senate Bill S5463

2011-2012 Legislative Session

Relates to restrictions on employees of the banking department, collecting assessment fees, suspending mortgage bankers; repealer

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 13, 2012 referred to banks
delivered to assembly
passed senate
ordered to third reading cal.1208
committee discharged and committed to rules
Jan 04, 2012 referred to banks
returned to senate
died in assembly
Jun 14, 2011 referred to banks
delivered to assembly
passed senate
Jun 06, 2011 advanced to third reading
Jun 02, 2011 2nd report cal.
Jun 01, 2011 1st report cal.905
May 24, 2011 referred to banks

Votes

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Jun 13, 2012 - Rules committee Vote

S5463
23
0
committee
23
Aye
0
Nay
1
Aye with Reservations
0
Absent
1
Excused
0
Abstained
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Jun 1, 2011 - Banks committee Vote

S5463
18
0
committee
18
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

S5463 - Bill Details

Current Committee:
Law Section:
Banking Law
Laws Affected:
Rpld §28-b sub 2, amd Bank L, generally; amd §254-b, RP L

S5463 - Bill Texts

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Relates to restrictions on employees of the banking department, collecting assessment fees, suspending mortgage bankers and brokers for cause and eliminating outdated language and provisions; relates to interest rate increases on mortgage loans after default.

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BILL NUMBER:S5463

TITLE OF BILL:
An act
to amend the banking law, in relation to
restrictions on
employees of the banking department, collecting
assessments and fees, suspending mortgage
bankers and brokers for cause and eliminating
outdated language and provisions; to amend
the real property law, in relation to interest rate
increases on mortgage loans after default and to repeal
certain provisions of the banking law relating thereto

PURPOSE OF BILL:

This bill would make various technical and clarifying amendments to
the Banking Law and the Real Property Law.

SUMMARY OF PROVISIONS:

This bill makes a number of amendments that clarify, correct or
modernize various provisions in the Banking Law ("BL"), and one
amendment to the section of the Real Property Law governing late
charges on certain mortgage loans.

Section 1 of the bill amends BL § 14-d(7) to clarify the institutions
to which the subdivision applies.

Section 2 of the bill amends BL § 22 with respect to the
Superintendent's authority to require that applicants be
fingerprinted. It also corrects the numbering of the subdivisions in
the section. It also authorizes the Superintendent to update a
criminal background check done by another entity if it is more than
five years old, and makes provision for a federal criminal history
report to be obtained other than through the DCJS (e.g. through the
NMLS under Article 12-E).

Section 3 of the bill amends BL § 23 to authorize the Department to
retain investigation fees paid even if a certificate of organization
is not "filed."

Section 4 of the bill amends BL § 24 to clarify that extension of the
90 day period for the examination and approval of an organization
certificate is within the sole discretion of the Superintendent.
There are also a number of amendments to make the section
gender-neutral. The amendment in BL § 24(3) is not intended to have
substantive
effect, since the requirements for approval appear elsewhere in this
Article. Finally, a missing reference to BL § 136 is added to
BL §24(4).

Section 5 of the bill amends BL § 25(1) and (3) with respect to the
approval of authorization certificates. Several of the changes are to
make references to the Superintendent gender-neutral. Another
amendment increases from 60 to 90 days the discretion of the


Superintendent to extend the time period in which to issue the
authorization certificate, where the applicant needs the time to
raise capital or fulfill other conditions precedent to starting
business. The amendment also authorizes the Superintendent to extend
the time period for longer than 90 days where he or she determines
th,at "extraordinary circumstances" exist. Similarly, the amendment
to BL § 25(3) clarifies that the Superintendent may grant more than a
single extension of time for the applicant to commence business.

Sections 6, 7 and 8 of the bill make amendments to BL §§ 28, 28-a and
28-b, respectively. The first two amendments are designed to make
references to the Superintendent gender-neutral. In addition, BL
28-b(2), which concerned an outdated committee created by its
enacting legislation, is deleted.

Section 9 of the bill amends BL § 28-b(5) to delete superfluous
language.

Section 10 of the bill adds a new BL § 36-b. This section clarifies
how records required by other sections of the Banking Law may be
preserved, including by electronic storage media, and sets forth
criteria for electronic storage.

Section 11 of the bill amends BL § 42 to allow the Superintendent to
modify the notice provisions otherwise contained in the section,
where the public interest will be served.

Section 12 of the bill amends BL § 229 to eliminate a reference to a
section of law which has been repealed.

Section 13 of the bill amends BL § 413 to delete the reference to BL
142-b which has been repealed.

Section 14 of the bill amends BL § 460(2) to delete a reference to
section 458 which has been repealed.

Section 15 of the bill amends BL § 4002 consistent with the changes to
BL § 22 described above. Also, a limited exception to the requirement
that fingerprint reviews be completed before an approval is granted
by the Superintendent is added for the limited situation where a
proposed entity has a surplus of incorporators.

Section 16 of the bill amends BL § 5004(8) to delete the references to
sections that have been repealed.

Section 17 of the bill amends BL § 591 (1) (b) to make the fingerprint
requirements of Article 12-D consistent with those of BL . 22.

Section 18 of the bill amends BL § 592(1) to delete unnecessary
verbiage. Section 595(8) already addresses the issues covered by the
deleted language.

Section 19 of the bill amends BL § 592-a to correct a reference from
"licensee" to "registrant" and to delete unnecessary verbiage as in
the case of Section 592(1).


Section 20 of the bill amends subdivisions 1,2,4, 4-a, 5, 6 and 7-a
of BL § 595 and adds a new Subdivision 3. Subdivision 2 extends the
suspension period from 30 to 90 days, and adds to the list of
violations for which a suspension may be imposed without a hearing,
those set forth in paragraphs (b) and (c). New Subdivision 3
clarifies when any such suspended license or registration may be
reinstated; otherwise, the license or registration will terminate by
operation of law after 90 days. Conforming changes are made to the
other amended subdivisions.

Section 21 of the bill amends Real Property Law § 254-b, which
currently prohibits "late charges" in excess of 2 percent of the
delinquent installment, so that it explicitly bars interest rate
increases on loans secured by residential homes and cooperative
apartments arising from a default (e.g. a "default interest rate").

Section 22 of the bill amends BL 9001-a consistent with the amendments
to BL §§ 22 and 4002. Also, a limited exception to the requirement
that fingerprint reviews be completed before an approval is granted
by the Superintendent is added for the limited situation where a
proposed entity has a surplus of incorporators.

Sections 23 to 38 make similar changes to various recordkeeping
provisions in the Banking Law. These changes also modernize and
conform the recordkeeping requirements applicable to regulated
entities to make them consistent with the amendments to BL § 36-b.

Section 39 of the bill provides for the effective date of the bill.

EXISTING LAW:

The Banking Law currently contains many outdated references and much
outdated language. Numerous sections on recordkeeping authorize
preservation of photographic records but do not mention electronic
recordkeeping. In addition, recordkeeping obligations of sales
finance companies and money transmitters are provided in regulations
rather than by statute. Also, the ability of the Superintendent to
suspend a license or registration are now limited under Banking Law
595. The Real Property Law permits certain late fees in times of
default, but its provisions have been subject to misinterpretation.

PRIOR LEGISLATIVE HISTORY:
This proposal was originally introduced in 2009 and 2010. The bill
passed the Senate in 2010 but not the Assembly.

STATEMENT IN SUPPORT:

This bill would demonstrate the ongoing commitment of New York to
update its statutory framework for the regulation of entities subject
to its jurisdiction. The vast majority of the changes remove outdated
references and make other non-substantive changes in the Banking Law
to reflect the environment within which financial services now
operate.

In addition, the following substantive changes would be made:


BL § 42 contains the requirements for publication of certain
information on the Department's bulletin board (now electronic). On
the rare occasion when approval of an application or order is time
sensitive, publication of a notice under BL § 42 is not feasible or
cannot be done consistent with Banking Law § 36(10). The proposed
amendment to Banking Law § 42 would allow the Superintendent to vary
or waive notice periods under that section as long as he or she
determines that consideration of the matter is in the public interest
and such waiver is necessary because of unusual and extraordinary
circumstances.

BL § 595 sets forth the circumstances under which the Department can
suspend the license or registration of a mortgage banker or mortgage
broker. In dealing with licensed financial service providers,
including mortgage bankers and brokers, during the recent subprime
mortgage and credit crisis, the Department has determined that the
current Banking Law provisions for suspensions and revocations of
licenses or registrations do not provide sufficient flexibility and
are unnecessarily costly. Most provisions of the Banking Law
governing the suspension of non-banking entities limit the
Superintendent's ability to suspend a license to 30 days and require
a hearing to revoke a license. Thus, as a practical matter, the
Superintendent must simultaneously issue an order of suspension and
schedule a revocation hearing. Moreover, licensed entities often ask
for time to hire counsel and prepare for a hearing and therefore
request postponement of the hearing. Consequently, the proposed
amendment would extend to 90 days the Superintendent's authority to
suspend a license of a mortgage banker or the registration of a
mortgage broker for cause, as defined in the Banking Law.

