for purposes of this subdivision.
S 7. Section 347 of the banking law, as amended by chapter 22 of the
laws of 1990, is amended to read as follows:
S 347. Grounds for [revocation or] suspension, REVOCATION OR TERMI-
NATION of license; procedure. [The] 1. IN ADDITION TO THE AUTHORITY SET
FORTH IN SUBDIVISION TWO OF THIS SECTION, THE superintendent may suspend
or revoke any license issued [hereunder] UNDER THIS ARTICLE if, AFTER
NOTICE AND A HEARING the superintendent shall find that:
(a) The licensee has failed to pay any sum of money lawfully demanded
by the superintendent or to comply with any demand, ruling, or require-
ment of the superintendent;
A. 11325 4
(b) The licensee has violated any provisions of this article, the act
of congress entitled "Truth in Lending Act" and the regulations there-
under, as such act and regulations may from time to time be amended, or
of any rule or regulation lawfully made by the superintendent;
(c) Any fact or condition exists which, if it had existed at the time
of the original application for such license, [clearly] would have
warranted the superintendent in refusing originally to issue such
license;
(d) The licensee has engaged in the business of a sales finance compa-
ny and has done or failed to do any act, except the failure to pay the
fees required, which would be grounds for the suspension or revocation
of its license pursuant to section four hundred ninety-five of this
chapter were it required to obtain such a license.
THE SUPERINTENDENT MAY REVOKE OR SUSPEND ONLY THE PARTICULAR LICENSE
WITH RESPECT TO WHICH GROUNDS FOR REVOCATION OR SUSPENSION MAY OCCUR OR
EXIST, OR, IF THE SUPERINTENDENT SHALL FIND THAT SUCH GROUNDS FOR REVO-
CATION OR SUSPENSION ARE OF GENERAL APPLICATION TO ALL OFFICES, OR TO
MORE THAN ONE OFFICE, OPERATED BY SUCH LICENSEE, THE SUPERINTENDENT
SHALL REVOKE OR SUSPEND ALL OF THE LICENSES ISSUED TO SUCH LICENSEE OR
SUCH NUMBER OF LICENSES AS SUCH GROUNDS APPLY TO, AS THE CASE MAY BE.
2. (A) The superintendent may [on] FOR good cause [shown], without
notice or A hearing, [suspend] ISSUE AN ORDER SUSPENDING any license
ISSUED PURSUANT TO THIS ARTICLE for a period not exceeding [thirty]
NINETY days, pending investigation.
[The superintendent may revoke or suspend only the particular license
with respect to which grounds for revocation or suspension may occur or
exist, or, if the superintendent shall find that such grounds for revo-
cation or suspension are of general application to all offices, or to
more than one office, operated by such licensee, the superintendent
shall revoke or suspend all of the licenses issued to such licensee or
such number of licenses as such grounds apply to, as the case may be.]
"GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE
HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL
ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY
CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS
ARTICLE.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO
MAKE ANY PAYMENTS AS REQUIRED BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE:
(I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT
REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO THE
AUTHORITY PROVIDED BY THIS ARTICLE; OR
(II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE
HAS FILED A PETITION IN BANKRUPTCY; OR
(III) UPON NOTICE AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD
FILED AGAINST IT A PETITION IN BANKRUPTCY.
3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
ISSUED PURSUANT TO THIS ARTICLE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTEN-
DENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT
GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPER-
INTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO
A. 11325 5
PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE
MAY BE REINSTATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE
DISCRETION, THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN
SUCH ORDER BY THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH
SUSPENSION ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE
PAYMENT OR HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN
THE CASE OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION
TWO OF THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE
DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL
BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE
CLOSE OF BUSINESS ON SUCH NINETIETH DAY.
4. Any licensee may surrender any license by delivering to the super-
intendent written notice that the licensee thereby surrenders such
license, but such surrender shall not affect such licensee's civil or
criminal liability for acts committed prior to such surrender, OR ITS
OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRA-
TIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SURRENDER. SUCH SURREN-
DER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT.
5. No revocation [or], suspension, TERMINATION or surrender of any
license shall impair or affect the obligation of any pre-existing lawful
contract between the licensee and any borrower.
6. Every license issued hereunder shall remain in force and effect
until it shall have been surrendered, revoked, TERMINATED, or suspended
in accordance with the provisions of this article, but the superinten-
dent shall have authority to reinstate suspended licenses or to issue
new licenses to a licensee whose license or licenses shall have been
revoked OR TERMINATED if no fact or condition then exists which clearly
would have warranted the superintendent in refusing originally to issue
such license under this article.
7. Whenever the superintendent shall revoke or suspend a license
issued pursuant to this article, the superintendent shall execute a
written order to that effect. The superintendent shall file one copy of
such order in the office of the department and serve a copy upon the
licensee, which order may be reviewed in the manner provided by article
seventy-eight of the civil practice law and rules. Such special proceed-
ing for review as authorized by this section must be commenced within
thirty days from the date of such order of suspension or revocation.
8. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS
ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE
HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A
LICENSED LENDER IN THIS STATE.
S 8. Section 356 of the banking law, as amended by chapter 22 of the
laws of 1990, is amended to read as follows:
S 356. [Restrictions on certain loans by non-licensees, interests,
other charges; loans] LOANS made outside this state. [No person or other
entity, other than a licensee under this article, shall directly or
indirectly charge, contract for, or receive any interest, discount, or
consideration greater than the person or other entity would be permitted
by law to charge if it were not a licensee hereunder upon a loan not
exceeding the maximum amounts prescribed in section three hundred forty
of this article.
The foregoing prohibition shall apply to any person or other entity
who or which, by any device, subterfuge, or pretense whatsoever shall
charge, contract for, or receive greater interest, consideration, or
charges than is authorized by the laws of this state for any such loan,
A. 11325 6
use, or forbearance of money, goods, or things in action or for any such
loan, use, or sale of credit.]
Any loan in an amount not exceeding the maximum amounts prescribed in
section three hundred forty of this article for which a greater rate of
interest, consideration, or charges than is permitted by the laws of
this state has been charged, contracted for, or received, wherever made,
shall not be enforced in this state and every person or other entity
participating therein in this state shall be subject to the provisions
of this article. An action to enforce any such loan made in any other
state to a person then a resident of that state, who now resides in this
state may be maintained in this state if the amount of interest,
discount, consideration or other charge for such loan, demanded to be
paid in such action, does not exceed that permitted to a licensee by
section three hundred fifty-one of this article for a loan of the same
amount repayable in the same manner.
S 9. Subdivision 1 of section 366 of the banking law, as amended by
chapter 849 of the laws of 1964, is amended and a new subdivision 4 is
added to read as follows:
1. The term "licensed casher of checks" means any [individual, part-
nership, unincorporated association or corporation] PERSON duly licensed
by the superintendent of banks to engage in business pursuant to the
provisions of this article.
4. THE TERM "PERSON" MEANS ANY INDIVIDUAL OR LEGAL ENTITY, INCLUDING
ANY CORPORATION, PARTNERSHIP, ASSOCIATION OR LIMITED LIABILITY COMPANY.
S 10. Subdivisions 1, 2 and 4 of section 367 of the banking law,
subdivisions 1 and 2 as amended by chapter 151 of the laws of 1945 and
subdivision 4 as amended by chapter 96 of the laws of 1981, are amended
to read as follows:
1. No person[, partnership, association or corporation] shall engage
in the business of cashing checks, drafts or money orders for a consid-
eration without first obtaining a license from the superintendent.
2. Application for such license shall be in writing, under oath, and
in the form prescribed by the superintendent, and shall contain the
name, and the address both of the residence and place of business, of
the applicant, and if the applicant is a co-partnership [or], associ-
ation, OR LIMITED LIABILITY COMPANY of every member thereof, and if a
corporation, of each officer and director thereof; also, if the business
is to be conducted at a specific address, the address at which the busi-
ness is to be conducted, and if the business is to be conducted from a
mobile unit, the New York state registration number or other identifica-
tion of such mobile unit and the area in which the applicant proposes to
operate such mobile unit; and also such further information as the
superintendent may require.
4. Every applicant shall prove, in form satisfactory to the super-
intendent that he, SHE or it has available for the operation of such
business, for each location and for each mobile unit specified in the
application, liquid assets of at least ten thousand dollars, and every
licensee shall continuously maintain for the operation of such business
for each location and for each mobile unit liquid assets of at least ten
thousand dollars. Notwithstanding the foregoing provisions of this
subdivision, the superintendent, upon application by an applicant and
for good cause shown, may permit a reduction from ten thousand dollars
to not less than five thousand dollars of minimum liquid assets required
for each location AND SUCH AMOUNT AS HE OR SHE SHALL DEEM APPROPRIATE
FOR EACH LIMITED STATION.
