S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10878
 
                           I N  A S S E M B L Y
 
                               July 24, 2020
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Jean-Pierre)
   -- read once and referred to the Committee on Banks
 
 AN  ACT to amend the banking law and the administrative code of the city
   of New York, in relation to regulating  commercial  finance  licensing
   and making conforming technical changes relating thereto

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 9-A of the banking law is  renumbered  article  9-B
 and a new article 9-A is added to read as follows:
 
                               ARTICLE IX-A
                       COMMERCIAL FINANCE LICENSING
 
 SECTION 363.   DOING BUSINESS WITHOUT LICENSE PROHIBITED.
         363-A. DEFINITIONS.
         363-B. EXEMPTIONS.
         363-C. APPLICATION FOR LICENSE.
         363-D. CONDITIONS FOR ISSUANCE OF A LICENSE.
         363-E. LOCATIONS; CHANGE OF ADDRESS.
         363-F. CHANGES IN CONTROL.
         363-G. GROUNDS FOR SUSPENSION OR REVOCATION.
         363-H. EXAMINATIONS.
         363-I. BOOKS AND RECORDS.
         363-J. ADVERTISING.
         363-K. PROHIBITED PRACTICES OF LICENSEES.
         363-L. PENALTIES.
         363-M. REGULATIONS.
         363-N. SEVERABILITY.
   §  363.  DOING  BUSINESS  WITHOUT  LICENSE PROHIBITED. 1. NO PERSON OR
 OTHER ENTITY SHALL ENGAGE  IN  THE  BUSINESS  OF  MAKING  OR  SOLICITING
 COMMERCIAL  FINANCING  PRODUCTS  TO BUSINESSES LOCATED IN NEW YORK STATE
 EXCEPT AS AUTHORIZED BY THIS  ARTICLE  AND  WITHOUT  FIRST  OBTAINING  A
 LICENSE FROM THE SUPERINTENDENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13542-01-9

