Senate Bill S4606

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4606
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 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 the regulation  of  buy-
   now-pay-later lenders
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The banking law is amended by adding a new article 14-B  to
 read as follows:
 
                               ARTICLE XIV-B
                         BUY-NOW-PAY-LATER LENDERS
 
 SECTION 735. SHORT TITLE.
         736. DEFINITIONS.
         737. LICENSE.
         738. CONDITIONS  PRECEDENT TO ISSUING A LICENSE; PROCEDURE WHERE
                APPLICATION IS DENIED.
         739. LICENSE PROVISIONS AND POSTING.
         740. APPLICATION FOR ACQUISITION OF CONTROL OF BUY-NOW-PAY-LATER
                LENDER BY PURCHASE OF STOCK.
         741. GROUNDS FOR REVOCATION OR SUSPENSION OF LICENSE; PROCEDURE.
         742. SUPERINTENDENT AUTHORIZED TO EXAMINE.
         743. LICENSEE'S BOOKS AND RECORDS; REPORTS.
         744. ACTS PROHIBITED.
         745. LIMITATION ON CHARGES ON BUY-NOW-PAY-LATER LOANS.
         746. CONSUMER PROTECTIONS.
         747. AUTHORITY OF SUPERINTENDENT.
         748. PENALTIES.
         749. SEVERABILITY.
   § 735. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
 THE "BUY NOW PAY LATER ACT".
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01886-02-5
              

 S. 4606                             2

   § 736. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "CONSUMER"  MEANS  AN INDIVIDUAL WHO IS A RESIDENT OF THE STATE OF
 NEW YORK.
   2. "BUY-NOW-PAY-LATER LOAN" MEANS CREDIT PROVIDED TO A CONSUMER AT THE
 TIME OF PURCHASE IN CONNECTION WITH SUCH CONSUMER'S PARTICULAR  PURCHASE
 OF  GOODS  OR  SERVICES,  OTHER  THAN  A  MOTOR VEHICLE AS DEFINED UNDER
 SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE  AND  TRAFFIC  LAW,  THAT
 REQUIRES  REPAYMENT  OF THE PRINCIPAL IN A FIXED NUMBER OF SUBSTANTIALLY
 EQUAL INSTALLMENTS WITH NO INTEREST.
   3. "BUY-NOW-PAY-LATER LENDER" MEANS A PERSON WHO  OFFERS  BUY-NOW-PAY-
 LATER  LOANS  IN  THIS  STATE.  FOR  PURPOSES OF THE PRECEDING SENTENCE,
 "OFFER" MEANS OFFERING TO EXTEND CREDIT THROUGH A BUY-NOW-PAY-LATER LOAN
 DIRECTLY TO A CONSUMER AT THE TIME OF PURCHASE OR OPERATING A  PLATFORM,
 SOFTWARE, OR TO OPERATE A SYSTEM WITH WHICH A CONSUMER INTERACTS AND THE
 PRIMARY PURPOSE OF WHICH IS TO ALLOW THIRD PARTIES TO OFFER BUY-NOW-PAY-
 LATER LOANS, OR BOTH. A PERSON WHO SELLS GOODS OR SERVICES TO A CONSUMER
 AND  EXTENDS  CREDIT TO SUCH CONSUMER IN CONNECTION WITH SUCH CONSUMER'S
 PARTICULAR PURCHASE OF SUCH GOODS OR SERVICES SHALL NOT BE CONSIDERED  A
 BUY-NOW-PAY-LATER  LENDER  WITH  RESPECT  TO SUCH TRANSACTIONS. A PERSON
 SHALL NOT BE CONSIDERED A  BUY-NOW-PAY-LATER  LENDER  ON  THE  BASIS  OF
 ISOLATED, INCIDENTAL OR OCCASIONAL TRANSACTIONS WHICH OTHERWISE MEET THE
 DEFINITIONS OF THIS SECTION.
   4.  "EXEMPT  ORGANIZATION"  MEANS  ANY BANKING ORGANIZATION OR FOREIGN
 BANKING CORPORATION LICENSED BY THE SUPERINTENDENT OR THE COMPTROLLER OF
 THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE, NATIONAL BANK,  FEDERAL
 SAVINGS  BANK,  FEDERAL  SAVINGS AND LOAN ASSOCIATION, OR FEDERAL CREDIT
 UNION ORGANIZED UNDER THE LAWS OF ANY OTHER  STATE.    SUBJECT  TO  SUCH
 REGULATIONS  AS MAY BE PROMULGATED BY THE SUPERINTENDENT, "EXEMPT ORGAN-
 IZATION" MAY ALSO INCLUDE ANY SUBSIDIARY OF SUCH ENTITIES.
   5. "LICENSEE" MEANS A PERSON WHO HAS BEEN ISSUED A LICENSE PURSUANT TO
 THIS ARTICLE.
   6. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCIATION
 OR ANY OTHER BUSINESS ORGANIZATION.
   § 737. LICENSE. 1. NO PERSON OR OTHER ENTITY, EXCEPT AN EXEMPT  ORGAN-
 IZATION  AS  DEFINED  IN  THIS  ARTICLE, SHALL ENGAGE IN THE BUSINESS OF
 MAKING BUY-NOW-PAY-LATER LOANS WITHOUT FIRST OBTAINING A BUY-NOW-PAY-LA-
 TER LENDER LICENSE FROM THE SUPERINTENDENT.
   2. AN APPLICATION FOR A LICENSE SHALL BE IN WRITING, UNDER  OATH,  AND
 IN  THE  FORM  AND CONTAINING SUCH INFORMATION AS THE SUPERINTENDENT MAY
 REQUIRE.
   3. AT THE TIME OF FILING AN APPLICATION FOR A LICENSE,  THE  APPLICANT
 SHALL  PAY TO THE SUPERINTENDENT A FEE AS PRESCRIBED PURSUANT TO SECTION
 EIGHTEEN-A OF THIS CHAPTER.
   4. A LICENSE GRANTED PURSUANT TO THIS ARTICLE SHALL  BE  VALID  UNLESS
 REVOKED  OR SUSPENDED BY THE SUPERINTENDENT OR UNLESS SURRENDERED BY THE
 LICENSEE AND ACCEPTED BY THE SUPERINTENDENT.
   5. IN CONNECTION WITH AN APPLICATION  FOR  A  LICENSE,  THE  APPLICANT
 SHALL  SUBMIT  AN  AFFIDAVIT  OF FINANCIAL SOLVENCY, INCLUDING FINANCIAL
 STATEMENTS, NOTING SUCH CAPITALIZATION REQUIREMENTS AND ACCESS  TO  SUCH
 CREDIT  OR SUCH OTHER AFFIRMATION OR INFORMATION AS MAY BE PRESCRIBED BY
 THE REGULATIONS OF THE SUPERINTENDENT.
   § 738. CONDITIONS PRECEDENT TO  ISSUING  A  LICENSE;  PROCEDURE  WHERE
 APPLICATION  IS  DENIED.  1.  AFTER  THE  FILING OF AN APPLICATION FOR A
 LICENSE ACCOMPANIED BY PAYMENT OF THE FEE PURSUANT TO SUBDIVISION  THREE
 OF  SECTION  SEVEN  HUNDRED  THIRTY-SEVEN  OF  THIS ARTICLE, IT SHALL BE
 S. 4606                             3
 