A. 11325 7
S 11. Subdivision 1 of section 369 of the banking law, as amended by
chapter 233 of the laws of 2005, is amended to read as follows:
1. If the superintendent shall find that:
(I) the financial responsibility, experience, character, and general
fitness of the applicant, and of the members thereof if the applicant be
a co-partnership [or], association OR LIMITED LIABILITY COMPANY, and of
the officers and directors thereof if the applicant be a corporation,
are such as to command the confidence of the community and to warrant
belief that the business will be operated honestly, fairly, and effi-
ciently within the purposes of this article, and [if the superintendent
shall find that]
(II) the granting of such application will promote the convenience and
advantage of the area in which such business is to be conducted, and [if
the superintendent shall find that]
(III) the applicant has available for the operation of such business
for each location and for each mobile unit specified in the application
liquid assets of at least ten thousand dollars, PROVIDED THAT, THE
SUPERINTENDENT, UPON APPLICATION BY AN APPLICANT AND FOR GOOD CAUSE
SHOWN, MAY PERMIT A REDUCTION FROM TEN THOUSAND DOLLARS TO NOT LESS THAN
FIVE THOUSAND DOLLARS OF MINIMUM LIQUID ASSETS REQUIRED FOR EACH
LOCATION AND A REDUCTION TO SUCH AMOUNT AS THE SUPERINTENDENT SHALL DEEM
APPROPRIATE FOR EACH LIMITED STATION,
(IV) THE PRIMARY BUSINESS OF THE LICENSEE, AT THE LOCATION TO BE
LICENSED, SHALL BE FINANCIAL SERVICES, AND
(V) THE APPLICANT'S PROPOSED OFFICES COMPLY WITH SUBDIVISION ONE-A OF
THIS SECTION,
the superintendent shall thereupon execute a license in duplicate to
permit the cashing of checks, drafts and money orders in accordance with
the provisions of this article at the location or in the area specified
in such application. In finding whether the application will promote the
convenience and advantage to the public, the superintendent shall deter-
mine whether there is a community need for a new licensee in the
proposed area to be served. THE SUPERINTENDENT SHALL TRANSMIT ONE COPY
OF SUCH LICENSE TO THE APPLICANT AND FILE ANOTHER IN THE OFFICE OF THE
DEPARTMENT.
1-A. No license shall be issued to an applicant for a license, at a
location to be licensed which is closer than one thousand five hundred
eighty-four feet (three-tenths of a mile) from an existing licensee,
MEASURED ON A STRAIGHT LINE ALONG THE STREET BETWEEN THE NEAREST POINT
OF THE STORE FRONTS OF THE CHECK CASHING FACILITIES, except:
(I) with the written consent of such existing licensee [or],
(II) pursuant to subdivision three of section three hundred seventy of
this article, subject to any restriction or condition as the superinten-
dent may promulgate by regulation[; provided, however],
(iii) the superintendent may permit a location to be licensed that is
closer than three-tenths of a mile from an existing licensee provided
THAT (A) such applicant engages in the cashing of checks, drafts or
money orders only for payees of such checks, drafts or money orders that
are other than natural persons at the location to be licensed and (B)
such applicant was engaged in the cashing of such checks, drafts or
money orders for payees that are other than natural persons at such
location on or before the fourteenth day of July, two thousand four, and
[provided further that upon licensing any such location by the super-
intendent,] (C) SUCH LICENSE SHALL BEAR A LEGEND STATING THAT SUCH
LOCATION IS RESTRICTED TO THE CASHING OF CHECKS, DRAFTS OR MONEY ORDERS
ONLY FOR PAYEES THAT ARE OTHER THAN NATURAL PERSONS, AND (D) AFTER THE
A. 11325 8
SUPERINTENDENT LICENSES SUCH LOCATION, such license as it pertains sole-
ly to such location shall not be affected thereafter by any change of
control of such license pursuant to section three hundred seventy-a of
this article, [provided that] AS LONG AS the licensee continues there-
after to engage at that location in the cashing of checks, drafts or
money orders only for payees that are other than natural persons [and
provided further that such license shall bear a legend stating that such
location is restricted to the cashing of checks, drafts or money orders
only for payees that are other than natural persons]. The three-tenths
of a mile distance requirement as set forth in this [section] SUBDIVI-
SION shall not apply in cases where the existing licensee is a
restricted location as authorized in the preceding sentence, or is any
other licensed location that engages solely in the cashing of checks,
drafts or money orders only for payees that are other than natural
persons. [For purposes of this section, such distance shall be measured
on a straight line along the street between the nearest point of the
store fronts of the check cashing facilities. The primary business of
the licensee, at the location to be licensed, shall be financial
services. The superintendent shall transmit one copy of such license to
the applicant and file another in the office of the department. Notwith-
standing the foregoing provisions of this subdivision, the superinten-
dent, upon application by an applicant and for good cause shown, may
permit a reduction from ten thousand dollars to not less than five thou-
sand dollars of minimum liquid assets required for each location.]
S 12. Subdivision 2 of section 370-a of the banking law, as added by
chapter 142 of the laws of 1992, is amended to read as follows:
2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of subdivi-
sions one and six of section three hundred sixty-nine of this article.
The superintendent shall approve or disapprove the application in writ-
ing within ninety days [after the date the application is filed with the
superintendent] FROM THE DATE THE APPLICATION IS DEEMED COMPLETE BY THE
SUPERINTENDENT.
S 13. Section 373 of the banking law, as amended by chapter 485 of
the laws of 1947, subdivision 1 as amended by chapter 432 of the laws of
2004, subdivision 2 as amended by chapter 132 of the laws of 1969,
subdivision 3 as amended by chapter 310 of the laws of 1962 and subdivi-
sion 5 as added by chapter 235 of the laws of 2008, is amended to read
as follows:
S 373. Acts prohibited; suspension [or], revocation OR TERMINATION of
license; penalties. 1. (A) No licensee shall engage in the business of
making loans of money, credit, goods or things or discounting of notes,
bills of exchange, checks, or other evidences of debt pursuant to the
provisions of article nine of this chapter, nor shall a loan business or
the negotiation of loans or the discounting of notes, bills of exchange,
checks or other evidences of debt be conducted on the same premises
where the licensee is conducting business pursuant to the provisions of
this article.
(B) Except as otherwise provided by regulation of the superintendent,
all checks, drafts and money orders shall be deposited in the licensee's
bank account not later than the first business day following the day on
which they were cashed. No licensee shall at any time cash or advance
any moneys on a post-dated check or draft or engage in the business of
transmitting money or receiving money for transmission; provided, howev-
er, that a licensee may cash a check payable on the first banking busi-
ness day following the date of cashing [(a)] (I) if such check is drawn
A. 11325 9
by the United States, the state of New York, or any political subdivi-
sion of the state of New York, or by any department, bureau, agency,
authority, instrumentality or officer, acting in his official capacity,
of the United States or of the state of New York or of any political
subdivision of the state of New York, or [(b)] (II) if such check is a
payroll check drawn by an employer to the order of its employee in
payment for services performed by such employee.
(C) No licensee shall cash any check, draft or money order if the face
amount for which it is drawn is in excess of fifteen thousand dollars;
provided, however, that this restriction shall not apply to the cashing
of checks, drafts or money orders drawn by the United States, any state
thereof or any political subdivision of any such state, or by any
department, bureau, agency, authority, instrumentality or officer,
acting in his official capacity, of the United States, any state thereof
or any political subdivision of any such state, or any banking institu-
tion, or to any check or draft drawn by any insurance company, any
broker or dealer registered with the securities and exchange commission,
or any attorney for the settlement of claims, or to any check which has
been certified by the banking institution on which it has been drawn;
provided further, however, that any such restriction upon the maximum
face amount that may be cashed by a licensee shall not apply to the
cashing of checks, drafts or money orders by licensees for payees of
such checks, drafts or money orders that are other than natural persons.
For purposes of this subdivision, "banking institution" means any bank,
trust company, savings bank, savings and loan association or credit
union which is incorporated, chartered or organized under the laws of
this state or any other state or the United States.
