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This entry was published on 2014-09-22
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SECTION 408
Civil penalty
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 4
§ 408. Civil penalty. (a) In addition to any civil or criminal
liability provided by law, the superintendent may, after notice and
hearing, levy a civil penalty:

(1) not to exceed five thousand dollars per offense, for:

(A) any intentional fraud or intentional misrepresentation of a
material fact with respect to a financial product or service or
involving any person offering to provide or providing financial products
or services; or

(B) any violation of state or federal fair debt collection practices
or federal or state fair lending laws; and

(2) not to exceed one thousand dollars for any other violation of this
chapter or the regulations issued thereunder, provided that there shall
be no civil penalty under this section for violations of article five of
this chapter or the regulations issued thereunder; and

(3) provided, however, that:

(A) penalties for regulated persons under the banking law shall be as
provided for in the banking law and penalties for regulated persons
under the insurance law shall be as provided for in the insurance law;
and

(B) the superintendent shall not impose or collect any penalty under
this section in addition to any penalty or fine for the same act or
omission that is imposed under the insurance law or banking law; and

(C) nothing in this section shall affect the construction or
interpretation of the term "fraud" as it is used in any other provision
of the consolidated or unconsolidated law.

(b) Civil penalties received by the superintendent pursuant to this
section shall be applied on an annual basis as follows: funds shall be
applied first to reduce the assessments charged on persons regulated
under the insurance law and the banking law pursuant to section two
hundred six of this chapter up to the full amount paid by persons
regulated under the insurance law and banking law for the operating
expenses of the financial frauds and consumer protection unit not
attributable to regulation under the insurance or banking law for the
fiscal year in which such penalties are received, such amount shall be
applied to any assessment in the following year, and any remaining funds
shall be paid to the general fund. The superintendent shall have
discretion to determine how operating expenses which are not solely
attributable to regulating persons under either the insurance law or the
banking law shall be allocated.