 SUBSTANTIVELY REVIEWED. AFTER THE APPLICATION IS DEEMED  SUFFICIENT  AND
 COMPLETE, IF THE SUPERINTENDENT FINDS THAT THE FINANCIAL RESPONSIBILITY,
 INCLUDING  MEETING  ANY  CAPITAL REQUIREMENTS AS ESTABLISHED PURSUANT TO
 SUBDIVISION  THREE  OF  THIS  SECTION, EXPERIENCE, CHARACTER AND GENERAL
 FITNESS OF THE APPLICANT OR ANY PERSON ASSOCIATED WITH THE APPLICANT ARE
 SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND  TO  WARRANT  THE
 BELIEF  THAT  THE  BUSINESS WILL BE CONDUCTED HONESTLY, FAIRLY AND EFFI-
 CIENTLY WITHIN THE PURPOSES AND INTENT OF THIS ARTICLE, THE  SUPERINTEN-
 DENT  SHALL  ISSUE THE LICENSE. FOR THE PURPOSE OF THIS SUBDIVISION, THE
 APPLICANT SHALL BE DEEMED TO INCLUDE ALL THE MEMBERS OF THE APPLICANT IF
 IT IS A PARTNERSHIP OR UNINCORPORATED ASSOCIATION OR  ORGANIZATION,  AND
 ALL THE STOCKHOLDERS, OFFICERS AND DIRECTORS OF THE APPLICANT IF IT IS A
 CORPORATION.
   2.  IF  THE SUPERINTENDENT REFUSES TO ISSUE A LICENSE, THE SUPERINTEN-
 DENT SHALL NOTIFY THE APPLICANT OF THE DENIAL AND RETAIN  THE  FEE  PAID
 PURSUANT  TO  SUBDIVISION THREE OF SECTION SEVEN HUNDRED THIRTY-SEVEN OF
 THIS ARTICLE.
   3. THE SUPERINTENDENT MAY ISSUE REGULATIONS SETTING  CAPITAL  REQUIRE-
 MENTS  TO  ENSURE  THE SOLVENCY AND FINANCIAL INTEGRITY OF LICENSEES AND
 THEIR ONGOING OPERATIONS, TAKING INTO ACCOUNT THE RISKS, VOLUME OF BUSI-
 NESS, COMPLEXITY, AND OTHER RELEVANT FACTORS REGARDING  SUCH  LICENSEES.
 FURTHER,  THE SUPERINTENDENT MAY ISSUE RULES AND REGULATIONS PRESCRIBING
 A METHODOLOGY TO CALCULATE CAPITAL REQUIREMENTS WITH RESPECT  TO  LICEN-
 SEES OR CATEGORIES THEREOF.
   § 739. LICENSE  PROVISIONS AND POSTING. 1. A LICENSE ISSUED UNDER THIS
 ARTICLE SHALL STATE THE NAME AND ADDRESS OF THE  LICENSEE,  AND  IF  THE
 LICENSEE  BE  A  CO-PARTNERSHIP OR ASSOCIATION, THE NAMES OF THE MEMBERS
 THEREOF, AND IF A CORPORATION THE DATE AND PLACE OF ITS INCORPORATION.
   2. SUCH LICENSE SHALL BE  KEPT  CONSPICUOUSLY  POSTED  ON  THE  MOBILE
 APPLICATION,  WEBSITE,  OR  OTHER CONSUMER INTERFACE OF THE LICENSEE, AS
 WELL AS LISTED IN THE TERMS AND CONDITIONS OF ANY BUY-NOW-PAY-LATER LOAN
 OFFERED OR ENTERED INTO BY THE LICENSEE. THE SUPERINTENDENT MAY  PROVIDE
 BY REGULATION AN ALTERNATIVE FORM OF NOTICE OF LICENSURE.
   3.  A  LICENSE  ISSUED UNDER THIS ARTICLE SHALL NOT BE TRANSFERABLE OR
 ASSIGNABLE.
   § 740. APPLICATION FOR ACQUISITION  OF  CONTROL  OF  BUY-NOW-PAY-LATER
 LENDER  BY  PURCHASE  OF  STOCK. 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 PURSUANT TO SECTION
 EIGHTEEN-A OF THIS CHAPTER TO THE SUPERINTENDENT. THE APPLICATION  SHALL
 CONTAIN  SUCH  INFORMATION  AS  THE  SUPERINTENDENT,  BY 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  SECTION
 SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   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 HEREINAFTER DEFINED, 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.
 S. 4606                             4
 
 THE PROVISIONS OF SUBDIVISIONS ONE AND TWO  OF  THIS  SECTION  SHALL  BE
 APPLICABLE  TO  AN APPLICATION MADE UNDER SUCH SECTION BY A LEGAL REPRE-
 SENTATIVE.
   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, 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  ANY PERSON WHICH OWNS, CONTROLS OR HOLDS WITH
 POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF  ANY  LICEN-
 SEE,  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 THE SUPERINTENDENT'S DISCRETION, UPON THE APPLICA-
 TION  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 HOLDING OF SUCH  VOTING  STOCK  CONSTI-
 TUTES  OR WOULD CONSTITUTE CONTROL OF SUCH LICENSEE FOR PURPOSES OF THIS
 SECTION.
   § 741. GROUNDS FOR REVOCATION OR SUSPENSION OF LICENSE; PROCEDURE.  1.
 A  LICENSE  GRANTED PURSUANT TO THIS SECTION MAY BE REVOKED OR SUSPENDED
 BY THE SUPERINTENDENT UPON A FINDING THAT:
   (A) THE LICENSEE HAS VIOLATED ANY APPLICABLE LAW OR REGULATION;
   (B) 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'S REFUSAL TO ISSUE SUCH LICENSE; OR
   (C) 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.
   2. ANY LICENSEE MAY SURRENDER ANY LICENSE BY DELIVERING TO THE  SUPER-
 INTENDENT  WRITTEN  NOTICE  THAT  THE  LICENSEE  THEREBY SURRENDERS SUCH
 LICENSE. SUCH SURRENDER SHALL BE EFFECTIVE UPON ITS  ACCEPTANCE  BY  THE
 SUPERINTENDENT,  AND  SHALL NOT AFFECT SUCH LICENSEE'S CIVIL OR CRIMINAL
 LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH SURRENDER.
   3. EVERY LICENSE ISSUED HEREUNDER SHALL REMAIN  IN  FORCE  AND  EFFECT
 UNTIL  THE  SAME  SHALL  HAVE BEEN SURRENDERED, REVOKED OR SUSPENDED, IN
 ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, BUT  THE  SUPERINTENDENT
 SHALL  HAVE  AUTHORITY TO REINSTATE SUSPENDED LICENSES OR TO ISSUE A NEW
 LICENSE TO A LICENSEE WHOSE LICENSE HAS  BEEN  REVOKED  IF  NO  FACT  OR
 CONDITION THEN EXISTS WHICH CLEARLY WOULD HAVE WARRANTED THE SUPERINTEN-
 DENT'S REFUSAL TO ISSUE SUCH LICENSE.
   4.  WHENEVER  THE  SUPERINTENDENT  SHALL  REVOKE  OR SUSPEND A LICENSE
 ISSUED PURSUANT TO THIS  ARTICLE,  THE  SUPERINTENDENT  SHALL  FORTHWITH
 EXECUTE  A  WRITTEN ORDER TO THAT EFFECT, WHICH ORDER MAY BE REVIEWED IN
 THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL  PRACTICE  LAW
 AND  RULES.    SUCH  SPECIAL PROCEEDING FOR REVIEW AS AUTHORIZED BY THIS
 SECTION MUST BE COMMENCED WITHIN THIRTY DAYS FROM THE DATE OF SUCH ORDER
 OF SUSPENSION OR REVOCATION.
 S. 4606                             5