2. [The] IN ADDITION TO THE AUTHORITY SET FORTH IN SUBDIVISION THREE
OF THIS SECTION, THE superintendent may suspend or revoke any license or
licenses issued pursuant to this article if, after notice and a hearing,
he OR SHE shall find that the licensee (a) has committed any fraud,
engaged in any dishonest activities or made any misrepresentation; or
(b) has violated any provisions of [the banking law] THIS CHAPTER or any
regulation issued pursuant thereto, or has violated any other law in the
course of [its or his] THE LICENSEE'S dealings as a licensed casher of
checks; or (c) has made a false statement in the application for such
license or failed to give a true reply to a question in such applica-
tion; or (d) has demonstrated his, HER or its incompetency or untrust-
worthiness to act as a licensed casher of checks; or (e) is not doing
sufficient business pursuant to this article to justify the continuance
of the license, or if he OR SHE shall find that any ground or grounds
exist which would require or warrant the refusal of an application for
the issuance of the license if such an application were then before
[him] THE SUPERINTENDENT. Such a hearing shall be held in the manner
and upon such notice as may be prescribed by the superintendent. [Pend-
ing an investigation or a hearing for the suspension or revocation of
any license or licenses issued pursuant to this article, the superinten-
dent may temporarily suspend such license or licenses for a period not
to exceed ninety days, provided the superintendent shall find that such
a temporary suspension is in the public interest.]
3. (A) THE SUPERINTENDENT MAY FOR GOOD CAUSE, WITHOUT NOTICE OR A
HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS
ARTICLE FOR A PERIOD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION.
"GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE
HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL
ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY
A. 11325 10
CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS
ARTICLE.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY
PAYMENTS AS REQUIRED BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS
TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT
PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; (II) IMMEDIATELY
UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS FILED A PETITION
IN BANKRUPTCY; (III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD
FILED AGAINST IT A PETITION IN BANKRUPTCY; OR (IV) AT LEAST THIRTY DAYS
AFTER THE LICENSEE HAS FAILED TO MAINTAIN THE REQUISITE CAPITAL LEVEL.
4. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
ISSUED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION,
SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS
OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID
NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER
SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI-
SION THREE OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE
SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE
LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE
OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUD-
ING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH
BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION
PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION THREE OF THIS SECTION,
UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED
SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE
AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON
SUCH NINETIETH DAY.
5. Whenever the superintendent shall suspend or revoke a license
issued pursuant to this article, he OR SHE shall forthwith execute a
written order to that effect. The superintendent shall on the date such
order is executed file one copy thereof in the office of the department
and serve a second copy thereof on the licensee either personally or by
mailing the same to the last known address of such licensee. Such order
shall be subject to review by the supreme court in the manner provided
in article seventy-eight of the civil practice law and rules; provided,
however, that a special proceeding for review of such order must be
commenced within thirty days from the date of such order of suspension
or revocation and, provided further, that no stay shall be granted pend-
ing the determination of the matter except on notice to the superinten-
dent and for a period not exceeding thirty days.
[4.] 6. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH
THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE
LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSI-
NESS OF A LICENSED CHECK CASHER IN THIS STATE.
7. Any person[, partnership, association or corporation] and the
several members, officers, directors, agents and employees thereof, who
shall violate any of the provisions of this article, shall be guilty of
a misdemeanor, and shall be punishable by imprisonment for not more than
one year or by a fine of not more than five hundred dollars, or by both
such fine and imprisonment.
A. 11325 11
[5.] 8. Notwithstanding the provisions of subdivision [four] SEVEN of
this section, any person[, partnership, association or corporation] and
the several members, officers, directors, agents and employees thereof
who shall violate the provisions of subdivision one of section three
hundred sixty-seven of this article shall be guilty of a class A misde-
meanor.
S 14. Subdivision 1 of section 374 of the banking law, as amended by
chapter 582 of the laws of 2000, is amended to read as follows:
1. The provisions of this article shall not apply when checks, drafts
or money orders are cashed, other than by a licensee, without a consid-
eration or charge; nor when checks, drafts or money orders are cashed,
other than by a licensee, as an incident to the conduct of any other
lawful business where not more than one dollar is charged for cashing
each check, draft or money order; nor shall the provisions of this arti-
cle apply to any national bank, federal reserve bank, or to any person[,
partnership, association, corporation or other organization] doing busi-
ness under or pursuant to the provisions of this chapter, except a
licensee under this article.
S 15. Subdivisions 6-a, 6-b and 7 of section 491 of the banking law,
subdivision 6-a as amended by chapter 289 of the laws of 1962, subdivi-
sion 6-b as added by chapter 358 of the laws of 1958 and subdivision 7
as amended by chapter 837 of the laws of 1966, are amended to read as
follows:
6-a. "Retail instalment obligation" or "obligation" means an agree-
ment, entered into in this state, pursuant to which the buyer promises
to pay, in instalments, the time sale price or prices of goods and/or
services, or any part thereof. The term does not include [(a)] a retail
instalment contract[, (b)] OR a retail instalment credit agreement [or
(c) an obligation which is intended to be and is ultimately insured or
guaranteed under title three of the act of Congress entitled "Service-
men's Readjustment Act of 1944"]. THE TERM INCLUDES SUCH AN AGREEMENT
WHEREVER ENTERED INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF
SOLICITED IN PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR
HER OWN BEHALF OR THAT OF THE SELLER.
6-b. "Retail instalment credit agreement" or "credit agreement" means
an agreement entered into in this state, pursuant to which the buyer
promises to pay, in instalments, his OR HER outstanding indebtedness
from time to time to a retail seller, not evidenced by a retail instal-
ment contract or obligation, for one or more items of goods or services,
whenever purchased or obtained, which provides for a service charge and
under which instalment payments apply to his OR HER outstanding indebt-
edness from time to time. THE TERM INCLUDES SUCH AN AGREEMENT WHEREVER
ENTERED INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF SOLICITED IN
PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR HER OWN BEHALF
OR THAT OF THE SELLER.
7. "Sales finance company" means a person engaged, in whole or in
part, directly or indirectly, in the business of purchasing or otherwise
acquiring retail instalment contracts, obligations or credit agreements
made by and between other parties, or any interest therein. The term
includes a retail seller of motor vehicles engaged, in whole or in part,
in the business of holding retail instalment contracts acquired from
retail buyers, [which have] IF THE NUMBER OF RETAIL INSTALMENT CONTRACTS
ACQUIRED IN ANY ONE YEAR EXCEEDS FIVE SUCH CONTRACTS, OR IF THE aggre-
gate unpaid time balances [of twenty-five] ON SUCH CONTRACTS EXCEED ONE
HUNDRED thousand dollars or more at any one time, exclusive of contracts
repurchased from a sales finance company or financing agency, under an
A. 11325 12
agreement to repurchase in case of default entered into as an incident
to the bona fide sale thereof to a sales finance company or financing
agency. The term does not include the pledgee of an aggregate number of
contracts to secure a bona fide loan thereon, OR A SECONDARY HOLDER OF
SUCH CONTRACTS. The term includes a person engaged, in whole or in
part, directly or indirectly, in the business of entering into retail
instalment credit agreements with retail buyers pursuant to subdivision
eleven of section four hundred thirteen of the personal property law.
FOR PURPOSES OF THIS ARTICLE, THE TERM "SECONDARY HOLDER" MEANS A PERSON
THAT (I) PURCHASES OR OTHERWISE ACQUIRES A SALES FINANCE CONTRACT, OR AN
INTEREST THEREIN, THAT WAS ORIGINATED BY A PERSON LICENSED OR EXEMPT
FROM LICENSING UNDER THIS ARTICLE AND THAT IS SERVICED BY A PERSON
LICENSED OR EXEMPT FROM LICENSING UNDER THIS ARTICLE, AND (II) HAS NO
CONTACT WITH THE OBLIGOR UNDER SUCH CONTRACT.
S 16. Subdivisions 1 and 2 of section 492 of the banking law, subdivi-
sion 1 as amended by chapter 547 of the laws of 2008 and subdivision 2
as added by chapter 635 of the laws of 1956, are amended to read as
follows:
1. No person, except a bank, savings bank, savings and loan associ-
ation, trust company, private banker, credit union, OR investment compa-
ny, organized under [article twelve of] this chapter [and authorized to
accept deposits, national bank, federal savings association, federal
credit union, or out-of-state state bank, as such term is defined in
subdivision two of section two hundred twenty-two of this chapter], A
BRANCH OR AGENCY OF A FOREIGN BANKING CORPORATION LICENSED BY THE SUPER-
INTENDENT OR COMPTROLLER OF THE CURRENCY TO TRANSACT BUSINESS IN THIS
STATE, ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, INDUSTRIAL
LOAN COMPANY, BANK OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER
STATE OR THE UNITED STATES, or lender licensed TO CONDUCT BUSINESS
pursuant to THE PROVISIONS OF article nine of this chapter, shall engage
in the business of a sales finance company in this state without a
license therefor obtained from the superintendent, as provided in this
article.