As a result of the current state budget crisis, the Department has
analyzed areas where it believes it is incurring needless expense.
One such area is in holding revocation hearings for non-bank licensed
financial services providers, in this case mortgage bankers and
brokers, who have violated certain key legal obligations and where
there is no defense in the statute and where hearings are
unnecessarily costly, especially because the respondent often does
not appear at the hearing. The proposed amendments to BL § 595 would
eliminate the need for such hearings in' the case of the mortgage
bankers and brokers.

The amendment to BL § 25 would increase, from 60 days to 90 days, the
discretion of the Superintendent to extend the time period in which
to issue an authorization certificate, where the applicant needs the
time to raise capital or fulfill other conditions precedent to
starting a business. The amendment also authorizes the Superintendent
to extend the time period for longer than 90 days where he or she
determines that "extraordinary circumstances" exist. The first
amendment would give start-up banks a longer period of time in which
to complete their "launch" activities.

The amendments to the Real Property Law would remove any confusion
over whether a lender could increase the interest rate on a loan in
addition to charging late fees in default situations. While the
Department believes that increasing the interest rate in such
situations is not currently permissible, some institutions have
reached a contrary conclusion based on their interpretation of the


wording of the statute. The instant amendment would eliminate any
such confusion.

BUDGET IMPLICATIONS:

There are no budget implications from this bill.

EFFECTIVE DATE:

The bill would take effect immediately upon enactment, provided that
section 21 of the bill will apply only to loans made after the
effective date of the bill, and sections 28 and 33 will take effect
on the 60th day after the effective date of the bill.

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

                                  5463

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 24, 2011
                               ___________

Introduced  by  Sen. GRIFFO -- (at request of the Banking Department) --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Banks

AN  ACT to amend the banking law, in relation to restrictions on employ-
  ees of  the  banking  department,  collecting  assessments  and  fees,
  suspending  mortgage  bankers  and  brokers  for cause and eliminating
  outdated language and provisions; to amend the real property  law,  in
  relation  to  interest  rate increases on mortgage loans after default
  and to repeal certain provisions of the banking law relating thereto

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

  Section 1.  Subdivision 7 of section 14-d of the banking law, as added
by chapter 234 of the laws of 1983, is amended to read as follows:
  7. In this section "banking institution" has the same meaning ascribed
to it by section [nine-f] NINE-K of this chapter and "item" has the same
meaning ascribed to it by the uniform commercial code.
  S  2.  Section 22 of the banking law, as amended by chapter 553 of the
laws of 2007, is amended to read as follows:
  S 22. Fingerprints. [(a)] 1. Notwithstanding any  other  provision  of
law,  every applicant for a license, authorization or registration under
articles nine, nine-A, eleven-B, twelve-B, twelve-C, twelve-D,  twelve-E
and thirteen-B of this chapter and every applicant filing an application
to  acquire  control  of any licensee or registrant, as the case may be,
under such articles shall submit [simultaneously with  an  application,]
his  or her fingerprints in such form and in such manner as specified by
the division of criminal justice  services  OR  THE  SUPERINTENDENT,  AS
APPROPRIATE,  but  in  any  event,  no less than two digit imprints. The
superintendent shall submit such fingerprints to the division of  crimi-
nal  justice  services  for the purpose of conducting a criminal history
search and returning a report thereon in accordance with the  procedures
and  requirements established by the division pursuant to the provisions

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09183-03-1

S. 5463                             2

of article thirty-five of the executive law,  which  shall  include  the
payment  of  the  prescribed  processing  fees. The superintendent shall
request that the division submit such fingerprints to the federal bureau
of  investigation,  together with the processing fees prescribed by such
bureau, for the purpose of conducting  a  criminal  history  search  and
returning  a  report  thereon  UNLESS  THE SUPERINTENDENT HAS MADE OTHER
ARRANGEMENTS FOR SUCH SUBMISSION.  An applicant shall not be required to
submit his or her fingerprints as required by this subdivision  if  such
applicant (i) is already subject to regulation by the department and the
applicant  has submitted such fingerprints to the department, such fing-
erprints have  been  submitted  to  the  division  of  criminal  justice
services  for the purpose of conducting a criminal history search, and a
report of such search has been received  by  the  department  from  such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a  federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search  conducted  of  such
individual  and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS;  or
(iii)  is  an  officer  or  stockholder of a corporation whose common or
preferred stock is registered on  a  national  securities  exchange,  as
provided  in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved  June  sixth,  nineteen  hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints  to  such  exchange  or  market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN THE PAST FIVE YEARS; provided, however, that  the  superintendent
may  subsequently  require  such  applicant to submit his or her finger-
prints if the superintendent has a reasonable  basis  for  updating  the
information  or  determination resulting from the report of the criminal
history search conducted at the request of such federal banking  agency,
exchange or market system.
  [(b)]  2.  The  superintendent  [shall]  MAY  also, concurrent with an
investigation of a licensee or registrant, or an authorized  individual,
pertaining  to  a violation of this chapter, submit such fingerprints to
the division of criminal justice services for the purpose of  conducting
a criminal history search and returning a report thereon and through the
division  to  the  federal  bureau of investigation for the purpose of a
fingerprint check of such licensee, registrant or authorized individual.
  [(c)] 3. For purposes of this section,  "applicant"  shall  include  a
natural  person  or such principal, officer, director, trustee or stock-
holder of any other entity as may be designated by  the  superintendent.
Notwithstanding  any other provision of this article, the superintendent
shall not access criminal history data or information, unless any agency
from which the superintendent receives directly criminal history data or
information has entered into a use and dissemination agreement with  the
superintendent consistent with the provisions of this section.
  S  3.  The  second undesignated paragraph of section 23 of the banking
law, as amended by section 5 of part O of chapter  59  of  the  laws  of
2006, is amended to read as follows:
  At  the  time  of submission of the certificate and accompanying docu-
ments an investigation fee as prescribed pursuant to section  eighteen-a
of  this article shall be paid to the superintendent[, to be retained by
him or her if the certificate and accompanying documents are  filed.  If
the  certificate  and  accompanying  documents  are not filed because of

S. 5463                             3

defects therein, the investigation fee  is  to  be  returned  with  such
papers to the persons from whom they were received].
  S  4.  Section 24 of the banking law, as amended by chapter 684 of the
laws of 1938, subdivision 1 as amended by chapter 453  of  the  laws  of
1960,  subdivision  2  as  amended  by  chapter 419 of the laws of 1996,
subdivision 3 as amended by chapter 52 of the laws of 1944 and  subdivi-
sion 4 as amended by chapter 608 of the laws of 1996, is amended to read
as follows:
  S  24.  Investigation  by superintendent; refusal or approval;  filing
certificate. 1. Within ninety days after the date when any  organization
certificate  or  private  banker's certificate shall have been filed for
examination, the superintendent, if he OR SHE shall find after  investi-
gation and examination of what he OR SHE deems to be the best sources of
information  [at his command] AVAILABLE that the character, responsibil-
ity and general fitness of the person or persons named in  such  certif-
icate  are  such  as  to  command confidence and warrant belief that the
business of the proposed corporation or private banker will be  honestly
and  efficiently  conducted in accordance with the intent and purpose of
this chapter, and that the public  convenience  and  advantage  will  be
promoted  by  allowing  such  proposed  corporation or private banker to
engage in business, shall [submit]  APPROVE  such  certificate  [to  the
banking  board together with all papers, correspondence and other infor-
mation in his possession relating thereto, including the results of  his
investigation and his recommendation in the matter]. [Such] AN EXTENSION
OF  SUCH NINETY DAY period [of ninety days] may be [extended] REQUESTED,
by a written [consent] REQUEST executed by a  majority  of  the  persons
from  whom  the superintendent received such organization certificate or
private banker's certificate, for such additional reasonable  period  of
time  as may be required for applicants to comply with conditions prece-
dent stipulated by the superintendent as being  a  prerequisite  to  his
[recommendation  to the banking board] OR HER APPROVAL.  THE SUPERINTEN-
DENT, IN HIS OR HER SOLE DISCRETION, SHALL DETERMINE  WHETHER  TO  GRANT
SUCH AN EXTENSION.
  2.  [If  three-fifths of the members of the board, after consideration
of all relevant information available to them, shall vote for  approval,
the]  THE  superintendent[, if he is still satisfied, upon the consider-
ations set forth in subdivision one of this section, that such  proposed
corporation  or  private  banker  should be permitted to engage in busi-
ness,] shall [approve such certificate and] ALSO endorse  upon  each  of
the  duplicates the date of such approval. [He] THE SUPERINTENDENT shall
forthwith cause notice of such approval to  be  given  to  the  proposed
incorporators  or  private  banker and one of the duplicate certificates
[to] SHALL be filed in the office of the department and the other in the
office of the clerk of the county in which the principal office of  such
proposed  corporation  or private banker is to be located.  In a case in
which a private banker certificate is submitted  to  the  superintendent
for  the  purpose of continuing the business in connection with a change
in its partnership, the superintendent shall approve the private  banker
certificate  [without  any  action  by  the banking board] upon making a
determination that the private banker should be  permitted  to  continue
its  business based upon the considerations set forth in subdivision one
of this section.
  3. If [three-fifths of the members of the banking board shall not vote
for approval, or if] the superintendent[, either prior or subsequent  to
the submission of such certificate to the board,] is not satisfied, upon
the  considerations  set  forth in subdivision one of this section, that

