The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1061
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2021
                                ___________
 
 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 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04951-01-1

 S. 1061                             2

 EXCEPT  AS  AUTHORIZED  BY  THIS  ARTICLE  AND WITHOUT FIRST OBTAINING A
 LICENSE FROM THE SUPERINTENDENT.
   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

 S. 1061                             3

   6. ANY TRANSACTION THAT IS INTENDED TO BE A PURCHASE OF THE OWNERSHIP,
 IN WHOLE OR PART, OF A BUSINESS OR COMMERCIAL ENTERPRISE.
   §  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

 S. 1061                             4
 
 ARTICLE  WITHIN  NINETY DAYS FROM THE FILING THEREOF WITH THE APPLICABLE
 FEES.
   §  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

 S. 1061                             5
 
 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
 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

 S. 1061                             6
 
 AND  DULY  DESIGNATED  REPRESENTATIVES  SHALL  HAVE  FREE  ACCESS TO THE
 OFFICES AND PLACE OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS,  FILES,
 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

 S. 1061                             7
 
 COMMERCIAL ENTERPRISE LOCATED IN THIS  STATE  SHALL  BE  VOID,  AND  THE
 PROVIDER SHALL HAVE NO RIGHT TO COLLECT OR RECEIVE ANY PRINCIPAL, INTER-
 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

 S. 1061                             8
 
 individual  and has shared such information or its determination result-
 ing from such search with the department; or  (iii)  is  an  officer  or
 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, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1061--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Banks  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend the banking law and the administrative code of the city
   of New York, in relation to regulating commercial  finance  licensing,
   establishing   the   minority-  and  women-owned  business  protection
   program, providing for the study of certain impacts on underbanked and
   underserved areas 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. MINORITY- AND WOMEN-OWNED BUSINESS PROTECTION PROGRAM.
         363-N. STUDY;  CERTAIN  IMPACTS  ON  UNDERBANKED AND UNDERSERVED
                  AREAS.
         363-O. REGULATIONS.
         363-P. SEVERABILITY.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04951-02-1

 S. 1061--A                          2
 
   § 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.
   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

 S. 1061--A                          3
 
 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.
   §  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

 S. 1061--A                          4
 
 SHALL APPROVE OR DENY EVERY APPLICATION FOR A MASTER LICENSE UNDER  THIS
 ARTICLE  WITHIN  NINETY DAYS FROM THE FILING THEREOF WITH THE APPLICABLE
 FEES.
   §  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

 S. 1061--A                          5
 
 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
 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

 S. 1061--A                          6
 
 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,
 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.