   5. THE SUPERINTENDENT MAY, FOR GOOD CAUSE, WITHOUT NOTICE AND A  HEAR-
 ING,  SUSPEND  ANY  LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERIOD
 NOT EXCEEDING THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE," AS  USED
 IN  THIS  SUBDIVISION, SHALL EXIST ONLY WHEN THE LICENSEE HAS ENGAGED IN
 OR  IS  LIKELY TO ENGAGE IN A PRACTICE PROHIBITED BY THIS ARTICLE OR THE
 REGULATIONS PROMULGATED THEREUNDER OR ENGAGES IN DISHONEST OR  INEQUITA-
 BLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PUBLIC.
   6.  NO REVOCATION, SUSPENSION OR SURRENDER OF ANY LICENSE SHALL IMPAIR
 OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING  LAWFUL  CONTRACTS  BETWEEN
 THE LICENSEE AND ANY BORROWER.
   § 742. SUPERINTENDENT  AUTHORIZED  TO  EXAMINE.  1. THE SUPERINTENDENT
 SHALL HAVE THE POWER TO MAKE SUCH INVESTIGATIONS AS  THE  SUPERINTENDENT
 SHALL  DEEM  NECESSARY TO DETERMINE WHETHER ANY BUY-NOW-PAY-LATER LENDER
 OR ANY OTHER PERSON HAS VIOLATED ANY OF THE PROVISIONS OF  THIS  ARTICLE
 OR  ANY  OTHER  APPLICABLE  LAW,  OR  WHETHER ANY LICENSEE HAS CONDUCTED
 ITSELF IN SUCH MANNER AS WOULD JUSTIFY THE REVOCATION  OF  ITS  LICENSE,
 AND TO THE EXTENT NECESSARY THEREFOR, THE SUPERINTENDENT MAY REQUIRE THE
 ATTENDANCE  OF  AND  EXAMINE  ANY  PERSON UNDER OATH, AND SHALL HAVE THE
 POWER TO COMPEL THE PRODUCTION OF ALL RELEVANT BOOKS, RECORDS, ACCOUNTS,
 AND DOCUMENTS.
   2. THE SUPERINTENDENT SHALL HAVE THE POWER TO MAKE  SUCH  EXAMINATIONS
 OF  THE  BOOKS,  RECORDS, ACCOUNTS AND DOCUMENTS USED IN THE BUSINESS OF
 ANY LICENSEE AS THE SUPERINTENDENT SHALL  DEEM  NECESSARY  TO  DETERMINE
 WHETHER  ANY  SUCH  LICENSEE  HAS VIOLATED ANY OF THE PROVISIONS OF THIS
 CHAPTER OR ANY OTHER APPLICABLE LAW OR TO  SECURE  INFORMATION  LAWFULLY
 REQUIRED BY THE SUPERINTENDENT.
   § 743. LICENSEE'S  BOOKS  AND RECORDS; REPORTS. 1. A BUY-NOW-PAY-LATER
 LENDER SHALL KEEP AND USE IN  ITS  BUSINESS  SUCH  BOOKS,  ACCOUNTS  AND
 RECORDS  AS  WILL  ENABLE  THE  SUPERINTENDENT TO DETERMINE WHETHER SUCH
 BUY-NOW-PAY-LATER LENDER IS COMPLYING WITH THE PROVISIONS OF THIS  ARTI-
 CLE  AND WITH THE RULES AND REGULATIONS LAWFULLY MADE BY THE SUPERINTEN-
 DENT HEREUNDER.  EVERY  BUY-NOW-PAY-LATER  LENDER  SHALL  PRESERVE  SUCH
 BOOKS,  ACCOUNTS  AND  RECORDS  FOR  AT LEAST SIX YEARS AFTER MAKING THE
 FINAL ENTRY IN RESPECT TO ANY BUY-NOW-PAY-LATER LOAN  RECORDED  THEREIN;
 PROVIDED,  HOWEVER,  THE PRESERVATION OF PHOTOGRAPHIC OR DIGITAL REPROD-
 UCTIONS THEREOF OR RECORDS IN PHOTOGRAPHIC OR DIGITAL FORM SHALL CONSTI-
 TUTE COMPLIANCE WITH THIS REQUIREMENT.
   2. BY A DATE TO BE SET BY  THE  SUPERINTENDENT,  EACH  LICENSEE  SHALL
 ANNUALLY  FILE  A REPORT WITH THE SUPERINTENDENT GIVING SUCH INFORMATION
 AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE LICENSEE'S BUSINESS AND
 OPERATIONS DURING THE PRECEDING CALENDAR YEAR WITHIN THE STATE UNDER THE
 AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND  AFFIRMED
 AS  TRUE  BY  THE  LICENSEE UNDER THE PENALTIES OF PERJURY AND BE IN THE
 FORM PRESCRIBED BY  THE  SUPERINTENDENT.  IN  ADDITION  TO  SUCH  ANNUAL
 REPORTS,  THE  SUPERINTENDENT  MAY  REQUIRE OF LICENSEES SUCH ADDITIONAL
 REGULAR OR SPECIAL REPORTS AS THE SUPERINTENDENT MAY DEEM  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.
   § 744. ACTS  PROHIBITED.  1. NO BUY-NOW-PAY-LATER LENDER SHALL TAKE OR
 CAUSE TO BE TAKEN ANY CONFESSION OF JUDGMENT OR ANY POWER OF ATTORNEY TO
 CONFESS JUDGMENT OR TO APPEAR FOR THE CONSUMER IN A JUDICIAL PROCEEDING.
   2. NO BUY-NOW-PAY-LATER LENDER SHALL:
   (A) EMPLOY ANY SCHEME, DEVICE, OR ARTIFICE TO  DEFRAUD  OR  MISLEAD  A
 BORROWER;
 S. 4606                             6
 