 A. 10878                            2
 
   2.  FOR  THE  PURPOSES  OF  THIS  ARTICLE, A PERSON OR ENTITY SHALL BE
 CONSIDERED AS ENGAGING IN THE BUSINESS OF  MAKING  COMMERCIAL  FINANCING
 PRODUCTS  TO  BUSINESSES  LOCATED  IN  NEW  YORK STATE IF IT SOLICITS OR
 CONSUMMATES COMMERCIAL FINANCING PRODUCTS TO ANY BUSINESS OR  COMMERCIAL
 ENTERPRISE LOCATED IN NEW YORK STATE.
   § 363-A. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1.  "COMMERCIAL  FINANCING  PRODUCT"  MEANS  ANY ADVANCE OF FUNDS TO A
 COMMERCIAL OR BUSINESS ENTERPRISE MADE FOR THE PURPOSE OF ASSISTING  THE
 BUSINESS WITH ITS CAPITAL NEEDS, INCLUDING BUT NOT LIMITED TO:
   (A)  LOANS  OR LINES OF CREDIT MADE TO A BUSINESS OR COMMERCIAL ENTER-
 PRISE IN A PRINCIPAL AMOUNT OF FIVE HUNDRED THOUSAND  DOLLARS  OR  LESS,
 WHETHER SECURED OR UNSECURED;
   (B)  PURCHASE TRANSACTIONS WHERE AN ENTITY PURCHASES ACCOUNTS, RECEIV-
 ABLES, INTANGIBLES, REVENUE OR OTHER ACTUAL OR PERCEIVED ASSETS  OF  THE
 BUSINESS  IF ANY SINGLE PAYMENT OR ADVANCE OF THE PURCHASE PRICE FOR THE
 PURCHASED ACCOUNTS, RECEIVABLES, INTANGIBLES, REVENUE OR OTHER ACTUAL OR
 PERCEIVED ASSETS OF THE BUSINESS IS IN THE AMOUNT OF FIVE HUNDRED  THOU-
 SAND DOLLARS OR LESS; OR
   (C)  ANY LEASING TRANSACTION WHERE ANY FUNDS ARE PROVIDED TO THE BUSI-
 NESS OR COMMERCIAL ENTERPRISE BY THE LEASING BUSINESS OR  ANY  AFFILIATE
 OF  THE  LEASING BUSINESS IN THE AMOUNT OF FIVE HUNDRED THOUSAND DOLLARS
 OR LESS; AND
   2. "MAKING OR SOLICITING" MEANS  (A)  PROVIDING  COMMERCIAL  FINANCING
 PRODUCTS   TO  SMALL  BUSINESSES;  (B)  MARKETING  COMMERCIAL  FINANCING
 PRODUCTS FOR PROVIDERS OF COMMERCIAL FINANCING PRODUCTS;  (C)  RECEIVING
 ANY  COMPENSATION FROM A PROVIDER OF COMMERCIAL FINANCING PRODUCTS BASED
 ON THE VALUE OF THE COMMERCIAL FINANCING PRODUCT  PROVIDED  IN  EXCHANGE
 FOR  A  REFERRAL OF SMALL BUSINESS OR ITS OWNER; AND (D) ANY ENTITY THAT
 PARTNERS WITH FEDERAL OR STATE BANKING ORGANIZATION IN WHICH THE FEDERAL
 OR STATE BANKING ORGANIZATION ORIGINATES THE COMMERCIAL FINANCING  PROD-
 UCT  AND THE ENTITY ACQUIRES A PARTICIPATION OR SYNDICATION INTEREST, IN
 PART OR WHOLE, OF THE COMMERCIAL FINANCING PRODUCT AND  THE  (I)  ENTITY
 RECEIVES  COMPENSATION  FOR  MARKETING OR SERVICING THE TRANSACTION FROM
 THE FEDERAL OR STATE BANKING ORGANIZATION, OR COLLECTS ANY PAYMENTS  DUE
 UNDER  THE  COMMERCIAL FINANCING PRODUCT; OR (II) PROVIDES ANY INDEMNITY
 OR LOSS PROTECTION TO THE FEDERAL  OR  STATE  BANKING  ORGANIZATION  FOR
 LOSSES  THE  FEDERAL OR STATE BANKING ORGANIZATION MAY INCUR AS A RESULT
 OF PERFORMANCE OF THE COMMERCIAL FINANCING PRODUCT.
   § 363-B. EXEMPTIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE PROVISIONS
 OF THIS ARTICLE:
   1. ANY PERSON WHO MAKES OR SOLICITS FIVE OR FEWER COMMERCIAL FINANCING
 PRODUCTS WITHIN ANY TWELVE MONTH PERIOD;
   2. ANY BANKING ORGANIZATION,  AS  DEFINED  IN  SUBDIVISION  ELEVEN  OF
 SECTION TWO OF THIS CHAPTER;
   3. ANY FEDERAL CREDIT UNION;
   4. ANY INSURANCE COMPANY;
   5.  ANY  PERSON IF AND TO THE EXTENT THAT SUCH PERSON IS LENDING MONEY
 AND LICENSED IN ACCORDANCE WITH, AND AS AUTHORIZED BY, ANY OTHER  APPLI-
 CABLE  LAW  OF  THE STATE OF NEW YORK; PROVIDED, HOWEVER, SUCH EXEMPTION
 SHALL APPLY ONLY TO THOSE TRANSACTIONS  SUBJECT  TO  REQUIREMENTS  UNDER
 ARTICLE  NINE-B  OF  THIS  CHAPTER AND SUCH EXEMPTION SHALL NOT APPLY TO
 TRANSACTIONS SUBJECT TO THE PROVISIONS OF  THIS  ARTICLE  THAT  ARE  NOT
 EXPRESSLY REGULATED BY ARTICLE NINE-B OF THIS CHAPTER; OR
   6. ANY TRANSACTION THAT IS INTENDED TO BE A PURCHASE OF THE OWNERSHIP,
 IN WHOLE OR PART, OF A BUSINESS OR COMMERCIAL ENTERPRISE.

