Senate Bill S4894

Signed By Governor
2021-2022 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions
Votes

2021-S4894 (ACTIVE) - Details

See Assembly Version of this Bill:
A1693
Law Section:
Banking Law
Laws Affected:
Amd §9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: A2604
2011-2012: A2850
2013-2014: A2792
2015-2016: A1645
2017-2018: A1126
2019-2020: S4628, A3243

2021-S4894 (ACTIVE) - Summary

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

2021-S4894 (ACTIVE) - Sponsor Memo

2021-S4894 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4894
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 18, 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, in relation to mail-loan checks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Subdivisions 2 and 3 of section 9-t of the banking law, as
 added by chapter 309 of the laws of 2002, are amended and a new subdivi-
 sion 4 is added to read as follows:
   2. Any lending institution which issues mail-loan checks shall:
   (a) include on the face of each check issued to a non-customer a writ-
 ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
 ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
 ing or accepting a mail-loan check for deposit may require more than one
 form of identification;
   (b) make no reference on the outside  of  the  envelope  containing  a
 mail-loan  check  that  indicates  that  a check is enclosed within such
 envelope;
   (c) provide that all mail-loan checks shall be non-transferable; and
   (d) include THE TRANSACTION FEE AND INTEREST RATE  AND  an  expiration
 date  of not more than six months on the mail-loan check, AS WELL AS ANY
 ADDITIONAL INFORMATION THAT THE SUPERINTENDENT MAY REQUIRE.
   3. NO LENDING INSTITUTION SHALL ISSUE A  MAIL-LOAN  CHECK,  EXCEPT  IN
 RESPONSE TO A REQUEST OR APPLICATION THEREFOR.
   4. FAILURE TO DESTROY OR RETURN A MAIL-LOAN CHECK SHALL NOT CONSTITUTE
 ACCEPTANCE OF THE CHECK.
   5.  Any lending institution which mails a mail-loan check in violation
 of the provisions of this section shall be liable for  a  civil  penalty
 not to exceed five hundred dollars for each such violation.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00135-01-1
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.