   (B)  ENGAGE  IN  ANY  UNFAIR,  DECEPTIVE  OR PREDATORY ACT OR PRACTICE
 TOWARD ANY PERSON OR MISREPRESENT OR OMIT ANY  MATERIAL  INFORMATION  IN
 CONNECTION  WITH THE BUY-NOW-PAY-LATER LOANS, INCLUDING, BUT NOT LIMITED
 TO, MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY  FEE  OR  PAYMENT
 DUE  OR  CLAIMED  TO BE DUE ON THE LOAN, THE TERMS AND CONDITIONS OF THE
 LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE LOAN;
   (C) MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF  ANY  BUY-NOW-PAY-
 LATER LOAN OR TO ANY RELATED FEES;
   (D) PROVIDE INACCURATE INFORMATION TO A CONSUMER REPORTING AGENCY; OR
   (E)  MAKE  ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATERIAL FACT
 IN CONNECTION WITH ANY INFORMATION OR REPORTS FILED WITH A  GOVERNMENTAL
 AGENCY  OR  IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY THE SUPER-
 INTENDENT OR ANOTHER GOVERNMENTAL AGENCY.
   § 745. LIMITATION ON CHARGES ON BUY-NOW-PAY-LATER LOANS.  1.  NOTWITH-
 STANDING  ANY OTHER PROVISION OF LAW TO THE CONTRARY, NO BUY-NOW-PAY-LA-
 TER LENDER SHALL CHARGE, CONTRACT  FOR,  OR  OTHERWISE  RECEIVE  FROM  A
 CONSUMER  ANY  INTEREST,  PENALTY, LATE FEE, DISCOUNT OR OTHER CONSIDER-
 ATION IN CONNECTION TO A BUY-NOW-PAY-LATER  LOAN,  WHETHER  DIRECTLY  OR
 INDIRECTLY, EXCEPT AS PROVIDED IN THIS SECTION.
   2.  THE SUPERINTENDENT SHALL ESTABLISH A STANDARD AMOUNT OR PERCENTAGE
 FOR TOTAL MAXIMUM CHARGE OR FEE IN CONNECTION WITH LATE PAYMENT, DEFAULT
 OR ANY OTHER VIOLATION OF THE BUY-NOW-PAY-LATER LOAN  AGREEMENT  THAT  A
 BUY-NOW-PAY-LATER LENDER CAN CHARGE A CONSUMER. SUCH FEE OR CHARGE SHALL
 NOT BE COLLECTED MORE THAN ONCE FOR THE SAME VIOLATION.
   3.  ANY  TRANSACTION  FEE CHARGED TO THE CONSUMER BY OR ON BEHALF OF A
 BUY-NOW-PAY-LATER LENDER SHALL BE LIMITED TO REASONABLE AND ACTUAL COSTS
 OF PROCESSING AND EXECUTING THE TRANSACTION.
   § 746. CONSUMER PROTECTIONS. 1. DISCLOSURES. A BUY-NOW-PAY-LATER LEND-
 ER SHALL DISCLOSE OR CAUSE TO BE DISCLOSED TO  CONSUMERS  THE  TERMS  OF
 BUY-NOW-PAY-LATER LOANS, INCLUDING THE COST, REPAYMENT SCHEDULE, WHETHER
 THE TRANSACTION WILL OR WILL NOT BE REPORTED TO A CREDIT REPORTING AGEN-
 CY,  AND  OTHER  MATERIAL CONDITIONS, IN A CLEAR AND CONSPICUOUS MANNER.
 DISCLOSURES SHALL COMPLY WITH APPLICABLE FEDERAL REGULATIONS,  INCLUDING
 BUT  NOT  LIMITED  TO  REGULATION  Z  OF  TITLE I OF THE CONSUMER CREDIT
 PROTECTION ACT.
   2. ABILITY TO REPAY. SUBJECT TO REGULATIONS TO BE PROMULGATED  BY  THE
 SUPERINTENDENT,  A  BUY-NOW-PAY-LATER  LENDER SHALL, BEFORE PROVIDING OR
 CAUSING TO BE PROVIDED A BUY-NOW-PAY-LATER LOAN TO A CONSUMER, MAKE,  OR
 CAUSE  TO BE MADE, A REASONABLE DETERMINATION THAT SUCH CONSUMER HAS THE
 ABILITY TO REPAY THE BUY-NOW-PAY-LATER LOAN.
   3. CREDIT REPORTING.  A BUY-NOW-PAY-LATER LENDER SHALL NOT REPORT  ANY
 CONSUMER  DATA  OBTAINED  THROUGH A BUY-NOW-PAY-LATER LOAN TO ANY CREDIT
 REPORTING AGENCY EXCEPT AS AUTHORIZED IN REGULATIONS PROMULGATED BY  THE
 SUPERINTENDENT AND IN THE FORM AND MANNER PRESCRIBED THEREIN. THE SUPER-
 INTENDENT, IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION OF CONSUMER
 PROTECTION, SHALL ESTABLISH PROVISIONS REGARDING THE USE OF SUCH DATA BY
 THE  CREDIT  REPORTING  AGENCIES.  NO  LICENSEE SHALL COLLECT, EVALUATE,
 REPORT, OR MAINTAIN IN THE FILE ON A  BORROWER  THE  CREDIT  WORTHINESS,
 CREDIT  STANDING, OR CREDIT CAPACITY OF MEMBERS OF THE BORROWER'S SOCIAL
 NETWORK FOR PURPOSES OF DETERMINING THE CREDIT WORTHINESS OF THE BORROW-
 ER; THE AVERAGE CREDIT WORTHINESS, CREDIT STANDING, OR  CREDIT  CAPACITY
 OF  MEMBERS OF THE BORROWER'S SOCIAL NETWORK; OR ANY GROUP SCORE THAT IS
 NOT THE BORROWER'S OWN CREDIT WORTHINESS,  CREDIT  STANDING,  OR  CREDIT
 CAPACITY.
   4.  REFUNDS  AND  CREDITS. A BUY-NOW-PAY-LATER LENDER SHALL PROVIDE OR
 CAUSE TO BE PROVIDED REFUNDS OR CREDITS FOR GOODS OR SERVICES  PURCHASED
 S. 4606                             7
 