 A. 10878                            3
 
   §  363-C.  APPLICATION  FOR  LICENSE.  1. AN APPLICATION FOR A LICENSE
 SHALL BE IN WRITING, UNDER OATH, AND  IN  THE  FORM  PRESCRIBED  BY  THE
 SUPERINTENDENT  AND SHALL CONTAIN SUCH INFORMATION AS THE SUPERINTENDENT
 MAY REQUIRE BY REGULATION. THE APPLICATION SHALL SET FORTH  ALL  OF  THE
 LOCATIONS  AT  WHICH THE APPLICANT SEEKS TO CONDUCT BUSINESS PURSUANT TO
 THIS ARTICLE. AT THE TIME OF MAKING THE APPLICATION FOR A  LICENSE,  THE
 APPLICANT  SHALL  PAY TO THE SUPERINTENDENT A FEE AS PRESCRIBED BY REGU-
 LATION FOR EACH PROPOSED LOCATION FOR INVESTIGATING THE APPLICATION.
   2. IN CONNECTION WITH AN APPLICATION  FOR  A  LICENSE,  THE  APPLICANT
 SHALL  SUBMIT AN AFFIDAVIT OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZA-
 TION REQUIREMENTS AND ACCESS TO SUCH CREDIT AS MAY BE PRESCRIBED BY  THE
 REGULATIONS PROMULGATED BY THE SUPERINTENDENT.
   3.  THE APPLICANT SHALL ALSO PROVE, IN FORM SATISFACTORY TO THE SUPER-
 INTENDENT, THAT THE APPLICANT HAS AVAILABLE FOR THE  OPERATION  OF  SUCH
 BUSINESS  AT  THE  LOCATION  OR  LOCATIONS  SPECIFIED IN THE APPLICATION
 LIQUID ASSETS OF AT LEAST FIFTY THOUSAND DOLLARS. THIS AMOUNT  SHALL  BE
 MAINTAINED FOR THE PERIOD WITHIN WHICH THE LICENSEE IS LICENSED.
   4.  IF  A  PERSON  OR  ENTITY  HOLDING A LICENSE SEEKS TO OPEN ANOTHER
 LOCATION FOR THE CONDUCT OF ACTIVITIES LICENSABLE  UNDER  THIS  ARTICLE,
 THE LICENSEE SHALL FIRST SUBMIT WRITTEN NOTIFICATION OF THIS FACT TO THE
 SUPERINTENDENT.  THE  NOTIFICATION  SHALL CONTAIN THE ADDRESS OF THE NEW
 LOCATION AND THE LICENSE NUMBER. AN INVESTIGATION FEE AS  PRESCRIBED  IN
 REGULATIONS  SHALL  BE PAID FOR EACH ADDITIONAL LOCATION. THE ADDITIONAL
 LOCATION SHALL BE AUTHORIZED UPON WRITTEN APPROVAL BY THE SUPERINTENDENT
 OR AFTER NINETY DAYS HAVE PASSED SINCE THE NOTIFICATION WAS PROVIDED AND
 INVESTIGATION FEE WAS PAID UNLESS THE SUPERINTENDENT DENIES THE  REQUEST
 FOR  AN  ADDITIONAL LOCATION PRIOR TO THE EXPIRATION OF THE NINETY DAYS.