S. 5463                             4

such proposed corporation or  private  banker  should  be  permitted  to
engage in business, the superintendent shall refuse such certificate and
shall  endorse  thereon  the  date of such refusal and return one of the
duplicates  to  the  proposed  incorporators or private banker from whom
such certificate was received.
  4. The provisions of this section shall not apply to any  organization
certificate  required to be filed in the office of the superintendent by
SECTION ONE HUNDRED THIRTY-SIX,  BY  section  two  hundred  sixty-b,  by
section  four  hundred ten, by section four hundred eleven or by section
four hundred eighty-six of this chapter.
  S 5. Subdivisions 1 and 3 of section 25 of the banking  law,  subdivi-
sion  1  as amended by chapter 512 of the laws of 1977 and subdivision 3
as amended by chapter 561 of the laws of 1946, are amended  to  read  as
follows:
  1.  If  the  superintendent  shall  find that a corporation or private
banker, the certificate of which has been approved and filed as provided
in section twenty-four of this article, has in good faith complied  with
all  the  requirements of law and fulfilled all the conditions precedent
to commencing business imposed by this chapter, [he] THE  SUPERINTENDENT
shall,  within  ninety  days after the date of such approval, [or within
such longer period thereafter as he may permit pursuant  to  the  second
sentence  of  this  subdivision,] but in no case after the expiration of
that period, issue [under his hand] and EXECUTE UNDER the official  seal
of  the  department,  in triplicate, an authorization certificate to the
person or persons named in  such  organization  certificate  or  private
banker's certificate.  [The]  NOTWITHSTANDING THE PRECEDING SENTENCE, IF
THE  SUPERINTENDENT  DETERMINES IT IS CONSISTENT WITH THE DECLARATION OF
POLICY CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent  may
extend  the  period  within  which he OR SHE may issue the authorization
certificate by (I) an additional [sixty] NINETY days, provided, however,
that he OR SHE shall have determined that  such  extension  of  time  is
needed for raising capital, for fulfilling any other condition precedent
to  the commencement of business or for satisfying any other requirement
of organization, whether imposed by statute  or  regulation[,  and  that
such extension is consistent with the declaration of policy contained in
section ten of this chapter] OR OTHERWISE, OR (II) SUCH LONGER PERIOD OF
TIME HE OR SHE SHALL DEEM APPROPRIATE, PROVIDED, HOWEVER, THAT HE OR SHE
SHALL  HAVE  DETERMINED  THAT  EXTRAORDINARY  CIRCUMSTANCES  EXIST. Such
authorization certificate shall state that the  corporation  or  private
banker  named  therein  has complied with the provisions of this chapter
and that it is authorized to transact the  business  specified  therein.
Such  authorization  certificate  shall  be conclusive evidence that all
conditions precedent have been fulfilled and that  the  corporation  has
been  formed under this chapter, except in an action or special proceed-
ing brought by the superintendent or the attorney  general.  The  super-
intendent  shall  cause one of the triplicate authorization certificates
to be transmitted to the corporation or private banker  thereby  author-
ized  to  commence  business,  another  to be filed in the office of the
department, and the third to be filed in the county  clerk's  office  in
which  the  organization certificate or the private banker's certificate
has been filed. The copies of the authorization certificate filed in the
offices of the superintendent and the county clerk shall be attached  to
the  copies  of the organization certificate or private banker's certif-
icate previously filed and such certificates shall be  recorded  in  the
records of incorporation therein.

S. 5463                             5

  3. Any corporation which shall not commence business within six months
after  the  date on which its authorization certificate is issued by the
superintendent shall forfeit its rights and privileges as a  corporation
and its corporate powers shall cease and determine unless the time with-
in  which such business may be commenced has been extended by the super-
intendent.  Upon satisfactory cause being shown, the superintendent  may
grant  [an extension for a period of not more than one year] ONE OR MORE
EXTENSIONS. Such extension shall be granted by order executed, transmit-
ted and filed in the manner provided for an authorization certificate in
subdivision one of this section.
  S 6. Section 28 of the banking law, as amended by chapter 315  of  the
laws of 2008, is amended to read as follows:
  S 28.  Change  of location; change of designation of principal office;
approval or refusal; certificate. Upon receipt by the superintendent  of
a  written  application  in proper form from any banking organization or
foreign corporation for leave to change its place or one of  its  places
of  business to another place or from any banking organization for leave
to change the designation of its principal office to a branch office and
to change the designation of one of its branch offices to its  principal
office,  the  superintendent shall, if he or she shall be satisfied that
such change may be permitted under the terms of this  chapter  and  that
there  is  no  reasonable  objection to such change, execute and issue a
certificate under the official seal of the department  authorizing  such
change  and  specifying  the  date  on or after which such change may be
made, and shall cause the original of such certificate to be transmitted
to the applicant, a copy to be filed in the office of the department and
a copy to be filed in the office of the clerk of the county in which the
principal office of the applicant  is  located,  provided  that  if  the
proposed  principal  office  is in a different county than the county in
which the principal office is located at the time of the filing  of  the
application,  the  superintendent  shall cause copies to be filed in the
offices of the clerks of both counties. If the superintendent shall  [be
satisfied in any case that such change is undesirable or inexpedient, he
or  she shall] refuse such application [and], HE OR SHE SHALL notify the
applicant of such determination.
  S 7. Section 28-a of the banking law, as amended by section 6 of  part
O of chapter 59 of the laws of 2006, is amended to read as follows:
  S  28-a.  Temporary  change  of location; approval or refusal; certif-
icate.  Notwithstanding any provisions of law  limiting  the  number  of
offices  which  may  be  maintained thereby, any banking organization or
foreign banking corporation may make a written application to the super-
intendent for a temporary change of location of its authorized place  or
one of its authorized places of business or a portion thereof to another
place  within  the  state  which shall be as near as practicable to such
authorized place of business. At the time of making the  application  an
investigation  fee  as prescribed pursuant to section eighteen-a of this
article shall be paid to the superintendent for each temporary  location
for  which leave to open is sought, except where (1) the applicant would
not be required to pay an investigation fee upon the filing of an appli-
cation for a change of location under provisions of this  chapter  other
than  this section, or (2) said application is necessitated by damage or
destruction caused by  flood,  tidal  wave,  earthquake,  conflagration,
tornado,  hurricane,  cyclone,  windstorm  or  other storm or such other
event as shall have been declared a catastrophe by  the  superintendent.
If  there  is  no reasonable objection to such change, and if the super-
intendent finds that such change is  necessary  or  desirable  during  a