 IN  CONNECTION  WITH A BUY-NOW-PAY-LATER LOAN, UPON CONSUMER REQUEST, AS
 NECESSARY. A BUY-NOW-PAY-LATER LENDER SHALL  MAINTAIN  OR  CAUSE  TO  BE
 MAINTAINED  POLICIES  AND PROCEDURES TO PROVIDE SUCH REFUNDS OR CREDITS.
 SUCH  POLICIES AND PROCEDURES SHALL BE FAIR, TRANSPARENT, AND NOT UNDULY
 BURDENSOME TO THE CONSUMER.  A BUY-NOW-PAY-LATER LENDER  SHALL  DISCLOSE
 OR  CAUSE TO BE DISCLOSED, IN A CLEAR AND CONSPICUOUS MANNER, SUCH POLI-
 CIES AND PROCEDURES.
   5. CONSUMER DISPUTES. A  BUY-NOW-PAY-LATER  LENDER  SHALL  RESOLVE  OR
 CAUSE  TO  BE RESOLVED DISPUTES IN A MANNER THAT IS FAIR AND TRANSPARENT
 TO CONSUMERS. A BUY-NOW-PAY-LATER LENDER SHALL CREATE  OR  CAUSE  TO  BE
 CREATED A READILY AVAILABLE AND PROMINENTLY DISCLOSED METHOD FOR CONSUM-
 ERS  TO  BRING A DISPUTE TO THE BUY-NOW-PAY-LATER LENDER. A BUY-NOW-PAY-
 LATER LENDER SHALL MAINTAIN POLICIES AND PROCEDURES FOR HANDLING CONSUM-
 ER DISPUTES.
   6. USE OF CONSUMER DATA. A BUY-NOW-PAY-LATER LENDER SHALL CLEARLY  AND
 CONSPICUOUSLY  DISCLOSE  OR CAUSE TO BE DISCLOSED TO A CONSUMER TO WHICH
 IT PROVIDES A LOAN HOW SUCH CONSUMER'S DATA MAY BE USED, SHARED OR  SOLD
 BY  THE  BUY-NOW-PAY-LATER LENDER.   IN ADDITION TO ANY OTHER CONSENT OR
 PRIVACY REQUIREMENTS IN LAW, THE BUY-NOW-PAY-LATER LENDER SHALL  PROVIDE
 THE  CONSUMER  THE  OPPORTUNITY  TO  PROVIDE AFFIRMATIVE CONSENT TO SUCH
 COLLECTION, SALE, SHARING, AND USE OF CONSUMER DATA, PROVIDED THAT WITH-
 OUT SUCH CONSENT THE BUY-NOW-PAY-LATER LENDER SHALL NOT  COLLECT,  SELL,
 SHARE,  OR  USE  SUCH  CONSUMER  DATA.    THE  SUPERINTENDENT,  IN THEIR
 DISCRETION, MAY BY REGULATION PROHIBIT CERTAIN USES OF CONSUMER DATA.
   7. UNAUTHORIZED USE. THE SUPERINTENDENT  MAY  ISSUE  RULES  AND  REGU-
 LATIONS  REGARDING  TREATMENT OF UNAUTHORIZED USE, SO THAT CONSUMERS ARE
 LIABLE FOR USE OF BUY-NOW-PAY-LATER  LOANS  IN  THEIR  NAME  ONLY  UNDER
 CIRCUMSTANCES WHERE SUCH LIABILITY WOULD BE FAIR AND REASONABLE.
   8.  VOID BUY-NOW-PAY-LATER LOANS. ANY BUY-NOW-PAY-LATER LOAN MADE BY A
 PERSON NOT LICENSED UNDER THIS ARTICLE, OTHER THAN AN  EXEMPT  ORGANIZA-
 TION,  SHALL  BE VOID, AND SUCH PERSON SHALL HAVE NO RIGHT TO COLLECT OR
 RECEIVE ANY PRINCIPAL, INTEREST OR CHARGE WHATSOEVER.
   § 747. AUTHORITY OF SUPERINTENDENT. 1. THE SUPERINTENDENT  IS  AUTHOR-
 IZED  TO  PROMULGATE SUCH GENERAL RULES AND REGULATIONS AS MAY BE APPRO-
 PRIATE TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE,  PROTECT  CONSUMERS,
 AND  ENSURE  THE  SOLVENCY  AND FINANCIAL INTEGRITY OF BUY-NOW-PAY-LATER
 LENDERS. THE SUPERINTENDENT IS FURTHER AUTHORIZED TO MAKE 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.
   2. IN ADDITION TO SUCH POWERS AS MAY OTHERWISE BE PRESCRIBED  BY  LAW,
 THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH
 RULES  AND  REGULATIONS  AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT BE
 CONSISTENT WITH THE PURPOSES OF THIS ARTICLE,  OR  APPROPRIATE  FOR  THE
 EFFECTIVE ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO:
   (A)  SUCH  RULES  AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF
 BUY-NOW-PAY-LATER LENDERS AS MAY BE NECESSARY AND  APPROPRIATE  FOR  THE
 PROTECTION OF BORROWERS IN THIS STATE;
   (B)  SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO
 DEFINE UNFAIR, DECEPTIVE, OR ABUSIVE ACTS  OR  PRACTICES  IN  CONNECTION
 WITH THE ACTIVITIES OF BUY-NOW-PAY-LATER LENDERS;
   (C)  SUCH  RULES  AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS
 ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND  IMPLE-
 MENT THE PROVISIONS OF THIS ARTICLE; AND
 S. 4606                             8
 
