S T A T E   O F   N E W   Y O R K
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                                  11325

                          I N  A S S E M B L Y

                              June 3, 2010
                               ___________

Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Gibson,
  Towns) -- (at request of the Banking  Department)  --  read  once  and
  referred to the Committee on Banks

AN  ACT  to  amend  the  banking  law,  in relation to licensed lenders,
  licensed cashers of checks, sales finance companies,  premium  finance
  companies,  budget  planners  and transmitters of money; and to repeal
  certain provisions of such law relating thereto

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

  Section 1. Section 340 of the banking law, as amended by chapter 22 of
the laws of 1990, is amended to read as follows:
  S 340.  Doing business without license prohibited. No person [or other
entity] shall engage in the business of making loans IN NEW YORK in  the
principal amount of [twenty-five] FIFTY thousand dollars or less for any
loan  to  an  individual  for personal, family, household, or investment
purposes and in a principal  amount  of  [fifty]  ONE  HUNDRED  thousand
dollars or less for business and commercial [loans, and charge, contract
for,  or  receive  a  greater  rate of interest than the lender would be
permitted by law to charge if he were not a licensee hereunder except as
authorized by this article  and]  PURPOSES  without  first  obtaining  a
license from the superintendent.
  For  the  purposes  of  this  section,  a  person [or entity] shall be
considered as engaging in the business of making loans in New York,  and
subject  to  the licensing and other requirements of this article, if it
solicits loans in [the amounts prescribed by this section  within]  this
state BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELECTRONIC MAIL,
TELEPHONE,  RADIO,  TELEVISION,  THE  INTERNET  OR  ANY OTHER ELECTRONIC
MEANS, and, in connection with such solicitation, makes loans  to  indi-
viduals  then resident OR LOCATED in this state OR, IN THE CASE OF LOANS
FOR BUSINESS OR COMMERCIAL PURPOSES, HAVING A PLACE OF  BUSINESS  WITHIN
THIS  STATE,  except  that  no person [or entity] shall be considered as
engaging in the business of making loans in this state on the  basis  of
[isolated,  incidental  or occasional] transactions which otherwise meet
the requirements of this section IF THE NUMBER OF LOANS MADE IN ANY  ONE

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

                                                           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

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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.

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  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

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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.