S. 5463                             6

period  of  construction,  repair,  alteration,  improvement,  or recon-
struction of the previously authorized place  of  business,  he  or  she
shall  issue  AND  EXECUTE a certificate under [his or her hand and] the
official  seal of the department authorizing each such change and speci-
fying (a) the period during which such temporary location may  be  main-
tained,  (b) the date on or after which such change may be made, and (c)
the powers which may be  exercised  thereat.  The  superintendent  shall
cause  the  original of such certificate to be transmitted to the appli-
cant, a copy to be filed in the office of the department and a  copy  to
be filed in the office of the clerk of the county in which the principal
office  of  the  applicant  is  located. If the superintendent shall [be
satisfied in any case that a change is undesirable or inexpedient, he or
she shall] refuse such application [and], HE OR  SHE  SHALL  notify  the
applicant of [his or her] SUCH determination. A temporary place of busi-
ness occupied pursuant to the provisions of this section shall be closed
as soon as practicable, and in no event later than the date specified in
its  authorization  certificate,  unless  the  superintendent shall have
extended such time. The banking organization or corporation shall notify
the superintendent in writing prior to such closing as to  the  date  it
intends to close the temporary place of business.
  S 8. Subdivision 2 of section 28-b of the banking law is REPEALED.
  S  9.  Subdivision  5  of section 28-b of the banking law, as added by
chapter 361 of the laws of 1984, is amended to read as follows:
  5.  The  [banking  board]  SUPERINTENDENT  is  hereby  authorized  and
empowered[,  by  a  three-fifths vote of all its members,] to promulgate
rules and regulations  effectuating  the  provisions  of  this  section,
including  any  rules  and  regulations providing that the assessment of
banking institutions referred to in subdivision three  of  this  section
shall be made on a graduated numerical basis.
  S 10.  The banking law is amended by adding a new section 36-b to read
as follows:
  S 36-B. PRESERVATION OF BOOKS AND RECORDS.  WHEN ANY PROVISION OF THIS
CHAPTER OR ANY RULE OR REGULATION ADOPTED PURSUANT THERETO REQUIRES THAT
BOOKS  AND  RECORDS  BE  PRESERVED, SUCH REQUIREMENT MAY BE SATISFIED BY
MAINTENANCE OF ORIGINAL PAPERS OR OTHER  RECORDS,  PHOTOGRAPHIC  REPROD-
UCTIONS,  OR RECORDS STORED IN ELECTRONIC STORAGE MEDIA. AS USED IN THIS
CHAPTER, "ELECTRONIC STORAGE MEDIA" MEANS ANY DIGITAL STORAGE MEDIUM  OR
SYSTEM THAT MEETS THE FOLLOWING CONDITIONS:
  1.    IT  MUST  PRESERVE  THE  RECORDS  EXCLUSIVELY IN NON-REWRITABLE,
NON-ERASABLE FORMAT;
  2.  IT MUST VERIFY AUTOMATICALLY THE QUALITY AND ACCURACY OF THE STOR-
AGE MEDIA RECORDING PROCESS;
  3.  IT MUST HAVE THE CAPACITY TO READILY DOWNLOAD INDEXES AND  RECORDS
PRESERVED  ON  THE  ELECTRONIC STORAGE MEDIA TO ANY MEDIUM ACCEPTABLE TO
THE SUPERINTENDENT; AND
  4.  IT MUST BE IMMEDIATELY READABLE ON EQUIPMENT AT ALL  TIMES  AVAIL-
ABLE TO THE SUPERINTENDENT FOR EXAMINATION OF SUCH RECORDS.
  S  11.  The  closing  paragraph  of  section 42 of the banking law, as
amended by chapter 684 of the laws  of  1938,  is  amended  to  read  as
follows:
  NOTWITHSTANDING  ANYTHING  TO THE CONTRARY IN THIS SECTION, THE SUPER-
INTENDENT MAY VARY OR WAIVE ANY SUCH PUBLICATION REQUIREMENTS, IF HE  OR
SHE  SHALL  DETERMINE THAT SUCH VARIATION OR WAIVER IS NECESSARY BECAUSE
OF UNUSUAL AND EXTRAORDINARY  CIRCUMSTANCES  AND  CONSIDERATION  OF  THE
MATTER IS IN THE PUBLIC INTEREST. Every such statement after having been
so posted for one week shall be placed on file and kept in the office of

S. 5463                             7

the department. All such statements shall be public documents and at all
reasonable times shall be open to public inspection.
  S  12.  Subdivision 1 of section 229 of the banking law, as amended by
chapter 1 of the laws of 1984, is amended to read as follows:
  1. This article applies to every savings bank and shall not  apply  to
any  other banking organization except to such extent, if any, as may be
specified in any article of this chapter governing such  banking  organ-
ization;  provided,  however,  that  in  the  case of stock-form savings
banks, this article applies to every such organization except  that  the
[banking board] SUPERINTENDENT, consistent with the declaration of poli-
cy  described  in section fourteen-e of this chapter, shall be empowered
to deem inapplicable to stock-form savings banks, sections  two  hundred
thirty,  [two  hundred  thirty-one,] two hundred thirty-two, two hundred
thirty-three, subdivisions one and two of section  two  hundred  thirty-
four,  two  hundred  forty-three,  two  hundred  forty-four, two hundred
forty-five, two hundred forty-six, two hundred forty-six-a, two  hundred
forty-seven,  two  hundred  forty-eight,  two  hundred  forty-nine,  two
hundred fifty, two hundred fifty-one and two hundred fifty-two  of  this
chapter.
  S  13.  Subdivision 1 of section 413 of the banking law, as amended by
chapter 300 of the laws of 1994, is amended to read as follows:
  1. With the prior approval of the superintendent, a New  York  savings
and  loan  holding company or a subsidiary thereof or a New York savings
association may acquire control of  an  out-of-state  savings  and  loan
holding  company  or an out-of-state savings association, and an out-of-
state savings and loan holding company or a  subsidiary  thereof  or  an
out-of-state  savings  association  may  acquire  control  of a New York
savings and loan holding company  or  a  New  York  savings  association
subject  to regulations to be adopted by the [banking board] SUPERINTEN-
DENT. [The terms and conditions prescribed by such regulations shall  be
substantially  similar  to those contained in section one hundred forty-
two-b of this chapter governing reciprocal  interstate  acquisitions  by
bank holding companies.]
  S  14.  Subdivision  2  of section 460 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
  2. Earnings from all sources for the period for which a dividend is to
be paid[, except as provided in section four hundred fifty-eight of this
article,] may be credited to the profit and loss account of  the  credit
union  and  the following items shall be charged against such account in
the determination of the amount available for dividends to shareholders:
  (a) All expenses paid or incurred by the credit union in  the  manage-
ment  of  its affairs, the collection of its debts or the transaction of
its business.
  (b) The interest paid or accrued on debts owed by the credit union.
  (c) All losses incurred on loans in excess of the allowance  for  loan
loss account.
  (d)  Any interest collected in advance shall be considered unearned at
the end of the fiscal period, and shall  be  set  aside  in  an  account
called "unearned interest".
The  credit  balance  of  the profit and loss account as thus determined
shall constitute the undivided profits of the credit union at the  close
of  such  period,  and  shall  be applicable to the payment of dividends
except as provided in subdivision three of this section.
  S 15. Section 4002 of the banking law, as added by chapter 321 of  the
laws  of  1992, subdivision (a) as amended by chapter 217 of the laws of

S. 5463                             8

2010, subdivision (b) as amended and subdivision (d) as added by chapter
302 of the laws of 2003, is amended to read as follows:
  S 4002. Fingerprints.  [(a)] 1.  Notwithstanding any  other provisions
of  law,  every  incorporator of a corporation shall, in addition to any
other requirements which may be imposed by  the  superintendent,  submit
simultaneously with an application, his or her fingerprints in such form
and  in  such  manner  as  specified by the division of criminal justice
services, but in any event, no  less  than  two  digit  imprints.  Every
applicant filing an application to acquire control of any banking insti-
tution  under  sections one hundred forty-three-a and one hundred forty-
three-b of this chapter shall, in addition  to  any  other  requirements
which  may  be imposed by the superintendent, submit simultaneously with
an application, his or her fingerprints in such form and in such  manner
as  specified  by  the division of criminal justice services, but in any
event, no less than two digit imprints. The superintendent shall  submit
the  fingerprints  to  the division of criminal justice services for the
purpose of conducting a criminal history search and returning  a  report
thereon  in  accordance with the procedures and requirements established
by the division pursuant to the provisions of article thirty-five of the
executive law, which shall include the payment of the  prescribed  proc-
essing  fees.  The superintendent shall request that the division submit
such fingerprints to the federal bureau of investigation, together  with
the  processing  fees  prescribed  by  such  bureau,  for the purpose of
conducting a criminal history search and returning a report thereon.
  [(b)] 2. The superintendent  [shall]  MAY  also,  concurrent  with  an
investigation  of  an  incorporator  of  a  corporation  pertaining to a
violation of this chapter, submit such fingerprints to the  division  of
criminal  justice  services  for  the  purpose  of conducting a criminal
history search and returning a report thereon and through  the  division
to  the federal bureau of investigation for the purpose of a fingerprint
check of such incorporator.
  [(c)] 3. For purposes of this  section,  ["incorporator"]  "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as  may  be designated by the superintendent.  Notwithstanding any other
provision of this article, the superintendent shall not access  criminal
history  data  or  information,  unless any agency from which the super-
intendent receives directly criminal history  data  or  information  has
entered  into  a use and dissemination agreement with the superintendent
consistent with the provisions of this section.
  [(d)] 4. An applicant shall not be required to submit his or her fing-
erprints as required by subdivision [(a)] ONE of this  section  if  such
applicant (i) is already subject to regulation by the department and the
applicant  has submitted such fingerprints to the department, such fing-
erprints have  been  submitted  to  the  division  of  criminal  justice
services  for the purpose of conducting a criminal history search, and a
report of such search has been received  by  the  department  from  such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a  federal bank regulatory agency and has submitted such fingerprints to
such agency which has had a criminal history search  conducted  of  such
individual  and has shared such information or its determination result-
ing from such search with the department WITHIN THE PAST FIVE YEARS;  or
(iii)  is  an  officer  or  stockholder of a corporation whose common or
preferred stock is registered on  a  national  securities  exchange,  as
provided  in an act of congress of the United States entitled the "Secu-
rities Exchange Act of 1934", [approved  June  sixth,  nineteen  hundred

