S T A T E   O F   N E W   Y O R K
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                                 6105--A
                                                        Cal. No. 269

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 16, 2015
                               ___________

Introduced by M. of A. ROBINSON, LINARES, SEAWRIGHT, WEPRIN -- read once
  and  referred  to  the  Committee  on  Banks -- passed by Assembly and
  delivered to the Senate, recalled from the Senate, vote  reconsidered,
  bill  amended,  ordered  reprinted, retaining its place on the special
  order of third reading

AN ACT to amend the banking law, in relation to loan products  that  may
  be offered by banks

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

  Section 1. Paragraph (c) of subdivision 4 of section 108 of the  bank-
ing law, as amended by chapter 19 of the laws of 1991, subparagraph (iv)
as  amended by chapter 119 of the laws of 1992 and as further amended by
section 104 of part A of chapter 62 of the laws of 2011, is  amended  to
read as follows:
  (c)  The  rate  of  interest  authorized  by this subdivision shall be
inclusive of all charges incident to investigating and making any  loan.
No  fee,  commission,  expense,  or  other charge whatsoever in addition
thereto shall be taken, received, reserved, or  contracted  for,  except
(i)  the  fees  payable to the appropriate public officer to perfect any
lien or other security interest taken to secure the loan or the premium,
not in excess of such filing fee, payable for any insurance in  lieu  of
such  filing;  (ii)  in  case  of  default,  and  in accordance with the
provisions of the instrument evidencing the obligation, either a fine in
an amount not to exceed five cents per dollar on any  installment  which
has  become  due and remained unpaid for a period in excess of ten days,
but no such fine shall exceed five dollars and only one  fine  shall  be
collected  on any such installment regardless of the period during which
it remains in default, and provided further that should the aggregate of
such fines collected in connection with any loan exceed two  per  centum
of  such  loan,  or  in any event twenty-five dollars, the bank or trust
company shall refund such excess to the borrower within sixty days after

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

                                                           LBD09865-03-5

A. 6105--A                          2

the loan is paid in full, or, subject to an allowance of unearned inter-
est attributable to the amount in default, interest on each amount  past
due  at  a rate not in excess of the rate provided for in the instrument
evidencing  the  obligation;  (iii)  the  actual expenditures, including
reasonable attorney's fees for necessary court process; and (iv) in case
the bank or trust company insures a borrower under a credit unemployment
insurance policy, group life insurance policy,  group  health  insurance
policy,  group  accident  insurance policy, or group health and accident
insurance policy, or requires insurance on  personal  property  securing
any  such  loan,  an  amount not in excess of the premiums chargeable in
accordance with rate schedules then in  effect  and  on  file  with  the
superintendent  of financial services for such insurance by the insurer.
No bank or trust company shall require a borrower to place  any  sum  on
deposit,  or  to  make  deposits in lieu of regular periodic installment
payments, or to do or refrain from  doing  any  other  act  which  would
entail  additional  expense  or  sacrifice,  as a condition precedent to
granting a loan under  the  authority  of  this  subdivision  except  as
provided  in  subdivision  five-b  of  this section. NOTWITHSTANDING THE
FOREGOING, A BANK OR TRUST COMPANY MAY, WITH THE PRIOR APPROVAL  OF  THE
SUPERINTENDENT, OFFER A LOAN PRODUCT THAT ENCOURAGES PERSONAL SAVINGS BY
REQUIRING  A  BORROWER  TO  PLACE A PORTION OF THE PRINCIPAL OF THE LOAN
INTO AN INTEREST-BEARING SAVINGS ACCOUNT AS  A  CONDITION  PRECEDENT  TO
GRANTING  A  LOAN  UNDER  THE AUTHORITY OF THIS SUBDIVISION. IN DECIDING
WHETHER TO APPROVE A LOAN PRODUCT PURSUANT TO  THE  PRECEDING  SENTENCE,
THE  SUPERINTENDENT  MAY  CONSIDER THE RECENT RESULTS OF EXAMINATIONS OF
THE BANK OR TRUST COMPANY, THE TERMS AND STRUCTURE OF,  AND  THE  UNDER-
WRITING CRITERIA AND MARKETING PLAN FOR THE PROPOSED LOAN PRODUCT, OTHER
LOANS  OFFERED  BY THE BANK OR TRUST COMPANY, AND SUCH OTHER FACTORS THE
SUPERINTENDENT DEEMS TO BE RELEVANT. Notwithstanding the  provisions  of
this paragraph no refund of excess fines shall be required if it amounts
to less than one dollar.
  S 2. This act shall take effect immediately.