2. [Application for a license required under this article shall be in
writing, under oath, and in the form prescribed by the superintendent,
and shall contain the following:
(a) The exact name of the applicant and date of incorporation, if
incorporated;
(b) The complete address where the business is to be conducted, show-
ing the street and number, if any, the office building and room number,
if any, and the municipality and county;
(c) If the applicant has one or more branches, subsidiaries or affil-
iates operating in this state, the complete address of each such place
of business; and
(d) The name and resident address of the owner or partners of the
applicant or, if a corporation or association, of the directors, trus-
tees and principal officers, and of any stockholder owning twenty per
centum or more of its stock; and
(e) Such other pertinent information as the superintendent may
require.]
THE APPLICATION FOR A LICENSE TO BE A SALES FINANCE COMPANY SHALL BE
IN WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTEN-
DENT. THE APPLICATION SHALL CONTAIN THE NAME AND COMPLETE BUSINESS AND
RESIDENTIAL ADDRESS OR ADDRESSES OF THE APPLICANT. IF THE APPLICANT IS A
PARTNERSHIP, ASSOCIATION, CORPORATION OR OTHER FORM OF BUSINESS ORGAN-
IZATION, THE APPLICATION SHALL CONTAIN THE NAMES AND COMPLETE BUSINESS
A. 11325 13
AND RESIDENTIAL ADDRESSES OF EACH MEMBER, DIRECTOR AND PRINCIPAL OFFICER
THEREOF. SUCH APPLICATION SHALL ALSO INCLUDE A DESCRIPTION OF THE ACTIV-
ITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR SUCH PERIODS, AS THE
SUPERINTENDENT MAY REQUIRE INCLUDING:
(A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION
REQUIREMENTS AS MAY BE PRESCRIBED BY THE SUPERINTENDENT, AND ACCESS TO
SUCH CREDIT AS MAY BE PRESCRIBED BY THE SUPERINTENDENT;
(B) AS PROVIDED IN SECTION TWENTY-TWO OF THIS CHAPTER, THE FINGER-
PRINTS OF THE APPLICANT AND EACH MEMBER, DIRECTOR AND PRINCIPAL OFFICER
OF THE APPLICANT AS THE SUPERINTENDENT MAY DETERMINE;
(C) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, DIRECTORS OR
PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWENTY-ONE YEARS OF AGE;
(D) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS
RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, ITS
MEMBERS, DIRECTORS OR PRINCIPALS AND OF ANY PERSON OWNING TEN PER CENTUM
OR MORE OF THE APPLICANT AND IF SUCH PERSON IS A PARTNERSHIP, CORPO-
RATION, ASSOCIATION OR OTHER FORM OF BUSINESS ORGANIZATION, SUCH ENTI-
TY'S MEMBERS, DIRECTORS OR PRINCIPALS; AND
(E) SUCH OTHER PERTINENT INFORMATION AS THE SUPERINTENDENT SHALL
REQUIRE.
S 17. Subdivision 2 of section 492-a of the banking law, as added by
chapter 142 of the laws of 1992, is amended to read as follows:
2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of subdivi-
sion one of section four hundred ninety-three of this article. The
superintendent shall approve or disapprove the application in writing
within ninety days after the date the application is [filed with] DEEMED
COMPLETE BY the superintendent.
S 18. Subdivision 7 of section 493 of the banking law is REPEALED and
subdivision 4, as amended by chapter 132 of the laws of 1969, is amended
to read as follows:
4. Each license issued hereunder shall remain in full force and effect
until it is surrendered by the licensee [or], revoked [or], TERMINATED
OR suspended as provided in this [article] CHAPTER.
S 19. Paragraph (e) of subdivision 1 and subdivision 7 of section 495
of the banking law are REPEALED, and the section heading and subdivi-
sions 2, 3 and 4 as added by chapter 635 of the laws of 1956, and subdi-
vision 5, as amended by chapter 64 of the laws of 1958, are amended to
read as follows:
Revocation, suspension [or], TERMINATION OR surrender of licenses
2. [No] (A) EXCEPT AS PROVIDED FOR IN PARAGRAPHS (B), (C) AND (D) OF
THIS SUBDIVISION, NO license UNDER THIS ARTICLE shall be suspended or
revoked except after a hearing thereon. [The] WHERE A HEARING IS
REQUIRED UNDER THIS SECTION, THE superintendent shall give the licensee
at least ten days' written notice of the time and place of such hearing
by [registered] CERTIFIED mail, RETURN RECEIPT REQUESTED, addressed to
the principal place of business in this state of such licensee THEN
APPEARING ON THE RECORDS OF THE SUPERINTENDENT. Any order suspending or
revoking such license shall recite the grounds upon which it is based
[and shall not be effective until ten days after written notice thereof
has been sent by registered mail to the licensee at such principal place
of business]. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE
WITH THIS ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE
LICENSE HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSI-
NESS OF A SALES FINANCE COMPANY IN THIS STATE. THE SUPERINTENDENT IN HIS
OR HER DISCRETION MAY REVOKE OR SUSPEND ONLY THE PARTICULAR LICENSE WITH
A. 11325 14
RESPECT TO WHICH GROUNDS FOR REVOCATION OR SUSPENSION MAY OCCUR OR
EXIST; BUT IF HE OR SHE FINDS THAT GROUNDS FOR REVOCATION OR SUSPENSION
ARE OF GENERAL APPLICATION TO ALL PLACES OF BUSINESS, OR TO MORE THAN
ONE PLACE OF BUSINESS, OPERATED BY SUCH LICENSEE, HE OR SHE SHALL REVOKE
OR SUSPEND ALL OF THE LICENSES ISSUED TO SAID LICENSEE OR THOSE LICENSES
TO WHICH THE GROUNDS FOR REVOCATION OR SUSPENSION APPLY, AS THE CASE MAY
BE.
(B) THE SUPERINTENDENT MAY FOR GOOD CAUSE, WITHOUT NOTICE OR A HEAR-
ING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE FOR A PERIOD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION. "GOOD
CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS
DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGE-
MENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE
SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY
PAYMENT AS REQUIRED BY THIS CHAPTER.
(D) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE:
(I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT
REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO AUTHORITY
PROVIDED BY THIS ARTICLE; OR
(II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE
HAS FILED A PETITION IN BANKRUPTCY; OR
(III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT
A PETITION IN BANKRUPTCY.
3. [The superintendent in his discretion may revoke or suspend only
the particular license with respect to which grounds for revocation or
suspension may occur or exist; but if he finds that grounds for revoca-
tion or suspension are of general application to all places of business,
or to more than one place of business, operated by such licensee, he
shall revoke or suspend all of the licenses issued to said licensee or
those licenses to which the grounds for revocation or suspension apply,
as the case may be.] IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPEND-
ING A LICENSE PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS
SECTION, SUCH LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETER-
MINES, IN HIS OR HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD
CAUSE THEREFOR DID NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT
HAS ISSUED AN ORDER SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH
(C) OR (D) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REIN-
STATED, IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,
THAT THE LICENSEE HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY
THE CLOSE OF BUSINESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION
ORDER, INCLUDING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR
HAVING ANY SUCH BANKRUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE
OF A SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF
THIS SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE
DISCRETION, EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL
BE DEEMED TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE
CLOSE OF BUSINESS ON SUCH NINETIETH DAY.
4. Any licensee may surrender any license by delivering to the super-
intendent written notice that such license is thereby surrendered, but
such surrender shall not affect the licensee's civil or criminal liabil-
ity for acts committed prior [thereto] TO SUCH SURRENDER OR ITS OBLI-
A. 11325 15
GATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRATIVE
ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH SURREN-
DER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT.
5. No suspension, revocation, TERMINATION or surrender of any license
shall impair or affect the obligation of any instalment contract, obli-
gation or credit agreement lawfully acquired previously thereto by the
licensee.
S 20. Subdivisions 3 and 4 of section 497 of the banking law are
REPEALED.