 THE SUPERINTENDENT MAY DENY A REQUEST FOR AN ADDITIONAL LOCATION IF  THE
 NEW  LOCATION  BY  THE  LICENSEE IS NOT IN THE PUBLIC INTEREST, IN WHICH
 CASE, THE SUPERINTENDENT SHALL SEND A WRITTEN DENIAL TO THE LICENSEE.
   § 363-D. CONDITIONS FOR ISSUANCE OF A LICENSE. UPON THE FILING OF SUCH
 APPLICATION AND THE PAYMENT OF SUCH FEES, IF  THE  SUPERINTENDENT  SHALL
 FIND  THAT  THE  FINANCIAL  RESPONSIBILITY,  EXPERIENCE,  CHARACTER, AND
 GENERAL FITNESS OF THE APPLICANT, AND OF  THE  MEMBERS  THEREOF  IF  THE
 APPLICANT  BE  A  PARTNERSHIP  OR  ASSOCIATION,  AND OF THE OFFICERS AND
 DIRECTORS THEREOF IF THE APPLICANT BE A  CORPORATION,  ARE  SUCH  AS  TO
 COMMAND  THE  CONFIDENCE OF THE COMMUNITY AND TO WARRANT BELIEF THAT THE
 BUSINESS WILL BE OPERATED HONESTLY, FAIRLY, AND EFFICIENTLY  WITHIN  THE
 PURPOSES  OF THIS ARTICLE, AND IF THE SUPERINTENDENT SHALL FIND THAT THE
 APPLICANT HAS AVAILABLE FOR THE OPERATION OF SUCH BUSINESS AT EACH SPEC-
 IFIED LOCATION LIQUID ASSETS OF AT LEAST  FIFTY  THOUSAND  DOLLARS,  THE
 SUPERINTENDENT  SHALL  THEREUPON  EXECUTE  A  LICENSE AT THE LOCATION OR
 LOCATIONS SPECIFIED IN THE SAID APPLICATION.  THE  SUPERINTENDENT  SHALL
 TRANSMIT  ONE COPY OF SUCH LICENSE OR LICENSES TO THE APPLICANT AND FILE
 THE SAME IN THE OFFICE OF THE DEPARTMENT. EACH SUCH LICENSE SHALL REMAIN
 IN FULL FORCE AND EFFECT UNTIL IT IS  SURRENDERED  BY  THE  LICENSEE  OR
 REVOKED  OR  SUSPENDED  AS  HEREINAFTER  PROVIDED; IF THE SUPERINTENDENT
 SHALL NOT SO FIND, A LICENSE SHALL NOT BE ISSUED AND THE  SUPERINTENDENT
 SHALL NOTIFY THE APPLICANT OF THE DENIAL. IF AN APPLICATION IS DENIED OR
 WITHDRAWN  THE SUPERINTENDENT SHALL RETURN TO THE APPLICANT THE SUM PAID
 BY THE APPLICANT AS A LICENSE FEE, RETAINING THE  INVESTIGATION  FEE  TO
 COVER  THE  COSTS  OF INVESTIGATING SUCH APPLICATION. THE SUPERINTENDENT
 SHALL APPROVE OR DENY EVERY APPLICATION FOR A MASTER LICENSE UNDER  THIS
 ARTICLE  WITHIN  NINETY DAYS FROM THE FILING THEREOF WITH THE APPLICABLE
 FEES.