 S. 1061--A                          7
 
   § 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-
 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.  MINORITY-  AND  WOMEN-OWNED BUSINESS PROTECTION PROGRAM. 1.
 LEGISLATIVE FINDINGS. (A) THE AMERICAN RESCUE PLAN ACT OF 2021 IS A  ONE
 TRILLION NINE HUNDRED BILLION DOLLAR ECONOMIC STIMULUS LEGISLATION PACK-
 AGE  PASSED BY CONGRESS AND SIGNED INTO LAW BY PRESIDENT JOSEPH BIDEN ON
 MARCH ELEVENTH, TWO THOUSAND TWENTY-ONE.
   (B) MANY LOCAL SMALL BUSINESSES INCLUDING  MINORITY-  AND  WOMEN-OWNED
 BUSINESSES  (MWBE'S)  IN  OUR  STATE DID NOT RECEIVE ANY FEDERAL FUNDING
 UNDER THE FEDERAL PAYCHECK PROTECTION PROGRAM (PPP).
   (C) AS NEW YORK STATE IS REOPENING REGIONALLY POST COVID-19,  MANY  OF
 OUR  MWBE'S  WHO  DID  NOT  RECEIVE PPP FUNDING ARE IN DESPERATE NEED OF
 FUNDING TO EMPLOY AND/OR PAY STAFF, PURCHASE INVENTORY AND PAY RENT  AND
 UTILITIES.
   (D)  MWBE'S  HAVE  HISTORICALLY  HAD  DIFFICULTY  ACCESSING  CREDIT ON
 REASONABLE TERMS AND HAVE BEEN DENIED ACCESS TO CREDIT.
   2.  ESTABLISHMENT  AND  INITIAL  FUNDING.  (A)   NOTWITHSTANDING   ANY
 PROVISION  OF  LAW TO THE CONTRARY, THE LEGISLATURE AND THE EMPIRE STATE
 DEVELOPMENT CORPORATION SHALL ESTABLISH THE  MINORITY-  AND  WOMEN-OWNED
 BUSINESS  (MWBE)  DEVELOPMENT  AND  LENDING  PROGRAM TO BE FUNDED IN THE
 INITIAL AMOUNT OF ONE HUNDRED MILLION DOLLARS FROM FUNDS RECEIVED PURSU-
 ANT TO THE AMERICAN RESCUE PLAN ACT OF 2021  AND  STATE  APPROPRIATIONS.
 FUNDS RECEIVED PURSUANT TO THE AMERICAN RESCUE PLAN ACT OF 2021 SHALL BE
 USED  TO REIMBURSE ANY MONIES APPROPRIATED BY THE STATE FOR THE PURPOSES
 DESCRIBED UNDER SUBDIVISION FOUR OF THIS SECTION.
   (B) IN ADDITION TO SUCH INITIAL  FUNDING,  ONGOING  FUNDING  FOR  SUCH
 PROGRAM  SHALL  COME  FROM  AT LEAST FIFTY PERCENT OF THE FEES COLLECTED
 FROM LICENSEES OR ENTITIES THAT ARE REQUIRED TO BE LICENSED  UNDER  THIS
 ARTICLE.  SUCH  FUNDS  MAY BE USED TO FUND ONGOING GRANTS TO MWBE'S THAT
 ARE UNABLE TO ACCESS CREDIT AT REASONABLE COSTS.
   (C) ANY LICENSEE OFFERING A COMMERCIAL  FINANCING  PRODUCT  THROUGH  A
 CONTRACT  OR ARRANGEMENT WITH ANY BANKING ORGANIZATION OR FEDERAL CREDIT
 UNION ORGANIZED UNDER THE LAWS OF ANOTHER STATE, UNDER WHICH SUCH  BANK-
 ING  ORGANIZATION  OR  FEDERAL  CREDIT  UNION  ORIGINATES THE COMMERCIAL
 FINANCING PRODUCT, SHALL REPORT THE  TOTAL  VOLUME  OF  SUCH  COMMERCIAL
 FINANCING TRANSACTIONS IN EACH YEAR IN NEW YORK STATE TO THE SUPERINTEN-
 DENT  WHO  SHALL THEN SET A FEE PER TRANSACTION TO FUND MWBE DEVELOPMENT
 AND LENDING.
   3. ELIGIBILITY. ENTITIES SHALL BE ELIGIBLE FOR FUNDING  PROVIDED  SUCH
 ENTITY:
   (A) EMPLOYS LESS THAN ONE HUNDRED EMPLOYEES PER WORKPLACE;
   (B)  EXISTED  IN NEW YORK STATE ON THE FIRST DAY OF THE STATE DISASTER
 EMERGENCY DECLARED PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO  AND  ANY
 FURTHER AMENDMENTS OR MODIFICATIONS THERETO;
   (C)  CAN DOCUMENT ACTUAL ECONOMIC HARM, INCLUDING, BUT NOT LIMITED TO,
 A REVENUE SHORTFALL, AS A DIRECT RESULT OF THE STATE DISASTER  EMERGENCY
 DECLARED  PURSUANT  TO  EXECUTIVE  ORDER TWO HUNDRED TWO AND ANY FURTHER
 AMENDMENTS OR MODIFICATIONS THERETO; AND