S 21. Section 499 of the banking law, as added by chapter 635 of the
laws of 1956, is amended to read as follows:
S 499. Violations and penalties. Any person who violates or partic-
ipates in the violation of any provision of this article, or who know-
ingly makes any incorrect statement of a material fact in any applica-
tion, report or statement filed pursuant to this article, or who
knowingly omits to state any material fact necessary to give the super-
intendent any information lawfully required by him OR HER or refuses to
permit any lawful investigation or examination, shall be guilty of a
misdemeanor and, upon conviction, shall be fined not more than five
hundred dollars or imprisoned for not more than six months or both, in
the discretion of the court.
S 22. Subdivisions 2 and 5 of section 554 of the banking law are
REPEALED and a new subdivision 2 is added to read as follows:
2. "BANKING INSTITUTION" MEANS A BANK, SAVINGS BANK, SAVINGS AND LOAN
ASSOCIATION, TRUST COMPANY, PRIVATE BANKER, CREDIT UNION OR INVESTMENT
COMPANY ORGANIZED UNDER THE BANKING LAW OF THIS STATE, A BRANCH OR AGEN-
CY OF A FOREIGN BANKING CORPORATION LICENSED BY THE SUPERINTENDENT OR
THE COMPTROLLER OF THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE, OR
ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION
ORGANIZED UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES.
S 23. Subdivision 1 of section 555 of the banking law, as amended by
chapter 547 of the laws of 2008, is amended to read as follows:
1. No person except a [lending] BANKING institution [or], an author-
ized insurer OR A LENDER LICENSED PURSUANT TO ARTICLE NINE OF THIS CHAP-
TER shall engage in the business of a premium finance agency without a
license therefor obtained from the superintendent, as provided in this
article. THE TERM "PREMIUM FINANCE AGENCY" DOES NOT INCLUDE A SECONDARY
HOLDER OF A PREMIUM FINANCE AGREEMENT. FOR PURPOSES OF THIS ARTICLE, THE
TERM "SECONDARY HOLDER" MEANS A PERSON THAT (I) PURCHASES OR OTHERWISE
ACQUIRES A PREMIUM FINANCE AGREEMENT, OR AN INTEREST THEREIN, THAT WAS
ORIGINATED BY A PERSON LICENSED OR EXEMPT FROM LICENSING UNDER THIS
ARTICLE AND THAT IS SERVICED BY A PERSON LICENSED OR EXEMPT FROM LICENS-
ING UNDER THIS ARTICLE, AND (II) HAS NO CONTACT WITH THE OBLIGOR UNDER
SUCH AGREEMENT.
S 24. Subdivision 5 of section 556 of the banking law is REPEALED.
S 25. Section 558 of the banking law, as added by chapter 488 of the
laws of 1960, is amended to read as follows:
S 558. Change of location. Before any licensee changes any office [of
his] to another location, [he] IT shall [give written notice thereof to]
FILE A WRITTEN APPLICATION WITH the superintendent, who shall [without
charge issue an endorsement indicating the change and the date thereof,
which endorsement shall be attached to the license for such office and
be authority for the operation of the business under such license at
such new location] AFTER RECEIPT OF THE FEE PRESCRIBED IN SECTION EIGH-
TEEN-A OF THIS CHAPTER ISSUE A NEW LICENSE FOR THE NEW OFFICE.
A. 11325 16
S 26. Section 559 of the banking law, as added by chapter 488 of the
laws of 1960, paragraph (a) of subdivision 1 as amended by chapter 474
of the laws of 1962, paragraph (b) of subdivision 1 as amended by chap-
ter 1141 of the laws of 1969, subdivision 6 as amended by chapter 310 of
the laws of 1962 and subdivision 7 as added by chapter 121 of the laws
of 1993, is amended to read as follows:
S 559. Grounds for [revocation] SUSPENSION, REVOCATION OR TERMINATION
of license; procedure. 1. [The] IN ADDITION TO THE AUTHORITY PROVIDED BY
SUBDIVISION TWO OF THIS SECTION, THE superintendent may [forthwith
revoke or] suspend OR REVOKE any license issued [hereunder if] UNDER
THIS ARTICLE IF, AFTER NOTICE AND A HEARING, he OR SHE shall find that:
(a) The licensee has failed to pay [the annual license fee or] any sum
of money lawfully demanded, or to comply with any demand, ruling, or
requirement of the superintendent lawfully made pursuant to and within
the authority of this article;
(b) The licensee has violated any provision of this article, the act
of congress entitled "Truth in Lending Act" and the regulations there-
under, as such act and regulations may from time to time be amended or
any rule or regulation lawfully made by the superintendent under and
within the authority of this article;
(c) Any fact or condition exists which, if it had existed at the time
of the original application for such license, clearly would have
warranted the superintendent in refusing originally to issue such
license.
2. (A) THE SUPERINTENDENT MAY, FOR GOOD CAUSE, WITHOUT NOTICE OR A
HEARING, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, ISSUE AN
ORDER SUSPENDING ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERI-
OD NOT EXCEEDING NINETY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS
USED IN THIS SUBDIVISION, SHALL EXIST WHEN THE LICENSEE HAS DEFAULTED OR
IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES
IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM
TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY
PAYMENT AS REQUIRED BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THIS ARTICLE:
(I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY REPORT
REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO AUTHORITY
PROVIDED BY THIS ARTICLE;
(II) IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE
HAS FILED A PETITION IN BANKRUPTCY; OR
(III) UPON NOTICE AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD
FILED AGAINST IT A PETITION IN BANKRUPTCY.
3. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, SUCH
LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR
HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID
NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER
SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI-
SION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPER-
INTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE
HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSI-
NESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING,
A. 11325 17
WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING ANY SUCH BANK-
RUPTCY PETITION DISMISSED. OTHERWISE, IN THE CASE OF A SUSPENSION PURSU-
ANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS SECTION, UNLESS
THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED SUCH
SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMAT-
ICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH
NINETIETH DAY.
4. The superintendent may revoke or suspend only the particular
license with respect to which grounds for revocation or suspension may
occur or exist, or, if he OR SHE shall find that such grounds for revo-
cation or suspension are of general application to all offices, or to
more than one office, operated by such licensee, he OR SHE shall revoke
or suspend all of the licenses issued to such licensee or such number of
licenses as such grounds apply to, as the case may be.
[3.] 5. Any licensee may surrender any license by delivering to the
superintendent written notice that he OR SHE thereby surrenders such
license, but such surrender shall not affect such licensee's civil or
criminal liability for acts committed prior to such surrender OR ITS
OBLIGATIONS TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRA-
TIVE ACTIONS WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH
SURRENDER SHALL BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPER-
INTENDENT.
[4.] 6. No revocation, TERMINATION or suspension or surrender of any
license shall impair or affect the obligation of an insured under any
lawful premium finance agreement previously acquired or held by the
licensee.
[5.] 7. Every license issued hereunder shall remain in force and
effect until the same shall have been surrendered, revoked, [or]
suspended OR TERMINATED in accordance with the provisions of this arti-
cle, but the superintendent shall have authority to reinstate suspended
licenses or to issue new licenses to a licensee whose license or
licenses shall have been revoked OR TERMINATED if no fact or condition
then exists which clearly would have warranted the superintendent in
refusing originally to issue such license under this article.
[6.] 8. Whenever the superintendent shall revoke or suspend a license
issued pursuant to this article, he OR SHE shall forthwith execute in
[triplicate] DUPLICATE a written order to that effect. The superinten-
dent shall file one copy of such order in the office of the department,
[file another in the office of the clerk of the county in which is
located the place designated in such license] and forthwith serve the
[third] SECOND copy upon the licensee, which order may be reviewed in
the manner provided by article seventy-eight of the civil practice law
and rules. Such special proceeding for review as authorized by this
section must be commenced within thirty days from the date of such order
of suspension or revocation.
[7. The superintendent may, on good cause shown, or where there is a
substantial risk of public harm, suspend any license issued pursuant to
this article for a period not exceeding thirty days, pending investi-
gation. "Good cause", as used in this subdivision, shall exist only when
the licensee has defaulted or is likely to default in performing its
financial engagements or engages in dishonest or inequitable practices
which may cause substantial harm to the persons afforded the protection
of this article.]
9. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS
ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE
A. 11325 18
HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A
PREMIUM FINANCE AGENCY IN THIS STATE.
S 27. Subdivisions 3 and 4 of section 560 of the banking law are
REPEALED.
S 28. Section 562 of the banking law is REPEALED.
