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Senate Bill S703

2013-2014 Legislative Session

Prohibits banking organizations from issuing mail-loan checks without request or application therefor

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Archive: Last Bill Status - In Senate Committee Banks Committee

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2013-S703 (ACTIVE) - Details

See Assembly Version of this Bill:
A2792
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd ยง9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S64, A2604
2011-2012: S651, A2850
2015-2016: S4028, A1645
2017-2018: A1126
2019-2020: A3243
2021-2022: A1693

2013-S703 (ACTIVE) - Summary

Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.

2013-S703 (ACTIVE) - Sponsor Memo

2013-S703 (ACTIVE) - Bill Text download pdf 

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

                                   703

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to mail-loan checks

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

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

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

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