S. 5463                             9

thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints  to  such  exchange  or  market system which has had a criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN  THE  PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit sets  of  fingerprints
if  the  superintendent has a reasonable basis for updating the informa-
tion or determination resulting from the report of the criminal  history
search conducted at the request of such federal banking agency, exchange
or market system.
  5.  WHENEVER  AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY  THIS  SECTION,  BUT:  (I)  THE  SUPERINTENDENT  HAS  NOT
RECEIVED  A  REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION;  AND  (III)
THE  SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS ARE ADEQUATE IN NUMBER  AND  HAVE
THE  CHARACTER,  RESPONSIBILITY  AND  GENERAL  FITNESS  SO AS TO WARRANT
BELIEF THAT, EVEN IF SUCH PERSON WERE NOT TO SERVE AS  AN  INCORPORATOR,
SUCH BUSINESS WILL BE HONESTLY AND EFFICIENTLY OPERATED, THE SUPERINTEN-
DENT  MAY  WAIVE  THE  REQUIREMENT  FOR  RECEIPT OF SUCH REPORT PRIOR TO
APPROVAL, SUBJECT TO RECEIPT FROM SUCH INCORPORATOR OF HIS OR HER  WRIT-
TEN  AGREEMENT  TO  RESIGN IMMEDIATELY FROM ALL POSITIONS HELD WITH SUCH
ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION OF THE SUPER-
INTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER,  RESPON-
SIBILITY AND FITNESS.
  S  16.  Subdivision  8 of section 5004 of the banking law, as added by
chapter 849 of the laws of 1964, is amended to read as follows:
  8. When the consideration for  shares  has  been  paid  in  full,  the
subscriber shall be entitled to all the rights and privileges of a hold-
er of such shares and to a certificate representing his shares, and such
shares  shall  be fully paid and, subject to sections [one hundred thir-
teen-a, one hundred thirteen-b,] one hundred  fourteen[,  three  hundred
five, three hundred five-a, three hundred six, three hundred twenty-two,
three hundred twenty-two-a] and three hundred twenty-three of this chap-
ter, shall be nonassessable.
  S  17.  Paragraph  (b)  of subdivision 1 of section 591 of the banking
law, as amended by chapter 164 of the laws of 2003, is amended  to  read
as follows:
  (b) [The] AS PROVIDED IN SECTION TWENTY-TWO OF THIS CHAPTER, THE fing-
erprints  of  the  applicant[, 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];
  S  18.  Subdivision 1 of section 592 of the banking law, as amended by
chapter 400 of the laws of 1993, 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 members thereof if
the applicant is a co-partnership or association, and  of  the  officers
and  directors  thereof if the applicant is 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
purpose of this article, the  superintendent  shall  thereupon  issue  a
license  in duplicate to engage in the business of making mortgage loans
described in section five hundred ninety of this article  in  accordance
with  provisions  of  this  article.  If the superintendent shall not so

S. 5463                            10

find, the superintendent shall not issue such license,  and  the  super-
intendent  shall  notify the applicant of the denial. The superintendent
shall transmit one copy of such license to the applicant and file anoth-
er  in  the  office  of  the  banking department.   Upon receipt of such
license, a mortgage banker shall be authorized to engage in the business
of making mortgage loans in accordance with the provisions of this arti-
cle. [Such license shall remain in full force and  effect  until  it  is
surrendered  by  the  licensee  or  revoked  or suspended as hereinafter
provided.] The superintendent shall approve or  deny  every  application
for  license hereunder within ninety days from the filing of a completed
application provided, however, that failure to act within the prescribed
period shall not be deemed approval of any such application.
  S 19. Subdivision 1 of section 592-a of the banking law, as amended by
section 18 of part D-1 of chapter 109 of the laws of 2006, is amended to
read as follows:
  1. Upon the filing of an application for registration, if  the  super-
intendent  shall  find  that  the  financial responsibility, experience,
character, and general fitness of the  applicant,  and  of  the  members
thereof  if the applicant is a co-partnership or association, and of the
officers and directors thereof if the applicant is  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 purpose of this article, the superintendent  shall  thereupon
register  the  applicant  as  a mortgage broker on a roll maintained for
that purpose at the banking department, and issue a certificate  attest-
ing  to  such registration in duplicate. If the superintendent shall not
so find, the superintendent shall not register such applicant, and shall
notify the applicant of the denial. The  superintendent  shall  transmit
one  copy  of  such certificate to the applicant and file another in the
office of the banking department. Upon receipt  of  such  certificate  a
mortgage  broker shall be authorized to engage in the business of [plac-
ing] SOLICITING, processing  [and],  PLACING,  OR  negotiating  mortgage
loans. [Such registration shall remain in full force and effect until it
is  surrendered  by  the licensee or revoked or suspended as hereinafter
provided, except that such registration, notwithstanding any  provisions
of  subdivision five of section seventeen of this chapter to the contra-
ry, shall expire upon the  registrant's  failure  to  pay  the  required
assessment  charged pursuant to such section seventeen thirty days after
the date or dates such payment or payments are due.  If  the  registrant
fails  to  pay such charged assessment by the date or dates such payment
or payments are due, then the registrant shall be required  to  pay,  in
addition,  a  late fee in the amount of one hundred dollars. Such regis-
tration shall be reinstated  if  the  registrant  pays  such  assessment
charged  and  any applicable late fees and/or interest within sixty days
of such expiration.] The superintendent  shall  approve  or  deny  every
application  for  registration  hereunder  within  ninety  days from the
filing of a complete application provided, however, that failure to  act
within  the  prescribed  period shall not be deemed approval of any such
application.
  S 20.  Section 595 of the banking law, as amended by  chapter  571  of
the  laws  of  1986, paragraph (c) of subdivision 1 as amended and para-
graph (d) of subdivision 1 as added by chapter 164 of the laws of  2003,
subdivision 2 as amended by chapter 121 of the laws of 1993, subdivision
3 as amended by chapter 516 of the laws of 1996, subdivisions 4, 5 and 6
as  amended  and subdivisions 4-a and 7-a as added by chapter 400 of the
laws of 1993, is amended to read as follows:

S. 5463                            11

  S 595. Grounds for suspension or revocation of license, or  suspension
or  deletion of name from mortgage broker roll. 1.  [The] IN ADDITION TO
THE AUTHORITY SET FORTH IN SUBDIVISION TWO OF THIS SECTION,  THE  super-
intendent may SUSPEND OR revoke any license to engage in the business of
a  mortgage  banker issued pursuant to this article or SUSPEND OR delete
the name of a mortgage broker [from the roll of mortgage brokers]  OR  A
MORTGAGE  LOAN  SERVICER  registered  pursuant  to  this  article  (EACH
REFERRED TO IN THIS SECTION AS A REGISTRANT) if he  OR  SHE  shall  find
AFTER NOTICE AND A HEARING, that:
  (a)  Through  a  course  of  conduct,  the  licensee or registrant has
violated any provisions of this  article,  or  any  rule  or  regulation
promulgated  by the [banking board, or any rule or regulation prescribed
by the] superintendent under and within the authority of this article or
of any other law, rule or  regulation  of  this  state  or  the  federal
government;
  (b)  Any fact or condition exists which, if it had existed at the time
of the original application for such license or registration, would have
warranted the  superintendent  in  refusing  originally  to  issue  such
license;
  (c)  The commission by a licensee or registrant of a crime against the
laws of this state or any other state or of the United States  involving
moral  turpitude  or  fraudulent or dishonest dealing, or the entry of a
final judgment against a licensee or registrant in a civil  action  upon
grounds of fraud, misrepresentation or deceit;
  (d)  As  a  part of such determination regarding suspension or revoca-
tion, the superintendent is authorized to require the fingerprinting  of
any  licensee or registrant. Such fingerprints shall be submitted to the
division of criminal justice  services  for  a  state  criminal  history
record  check,  as  defined in subdivision one of section three thousand
thirty-five of the education law, and may be submitted  to  the  federal
bureau of investigation for a national criminal history record check.
  2.  (A)  The  superintendent may, [on] FOR good cause [shown], WITHOUT
NOTICE OR A HEARING, or where there is  a  substantial  risk  of  public
harm,  [suspend]  ISSUE  AN  ORDER SUSPENDING any license or [delete the
name of any registrant] REGISTRATION 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 or registrant has defaulted or is likely to default in perform-
ing 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  A
HEARING,  ISSUE  A  NOTICE SUSPENDING THE LICENSE OR REGISTRATION OF ANY
MORTGAGE BANKER OR MORTGAGE LOAN SERVICER THIRTY DAYS AFTER THE DATE  OR
DATES IT FAILS TO MAKE ANY PAYMENTS 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 OR  REGISTRA-
TION ISSUED PURSUANT TO THIS ARTICLE: (I) THIRTY DAYS AFTER THE DATE THE
LICENSEE  OR REGISTRANT FAILS TO FILE ANY REPORT REQUIRED TO BE FILED BY
IT WITH THE SUPERINTENDENT PURSUANT TO THE AUTHORITY PROVIDED BY SECTION
FIVE HUNDRED NINETY-SEVEN OF THIS ARTICLE; (II) IMMEDIATELY UPON  NOTICE
TO THE SUPERINTENDENT THAT ANY REQUIRED SURETY BOND OR LINE OF CREDIT IS
BEING  CANCELED  OR  IS  EXPIRING, IF THE LICENSEE OR REGISTRANT HAS NOT
PROVIDED THE SUPERINTENDENT WITH PROOF OF A REPLACEMENT BOND OR LINE  OF
CREDIT SATISFACTORY TO THE SUPERINTENDENT; (III) IMMEDIATELY UPON NOTICE
TO  THE SUPERINTENDENT THAT THE LICENSEE OR REGISTRANT HAS FILED A PETI-

