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

                                  7739

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 23, 2009
                               ___________

Introduced  by  M. of A. 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 TO INDIVIDUALS
WHO ARE RESIDENTS OF, OR LOCATED within this state  and,  in  connection
with such solicitation, makes loans to individuals then resident 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] tran-
sactions which otherwise meet the requirements of this  section  IF  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09629-03-9
              

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NUMBER OF LOANS MADE IN ANY ONE 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.
  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
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-

A. 7739                             3

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.    1. The superintendent may suspend or
revoke any license issued hereunder if  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;
  (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

A. 7739                             4

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  hearing, suspend 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 OR THE CIRCUMSTANCES COVERED BY PARAGRAPHS (B) AND (C)  OF  THIS
SUBDIVISION.
  (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE  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, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE:
  (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 A 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 FOR GOOD CAUSE PURSUANT TO PARAGRAPH (B)
OR (C) 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,  UNLESS  THE
SUPERINTENDENT HAS, IN HIS OR HER SOLE 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 DATE.

A. 7739                             5

  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,
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

A. 7739                             6

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 OTHER 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.
  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]

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  (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, AND
  (IV) 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 super-
intendent shall determine 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]  (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) that
[upon  licensing  any  such  location  by the superintendent,] AFTER THE
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

A. 7739                             8

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 7 of section 369 of the banking law is REPEALED.
  S  13.  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  14.    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 subdi-
vision 5 as added by chapter 235 of the laws of 2008, is amended to read
as follows:
  S 373. Acts prohibited; suspension or revocation  of  license;  penal-
ties.    1.  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  nego-
tiation  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 arti-
cle.   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) if such check is drawn by the
United States, the state of New York, or any  political  subdivision  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 subdivi-
sion of the state of New York, or (b) 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. 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

A. 7739                             9

any such state, or any banking institution, 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 HEAR-
ING, SUSPEND 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 CAUSE SUBSTANTIAL  HARM  TO
THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE OR THE CIRCUMSTANCES
COVERED BY PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION.
  (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE  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, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE: (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

A. 7739                            10

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 THIS ARTICLE FOR GOOD CAUSE PURSUANT TO PARAGRAPH (B)
OR (C) OF SUBDIVISION THREE 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,  UNLESS  THE
SUPERINTENDENT HAS, IN HIS OR HER SOLE 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 DATE.
  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]
EXCEPT FOR ANY ORDERS ISSUED  PURSUANT  TO  SUBDIVISION  THREE  OF  THIS
SECTION,  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 pending the  determination  of  the  matter  except  on
notice to the superintendent and for a period not exceeding thirty days.
  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 BUSINESS OF A
LICENSED CHECK CASHER IN THIS STATE.
  [4.]  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] CLASS E FELONY.
  [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  15.  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]  FIVE  DOLLARS  ARE
charged  for  cashing  each  check,  draft or money order; nor shall the
provisions of this article apply to any national bank,  federal  reserve
bank,  or to any person[, partnership, association, corporation or other
organization] doing business under or pursuant to the provisions of this
chapter, except a licensee under this article.

A. 7739                            11

  S 16. 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 SALESMAN 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 SALESMAN 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
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) ACQUIRES INSTALMENT SALES CONTRACTS, OR INTERESTS THEREIN, FROM
PERSONS  WHO ARE NOT RETAIL SELLERS WITH RESPECT TO SUCH CONTRACTS; (II)
IS NOT ITSELF A RETAIL SELLER WITH RESPECT TO SUCH CONTRACTS; AND  (III)
DOES  NOT  SERVICE  SUCH  CONTRACTS,  OR IN THE ORDINARY COURSE HAVE ANY
CONTACT WITH THE OBLIGATORS UNDER  SUCH  CONTRACTS;  PROVIDED,  HOWEVER,
THAT  ANY  CONTACT  BETWEEN  A  SECONDARY HOLDER AND AN OBLIGOR SHALL BE
INITIATED SOLELY BY THE OBLIGOR.
  S 17. 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

A. 7739                            12

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
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  REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO
SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT;
  (B) THE FINGERPRINTS OF THE APPLICANT AND EACH  MEMBER,  DIRECTOR  AND
PRINCIPAL  OFFICER OF THE APPLICANT AS THE SUPERINTENDENT MAY DETERMINE,
WHICH MAY BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES  AND
THE  FEDERAL  BUREAU  OF  INVESTIGATION  FOR STATE AND NATIONAL CRIMINAL
HISTORY RECORD CHECKS;
  (C) AN AFFIRMATION THAT THE APPLICANT, OR ITS  MEMBERS,  DIRECTORS  OR
PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWENTY-ONE YEARS OF AGE;
  (D)  INFORMATION  AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS
RESPONSIBILITY,  BACKGROUND  AND  EXPERIENCES  OF  THE  APPLICANT,   ITS