   (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
 OF THIS ARTICLE.
   § 748. PENALTIES. 1. ANY PERSON, INCLUDING ANY MEMBER, OFFICER, DIREC-
 TOR  OR  EMPLOYEE OF A BUY-NOW-PAY-LATER LENDER, WHO VIOLATES OR PARTIC-
 IPATES IN THE VIOLATION OF SECTION SEVEN HUNDRED  THIRTY-SEVEN  OF  THIS
 ARTICLE,  OR  WHO  KNOWINGLY MAKES ANY INCORRECT STATEMENT OF A MATERIAL
 FACT IN ANY APPLICATION, REPORT OR  STATEMENT  FILED  PURSUANT  TO  THIS
 ARTICLE,  OR WHO KNOWINGLY OMITS TO STATE ANY MATERIAL FACT NECESSARY TO
 GIVE THE SUPERINTENDENT ANY INFORMATION LAWFULLY REQUIRED BY THE  SUPER-
 INTENDENT  OR REFUSES TO PERMIT ANY LAWFUL INVESTIGATION OR EXAMINATION,
 SHALL BE GUILTY OF A MISDEMEANOR AND, UPON CONVICTION,  SHALL  BE  FINED
 NOT  MORE  THAN FIVE HUNDRED DOLLARS OR IMPRISONED FOR NOT MORE THAN SIX
 MONTHS OR BOTH, IN THE DISCRETION OF THE COURT.
   2. WITHOUT LIMITING ANY POWER GRANTED TO THE SUPERINTENDENT UNDER  ANY
 OTHER PROVISION OF THIS CHAPTER, THE SUPERINTENDENT MAY, IN A PROCEEDING
 AFTER  NOTICE  AND A HEARING REQUIRE A BUY-NOW-PAY-LATER LENDER, WHETHER
 OR NOT A LICENSEE, TO PAY TO THE PEOPLE OF THIS STATE A PENALTY FOR  ANY
 VIOLATION  OF  THIS  CHAPTER, ANY REGULATION PROMULGATED THEREUNDER, ANY
 FINAL OR TEMPORARY ORDER ISSUED PURSUANT TO SECTION THIRTY-NINE OF  THIS
 CHAPTER,  ANY  CONDITION  IMPOSED  IN  WRITING  BY THE SUPERINTENDENT IN
 CONNECTION WITH THE GRANT OF ANY APPLICATION OR REQUEST, OR ANY  WRITTEN
 AGREEMENT ENTERED INTO WITH THE SUPERINTENDENT, AND FOR KNOWINGLY MAKING
 ANY INCORRECT STATEMENT OF A MATERIAL FACT IN ANY APPLICATION, REPORT OR
 STATEMENT FILED PURSUANT TO THIS ARTICLE, OR KNOWINGLY OMITTING TO STATE
 ANY  MATERIAL  FACT NECESSARY TO GIVE THE SUPERINTENDENT ANY INFORMATION
 LAWFULLY REQUIRED BY THE SUPERINTENDENT OR REFUSING TO PERMIT ANY LAWFUL
 INVESTIGATION OR EXAMINATION. AS TO ANY BUY-NOW-PAY-LATER LENDER THAT IS
 NOT A LICENSEE OR AN EXEMPT ORGANIZATION, THE SUPERINTENDENT IS  AUTHOR-
 IZED  TO  IMPOSE  A  PENALTY  IN  THE  SAME AMOUNT AUTHORIZED IN SECTION
 FORTY-FOUR OF THIS CHAPTER FOR A VIOLATION OF THIS CHAPTER BY ANY PERSON
 LICENSED,  CERTIFIED,  REGISTERED,  AUTHORIZED,  CHARTERED,  ACCREDITED,
 INCORPORATED  OR  OTHERWISE  APPROVED  BY THE SUPERINTENDENT PURSUANT TO
 THIS CHAPTER.
   3. NO PERSON SHALL MAKE, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING,
 OR BY ANY METHOD, PRACTICE OR DEVICE, A REPRESENTATION THAT SUCH  PERSON
 IS  LICENSED  UNDER  THE  BANKING  LAW EXCEPT THAT A LICENSEE UNDER THIS
 CHAPTER MAY MAKE A REPRESENTATION THAT THE LICENSEE  IS  LICENSED  AS  A
 BUY-NOW-PAY-LATER LENDER UNDER THIS CHAPTER.
   § 749. SEVERABILITY.  IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
 TION 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. Subdivision 1 of section 36 of the banking  law,  as  amended  by
 chapter 146 of the laws of 1961, is amended to read as follows:
   1.  The  superintendent  shall have the power to examine every banking
 organization, every bank holding company and any non-banking  subsidiary
 thereof  (as  such terms "bank holding company" and "non-banking subsid-
 iary" are defined in article three-A of this chapter) and every licensed
 lender AND LICENSED BUY-NOW-PAY-LATER LENDER at any time  prior  to  its
 dissolution  whenever in [his] SUCH SUPERINTENDENT'S judgment such exam-
 ination is necessary or advisable.
   § 3. Subdivision 10 of section 36 of the banking law,  as  amended  by
 section  2  of  part  L of chapter 58 of the laws of 2019, is amended to
 read as follows:
 S. 4606                             9
 
   10. All reports of examinations and investigations, correspondence and
 memoranda concerning or arising out of  such  examination  and  investi-
 gations,  including any duly authenticated copy or copies thereof in the
 possession of any banking organization,  bank  holding  company  or  any
 subsidiary  thereof  (as  such terms "bank holding company" and "subsid-
 iary" are defined in article three-A of this chapter),  any  corporation
 or  any  other  entity affiliated with a banking organization within the
 meaning of subdivision six of this section and any  non-banking  subsid-
 iary  of  a  corporation  or any other entity which is an affiliate of a
 banking organization within the meaning of  subdivision  six-a  of  this
 section, foreign banking corporation, licensed lender, LICENSED BUY-NOW-
 PAY-LATER  LENDER,  licensed casher of checks, licensed mortgage banker,
 registered mortgage broker, licensed mortgage loan originator,  licensed
 sales  finance  company,  registered  mortgage  loan  servicer, licensed
 student  loan  servicer,  licensed  insurance  premium  finance  agency,
 licensed transmitter of money, licensed budget planner, any other person
 or  entity subject to supervision under this chapter, or the department,
 shall be confidential communications, shall not be subject  to  subpoena
 and  shall not be made public unless, in the judgment of the superinten-
 dent, the ends of justice and the public advantage will be subserved  by
 the  publication  thereof, in which event the superintendent may publish
 or authorize the publication of a copy of any such report  or  any  part
 thereof  in  such  manner  as  may  be deemed proper or unless such laws
 specifically authorize such disclosure. For the purposes of this  subdi-
 vision, "reports of examinations and investigations, and any correspond-
 ence  and  memoranda  concerning or arising out of such examinations and
 investigations", includes any such materials of  a  bank,  insurance  or
 securities  regulatory  agency  or any unit of the federal government or
 that of this state any other state or that  of  any  foreign  government
 which  are  considered confidential by such agency or unit and which are
 in the possession of the department or which are otherwise  confidential
 materials  that  have been shared by the department with any such agency
 or unit and are in the possession of such agency or unit.
   § 4. Subdivisions 3 and 5 of section 37 of the banking law, as amended
 by chapter 360 of the laws of 1984, are amended to read as follows:
   3. In addition to any reports expressly required by this chapter to be
 made, the superintendent may require any banking organization,  licensed
 lender,  LICENSED  BUY-NOW-PAY-LATER  LENDER, licensed casher of checks,
 licensed mortgage banker, foreign banking corporation  licensed  by  the
 superintendent  to  do  business in this state, bank holding company and
 any non-banking subsidiary thereof, corporate affiliate of  a  corporate
 banking  organization  within  the meaning of subdivision six of section
 thirty-six of this article and any non-banking subsidiary  of  a  corpo-
 ration  which is an affiliate of a corporate banking organization within
 the meaning of subdivision six-a of section thirty-six of  this  article
 to  make  special  reports  to [him] THE SUPERINTENDENT at such times as
 [he] THE SUPERINTENDENT may prescribe.
   5.  The  superintendent  may  extend  at  [his]  THE  SUPERINTENDENT'S
 discretion the time within which a banking organization, foreign banking
 corporation licensed by the superintendent to do business in this state,
 bank  holding  company  or  any non-banking subsidiary thereof, licensed
 casher of checks, licensed mortgage  banker,  private  banker,  LICENSED
 BUY-NOW-PAY-LATER LENDER or licensed lender is required to make and file
 any report to the superintendent.
   §  5. Section 39 of the banking law, as amended by section 3 of part L
 of chapter 58 of the laws of 2019, is amended to read as follows:
 S. 4606                            10
 
