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Senate Bill S4628

2019-2020 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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2019-S4628 (ACTIVE) - Details

See Assembly Version of this Bill:
A3243
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A2604
2011-2012: A2850
2013-2014: A2792
2015-2016: A1645
2017-2018: A1126
2021-2022: S4894, A1693

2019-S4628 (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.

2019-S4628 (ACTIVE) - Sponsor Memo

2019-S4628 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4628
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2019
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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.
   § 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.
                                                            LBD04663-01-9

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