 S. 1061--A                          8
 
   (D) FILED TAX RETURNS FOR CALENDAR YEAR  TWO  THOUSAND  EIGHTEEN,  TWO
 THOUSAND NINETEEN, OR TWO THOUSAND TWENTY.
   4.  GRANTS.  THE  MWBE  PROTECTION PROGRAM SHALL PROVIDE THE FOLLOWING
 GRANTS IN AN AMOUNT EQUAL TO SIXTY PERCENT OF THE  PRIOR  YEAR  ELIGIBLE
 EXPENSES, NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS:
   (A)  A  RENT  REIMBURSEMENT GRANT TO REIMBURSE QUALIFYING ENTITIES FOR
 RENT PAID DURING THE COVID-19 PANDEMIC, PROVIDED SUCH ENTITY  HAS  DOCU-
 MENTARY  PROOF  OF SUCH PAID RENT. RENT REIMBURSEMENT SHALL BE CAPPED AT
 THREE MONTHS OF PAID RENT DURING THE STATE OF EMERGENCY;
   (B) A PERISHABLE INVENTORY GRANT TO REIMBURSE QUALIFYING ENTITIES  FOR
 PERISHABLE  INVENTORY  PURCHASED  PRIOR  TO THE STATE DISASTER EMERGENCY
 DECLARED PURSUANT TO EXECUTIVE ORDER TWO HUNDRED  TWO  AND  ANY  FURTHER
 AMENDMENTS  OR MODIFICATIONS THERETO AND DISCARDED DUE TO SUCH EXECUTIVE
 ORDER;
   (C) A PAYROLL GRANT FOR THE COMPENSATION  OF  INDEPENDENT  CONTRACTORS
 WHO COMPLETE THE FEDERAL TAX FORM 1099; AND
   (D) A UTILITIES GRANT.
   5.  OVERSIGHT. THE STATE COMPTROLLER SHALL MONITOR THE MWBE PROTECTION
 PROGRAM TO ENSURE THE PROVISIONS OF THIS SECTION ARE PROPERLY  EXECUTED.
 THE  STATE  COMPTROLLER  SHALL  SUBMIT  A  REPORT ON SUCH PROGRAM TO THE
 GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER  OF  THE
 ASSEMBLY  AND  SHALL  POST SUCH REPORT ON THE COMPTROLLER'S WEBSITE ON A
 QUARTERLY BASIS DESCRIBING ANY GRANTS AWARDED UNDER SUCH PROGRAM.
   § 363-N. STUDY; CERTAIN IMPACTS ON UNDERBANKED AND UNDERSERVED  AREAS.
 1.  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION, IN CONJUNCTION WITH THE
 DEPARTMENT AND ANY OTHER AGENCY OR  DEPARTMENT  DEEMED  NECESSARY  SHALL
 STUDY THE FOLLOWING:
   (A)  THE  IMPACTS  OF  THE COVID-19 PANDEMIC ON UNDERBANKED AND UNDER-
 SERVED AREAS, ACCESS TO LOANS BY  SMALL  BUSINESSES,  AS  SUCH  TERM  IS
 DEFINED  BY  SECTION  ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT
 LAW AND ACCESS TO LOANS BY MINORITY-  AND  WOMEN-OWNED  BUSINESS  ENTER-
 PRISES,  AS  SUCH TERMS ARE DEFINED IN SUBDIVISIONS SEVEN AND FIFTEEN OF
 SECTION THREE HUNDRED TEN OF THE EXECUTIVE LAW; AND
   (B) THE IMPACTS OF ARTICLE EIGHT OF THE FINANCIAL SERVICES LAW.
   2. TOPICS TO EXAMINE SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
   (A) THE ABILITY OF INDIVIDUALS IN UNDERBANKED AND UNDERSERVED AREAS TO
 RECEIVE, ACCESS AND USE THEIR STIMULUS PAYMENTS;
   (B) CHANGES IN THE BANKING HABITS OF INDIVIDUALS  IN  UNDERBANKED  AND
 UNDERSERVED AREAS;
   (C)  CLOSURES OR CHANGES TO BANK HOURS, STAFFING LEVELS OR SERVICES IN
 BANKS IN UNDERBANKED OR UNDERSERVED AREAS;
   (D) THE NUMBER OF SMALL BUSINESSES APPLYING FOR LOANS, THE  NUMBER  OF
 SMALL  BUSINESSES  RECEIVING  APPROVAL  FOR SUCH LOANS AND THE AMOUNT OF
 MONEY SUCH SMALL BUSINESSES RECEIVED IN LOANS;
   (E) THE NUMBER  OF  MINORITY-  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES
 APPLYING  FOR  LOANS,  THE  NUMBER OF MINORITY- AND WOMEN-OWNED BUSINESS
 ENTERPRISES RECEIVING APPROVAL FOR SUCH LOANS AND THE  AMOUNT  OF  MONEY
 SUCH MINORITY- AND WOMEN-OWNED BUSINESS ENTERPRISES RECEIVED IN LOANS;
   (F)  THE TYPES OF LOANS SMALL BUSINESSES AND MINORITY- AND WOMEN-OWNED
 BUSINESS ENTERPRISES ARE APPLYING FOR AND THE TYPES OF LOANS SUCH  BUSI-
 NESSES ARE APPROVED FOR; AND
   (G) THE NUMBER OF SMALL BUSINESSES AND MINORITY- AND WOMEN-OWNED BUSI-
 NESS  ENTERPRISES  THAT  CLOSED DUE TO AN INABILITY TO ACCESS OR RECEIVE
 LOANS.
   3. THE DEPARTMENT SHALL ANALYZE ANY GAPS IN SERVICE TO UNDERBANKED AND
 UNDERSERVED AREAS AND THE IMPACT OF THE DISCLOSURES REQUIRED IN  ACCORD-