   § 39. Orders of superintendent. 1. To appear and explain  an  apparent
 violation. Whenever it shall appear to the superintendent that any bank-
 ing  organization,  bank  holding  company,  registered mortgage broker,
 licensed mortgage banker, licensed  student  loan  servicer,  registered
 mortgage  loan  servicer,  licensed  mortgage  loan originator, licensed
 lender, LICENSED BUY-NOW-PAY-LATER LENDER, licensed  casher  of  checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy, licensed transmitter of money, licensed budget planner, out-of-state
 state  bank  that  maintains  a  branch or branches or representative or
 other offices in this state, or foreign banking corporation licensed  by
 the superintendent to do business or maintain a representative office in
 this  state  has  violated any law or regulation, [he or she] THE SUPER-
 INTENDENT may, in [his or her] THE SUPERINTENDENT'S discretion, issue an
 order describing such apparent  violation  and  requiring  such  banking
 organization, bank holding company, registered mortgage broker, licensed
 mortgage  banker, licensed student loan servicer, licensed mortgage loan
 originator, licensed lender, LICENSED BUY-NOW-PAY-LATER LENDER, licensed
 casher of checks, licensed sales  finance  company,  licensed  insurance
 premium  finance  agency, licensed transmitter of money, licensed budget
 planner, out-of-state state bank that maintains a branch or branches  or
 representative or other offices in this state, or foreign banking corpo-
 ration  to  appear before [him or her] THE SUPERINTENDENT, at a time and
 place fixed in said order, to present an explanation  of  such  apparent
 violation.
   2.  To discontinue unauthorized or unsafe and unsound practices. When-
 ever it shall appear to the superintendent that  any  banking  organiza-
 tion,  bank  holding company, registered mortgage broker, licensed mort-
 gage banker, licensed student loan servicer,  registered  mortgage  loan
 servicer,  licensed  mortgage loan originator, licensed lender, LICENSED
 BUY-NOW-PAY-LATER LENDER, licensed  casher  of  checks,  licensed  sales
 finance  company,  licensed  insurance  premium finance agency, licensed
 transmitter of money, licensed budget planner, out-of-state  state  bank
 that  maintains  a branch or branches or representative or other offices
 in this state, or foreign banking corporation  licensed  by  the  super-
 intendent  to  do  business  in  this state is conducting business in an
 unauthorized or unsafe and unsound manner, [he or she]  THE  SUPERINTEN-
 DENT  may,  in  [his  or  her] THE SUPERINTENDENT'S discretion, issue an
 order directing the discontinuance of such unauthorized  or  unsafe  and
 unsound  practices,  and  fixing  a time and place at which such banking
 organization, bank holding company, registered mortgage broker, licensed
 mortgage banker, licensed student  loan  servicer,  registered  mortgage
 loan  servicer,  licensed  mortgage  loan  originator,  licensed lender,
 LICENSED BUY-NOW-PAY-LATER LENDER, licensed casher of  checks,  licensed
 sales  finance  company,  licensed  insurance  premium  finance  agency,
 licensed transmitter of money,  licensed  budget  planner,  out-of-state
 state  bank  that  maintains  a  branch or branches or representative or
 other offices in this state, or foreign banking corporation  may  volun-
 tarily  appear  before  [him  or  her] THE SUPERINTENDENT to present any
 explanation in defense of the practices directed in  said  order  to  be
 discontinued.
   3.  To  make  good  impairment of capital or to ensure compliance with
 financial requirements. Whenever it shall appear to  the  superintendent
 that  the  capital  or  capital  stock of any banking organization, bank
 holding company or any subsidiary thereof which is  organized,  licensed
 or  registered  pursuant  to this chapter, is impaired, or the financial
 requirements imposed by subdivision one of section two hundred two-b  of
 S. 4606                            11
 
 this  chapter  or  any regulation of the superintendent on any branch or
 agency of a foreign banking corporation or  the  financial  requirements
 imposed  by  this chapter or any regulation of the superintendent on any
 licensed  lender, LICENSED BUY-NOW-PAY-LATER LENDER, registered mortgage
 broker,  licensed  mortgage  banker,  licensed  student  loan  servicer,
 licensed  casher  of  checks,  licensed  sales finance company, licensed
 insurance  premium  finance  agency,  licensed  transmitter  of   money,
 licensed  budget planner or private banker are not satisfied, the super-
 intendent may,  in  the  superintendent's  discretion,  issue  an  order
 directing  that  such banking organization, bank holding company, branch
 or agency of a foreign banking corporation, registered mortgage  broker,
 licensed mortgage banker, licensed student loan servicer, licensed lend-
 er,  LICENSED  BUY-NOW-PAY-LATER  LENDER,  licensed  casher  of  checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy, licensed transmitter of money, licensed budget planner,  or  private
 banker make good such deficiency forthwith or within a time specified in
 such order.
   4. To make good encroachments on reserves. Whenever it shall appear to
 the superintendent that either the total reserves or reserves on hand of
 any  banking  organization, branch or agency of a foreign banking corpo-
 ration are below the amount required by or pursuant to this  chapter  or
 any other applicable provision of law or regulation to be maintained, or
 that  such  banking  organization, branch or agency of a foreign banking
 corporation is not keeping its reserves on  hand  as  required  by  this
 chapter  or  any other applicable provision of law or regulation, [he or
 she] THE SUPERINTENDENT  may,  in  [his  or  her]  THE  SUPERINTENDENT'S
 discretion,  issue  an  order  directing that such banking organization,
 branch or agency  of  a  foreign  banking  corporation  make  good  such
 reserves  forthwith or within a time specified in such order, or that it
 keep its reserves on hand as required by this chapter.
   5. To keep books and accounts as prescribed. Whenever it shall  appear
 to the superintendent that any banking organization, bank holding compa-
 ny,  registered  mortgage  broker,  licensed  mortgage  banker, licensed
 student loan servicer, registered mortgage loan servicer, licensed mort-
 gage loan originator, licensed lender, LICENSED BUY-NOW-PAY-LATER  LEND-
 ER,  licensed casher of checks, licensed sales finance company, licensed
 insurance  premium  finance  agency,  licensed  transmitter  of   money,
 licensed  budget  planner,  agency or branch of a foreign banking corpo-
 ration licensed by the superintendent to do business in this state, does
 not keep its books and accounts in such manner as to enable [him or her]
 THE SUPERINTENDENT to readily ascertain its true condition, [he or  she]
 THE SUPERINTENDENT may, in [his or her] THE SUPERINTENDENT'S discretion,
 issue  an order requiring such banking organization, bank holding compa-
 ny, registered  mortgage  broker,  licensed  mortgage  banker,  licensed
 student loan servicer, registered mortgage loan servicer, licensed mort-
 gage  loan originator, licensed lender, LICENSED BUY-NOW-PAY-LATER LEND-
 ER, licensed casher of checks, licensed sales finance company,  licensed
 insurance   premium  finance  agency,  licensed  transmitter  of  money,
 licensed budget planner, or foreign banking corporation, or the officers
 or agents thereof, or any of them,  to  open  and  keep  such  books  or
 accounts  as  [he  or  she]  THE SUPERINTENDENT may, in [his or her] THE
 SUPERINTENDENT'S discretion, determine and prescribe for the purpose  of
 keeping   accurate  and  convenient  records  of  its  transactions  and
 accounts.
 S. 4606                            12
 