S 29. Subdivision 1 of section 563 of the banking law, as added by
chapter 488 of the laws of 1960, is amended to read as follows:
1. Any person, including any member, officer, director or employee of
a licensee, who violates or participates in the violation of any
provision of this article, or who knowingly makes any incorrect state-
ment of a material fact in any application, report or statement filed
pursuant to this article, or who knowingly omits to state any material
fact necessary to give the superintendent any information lawfully
required by him or HER OR refuses to permit any lawful investigation or
examination, shall be guilty of a misdemeanor and, upon conviction,
shall be fined not more than five hundred dollars or imprisoned for not
more than six months or both, in the discretion of the court.
S 30. Section 576 of the banking law is amended by adding a new subdi-
vision 4 to read as follows:
4. IN ADDITION TO MAILING, NOTICES REQUIRED UNDER THIS SECTION MAY BE
DELIVERED BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, PROVIDED THAT ANY
SUCH DELIVERY EVIDENCES RECEIPT OF THE NOTICE BY THE ADDRESSEE. SUCH
RECEIPT MAY BE CREATED AND MAINTAINED IN ELECTRONIC FORM.
S 31. Subdivision (a) of section 577 of the banking law, as amended by
chapter 1 of the laws of 1994, is amended to read as follows:
(a) By any person at a rate of interest not greater than the rate
[prescribed by the banking board pursuant to] SET FORTH IN section four-
teen-a of this chapter[, or, if no rate has been so prescribed, six per
centum per annum]; or
S 32. Subdivisions 3 and 4 of section 580 of the banking law, subdivi-
sion 3 as amended by section 50 of part O of chapter 59 of the laws of
2006 and subdivision 4 as added by chapter 629 of the laws of 2002, are
amended to read as follows:
3. Upon original application for a license or licenses to operate one
or more places of business, the applicant shall pay an investigation fee
in an aggregate amount as prescribed pursuant to section eighteen-a of
this chapter. No additional investigation fee shall be required for any
subsequent application for a license unless such application is subse-
quent to a denial of a license or to a revocation, suspension or surren-
der of a license; PROVIDED, HOWEVER, THAT AN APPLICATION TO ESTABLISH A
BRANCH OFFICE OF THE LICENSEE SHALL BE ACCOMPANIED BY THE FEE PRESCRIBED
IN SECTION EIGHTEEN-A OF THIS CHAPTER.
4. As a condition for the issuance and retention of a budget planner
license, and subject to such regulations as the superintendent shall
prescribe, applicants for a license shall file with the superintendent a
surety bond in form satisfactory to the superintendent issued by a bond-
ing company or insurance company authorized to do business in this
state. Except as provided hereunder, the principal amount of such bond
shall be two hundred fifty thousand dollars. The superintendent may
require a larger bond if he or she determines, in his or her sole
discretion, that a licensee has engaged in a pattern of conduct result-
ing in bona fide consumer complaints of misconduct and that such
increased bond is necessary for the protection of consumers; or the
superintendent may increase or decrease the amount of such bond or
deposit based upon the applicant's or licensee's financial condition,
business plan, and the actual or estimated aggregate amount of payments
A. 11325 19
and fees paid by debtors to such licensee. In lieu of such bond, an
applicant may keep on deposit with such banks, savings banks, savings
and loan associations, trust companies, private bankers, national banks,
federal savings banks, or federal savings and loan associations in the
state as such licensee may designate and the superintendent may approve,
interest-bearing bonds, notes, debentures, or other obligations of the
United States or any agency or instrumentality thereof, or guaranteed by
the United States, or of this state, or of a city, county, town,
village, school district, or instrumentality of this state or guaranteed
by this state, or dollar deposits, or such other assets or letters of
credit as the superintendent shall by rule or regulation permit. The
proceeds of each bond or deposit shall constitute a trust fund to be
used exclusively to reimburse payments by debtors that have not been
properly distributed to creditors or to reimburse fees determined by the
superintendent to be improperly charged or collected and, in the event
of the insolvency, liquidation, or bankruptcy of such licensee, to pay
outstanding banking department examination costs and assessments. [With-
in ninety days after the effective date of this subdivision, each licen-
see shall comply with the requirements of this subdivision.]
S 33. Subdivision 1 of section 581 of the banking law, as amended by
chapter 456 of the laws of 2006, is amended to read as follows:
1. Upon the filing of an application for a license, if the superinten-
dent shall find that the financial responsibility, experience, charac-
ter, and general fitness of the applicant, and of the officers and
directors thereof are such as to command the confidence of the community
and to warrant belief that the business will be operated honestly, fair-
ly, and efficiently within the purposes of this article, he or she shall
thereupon issue a license in duplicate to engage in budget planning in
accordance with the provisions of this article. The superintendent shall
transmit one copy of such license to the applicant and file another in
the office of the banking department. Such license shall remain in full
force and effect until it is surrendered by the licensee or revoked or
suspended as hereinafter provided; if the superintendent shall not so
find he or she shall not issue such license and he or she shall notify
the applicant of the denial. The superintendent shall approve or deny IN
WRITING every application for license hereunder within ninety days [from
the filing thereof] AFTER THE DATE THE APPLICATION IS DEEMED COMPLETE BY
THE SUPERINTENDENT.
S 34. Subdivision 2 of section 583-a of the banking law, as added by
chapter 142 of the laws of 1992, is amended to read as follows:
2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of section
five hundred eighty-one of this article. The superintendent shall
approve or disapprove the application in writing within ninety days
after the date the application is [filed with] DEEMED COMPLETE BY the
superintendent.
S 35. Section 584 of the banking law, as added by chapter 448 of the
laws of 1975, paragraph (b) as amended by chapter 629 of the laws of
2002, and paragraph (c) of subdivision 1 as added by chapter 629 of the
laws of 2002, is amended to read as follows:
S 584. Grounds for suspension [or], revocation OR TERMINATION of
license; procedure. 1. [The] IN ADDITION TO THE AUTHORITY SET FORTH IN
SUBDIVISION TWO OF THIS SECTION, THE superintendent may SUSPEND OR
revoke any license issued [hereunder if] UNDER THIS ARTICLE IF, AFTER
NOTICE AND A HEARING he OR SHE shall find that:
A. 11325 20
(a) The licensee has violated any provisions of this article, or of
any rule or regulation made by the superintendent under and within the
authority of this article;
(b) Any fact or condition exists which, if it had existed at the time
of the original application for such license, would have warranted the
superintendent in refusing originally to issue such license; or
(c) The conviction of a licensee for a crime against the laws of this
state or any other state or of the United States involving moral turpi-
tude or fraudulent or dishonest actions, or the entry of a final judge-
ment in a court of competent jurisdiction against the licensee in a
civil action arising from fraud, misrepresentation, or deceit.
2. (A) The superintendent may, [on] FOR good cause [shown], [suspend]
WITHOUT NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING any license
ISSUED PURSUANT TO THIS ARTICLE for a period not exceeding [thirty]
NINETY days, pending investigation. "GOOD CAUSE", AS USED IN THIS SUBDI-
VISION, SHALL EXIST ONLY WHEN THE LICENSEE HAS DEFAULTED OR IS LIKELY TO
DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST
OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS
AFFORDED THE PROTECTION OF THIS ARTICLE.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THE AUTHORITY OF THIS ARTICLE UPON THE FAILURE OF SUCH LICENSEE
TO MAKE ANY PAYMENTS AS REQUIRED BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED PURSU-
ANT TO THE AUTHORITY OF THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE
LICENSEE FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY IT WITH THE
SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY THIS ARTICLE; (II)
IMMEDIATELY UPON NOTICE TO THE SUPERINTENDENT THAT THE LICENSEE HAS
FILED A PETITION IN BANKRUPTCY; (III) AT LEAST THIRTY DAYS AFTER THE
LICENSEE HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY; OR (IV)
IMMEDIATELY UPON THE RECEIPT BY THE SUPERINTENDENT OF NOTICE THAT THE
BOND REQUIRED PURSUANT TO SECTION FIVE HUNDRED EIGHTY OF THIS ARTICLE IS
NO LONGER IN EFFECT.