A. 7739                            13

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 18. 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  19. 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 20. Paragraph (e) of subdivision 1 and subdivision 7 of section  495
of  the  banking  law  are  REPEALED, and subdivisions 2, 3, 4 and 5, as
added by chapter 635 of the laws of 1956, subdivision 5  as  amended  by
chapter 64 of the laws of 1958, are amended to read as follows:
  2.   [No] (A) EXCEPT AS PROVIDED FOR IN PARAGRAPHS (C) AND (D) OF THIS
SUBDIVISION, NO license UNDER THIS ARTICLE shall be suspended or revoked
except after a hearing thereon. [The] EXCEPT AS  OTHERWISE  PROVIDED  IN
THIS  SECTION,  THE  superintendent shall give the licensee at least ten
days' written notice of the time and place of such  hearing  by  [regis-
tered]  CERTIFIED mail, RETURN RECEIPT REQUESTED, addressed to the prin-
cipal 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 busi-
ness].  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
SALES FINANCE COMPANY IN THIS STATE. THE SUPERINTENDENT IN  HIS  OR  HER
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 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, SUSPEND 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 CAUSE SUBSTANTIAL  HARM  TO
THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE OR THE CIRCUMSTANCES
COVERED BY PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION.

A. 7739                            14

  (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE  UPON  THE FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENTS AS REQUIRED
BY THIS CHAPTER.
  (D) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE:
  (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 A 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  FOR GOOD CAUSE PURSUANT TO PARAGRAPH (B), (C) OR (D) 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, INCLUD-
ING, WITHOUT LIMITATION, MAKING ANY OVERDUE PAYMENT OR HAVING  ANY  SUCH
BANKRUPTCY  PETITION  DISMISSED.    OTHERWISE, 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 DATE.
  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-
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 21. Subdivisions 3 and 4 of section  497  of  the  banking  law  are
REPEALED.
  S  22.  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

A. 7739                            15

hundred dollars or imprisoned for not more than six months or  both,  in
the discretion of the court] CLASS E FELONY.
  S  23. Subdivision 2 of section 554 of the banking law is 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,  INDUSTRIAL  LOAN
COMPANY  OR  CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE OR
THE UNITED STATES.
  S 24. 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.
  S 25. Subdivision 5 of section 556 of the banking law is REPEALED.
  S 26. 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.
  S  27.  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 of license; procedure. 1. [The] IN ADDI-
TION  TO  THE AUTHORITY PROVIDED BY SUBDIVISION TWO OF THIS SECTION, THE
superintendent may forthwith revoke or suspend any license issued  here-
under if 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 HEAR-
ING, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC  HARM,  SUSPEND  ANY
LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERIOD NOT EXCEEDING NINE-

A. 7739                            16

TY  DAYS,  PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVI-
SION, 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 OR THE CIRCUMSTANCES COVERED BY
PARAGRAPHS (B) AND (C) OF THIS SUBDIVISION.
  (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE 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, UPON NOTICE
BUT WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED PURSUANT TO THIS ARTI-
CLE:
  (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 A 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 FOR
GOOD CAUSE 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 OR HAVING ANY SUCH BANKRUPTCY  PETITION
DISMISSED.  OTHERWISE, 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 DATE.
  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

A. 7739                            17

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
HAS TERMINATED AND THAT THE LICENSEE MAY NOT ENGAGE IN THE BUSINESS OF A
PREMIUM FINANCE AGENCY IN THIS STATE.
  S 28. Subdivisions 3 and 4 of section  560  of  the  banking  law  are
REPEALED.
  S 29. Section 562 of the banking law is REPEALED.
  S  30.  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] CLASS E
FELONY.
  S 31. 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 32. 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 33. 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

A. 7739                            18

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
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  34.  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