 A. 10878                            4
 
   § 363-E. LOCATIONS; CHANGE OF ADDRESS. 1. A LICENSE  SHALL  STATE  THE
 ADDRESS  AT  WHICH THE BUSINESS IS TO BE CONDUCTED AND SHALL STATE FULLY
 THE NAME OF THE LICENSEE, AND IF THE LICENSEE IS A PARTNERSHIP OR  ASSO-
 CIATION,  THE  NAMES  OF  THE MEMBERS THEREOF, AND IF A CORPORATION, THE
 DATE AND PLACE OF ITS INCORPORATION. NO LICENSE SHALL BE TRANSFERABLE OR
 ASSIGNABLE.
   2.  EVERY  LOCATION  USED  BY THE LICENSEE TO CONDUCT BUSINESS MUST BE
 IDENTIFIED IN THE APPLICATION AND APPROVED BY THE SUPERINTENDENT.  AFTER
 A  LICENSE  HAS  BEEN ISSUED, ANY APPLICATION FOR A CHANGE IN ADDRESS OR
 NEW LOCATION MUST BE SUBMITTED WITHIN FORTY-FIVE DAYS OF  SUCH  PROPOSED
 CHANGE  OR ADDITION.  THE LICENSEE SHALL PAY TO THE SUPERINTENDENT A FEE
 AS PRESCRIBED BY REGULATION  FOR  EACH  CHANGE  OR  ADDITION  AND  SHALL
 PROVIDE  ANY  INFORMATION  WHICH  MAY  BE  REQUIRED  REGARDING  SUCH NEW
 LOCATION. IF THE SUPERINTENDENT IS NOT SATISFIED  THAT  SUCH  CHANGE  OR
 ADDITION  IS IN ACCORDANCE WITH THE PURPOSES OF THIS ARTICLE, THE SUPER-
 INTENDENT SHALL REFUSE SUCH CHANGE OF LOCATION  OR  ADDITIONAL  LOCATION
 AND NOTIFY THE LICENSEE OF SUCH DETERMINATION.
   §  363-F.  CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL EXCEPT WITH THE
 PRIOR APPROVAL OF THE SUPERINTENDENT FOR ANY ACTION TO  BE  TAKEN  WHICH
 RESULTS  IN  A CHANGE OF CONTROL OF THE BUSINESS OF A LICENSEE. PRIOR TO
 ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL  OF  THE
 BUSINESS OF A LICENSEE SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTEN-
 DENT  AND  PAY  AN  INVESTIGATION  FEE  AS PRESCRIBED BY REGULATION. THE
 APPLICATION SHALL CONTAIN SUCH INFORMATION  AS  THE  SUPERINTENDENT,  BY
 RULE  OR  REGULATION,  MAY PRESCRIBE AS NECESSARY OR APPROPRIATE FOR THE
 PURPOSE OF MAKING THE DETERMINATION REQUIRED BY SUBDIVISION TWO OF  THIS
 SECTION.
   2.  THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE
 OF CONTROL OF A LICENSEE IN ACCORDANCE WITH THE PROVISIONS  OF  SECTIONS
 THREE  HUNDRED  SIXTY-THREE-C  AND  THREE  HUNDRED SIXTY-THREE-D OF THIS
 ARTICLE. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE  APPLICATION
 IN  WRITING  WITHIN  NINETY DAYS AFTER THE DATE THE APPLICATION IS FILED
 WITH THE SUPERINTENDENT.
   3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF  QUALIFICATION  THEREOF
 AND  FOR  SUCH  ADDITIONAL  PERIOD  OF  TIME  AS  THE SUPERINTENDENT MAY
 PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS  ONE  AND  TWO  OF
 THIS  SECTION  SHALL  NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF
 LAW TO THE LEGAL REPRESENTATIVE, AS DEFINED IN SUBDIVISION FOUR OF  THIS
 SECTION,  OF  ONE  WHO HAS CONTROL OF A LICENSEE. THEREAFTER, SUCH LEGAL
 REPRESENTATIVE SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE  AND
 TWO OF THIS SECTION.
   4.  THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF THIS SECTION,
 SHALL MEAN ONE DULY APPOINTED BY A COURT OF  COMPETENT  JURISDICTION  TO
 ACT  AS  EXECUTOR,  ADMINISTRATOR,  TRUSTEE,  COMMITTEE,  CONSERVATOR OR
 RECEIVER, INCLUDING ONE WHO SUCCEEDS  A  LEGAL  REPRESENTATIVE  AND  ONE
 ACTING   IN  AN  ANCILLARY  CAPACITY  THERETO  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF SUCH COURT APPOINTMENT.
   5. AS USED IN THIS SECTION: (A) THE TERM "PERSON" INCLUDES AN INDIVID-
 UAL, PARTNERSHIP, CORPORATION, ASSOCIATION OR  ANY  OTHER  ORGANIZATION;
 AND (B) THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY,
 OF  THE  POWER  TO  DIRECT  OR CAUSE THE DIRECTION OF THE MANAGEMENT AND
 POLICIES OF A LICENSEE, WHETHER THROUGH THE OWNERSHIP OF VOTING STOCK OF
 SUCH LICENSEE, THE  OWNERSHIP  OF  VOTING  STOCK  OF  ANY  PERSON  WHICH
 POSSESSES SUCH POWER OR OTHERWISE. CONTROL SHALL BE PRESUMED TO EXIST IF
 ANY  PERSON,  DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER
 TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY LICENSEE OR OF