3. [No] IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
ISSUED PURSUANT TO THE AUTHORITY OF THIS ARTICLE PURSUANT TO PARAGRAPH
(A) OF SUBDIVISION TWO OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED
IF THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION AFTER
INVESTIGATION, THAT GOOD CAUSE THEREFOR DID NOT EXIST OR NO LONGER
EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS
SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPERINTENDENT DETER-
MINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE HAS CURED ALL
DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSINESS NINETY
DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING, WITHOUT LIMITA-
TION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANKRUPTCY PETITION
DISMISSED OR HAVING SUCH BOND REINSTATED. OTHERWISE, IN THE CASE OF A
SUSPENSION PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION TWO OF THIS
SECTION, UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION,
EXTENDED SUCH SUSPENSION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED
TO BE AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSI-
NESS ON SUCH NINETIETH DAY.
4. (A) EXCEPT AS PROVIDED FOR IN SUBDIVISION TWO OF THIS SECTION, NO
license shall be revoked or suspended except after notice and a hearing
thereon.
A. 11325 21
[4.] 5. Any licensee may surrender any license by delivering to the
superintendent written notice that it thereby surrenders such license,
but such surrender shall not affect such licensee's civil or criminal
liability for acts committed prior to such surrender OR ITS OBLIGATIONS
TO THE SUPERINTENDENT FOR ASSESSMENTS, FEES OR ADMINISTRATIVE ACTIONS
WITH RESPECT TO ANY PERIOD BEFORE SUCH SURRENDER. SUCH SURRENDER SHALL
BECOME EFFECTIVE UPON WRITTEN APPROVAL BY THE SUPERINTENDENT.
[5.] 6. No revocation, suspension, TERMINATION or surrender of any
license shall impair or affect the obligation of any pre-existing lawful
contract between the licensee and any person.
[6.] 7. Every license issued hereunder shall remain in force and
effect until the same shall have been surrendered, revoked [or],
suspended OR TERMINATED in accordance with the provisions of this arti-
cle, but the superintendent shall have authority to reinstate a
suspended license or to issue a new license to a licensee whose license
shall have been revoked if no fact or condition then exists which would
have warranted the superintendent in refusing originally to issue such
license under this article.
[7.] 8. Whenever the superintendent shall revoke or suspend a license
issued pursuant to this article, he OR SHE shall forthwith execute in
duplicate a written order to that effect. The superintendent shall file
one copy of such order in the office of the department of banking and
shall forthwith serve the other copy upon the licensee. Any such order
may be reviewed in the manner provided by article seventy-eight of the
civil practice law and rules. Such application for review as authorized
by this section must be made within thirty days from the date of such
order of suspension or revocation.
9. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS
ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE
HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A
BUDGET PLANNER IN THIS STATE.
S 36. Intentionally omitted.
S 37. Subdivision 1 of section 641 of the banking law, as amended by
chapter 677 of the laws of 2004, is amended to read as follows:
1. No person shall engage IN THIS STATE in the business of selling or
issuing checks, or engage in the business of receiving money for trans-
mission or transmitting the same, without a license therefor obtained
from the superintendent as provided in this article, nor shall any
person engage in such business as an agent, except as an agent of a
licensee or as agent of a payee; provided, however, that nothing in this
article shall apply to a bank, trust company, private banker, foreign
banking corporation licensed pursuant to article two of this chapter or
foreign banking company authorized to operate pursuant to the Interna-
tional Banking Act of 1978 (12 USC 3101 et seq.), as amended, savings
bank, savings and loan association, an investment company, a national
banking association, federal reserve bank, corporation organized under
the provisions of section twenty-five-a of an act of congress entitled
the "Federal Reserve Act", federal savings bank, federal savings and
loan association or state or federal credit union OR OUT-OF-STATE STATE
BANK. A PERSON ENGAGES IN THIS STATE IN THE BUSINESS OF SELLING OR
ISSUING CHECKS OR RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING THE
SAME IF SUCH PERSON INDUCES ANOTHER PERSON WHO IS A RESIDENT OF, OR
LOCATED IN, THIS STATE TO ENTER INTO A TRANSACTION BY SOLICITATION IN OR
INTO THIS STATE BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELEC-
TRONIC MAIL, TELEPHONE, RADIO, TELEVISION, THE INTERNET OR ANY OTHER
ELECTRONIC MEANS.
A. 11325 22
S 38. Subdivisions 2, 5 and 6 of section 642 of the banking law, as
amended by chapter 455 of the laws of 1993, are amended, and two new
subdivisions 7 and 8 are added to read as follows:
2. The superintendent shall approve [conditionally] or deny every
application for a license hereunder IN WRITING within ninety days [from
the filing thereof. Such period of ninety days may be extended, by the
written consent of the applicant, for such additional reasonable period
of time as may be required to enable compliance with such requirements
and conditions as may be provided by this article and the rules or regu-
lations of the superintendent issued thereunder] AFTER THE DATE THE
APPLICATION IS DEEMED COMPLETE BY THE SUPERINTENDENT.
5. [No] EXCEPT AS PROVIDED IN SUBDIVISION SIX OF THIS SECTION, NO
license shall be suspended or revoked except after a hearing thereon.
The superintendent shall give the licensee at least ten days' written
notice of the time and place of such hearing by registered or certified
mail addressed to the principal place of business of such licensee. Any
order of the superintendent suspending or revoking such license shall
state the grounds upon which it is based [and shall not be effective
until ten days after written notice thereof has been sent by registered
or certified mail to the licensee at such principal place of business,
except that revocation by reason of the licensee's bond not being kept
in full force and effect as required by this article, or by reason of
failure to keep on deposit sufficient securities or funds as required by
this article, may take effect immediately if the superintendent so
orders].
6. (A) The superintendent may, [on] FOR good cause [shown, or where
there is a substantial risk of public harm, suspend] WITHOUT NOTICE OR A
HEARING, ISSUE AN ORDER SUSPENDING any license issued pursuant to this
article for a period not exceeding [thirty] NINETY days, pending inves-
tigation. "Good cause", as used in this subdivision, shall exist only
when the licensee has defaulted or is likely to default in performing
its financial engagements or engages in dishonest or inequitable prac-
tices which may cause substantial harm to the persons afforded the
protection of this article.
(B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING THE LICENSE ISSUED HERE-
UNDER UPON THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENT AS REQUIRED
BY THIS CHAPTER.
(C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, WITHOUT
NOTICE OR A HEARING, ISSUE AN ORDER SUSPENDING ANY LICENSE ISSUED HERE-
UNDER: (I) THIRTY DAYS AFTER THE DATE THE LICENSEE FAILS TO FILE ANY
REPORT REQUIRED TO BE FILED BY IT WITH THE SUPERINTENDENT PURSUANT TO
THE AUTHORITY PROVIDED BY THIS ARTICLE; (II) IMMEDIATELY UPON NOTICE TO
THE SUPERINTENDENT THAT A LICENSEE HAS FILED A PETITION IN BANKRUPTCY;
(III) AT LEAST THIRTY DAYS AFTER THE LICENSEE HAS HAD FILED AGAINST IT A
PETITION IN BANKRUPTCY; OR (IV) IMMEDIATELY UPON RECEIPT BY THE SUPER-
INTENDENT OF NOTICE THAT THE LICENSEE HAS FAILED TO MAINTAIN THE BOND OR
SECURITIES REQUIRED BY SECTION SIX HUNDRED FORTY-THREE OF THIS ARTICLE
OR FAILED TO MAINTAIN THE INVESTMENTS REQUIRED BY SECTION SIX HUNDRED
FIFTY-ONE OF THIS ARTICLE.
7. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE
PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX OF THIS SECTION, SUCH
LICENSE MAY BE REINSTATED IF THE SUPERINTENDENT DETERMINES, IN HIS OR
HER SOLE DISCRETION AFTER INVESTIGATION, THAT GOOD CAUSE THEREFOR DID
NOT EXIST OR NO LONGER EXISTS. IF THE SUPERINTENDENT HAS ISSUED AN ORDER
SUSPENDING A LICENSE ISSUED PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVI-
A. 11325 23
SION SIX OF THIS SECTION, SUCH LICENSE MAY BE REINSTATED, IF THE SUPER-
INTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION, THAT THE LICENSEE
HAS CURED ALL DEFICIENCIES SET FORTH IN SUCH ORDER BY THE CLOSE OF BUSI-
NESS NINETY DAYS AFTER THE DATE OF SUCH SUSPENSION ORDER, INCLUDING,
WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANK-
RUPTCY PETITION DISMISSED OR REINSTATING SUCH BOND OR INCREASING THE
VALUE OF SUCH INVESTMENTS. OTHERWISE, IN THE CASE OF A SUSPENSION PURSU-
ANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION SIX OF THIS SECTION, UNLESS
THE SUPERINTENDENT HAS, IN HIS OR HER DISCRETION, EXTENDED SUCH SUSPEN-
SION, THE LICENSE OF SUCH LICENSEE SHALL BE DEEMED TO BE AUTOMATICALLY
TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON SUCH NINETI-
ETH DAY.