A. 7739                            19

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  35.  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  36.  Section 584 of the banking law, as added by chapter 448 of the
laws of 1975, paragraph (b) of subdivision 1 as  amended  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 of license; procedure.  1.
The  superintendent may revoke any license issued hereunder if he OR SHE
shall find that:
  (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],  WITHOUT
NOTICE OR A HEARING, suspend any license ISSUED PURSUANT TO THIS ARTICLE
for  a period not exceeding [thirty] NINETY days, pending investigation.
"GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL  EXIST  ONLY  WHEN  THE
LICENSEE  HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINAN-
CIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES  WHICH
MAY  CAUSE  SUBSTANTIAL  HARM  TO THE PERSONS AFFORDED THE PROTECTION OF
THIS ARTICLE OR THE CIRCUMSTANCES  COVERED  BY  PARAGRAPH  (C)  OF  THIS
SUBDIVISION.
  (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT  WITHOUT  A  HEARING,  SUSPEND  ANY  LICENSE  ISSUED PURSUANT 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, UPON NOTICE
BUT  WITHOUT  A  HEARING,  SUSPEND  ANY  LICENSE  ISSUED PURSUANT 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 SUPERINTEN-
DENT  PURSUANT  TO THE AUTHORITY PROVIDED BY THIS ARTICLE; OR (II) IMME-
DIATELY 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  THE RECEIPT BY THE SUPERINTENDENT OF NOTICE THAT THE BOND REQUIRED

A. 7739                            20

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 FOR GOOD CAUSE PURSUANT
TO 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,  HAVING  ANY  SUCH BANKRUPTCY PETITION DISMISSED OR HAVING SUCH
BOND REINSTATED. OTHERWISE, 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 DATE.
  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.
  [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]  EXCEPT
FOR ANY ORDERS ISSUED PURSUANT TO SUBDIVISION THREE OF THIS SECTION, 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 37. Subdivision 1 of section 586 of the banking  law,  as  added  by
chapter 448 of the laws of 1975, is amended to read as follows:
  1.  The  licensee  shall  keep  and  use  in  its business such books,
accounts, and records as will enable  the  superintendent  to  determine
whether  such  licensee is complying with the provisions of this article
and with the rules and regulations lawfully made by  the  superintendent
hereunder.  Every  licensee  shall  preserve  such  books, accounts, and

A. 7739                            21

records, for at least three years; provided, however, that  preservation
by photographic OR ELECTRONIC reproduction thereof [or records in photo-
graphic  form] shall constitute compliance with the requirements of this
section.
  S  38.  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  the  business  of  selling  or  issuing
checks, or engage in the business of receiving money for transmission or
transmitting  the  same ON BEHALF OF PERSONS THEN LOCATED OR RESIDENT IN
NEW YORK, 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 International Banking Act of 1978
(12 USC 3101 et seq.), as amended, savings bank, savings and loan  asso-
ciation,  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.
  S  39.  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] WITHOUT NOTICE OR A HEARING,
suspend any license issued pursuant to this article  for  a  period  not
exceeding  [thirty] NINETY days, pending investigation. "Good cause", as
used in this  subdivision,  shall  exist  only  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

A. 7739                            22

OR THE CIRCUMSTANCES COVERED BY PARAGRAPHS (B) AND (C) OF THIS  SUBDIVI-
SION.
  (B) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT  WITHOUT  A  HEARING,  SUSPEND THE LICENSE ISSUED HEREUNDER UPON THE
FAILURE OF SUCH LICENSEE TO MAKE ANY PAYMENTS AS REQUIRED BY THIS  CHAP-
TER.
  (C) THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, UPON NOTICE
BUT  WITHOUT A HEARING, SUSPEND ANY LICENSE ISSUED HEREUNDER: (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 BANKRUPT-
CY; OR (IV) IMMEDIATELY UPON RECEIPT  BY  THE  SUPERINTENDENT  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 ARTI-
CLE.
  7. IF THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE  FOR
GOOD  CAUSE  PURSUANT TO PARAGRAPH (B) OR (C) OF SUBDIVISION SIX 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 REINSTATING SUCH BOND  OR  INCREASING  THE  VALUE  OF  SUCH
INVESTMENTS.  OTHERWISE,  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 DATE.
  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 40. 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,] THAT the principal amount of such bond shall be no  less
than two hundred ten thousand dollars and on and after June first, nine-
teen  hundred  seventy-seven, 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-

A. 7739                            23

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-
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 41. Subdivision 4 of section 646 of the banking law is REPEALED.
  S 42. Section 647 of the banking law is REPEALED.
  S  43. Subdivision 2 of section 650 of the banking law is REPEALED and
subdivision 1, as amended by chapter 201 of the laws of 1969, is amended
to read as follows:
  1. Any person who violates or participates in  the  violation  of  any
provisions  of this article, or who knowingly makes any incorrect state-
ment of a material fact in any application,  report  or  statement  made
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 by
the  superintendent  shall  be  guilty  of  a  [misdemeanor  and,   upon
conviction,  shall be fined not more than five hundred dollars or impri-
soned for not more than six months or both, in  the  discretion  of  the
court] CLASS E FELONY.
  S 44. 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

A. 7739                            24

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  45. 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 46. This act shall take effect immediately.