 S. 1061--A                          9
 
 ANCE  WITH  ARTICLE  EIGHT  OF THE FINANCIAL SERVICES LAW ON SMALL BUSI-
 NESSES AND MINORITY- AND WOMEN-OWNED BUSINESS ENTERPRISES.  THE  DEPART-
 MENT  SHALL  PROVIDE RECOMMENDATIONS TO ADDRESS ANY SUCH SERVICE GAPS TO
 ENSURE INDIVIDUALS LIVING IN SUCH AREAS AND BUSINESSES OPERATING IN SUCH
 AREAS CAN ACCESS SERVICES.
   4.  THE  SUPERINTENDENT  SHALL SUBMIT THE RESULTS OF THESE STUDIES AND
 ALL RECOMMENDATIONS TO THE GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE
 SENATE  AND  THE  SPEAKER OF THE ASSEMBLY AND SHALL PUBLISH SUCH RESULTS
 AND RECOMMENDATIONS ON THE DEPARTMENT'S WEBSITE NO LATER  THAN  NOVEMBER
 FIRST, TWO THOUSAND TWENTY-ONE.
   5.  NO  LICENSEE  OR ENTITY THAT IS REQUIRED TO BE LICENSED UNDER THIS
 ARTICLE SHALL PROVIDE ANY DISCLOSURES REQUIRED BY ARTICLE EIGHT  OF  THE
 FINANCIAL  SERVICES  LAW  UNTIL  SIX  MONTHS AFTER THE COMPLETION OF THE
 STUDIES COMMISSIONED BY THE  SUPERINTENDENT  OR  SIX  MONTHS  AFTER  THE
 SUPERINTENDENT  ISSUES  REGULATIONS UNDER ARTICLE EIGHT OF THE FINANCIAL
 SERVICES LAW, WHICHEVER IS LATER. SUCH REGULATIONS SHALL ACCOUNT FOR THE
 RESULTS OF THE STUDIES MANDATED BY THIS ARTICLE.
   § 363-O. 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-P. 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

 S. 1061--A                         10
 
 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
 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, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.