8. WHENEVER A LICENSE SHALL HAVE TERMINATED IN ACCORDANCE WITH THIS
ARTICLE, THE SUPERINTENDENT SHALL NOTIFY THE LICENSEE THAT THE LICENSE
HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A
MONEY TRANSMITTER.
S 39. Subdivision 1 of section 643 of the banking law, as amended by
chapter 625 of the laws of 2004, is amended to read as follows:
1. As a condition for the issuance and retention of the license,
applicants for a license and other licensees shall, within thirty days
after notice by the superintendent, or such longer or shorter period as
he or she shall prescribe, file with the superintendent one or more
corporate surety bond or bonds, as required below, in form satisfactory
to him or her and issued by a bonding company or insurance company
authorized to do business in this state. One bond shall be in favor of
the superintendent and in such principal amount as he or she shall
determine is necessary or desirable for the protection of the purchasers
and holders of New York instruments sold or to be sold by the applicant
or licensee, provided, [however, that until June first, nineteen hundred
seventy-seven, the principal amount of such bond shall be no less than
two hundred ten thousand dollars and on and after June first, nineteen
hundred seventy-seven,] THAT the principal amount of such bond shall be
no less than five hundred thousand dollars. If the applicant or licensee
intends to engage or engages in the sale of New York traveler's checks,
such applicant or licensee shall file with the superintendent a separate
bond. Said bond shall be in favor of the superintendent and in such
principal amount as he or she shall determine is necessary or desirable
for the protection of the purchasers and holders of the New York travel-
er's checks sold or to be sold by the applicant or licensee; provided,
however, that the principal amount of such bond shall not be less than
seven hundred fifty thousand dollars, unless the superintendent, for
good cause shown, shall have determined that a lesser amount will
adequately protect the purchasers and holders of the New York traveler's
checks sold or to be sold by such applicant or licensee.
In making any determination under this subdivision, the superintendent
may take into account the financial condition of the licensee, the
number of locations in this state at which the licensee, either directly
or through agents, transacts the business of selling New York instru-
ments or New York traveler's checks, the controls imposed on such agents
or, and the possible exposure of purchasers and holders of New York
instruments and New York traveler's checks to loss in the event of the
insolvency, bankruptcy or other financial impairment of the licensee.
The proceeds of each bond shall constitute a trust fund for the exclu-
sive benefit of the purchasers and holders of the New York instruments
[and] OR New York traveler's checks, as the case may be. Except as
otherwise provided in the following sentence, in the event of the insol-
A. 11325 24
vency or bankruptcy of any licensee, the proceeds of the bond or bonds
held for the exclusive benefit of the purchasers and holders of New York
instruments and the proceeds of the bond or bonds held for the exclusive
benefit of the purchasers and holders of New York traveler's checks
shall be paid to the superintendent forthwith for disposition in accord-
ance with the provisions of this article. If any New York instruments
have been assigned to the fund, the proceeds of the bond held for the
exclusive benefit of the purchasers and holders of New York instruments
shall constitute a trust fund for the benefit of, and shall be payable
to, the fund to the extent of such assignment. From time to time, the
superintendent may require, upon thirty days notice or such longer or
shorter period as he or she shall prescribe, that such bond or bonds be
increased if he or she shall determine that such increase is necessary
or desirable for the protection of the purchasers and holders of New
York instruments and New York traveler's checks.
S 40. Subdivision 4 of section 646 of the banking law is REPEALED.
S 41. Section 647 of the banking law, as amended by chapter 455 of the
laws of 1993, is amended to read as follows:
S 647. Judicial review. [The refusal by the superintendent of an
original license, in the case of an applicant which, prior to January
first, nineteen hundred sixty-three, and upon the date of filing such
application, has lawfully been engaged in this state in the business of
selling or issuing checks or of receiving money for transmission or
transmitting the same, and in] IN all cases INVOLVING the suspension or
revocation of any license by the superintendent, SUCH SUSPENSION OR
REVOCATION shall be subject to judicial review in the manner in such
cases made and provided by law.
S 42. Subdivision 2 of section 650 of the banking law, as amended by
chapter 543 of the laws of 1990, is amended to read as follows:
2. a. Any person who either (1) engages in the business of receiving
money for transmission or transmitting the same or (2) sells or issues
New York instruments or New York traveler's checks as those terms are
defined by section six hundred fifty-three of this chapter, without a
license therefor obtained from the superintendent as provided in this
article, shall be guilty of a [Class] CLASS A misdemeanor.
b. Any person who violates paragraph a of this subdivision and in the
course of that violation:
(1) knowingly receives or agrees to receive for transmission from one
or more individuals a total of ten thousand dollars or more in a single
transaction, a total of twenty-five thousand dollars or more during a
period of thirty days or less, or a total of two hundred fifty thousand
dollars or more during a period of one year or less; or
(2) knowingly sells or issues New York instruments or New York travel-
er's checks to one or more individuals totaling ten thousand dollars or
more in a single transaction, a total of twenty-five thousand dollars or
more during a period of thirty days or less, or a total of two hundred
fifty thousand dollars or more during a period of one year or less SHALL
BE GUILTY OF A CLASS E FELONY; [or
(3)] C. ANY PERSON WHO VIOLATES PARAGRAPH A OF THIS SUBDIVISION AND IN
THE COURSE OF THAT VIOLATION:
(1) knowingly engages in the business of receiving money for transmit-
ting or transmitting the same, knowing such money to be the proceeds of
any criminal conduct; or
[(4)] (2) knowingly sells or issues New York instruments or New York
traveler's checks as those terms are defined by section six hundred
fifty-three of this chapter, knowing such instruments or checks to be
A. 11325 25
purchased with the proceeds of or derived from any criminal conduct;
shall be guilty of a class [E] D felony.
S 43. Section 651 of the banking law, as amended by chapter 677 of the
laws of 2004, is amended to read as follows:
S 651. Investments. Every licensee shall at all times maintain permis-
sible investments having (i) a market value, computed in accordance with
generally accepted accounting principles, at least equal to the aggre-
gate of the amount of all its outstanding payment instruments and all
its outstanding traveler's checks or (ii) a net carrying value, computed
in accordance with generally accepted accounting principles, at least
equal to the aggregate of the amount of all its outstanding payment
instruments and all its outstanding traveler's checks so long as the
market value of such permissible investments is at least [eighty] NINETY
per centum of the net carrying value. Notwithstanding the foregoing
provisions of this section, the superintendent shall have the authority,
for good cause shown, to exempt from the requirements of this section
any licensee.
S 44. Section 657 of the banking law, as amended by chapter 78 of the
laws of 1977, is amended to read as follows:
S 657. Payments to the fund. In the event the fund has borrowed any
monies from the property and liability insurance security fund pursuant
to the provisions of section six hundred fifty-eight of this [chapter]
ARTICLE, and has any debt outstanding thereto, or in the event an unin-
sured transmitter of money is declared, or declares itself, insolvent or
defaults on its New York instruments, the fund shall levy an assessment
upon each uninsured transmitter of money. The amount of such assessment
shall be determined by the superintendent provided, however, that each
uninsured transmitter of money shall be assessed ratably, in proportion
to the average of the dollar amounts of the New York instruments issued
by such uninsured transmitter of money outstanding at the end of each
calendar quarter for the calendar year preceding that in which the
assessment is made, and provided, further, that no such assessments
shall be levied once the net value of the fund shall equal such amount
as the superintendent shall have determined to be necessary to protect
the interests of the purchasers and holders of New York instruments. In
making his OR HER determination, the superintendent shall consider the
scope of the risk covered by the fund, the expenses incurred or expected
to be incurred by the fund, the amount of any loans and advances to the
fund, and the interest thereon.
In no event shall the total amount so assessed in any one year against
any uninsured transmitter of money pursuant to this section exceed [two
per centum of the] ONE PERCENT OF THE ANNUAL VOLUME OF New York instru-
ments of such uninsured transmitter of money [which were outstanding at
the end of] FOR the calendar year preceding that in which such assess-
ments are made or one hundred twenty-five thousand dollars, whichever is
less. The net value of the fund shall be determined by deducting from
the value of the assets of the fund the aggregate actual and estimated
liabilities of the fund as determined by the superintendent.
S 45. This act shall take effect immediately.