 A. 10878                            5
 
 ANY PERSON WHICH OWNS, CONTROLS OR HOLDS WITH  POWER  TO  VOTE  TEN  PER
 CENTUM  OR MORE OF THE VOTING STOCK OF ANY LICENSEE, BUT NO PERSON SHALL
 BE DEEMED TO CONTROL A LICENSEE SOLELY BY REASON OF BEING AN OFFICER  OR
 DIRECTOR  OF  SUCH  LICENSEE  OR PERSON.   THE SUPERINTENDENT MAY IN HIS
 DISCRETION, UPON THE APPLICATION  OF  A  LICENSEE  OR  ANY  PERSON  WHO,
 DIRECTLY  OR  INDIRECTLY,  OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE OR
 SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE  ANY  VOTING  STOCK  OF
 SUCH  LICENSEE, DETERMINE WHETHER OR NOT THE OWNERSHIP, CONTROL OR HOLD-
 ING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE CONTROL OF SUCH
 LICENSEE FOR PURPOSES OF THIS SECTION.
   § 363-G. GROUNDS FOR SUSPENSION OR REVOCATION. 1.  THE  SUPERINTENDENT
 MAY  SUSPEND  OR  REVOKE  ANY  LICENSE  ISSUED UNDER THIS ARTICLE IF THE
 SUPERINTENDENT SHALL FIND THAT:
   (A) THE LICENSEE HAS FAILED TO PAY ANY SUM OF MONEY LAWFULLY  DEMANDED
 BY  THE SUPERINTENDENT OR TO COMPLY WITH ANY DEMAND, RULING, OR REQUIRE-
 MENT OF THE SUPERINTENDENT WITHIN A REASONABLE PERIOD OF TIME;
   (B) THE LICENSEE HAS VIOLATED ANY PROVISIONS OF THIS ARTICLE; OR
   (C) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE  TIME
 OF  THE  ORIGINAL  APPLICATION  FOR  SUCH  LICENSE,  CLEARLY  WOULD HAVE
 WARRANTED THE  SUPERINTENDENT  IN  REFUSING  ORIGINALLY  TO  ISSUE  SUCH
 LICENSE.
   2. THE SUPERINTENDENT MAY ON GOOD CAUSE SHOWN, WITHOUT NOTICE OR HEAR-
 ING, SUSPEND ANY LICENSE FOR A PERIOD NOT EXCEEDING THIRTY DAYS, PENDING
 INVESTIGATION.
   3.  ANY LICENSEE MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPER-
 INTENDENT WRITTEN NOTICE  THAT  THE  LICENSEE  THEREBY  SURRENDERS  SUCH
 LICENSE,  BUT  SUCH  SURRENDER SHALL NOT AFFECT SUCH LICENSEE'S CIVIL OR
 CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH SURRENDER.
   4. NO REVOCATION OR SUSPENSION  OR  SURRENDER  OF  ANY  LICENSE  SHALL
 IMPAIR  OR  AFFECT  THE  OBLIGATION  OF ANY PRE-EXISTING LAWFUL CONTRACT
 BETWEEN THE LICENSEE AND ANY BORROWER.
   5. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FORCE
 AND EFFECT UNTIL IT SHALL HAVE BEEN SURRENDERED, REVOKED,  OR  SUSPENDED
 IN  ACCORDANCE  WITH THE PROVISIONS OF THIS ARTICLE, BUT THE SUPERINTEN-
 DENT SHALL HAVE AUTHORITY TO REINSTATE SUSPENDED LICENSES  OR  TO  ISSUE
 NEW  LICENSES  TO  A  LICENSEE WHOSE LICENSE OR LICENSES SHALL HAVE BEEN
 REVOKED IF NO FACT OR CONDITION THEN EXISTS  WHICH  CLEARLY  WOULD  HAVE
 WARRANTED  THE  SUPERINTENDENT  IN  REFUSING  ORIGINALLY  TO  ISSUE SUCH
 LICENSE UNDER THIS ARTICLE.
   6. WHENEVER THE SUPERINTENDENT  SHALL  REVOKE  OR  SUSPEND  A  LICENSE
 ISSUED  PURSUANT  TO  THIS  ARTICLE,  THE SUPERINTENDENT SHALL EXECUTE A
 WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE ONE COPY  OF
 SUCH  ORDER  IN  THE  OFFICE OF THE DEPARTMENT AND SERVE A COPY UPON THE
 LICENSEE, SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED  BY  ARTICLE
 SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. SUCH SPECIAL PROCEED-
 ING  FOR  REVIEW  AS AUTHORIZED BY THIS SECTION MUST BE COMMENCED WITHIN
 THIRTY DAYS FROM THE DATE OF SUCH ORDER OF SUSPENSION OR REVOCATION.
   § 363-H. EXAMINATIONS. FOR THE PURPOSE OF  DISCOVERING  VIOLATIONS  OF
 THIS  ARTICLE OR SECURING INFORMATION LAWFULLY REQUIRED UNDER THIS ARTI-
 CLE, THE SUPERINTENDENT MAY AT ANY TIME, AND AS OFTEN AS MAY  BE  DETER-
 MINED,  EITHER  PERSONALLY  OR BY A PERSON DULY DESIGNATED BY THE SUPER-
 INTENDENT, INVESTIGATE THE BUSINESS AND  EXAMINE  THE  BOOKS,  ACCOUNTS,
 RECORDS, AND FILES USED THEREIN OF EVERY LICENSEE IN CONNECTION WITH THE
 ACTIVITY COVERED UNDER THIS ARTICLE. FOR THAT PURPOSE THE SUPERINTENDENT
 AND  DULY  DESIGNATED  REPRESENTATIVES  SHALL  HAVE  FREE  ACCESS TO THE
 OFFICES AND PLACE OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS,  FILES,