S. 5463                            12

TION IN BANKRUPTCY; OR (IV) AT LEAST THIRTY DAYS AFTER THE  LICENSEE  OR
REGISTRANT HAS HAD FILED AGAINST IT A PETITION IN BANKRUPTCY.
  3.  IF  THE SUPERINTENDENT HAS ISSUED AN ORDER SUSPENDING A LICENSE OR
REGISTRATION PURSUANT TO  PARAGRAPH  (A)  OF  SUBDIVISION  TWO  OF  THIS
SECTION,  SUCH  LICENSE  OR REGISTRATION MAY BE REINSTATED IF THE SUPER-
INTENDENT 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 OR NOTICE SUSPENDING A LICENSE OR
REGISTRATION PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C)  OF  SUBDIVISION
TWO  OF THIS SECTION, SUCH LICENSE OR REGISTRATION MAY BE REINSTATED, IF
THE SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,  THAT  THE
LICENSEE  OR  REGISTRANT  HAS  CURED  ALL DEFICIENCIES SET FORTH IN SUCH
SUSPENSION ORDER OR THE NOTICE BY THE  CLOSE  OF  BUSINESS  NINETY  DAYS
AFTER  THE  DATE  OF SUCH SUSPENSION ORDER OR NOTICE, INCLUDING, WITHOUT
LIMITATION, MAKING ANY OVERDUE PAYMENT, HAVING ANY SUCH BANKRUPTCY PETI-
TION DISMISSED OR HAVING SUCH BOND REINSTATED  OR  REPLACED.  OTHERWISE,
UNLESS THE SUPERINTENDENT HAS, IN HIS OR HER SOLE DISCRETION, EXTENDED A
SUSPENSION PURSUANT TO PARAGRAPH (B) OR PARAGRAPH (C) OF SUBDIVISION TWO
OF  THIS  SECTION,  SUCH  LICENSE  OR REGISTRATION SHALL BE DEEMED TO BE
AUTOMATICALLY TERMINATED BY OPERATION OF LAW AT THE CLOSE OF BUSINESS ON
SUCH NINETIETH DAY.
  4. Except as provided in subdivision two of this section,  no  license
or  registration shall be revoked or suspended except after notice and a
hearing thereon. Any order of suspension issued after notice and a hear-
ing may include as a condition of reinstatement  that  the  licensee  or
registrant  make restitution to consumers of fees or other charges which
have been improperly charged or collected as determined  by  the  super-
intendent.
  [4.  Any] 5. WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, ANY licen-
see or registrant UNDER  THIS  ARTICLE  may  surrender  any  license  or
[certificate]  REGISTRATION  by delivering to the superintendent written
notice that it thereby surrenders such license or  [certificate]  REGIS-
TRATION,  but  such surrender shall not affect such licensee's or regis-
trant's civil or criminal liability for acts  committed  prior  to  such
surrender.  [If  such surrender is made after the issuance by the super-
intendent of a statement of charges and notice of  hearing,  the  super-
intendent  may  proceed  against  the  licensee or registrant as if such
surrender had not taken place.
  4-a.  An expiration] 6. A TERMINATION of registration  OR  LICENSE  in
accordance with THIS section [five hundred ninety-two-a of this article]
shall  not  affect  such  registrant's  OR  LICENSEE'S civil or criminal
liability for acts committed prior to  such  [expirations]  TERMINATION.
If such [expiration] TERMINATION occurs after the issuance by the super-
intendent  of  a  statement of charges and notice of hearing, the super-
intendent may proceed against the registrant  OR  LICENSEE  as  if  such
[expiration] TERMINATION had not taken place.
  [5]  7.    No revocation, suspension, surrender or [expiration] TERMI-
NATION of any license or  [certificate]  REGISTRATION  shall  impair  or
affect  the  obligation  of  any preexisting lawful contract between the
licensee or registrant and any person.
  [6] 8.  Every license or registration issued pursuant to this  article
shall  remain  in  force  and effect until the same shall have [expired]
TERMINATED in accordance with [section five hundred ninety-two-a of this
article] SUBDIVISION TWO OR THREE OF THIS SECTION  or  shall  have  been
surrendered,   revoked   or  suspended  in  accordance  with  any  other
provisions of this article, but the superintendent shall have  authority

S. 5463                            13

to  reinstate  a  suspended  license or [certificate] REGISTRATION or to
issue a new license or  [certificate]  REGISTRATION  to  a  licensee  or
registrant  whose  license or registration shall have been TERMINATED OR
revoked  if  no fact or condition then exists which would have warranted
the superintendent in refusing  originally  to  issue  such  license  or
registration under this article.
  [7]  9.  Whenever the superintendent shall revoke or suspend a license
or registration issued pursuant to this article OTHER THAN  PURSUANT  TO
PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, he OR SHE shall forth-
with  execute  in  duplicate  a written order to that effect. The super-
intendent shall file one copy of such order in the office of the depart-
ment of banking and shall  forthwith  serve  the  other  copy  upon  the
licensee  or  registrant.  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  revoca-
tion.
  [7-a]  10.    Whenever  a registration OR LICENSE shall have [expired]
TERMINATED in accordance with [section  five  hundred  ninety-two-a  of]
this article, the superintendent shall notify the registrant OR LICENSEE
that  the  registration OR LICENSE has [expired] TERMINATED and that the
registrant OR LICENSEE may not engage in [the  business  of  soliciting,
processing, placing or negotiating a mortgage loan or offering to solic-
it,  process, place or negotiate a mortgage loan] ANY ACTIVITY REQUIRING
REGISTRATION OR A LICENSE in this state.
  [8] 11.  Any hearing held pursuant to the provisions of  this  section
shall  be  noticed,  conducted  and  administered in compliance with the
state administrative procedure act.
  S 21. Section 254-b of the real property law, as added by chapter  119
of the laws of 1974, is amended to read as follows:
  S  254-b.  Limitation on late charges AND INCREASED INTEREST RATE.  1.
If a bond or note, or the mortgage on real property, heretofore or here-
after made, improved by a one to six family residence  occupied  by  the
owner,  securing  the  payment  of  [same]  SUCH BOND OR NOTE, or a note
representing a loan for the purpose of  financing  the  purchase  of  an
ownership  interest  in,  and  proprietary  lease from, a corporation or
partnership formed for the purpose of the cooperative ownership of resi-
dential real estate, contains a provision whereby the mortgagee or lend-
er retains the right to collect a late charge on  any  instalment  which
has  become  due  and remains unpaid, such charge on any such delinquent
instalment, regardless of the period it remains in  default,  shall  not
exceed  and  shall only be enforced to the extent of two percent of such
delinquent instalment;  provided,  however,  that  no  charge  shall  be
imposed  on  any instalment paid within fifteen days after the due date.
No such late charge  shall  be  deducted  from  any  regular  instalment
payment  by  the  mortgagor or borrower, but shall be separately charged
and collected by the mortgagee or lender. In the absence of  a  specific
provision  in  a bond, note or mortgage no late charge on any delinquent
instalment shall be assessed or collected. The term  "instalment"  shall
include  amounts  representing  interest,  amortization of principal and
payments in respect of insurance premiums, taxes and utility charges  if
the  bond, note or mortgage provides for collection thereof by the mort-
gagee.
  2.  NO BOND OR NOTE, OR THE MORTGAGE ON REAL PROPERTY  IMPROVED  BY  A
ONE  TO SIX FAMILY RESIDENCE OCCUPIED BY THE OWNER, SECURING THE PAYMENT
OF SUCH BOND OR NOTE, OR A NOTE REPRESENTING A LOAN FOR THE  PURPOSE  OF