   6. As used in this section, "bank holding company" shall have the same
 meaning as that term is defined in section one hundred forty-one of this
 chapter.
   §  6.  Subdivision  1  of section 42 of the banking law, as amended by
 chapter 65 of the laws of 1948, is amended to read as follows:
   1. The name and the location of the principal office of every proposed
 corporation, private banker, licensed lender, LICENSED BUY-NOW-PAY-LATER
 LENDER and licensed casher  of  checks,  the  organization  certificate,
 private  banker's  certificate  or  application for license of which has
 been filed for examination, and the date of such filing.
   § 7. Subdivision 2 of section 42 of the banking  law,  as  amended  by
 chapter 553 of the laws of 1960, is amended to read as follows:
   2.  The  name and location of every licensed lender, LICENSED BUY-NOW-
 PAY-LATER LENDER and licensed casher of checks, and the name,  location,
 amount  of  capital  stock or permanent capital and amount of surplus of
 every corporation and private banker and the minimum assets required  of
 every  branch  of  a  foreign banking corporation authorized to commence
 business, and the date of authorization or licensing.
   § 8. Subdivision 3 of section 42 of the banking  law,  as  amended  by
 chapter 553 of the laws of 1960, is amended to read as follows:
   3. The name of every proposed corporation, private banker, branch of a
 foreign banking corporation, licensed lender, LICENSED BUY-NOW-PAY-LATER
 LENDER  and licensed casher of checks to which a certificate of authori-
 zation or a license has been refused and the date of notice of refusal.
   § 9. Subdivision 4 of section 42 of the banking  law,  as  amended  by
 chapter 60 of the laws of 1957, is amended to read as follows:
   4.  The  name  and  location of every private banker, licensed lender,
 licensed casher of checks, sales finance company, LICENSED  BUY-NOW-PAY-
 LATER  LENDER  and  foreign corporation the authorization certificate or
 license of which has been revoked, and the date of such revocation.
   § 10. Subdivision 5 of section 42 of the banking law,  as  amended  by
 chapter 249 of the laws of 1968, is amended to read as follows:
   5.  The  name of every banking organization, licensed lender, licensed
 casher of checks, LICENSED BUY-NOW-PAY-LATER LENDER and  foreign  corpo-
 ration  which  has  applied  for leave to change its place or one of its
 places of business and the places  from  and  to  which  the  change  is
 proposed  to  be  made; the name of every banking organization which has
 applied to change the designation of its principal office  to  a  branch
 office and to change the designation of one of its branch offices to its
 principal  office,  and  the  location  of the principal office which is
 proposed to be redesignated as a branch office and of the branch  office
 which is proposed to be redesignated as the principal office.
   §  11.  Subdivision  6 of section 42 of the banking law, as amended by
 chapter 249 of the laws of 1968, is amended to read as follows:
   6. The name of every banking organization, licensed  lender,  licensed
 casher  of  checks, LICENSED BUY-NOW-PAY-LATER LENDER and foreign corpo-
 ration authorized to change its place or one of its places  of  business
 and the date when and the places from and to which the change is author-
 ized  to  be  made; the name of every banking organization authorized to
 change the designation of its principal office to a branch office and to
 change the designation of a branch office to its principal  office,  the
 location  of  the  redesignated principal office and of the redesignated
 branch office, and the date of such change.
   § 12. Paragraph (a) of subdivision 1 of section 44 of the banking law,
 as amended by section 4 of part L of chapter 58 of the laws of 2019,  is
 amended to read as follows:
 S. 4606                            13
 
   (a) Without limiting any power granted to the superintendent under any
 other provision of this chapter, the superintendent may, in a proceeding
 after  notice  and a hearing, require any safe deposit company, licensed
 lender, LICENSED BUY-NOW-PAY-LATER LENDER, licensed  casher  of  checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy,  licensed  transmitter  of money, licensed mortgage banker, licensed
 student loan servicer, registered  mortgage  broker,  licensed  mortgage
 loan  originator,  registered  mortgage loan servicer or licensed budget
 planner to pay to the people of this state a penalty for  any  violation
 of  this  chapter,  any  regulation promulgated thereunder, any final or
 temporary order issued pursuant to section thirty-nine of this  article,
 any  condition  imposed  in  writing by the superintendent in connection
 with the grant of any application or request, or any  written  agreement
 entered into with the superintendent.
   §  13.  This  act  shall  take effect on the one hundred eightieth day
 after the department of financial services shall have promulgated  rules
 and/or  regulations  necessary to effectuate the provisions of this act;
 provided that the department of  financial  services  shall  notify  the
 legislative  bill drafting commission upon the occurrence of the promul-
 gation of the rules and regulations necessary to effectuate and  enforce
 the  provisions of section two of this act, in order that the commission
 may maintain an accurate and timely effective  record  of  the  official
 text of the laws of the state of New York in furtherance of effectuating
 the  provisions of section 44 of the legislative law and section 70-b of
 the public officers law. Effective immediately, the addition,  amendment
 and/or  repeal  of  any  rule or regulation authorized to be made by the
 superintendent pursuant to  this  act  is  authorized  to  be  made  and
 completed on or before such effective date.