Legislation
SECTION 738
Conditions precedent to issuing a license; procedure where application is denied
Banking (BNK) CHAPTER 2, ARTICLE 14-B
* § 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 paragraph b of
subdivision one of section seven hundred thirty-seven of this article,
it shall be 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 efficiently within the purposes and intent of this
article, the superintendent 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
superintendent shall notify the applicant of the denial and retain the
fee paid pursuant to paragraph b of subdivision one of section seven
hundred thirty-seven of this article.
3. The superintendent shall promulgate rules and regulations setting
capital requirements to ensure the solvency and financial integrity of
licensees and their ongoing operations, taking into account the risks,
volume of business, complexity, and other relevant factors regarding
such licensees. Further, the superintendent may promulgate rules and
regulations prescribing a methodology to calculate capital requirements
with respect to licensees or categories thereof.
* NB Effective upon the one hundred eightieth day after the
promulgation of rules and/or regulations by the department of financial
services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §
13)
application is denied. 1. After the filing of an application for a
license accompanied by payment of the fee pursuant to paragraph b of
subdivision one of section seven hundred thirty-seven of this article,
it shall be 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 efficiently within the purposes and intent of this
article, the superintendent 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
superintendent shall notify the applicant of the denial and retain the
fee paid pursuant to paragraph b of subdivision one of section seven
hundred thirty-seven of this article.
3. The superintendent shall promulgate rules and regulations setting
capital requirements to ensure the solvency and financial integrity of
licensees and their ongoing operations, taking into account the risks,
volume of business, complexity, and other relevant factors regarding
such licensees. Further, the superintendent may promulgate rules and
regulations prescribing a methodology to calculate capital requirements
with respect to licensees or categories thereof.
* NB Effective upon the one hundred eightieth day after the
promulgation of rules and/or regulations by the department of financial
services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §
13)