 A. 10878                            6
 
 SAFES  AND  VAULTS  OF ALL SUCH LICENSEES. THE SUPERINTENDENT SHALL HAVE
 AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO  EXAMINE  UNDER  OATH  ALL
 PERSONS WHOSE TESTIMONY MAY BE REQUIRED RELATIVE TO SUCH BUSINESS.
   §  363-I. BOOKS AND RECORDS. 1. THE LICENSEE SHALL KEEP AND USE IN ITS
 BUSINESS SUCH BOOKS, ACCOUNTS, AND RECORDS AS  WILL  ENABLE  THE  SUPER-
 INTENDENT  TO  DETERMINE  WHETHER  SUCH  LICENSEE  IS COMPLYING WITH THE
 PROVISIONS OF THIS ARTICLE AND WITH THE RULES AND  REGULATIONS  LAWFULLY
 MADE  BY  THE  SUPERINTENDENT  PURSUANT  TO THIS ARTICLE. EVERY LICENSEE
 SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND RECORDS FOR AT LEAST TWO  YEARS
 AFTER  THE  LAST  PAYMENT  ON ANY ACCOUNT WAS MADE OR TWO YEARS AFTER AN
 ACCOUNT IS WRITTEN OFF AS A LOSS. PRESERVATION OF  PHOTOGRAPHIC  REPROD-
 UCTION  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 AND WHICH
 ARE AVAILABLE FOR EXAMINATION UPON REQUEST SHALL  CONSTITUTE  COMPLIANCE
 WITH THE REQUIREMENTS OF THIS SECTION.
   2.  EACH  LICENSEE  SHALL ANNUALLY ON OR BEFORE THE FIRST DAY OF APRIL
 FILE A REPORT WITH THE SUPERINTENDENT GIVING  SUCH  INFORMATION  AS  THE
 SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS DURING
 THE PRECEDING CALENDAR YEAR OF EACH LICENSED PLACE OF BUSINESS CONDUCTED
 BY  SUCH LICENSEE WITHIN THE STATE UNDER AUTHORITY OF THIS ARTICLE. SUCH
 REPORT SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY  THE  LICENSEE  UNDER
 THE  PENALTIES  OF  PERJURY  AND  SHALL BE IN THE FORM PRESCRIBED BY THE
 SUPERINTENDENT WHO SHALL MAKE AND PUBLISH ANNUALLY A CONSOLIDATED STATE-
 MENT OF CONDITION SHOWING THE COMBINED ASSETS  AND  LIABILITIES  OF  ALL
 LICENSED  LENDERS.  SUCH  CONSOLIDATED  STATEMENT  OF CONDITION SHALL BE
 BASED UPON THE INFORMATION CONTAINED IN SUCH  REPORTS.  IN  ADDITION  TO
 ANNUAL  REPORTS,  THE SUPERINTENDENT MAY REQUIRE SUCH ADDITIONAL 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.
   § 363-J. ADVERTISING. 1. NO LICENSEE SHALL ADVERTISE, PRINT,  DISPLAY,
 PUBLISH,  DISTRIBUTE,  OR BROADCAST OR CAUSE OR PERMIT TO BE ADVERTISED,
 PRINTED, DISPLAYED,  PUBLISHED,  DISTRIBUTED,  OR  BROADCASTED,  IN  ANY
 MANNER  WHATSOEVER  ANY  STATEMENT  OR REPRESENTATION WITH REGARD TO THE
 RATES, TERMS, COSTS OR CONDITIONS FOR  A  COMMERCIAL  FINANCING  PRODUCT
 WHICH IS FALSE, MISLEADING OR DECEPTIVE.
   2.  NO LICENSEE SHALL MAKE, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRIT-
 ING, BY ANY METHOD, PRACTICE OR DEVICE, ANY REPRESENTATION  THAT  IT  IS
 LICENSED  UNDER THIS ARTICLE, EXCEPT A REPRESENTATION THAT SUCH LICENSEE
 IS LICENSED AS A LICENSED COMMERCIAL FINANCING PROVIDER BY  THE  DEPART-
 MENT.
   3.  NO  LICENSEE  SHALL  TRANSACT ANY BUSINESS SUBJECT TO THIS ARTICLE
 UNDER ANY OTHER NAME OR AT ANY OTHER PLACE OF BUSINESS THAN  THAT  NAMED
 IN THE LICENSE, EXCEPT AS MAY BE AUTHORIZED BY THE SUPERINTENDENT.
   §  363-K. PROHIBITED PRACTICES OF LICENSEES. 1. NO LICENSEE SHALL TAKE
 ANY CONFESSION OF JUDGMENT OR ANY POWER OF ATTORNEY RUNNING  TO  HIMSELF
 OR TO ANY THIRD PERSON TO CONFESS JUDGMENT OR TO APPEAR FOR THE BORROWER
 IN A JUDICIAL PROCEEDING.
   2.  NO  LICENSEE SHALL TAKE ANY INSTRUMENT IN WHICH BLANKS ARE LEFT TO
 BE FILLED IN AFTER EXECUTION.
   § 363-L. PENALTIES. 1. ANY COMMERCIAL  FINANCING  PRODUCT  MADE  BY  A
 PERSON NOT LICENSED UNDER THIS ARTICLE, AND NOT EXEMPT, TO A BUSINESS OR
 COMMERCIAL  ENTERPRISE  LOCATED  IN  THIS  STATE  SHALL BE VOID, AND THE
 PROVIDER SHALL HAVE NO RIGHT TO COLLECT OR RECEIVE ANY PRINCIPAL, INTER-