S. 5463                            14

FINANCING  THE  PURCHASE  OF  AN  OWNERSHIP INTEREST IN, AND PROPRIETARY
LEASE FROM, A CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE  OF  THE
COOPERATIVE OWNERSHIP OF RESIDENTIAL REAL ESTATE MAY CONTAIN A PROVISION
WHICH INCREASES THE INTEREST RATE AFTER DEFAULT. THIS PROVISION DOES NOT
APPLY  TO  INTEREST  RATE  CHANGES  IN  A  VARIABLE  RATE LOAN OTHERWISE
CONSISTENT WITH THE PROVISIONS OF THE LOAN DOCUMENTS; PROVIDED THAT  THE
CHANGE  IN THE INTEREST RATE IS NOT TRIGGERED BY THE EVENT OF DEFAULT OR
THE ACCELERATION OF THE INDEBTEDNESS.
  3. The provisions in this section shall  not  apply  to  any  loan  or
forbearance  insured  by the federal housing commissioner or for which a
commitment to insure has been made by the federal  housing  commissioner
or  to  any  loan  or  forbearance insured or guaranteed pursuant to the
provisions of an act of congress entitled "Servicemen's Readjustment Act
of 1944", or to the extent the provisions of this section are inconsist-
ent with any other federal law or regulation.
  [3] 4. If any provision of this section, or the  application  of  such
provision  to  any  individual,  company,  corporation, or circumstance,
shall be held invalid, the remainder of this section, and  the  applica-
tion of such section to individuals, companies, corporations, or circum-
stances  other  than  those  to  which  it is held invalid, shall not be
affected thereby.
  S 22. Section 9001-a of the banking law, as added by  chapter  321  of
the  laws  of  1992, subdivisions (a) and (b) as amended and subdivision
(d) as added by chapter 302 of the laws of 2003, is amended to  read  as
follows:
  S 9001-a.  Fingerprints.  [(a)] 1. Notwithstanding any other provision
of law, every incorporator of a corporation shall, in  addition  to  any
other  requirements  which  may be imposed by the superintendent, submit
simultaneously with an application, his or her fingerprints in such form
and in such manner as specified by  the  division  of  criminal  justice
services,  but in any event, no less than two digit imprints. The super-
intendent shall submit the fingerprints  to  the  division  of  criminal
justice services for the purpose of conducting a criminal history search
and  returning  a  report  thereon in accordance with the procedures and
requirements established by the division pursuant to the  provisions  of
article  thirty-five  of  the  executive  law,  which  shall include the
payment of the prescribed  processing  fees.  The  superintendent  shall
request that the division submit such fingerprints to the federal bureau
of  investigation,  together with the processing fees prescribed by such
bureau, for the purpose of conducting  a  criminal  history  search  and
returning a report thereon.
  [(b)]  2.  The  superintendent  [shall]  MAY  also, concurrent with an
investigation of an  incorporator  of  a  corporation  pertaining  to  a
violation  of  this chapter, submit such fingerprints to the division of
criminal justice services for  the  purpose  of  conducting  a  criminal
history  search  and returning a report thereon and through the division
to the federal bureau of investigation for the purpose of a  fingerprint
check of such incorporator.
  [(c)]  3.  For  purposes of this section, ["incorporator"] "APPLICANT"
SHALL INCLUDE AN INCORPORATOR AND shall include a natural person or such
principal, officer, director, trustee or stockholder of any other entity
as may be designated by the superintendent.   Notwithstanding any  other
provision  of this article, the superintendent shall not access criminal
history data or information, unless any agency  from  which  the  super-
intendent  receives  directly  criminal  history data or information has

S. 5463                            15

entered into a use and dissemination agreement with  the  superintendent
consistent with the provisions of this section.
  [(d)] 4. An applicant shall not be required to submit his or her fing-
erprints  as  required  by subdivision [(a)] ONE of this section if such
applicant (i) is already subject to regulation by the department and the
applicant has submitted such fingerprints to the department, such  fing-
erprints  have  been  submitted  to  the  division  of  criminal justice
services for the purpose of conducting a criminal history search, and  a
report  of  such  search  has  been received by the department from such
division WITHIN THE PAST FIVE YEARS; or (ii) is subject to regulation by
a federal bank regulatory agency and has submitted such fingerprints  to
such  agency  which  has had a criminal history search conducted of such
individual and has shared such information or its determination  result-
ing  from such search with the department WITHIN THE PAST FIVE YEARS; or
(iii) is an officer or stockholder of  a  corporation  whose  common  or
preferred  stock  is  registered  on  a national securities exchange, as
provided in an act of congress of the United States entitled the  "Secu-
rities  Exchange  Act  of  1934", [approved June sixth, nineteen hundred
thirty-four, as amended,] or such other exchange or market system as the
superintendent shall approve by regulation, and has submitted such fing-
erprints to such exchange or market system  which  has  had  a  criminal
history search conducted of such individual and has shared such informa-
tion or its determination resulting from such search with the department
WITHIN  THE  PAST FIVE YEARS; provided, however, that the superintendent
may subsequently require such applicant to submit such  fingerprints  if
the  superintendent  has a reasonable basis for updating the information
or determination resulting from  the  report  of  the  criminal  history
search conducted at the request of such federal banking agency, exchange
or market system.
  5.  WHENEVER  AN INCORPORATOR HAS TIMELY FILED HIS OR HER FINGERPRINTS
AS REQUIRED BY  THIS  SECTION,  BUT:  (I)  THE  SUPERINTENDENT  HAS  NOT
RECEIVED  A  REPORT OF THE RESULTS OF A RELATED CRIMINAL HISTORY SEARCH;
(II) THE CIRCUMSTANCES WARRANT AN EXPEDITIOUS DETERMINATION;  AND  (III)
THE  SUPERINTENDENT DETERMINES, AFTER CONSIDERING ALL AVAILABLE INFORMA-
TION, THAT THE REMAINING INCORPORATORS HAVE THE CHARACTER,  RESPONSIBIL-
ITY  AND  GENERAL  FITNESS  SO  AS  TO WARRANT BELIEF THAT, EVEN IF SUCH
PERSON WERE NOT TO SERVE AS  AN  INCORPORATOR,  SUCH  BUSINESS  WILL  BE
HONESTLY  AND  EFFICIENTLY  OPERATED,  THE  SUPERINTENDENT MAY WAIVE THE
REQUIREMENT FOR RECEIPT OF SUCH REPORT PRIOR  TO  APPROVAL,  SUBJECT  TO
THERE  BEING  AN  ADEQUATE  NUMBER OF OTHER INCORPORATORS TO SATISFY THE
REQUIREMENTS OF THIS CHAPTER AND RECEIPT FROM SUCH INCORPORATOR  OF  HIS
OR  HER  WRITTEN AGREEMENT TO RESIGN IMMEDIATELY FROM ALL POSITIONS HELD
WITH SUCH ENTITY IF SUCH REPORT DEMONSTRATES, IN THE SOLE DISCRETION  OF
THE SUPERINTENDENT, THAT THE INCORPORATOR LACKS THE NECESSARY CHARACTER,
RESPONSIBILITY AND FITNESS.
  S  23. Section 128 of the banking law, as amended by chapter 24 of the
laws of 1958, is amended to read as follows:
  S 128. Preservation of books and records. Every bank and  every  trust
company  shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,]  for  a  period  of  at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic  reproductions  thereof or records in photographic form shall consti-
tute compliance with the requirements of this  section]  BY  ANY  MANNER
PERMITTED  BY SECTION THIRTY-SIX-B OF THIS CHAPTER.  Notwithstanding the
foregoing, the [banking board] SUPERINTENDENT  may  prescribe  by  regu-

S. 5463                            16

lation such period of time longer or shorter than six years during which
all  records  kept  by  banks  and trust companies as fiduciary shall be
preserved in original form.
  S  24.  Subdivision 3 of section 175 of the banking law, as amended by
chapter 369 of the laws of 1955, is amended to read as follows:
  3. Every private banker shall preserve  all  [his]  records  of  final
entry[, including cards used under the card system and deposit tickets,]
for  a  period of at least six years from the date of making the same or
from the date of the last entry thereon[; provided, however, that  pres-
ervation of photographic reproduction thereof or records in photographic
form  shall constitute compliance with the requirements of this section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S 25. Section 200-c of the banking law, as added by chapter 496 of the
laws of 1993, is amended to read as follows:
  S 200-c. Maintenance of books, accounts  and  records.  Every  foreign
banking corporation licensed pursuant to this chapter to maintain one or
more  branches,  agencies  or representative offices in this state shall
maintain or make available at any such branch, agency or  representative
office appropriate books, accounts and records reflecting (i) all trans-
actions effected by or on behalf of the branch, agency or representative
office  and  (ii)  all  actions  taken in this state by employees of the
foreign banking corporation located in this state to effect transactions
on behalf of any office of  such  foreign  banking  corporation  located
outside  this state.  SUCH RECORDS SHALL BE PRESERVED FOR A PERIOD OF AT
LEAST SIX YEARS AND SHALL  BE  PRESERVED  BY  ANY  MANNER  PERMITTED  BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S 26. Section 221-h of the banking law, as added by chapter 493 of the
laws of 1979, is amended to read as follows:
  S 221-h.  Licensee's  books  and  records;  reports. A foreign banking
corporation licensed pursuant to this article  shall  [keep]  CREATE  or
cause  each  of its representatives to [keep] CREATE and use such books,
accounts and records as will  enable  the  superintendent  to  determine
whether  the  representative  is  complying  with the provisions of this
article and with the rules and regulations lawfully made by  the  super-
intendent.  Such  books,  accounts and records shall be preserved for at
least three years[; provided however, that preservation by  photographic
reproduction  thereof  or  records in photographic form shall constitute
compliance with the requirements of this section] BY ANY MANNER  PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  The  superintendent may require such regular or special reports as may
be deemed necessary to the proper supervision of  licensees  under  this
article.  Such additional reports shall be in the form prescribed by the
superintendent and shall be subscribed and affirmed as  true  under  the
penalties of perjury.
  S 27. Section 239-a of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
  S  239-a.  Preservation of books and records. Every savings bank shall
preserve all its records of final entry[, including cards used under the
card system and deposit tickets,] for a period of  at  least  six  years
from  the  date  of  making  the same or from the date of the last entry
thereon[; provided, however, that preservation of  photographic  reprod-
uctions thereof or records in photographic form shall constitute compli-
ance  with  the requirements of this section] BY ANY MANNER PERMITTED BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.   Notwithstanding  the  foregoing,
the  [banking  board]  SUPERINTENDENT  may  prescribe by regulation such

S. 5463                            17

period of time longer or shorter than six years during which all records
kept by saving banks as fiduciary shall be preserved in original form.
  S 28. Section 320 of the banking law, as amended by section 29 of part
O of chapter 59 of the laws of 2006, is amended to read as follows:
  S 320.  Books  and  records.   EVERY SAFE DEPOSIT COMPANY SHALL CREATE
SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE  THE  SUPERINTENDENT  TO
DETERMINE  WHETHER SUCH COMPANY IS COMPLYING WITH THE PROVISIONS OF THIS
ARTICLE AND WITH THE RULES AND REGULATIONS ADOPTED BY THE SUPERINTENDENT
APPLICABLE TO SAFE DEPOSIT COMPANIES, AND  SHALL  PRESERVE  SUCH  BOOKS,
ACCOUNTS AND RECORDS FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF
CREATING  THE  SAME  OR  SUCH  OTHER PERIOD AS MAY BE ESTABLISHED BY THE
SUPERINTENDENT,  INCLUDING  PRESERVATION  IN  ANY  MANNER  PERMITTED  BY
SECTION  THIRTY-SIX-B  OF THIS CHAPTER. Every safe deposit company shall
conform its methods of keeping its books and records to such  orders  in
respect  thereto  as  shall have been made and promulgated by the super-
intendent pursuant to the provisions of article two of this chapter. Any
safe deposit company that refuses or neglects to obey such  order  shall
be  subject  to a penalty of an amount as determined pursuant to section
forty-four of this chapter for each day it so refuses or neglects.
  S 29. The opening paragraph of section 349  of  the  banking  law,  as
amended  by  chapter  499  of  the  laws  of 1995, is amended to read as
follows:
  The licensee shall [keep] CREATE 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
records[, including cards used in the card system, if any,] for at least
two  years  after  making  the final entry on any loan recorded therein.
[Preservation of photographic reproduction thereof or records in  photo-
graphic  form,  including  an optical disk storage system and the use of
electronic data processing equipment that provides comparable records to
those otherwise required and which are available  for  examination  upon
request  shall  constitute  compliance  with  the  requirements  of this
section] SUCH RECORDS SHALL BE PRESERVED  BY  ANY  MANNER  PERMITTED  BY
SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S  30.  Subdivision 5 of section 372 of the banking law, as amended by
chapter 151 of the laws of 1945 and as renumbered by chapter 263 of  the
laws of 1983, is amended to read as follows:
  5.  Each  licensee  shall  [keep]  CREATE and use in its business such
books, accounts, and records as [the superintendent may require to carry
into effect] WILL ENABLE THE SUPERINTENDENT TO  DETERMINE  WHETHER  SUCH
LICENSEE  IS COMPLYING WITH the provisions of this article and the rules
and regulations made by the  superintendent  hereunder.  Every  licensee
shall  preserve  such books, accounts and records for at least two years
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S 31. Section 378-d of the banking law, as added by chapter 164 of the
laws of 2002, is amended to read as follows:
  S 378-d. Preservation of books and records.  Every  savings  and  loan
association  shall  preserve  all its records of final entry[, including
cards used under the card system and deposit tickets,] for a  period  of
at  least six years from the date of making the same or from the date of
the last entry thereon[; provided, however, that preservation of  photo-
graphic  reproductions  thereof  or  records  in photographic form shall
constitute compliance with the requirements  of  this  section]  BY  ANY
MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.  Notwithstand-

S. 5463                            18

ing  the  foregoing, the [banking board] SUPERINTENDENT may prescribe by
regulation such period of time longer or shorter than six  years  during
which  all  records  kept  by savings and loan associations as fiduciary
shall be preserved in original form.
  S  32.  Subdivision  2  of section 485 of the banking law, as added by
chapter 608 of the laws of 1996, is amended to read as follows:
  2. Every credit union shall preserve all of its records  of  [original
and]  final  entry[,  including  cancelled  checks, withdrawal slips and
deposit tickets,] for a period of at least six years from  the  date  of
making  same  or  from  the  date  of the last entry thereon[; provided,
however, that  preservation  of  photographic  reproduction  thereof  or
records  in  photographic  form  shall  constitute  compliance  with the
requirements of this section] BY ANY MANNER PERMITTED BY  SECTION  THIR-
TY-SIX-B OF THIS CHAPTER.
  S 33. The banking law is amended by adding a new section 498-c to read
as follows:
  S  498-C.  BOOKS  AND RECORDS. EVERY LICENSEE SHALL CREATE 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 ADOPTED BY THE SUPERINTENDENT  APPLI-
CABLE  TO LICENSEES, AND SHALL PRESERVE SUCH BOOKS, ACCOUNTS AND RECORDS
FOR A PERIOD OF AT LEAST TWO YEARS FROM THE DATE OF CREATING THE SAME OR
SUCH OTHER PERIOD AS MAY BE ESTABLISHED BY THE SUPERINTENDENT, INCLUDING
PRESERVATION IN ANY MANNER PERMITTED BY  SECTION  THIRTY-SIX-B  OF  THIS
CHAPTER.
  S 34. Section 515 of the banking law, as amended by chapter 369 of the
laws of 1955, is amended to read as follows:
  S 515. Preservation of records of investment company. Every investment
company  shall preserve all its records of final entry[, including cards
used under the card system and deposit tickets,]  for  a  period  of  at
least six years from the date of making the same or from the date of the
last entry thereon[; provided, however, that preservation of photograph-
ic reproduction thereof or records in photographic form shall constitute
compliance  with the requirements of this section] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S 35. Subdivision 1 of section 565 of the banking  law,  as  added  by
chapter 488 of the laws of 1960, is amended to read as follows:
  1.  The  licensee  shall  [keep] CREATE and use in his OR HER 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 super-
intendent hereunder. Every licensee shall preserve such books,  accounts
and  records[,  including  cards  used in a card system, if any,] for at
least six years after making the final entry in respect to  any  premium
finance agreement recorded therein[; provided, however, the preservation
of  photographic  reproductions  thereof or records in photographic form
shall constitute compliance with this requirement] BY ANY MANNER PERMIT-
TED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S 36. 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]  CREATE  and use in its business such
books, accounts, and records as will enable the superintendent to deter-
mine whether such licensee is complying  with  the  provisions  of  this
article  and  with the rules and regulations lawfully made by the super-
intendent hereunder. Every licensee shall preserve such books, accounts,
and records, for at least three years[; provided, however, that  preser-

S. 5463                            19

vation  by  photographic reproduction thereof or records in photographic
form shall constitute compliance with the requirements of this  section]
BY ANY MANNER PERMITTED BY SECTION THIRTY-SIX-B OF THIS CHAPTER.
  S  37.  The  opening  paragraph  of section 597 of the banking law, as
separately amended by chapters 315 and 472  of  the  laws  of  2008,  is
amended to read as follows:
  Each  licensee,  servicer,  registrant  and  exempt organization shall
[keep] CREATE and use in its business such books, accounts  and  records
as  will  enable  the superintendent to determine whether such licensee,
servicer, registrant  or  exempt  organization  is  complying  with  the
provisions  of  this article and with the rules and regulations lawfully
made by the superintendent [and  the  banking  board].  Every  licensee,
servicer,  registrant and exempt organization shall preserve such books,
accounts, and records, for at least [three] SIX years[; provided, howev-
er, that preservation by photographic reproduction thereof or records in
photographic form, including an optical disk storage system and the  use
of electronic data processing equipment that provides comparable records
to  those otherwise required] BY ANY MANNER PERMITTED BY SECTION THIRTY-
SIX-B OF THIS CHAPTER and  which  are  available  for  examination  upon
request  shall  constitute  compliance  with  the  requirements  of this
section.
  S 38. Section 651-b of the banking law, as added by chapter 374 of the
laws of 1979, is amended to read as follows:
  S 651-b. Maintenance of books and records by  MONEY  TRANSMITTERS  AND
agents.  Each licensee shall MAKE AND KEEP, AND SHALL require of each of
its agents to make and keep, IN ANY MANNER PERMITTED BY SECTION  THIRTY-
SIX-B OF THIS CHAPTER, such accounts, correspondence, memoranda, papers,
books  and  other  records  as the superintendent by regulation or order
requires. All records so required shall be preserved for the time speci-
fied by the regulation or order of the superintendent.
  S 39. This act shall take effect immediately;  provided  that  section
twenty-one  of  this act shall only apply to loans made after the effec-
tive date of this act; provided further that sections  twenty-eight  and
thirty-three  of  this  act  shall take effect on the sixtieth day after
this act shall have become a law.

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