 A. 10878                            7
 
 EST, FEES OR CHARGES WHATSOEVER. NO ACTION TO ENFORCE A TRANSACTION MADE
 IN VIOLATION OF THIS SUBDIVISION MAY BE MAINTAINED.
   2.  ANY  PERSON  OR  OTHER  ENTITY  INCLUDING THE OFFICERS, DIRECTORS,
 AGENTS, AND EMPLOYEES THEREOF, WHICH SHALL VIOLATE OR PARTICIPATE IN THE
 VIOLATION OF ANY OF THE PROVISIONS OF SECTION THREE HUNDRED  SIXTY-THREE
 OF THIS ARTICLE SHALL BE GUILTY OF A MISDEMEANOR.
   §  363-M.  REGULATIONS.  THE  SUPERINTENDENT  IS HEREBY AUTHORIZED AND
 EMPOWERED TO MAKE SUCH GENERAL RULES AND REGULATIONS, AND SUCH  SPECIFIC
 RULINGS,  DEMANDS,  AND  FINDINGS  AS  MAY  BE  NECESSARY FOR THE PROPER
 CONDUCT OF THE BUSINESS  AUTHORIZED  AND  LICENSED  UNDER  AND  FOR  THE
 ENFORCEMENT  OF  THIS  ARTICLE,  IN ADDITION HERETO AND NOT INCONSISTENT
 HEREWITH.
   § 363-N. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE  APPLI-
 CATION  THEREOF  TO  ANY  PERSON OR CIRCUMSTANCES IS HELD TO BE INVALID,
 SUCH INVALIDITY SHALL NOT AFFECT OTHER  PROVISIONS  OR  APPLICATIONS  OF
 THIS  ARTICLE WHICH CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR
 APPLICATION, AND TO THIS END THE PROVISIONS OF THIS ARTICLE ARE  SEVERA-
 BLE.
   § 2. Paragraph 5 of subdivision a of section 10-136 of the administra-
 tive  code  of  the city of New York, as added by local law number 80 of
 the city of New York for the year 1996, is amended to read as follows:
   (5) "Check cashing business" shall mean any person  duly  licensed  by
 the superintendent of banks to engage in the business of cashing checks,
 drafts  or  money orders for consideration pursuant to the provisions of
 article [9-A] 9-B of the banking law.
   § 3. Subdivision (a) of section 22 of the banking law, as  amended  by
 chapter 553 of the laws of 2007, is amended to read as follows:
   (a)  Notwithstanding any other provision of law, every applicant for a
 license, authorization or  registration  under  articles  nine,  nine-A,
 NINE-B,  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 divi-
 sion of criminal justice services, but in any event, no  less  than  two
 digit imprints. The superintendent shall submit such 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 pursu-
 ant to the provisions of article thirty-five of the executive law, which
 shall include the payment of the prescribed processing fees. The  super-
 intendent  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. An applicant shall not be
 required to submit his or her fingerprints as required by this  subdivi-
 sion  if  such  applicant  (i)  is  already subject to regulation by the
 department and the applicant has  submitted  such  fingerprints  to  the
 department,  such  fingerprints  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; 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; or  (iii)  is  an  officer  or

 A. 10878                            8
 
 stockholder  of  a corporation whose common or preferred stock is regis-
 tered on a national securities  exchange,  as  provided  in  an  act  of
 congress  of  the United States entitled the "Securities 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 fingerprints to such exchange or
 market system 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; provided,  however,  that  the
 superintendent  may subsequently require such applicant to submit his or
 her fingerprints if the superintendent has a reasonable basis for updat-
 ing 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.
   §  4.  Subdivision  2 of section 635 of the banking law, as amended by
 chapter 146 of the laws of 2003, is amended to read as follows:
   2. "License" when used in this article means any license  duly  issued
 by  the  superintendent  pursuant  to  the  provisions  of article nine,
 nine-A, NINE-B, eleven-B, twelve-B, twelve-C, twelve-D or thirteen-B  of
 this  chapter  or any registration certificate issued by the superinten-
 dent pursuant to the provisions of article twelve-D of this chapter.
   § 5. Subdivision 1 of section 652-b of the banking law,  as  added  by
 chapter 374 of the laws of 1979, is amended to read as follows:
   1.  It shall be unlawful for any transmitter of money or its officers,
 affiliates or subsidiaries to enter into an agreement with a check cash-
 er, licensed pursuant to the provisions of article  [nine-A]  NINE-B  of
 this chapter, whereby credit is extended to the check casher at the same
 time as, and on the condition that, the transmitter of money enters into
 an  agreement  with  the  check casher whereby the check casher will (1)
 sell only the New York instruments or New York traveler's checks of  the
 transmitter  of  money  or  (2) agree to the exclusive use of any of the
 other services of the transmitter of money.    This  section  shall  not
 apply  to  the  issuance by a transmitter of money of a guarantee of any
 indebtedness of a check casher licensed pursuant to  the  provisions  of
 article [nine-A] NINE-B of this chapter.
   § 6. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law.  Effective immediately, any rules and regu-
 lations necessary to implement the provisions of this act on its  effec-
 tive  date  are authorized to be amended, promulgated and/or repealed on
 or before such date.