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A09634 Summary:

BILL NOA09634B
 
SAME ASSAME AS S06985-B
 
SPONSORRodriguez
 
COSPNSRBenedetto, Pichardo, Perry, Linares, Crespo, Rivera, Tenney, Sepulveda, Jean-Pierre, Weprin, Harris, Hevesi, Joyner
 
MLTSPNSRAbbate, Cancel, Farrell
 
Amd Bank L, generally
 
Relates to enacting the "community financial services access and modernization act".
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A09634 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9634B
 
SPONSOR: Rodriguez
  TITLE OF BILL: An act to amend the banking law, in relation to enact- ing the "community financial services access and modernization act of 2016"; and providing for the repeal of certain provisions upon expira- tion thereof   PURPOSE OR GENERAL IDEA OF BILL: To amend existing law by modernizing existing statute to reflect the full scope of financial services available at neighborhood "check cash- ing" establishments and provide for a comprehensive regulatory framework for the delivery of the expanded financial services currently being offered.   SUMMARY OF SPECIFIC PROVISIONS: Amends definitions in law to reflect financial services currently avail- able to include but not be limited to cashing of checks, money trans- mission services, bill payment services, and sale of prepaid debit cards. It expands existing services available by permitting licensed check cashers to offer commercial loan products as permitted by state law and authorizes conduit services which can be offered in partnership with properly licensed banks and credit unions. It modernizes the relationship between entities licensed to offer finan- cial services and the Department of Financial Services by creating a master license mechanism for licensees operating more than one outlet and streamlining the licensure process, the licensure review process in certain instances, reporting requirements and record keeping. It clarifies existing Penal Law forgery provisions to explicitly include their application to checks, drafts and money orders.   JUSTIFICATION: The New York check cashing industry has matured in scope and breadth by offering more services than merely cashing negotiable instruments in communities and neighborhoods that are unnerved or underserved by the banking/credit union industry. The enabling law authorizing, licensing and overseeing the delivery of services by check cashing establishments has not comprehensively been updated since its inception in 1944. Regu- lated check cashing enterprises continue to set the standard for the financial service industry in the fight against money laundering, terrorist financing and other financial crimes, and provide a critical entry point for suspect transactions to be detected on the regulatory radar screen. The industry within this State generates the following economic activity: * Financial services at 560 licensed locations * Serving more than 1 million New Yorkers * Cashing nearly 30 million checks having an aggregate value of $11-12 billion *Processing 10 million customer bill payments having a total value of $1B *Selling more than 6 million money orders having a face value of nearly $1B *Processing more than 3 million money transfer transactions *Employing approximately 4,000 people and more than eighty percent (80%) of the employees are minorities, principally from the Black and Latino communities Currently, unregulated lenders within and without the State, are engag- ing in predatory lending practices which victimize hard working New Yorkers. Furthermore, many small businesses are unable to obtain busi- ness loans that will permit them to pursue and expand business opportu- nities. Regrettably, the current law governing the licensed check cash- ing industry prohibits these licensed operators to provide any credit products. Small businesses and consumers are, therefore denied the abil- ity to access credit in their communities from check cashers, who are licensed, regulated financial service providers. This bill would allow for regulated and accountable entities to provide a credit product to New Yorkers and prevent them from entering into unfair loan agreements with rogue lenders. This bill will also update, modernize and improve the regulatory framework between these small busi- ness operators and the Department of Financial Services. It will author- ize and expand electronic filing by licensees with the Department, and reduce waste in the application process.   PRIOR LEGISLATIVE HISTORY: none   FISCAL IMPLICATIONS: To be determined   EFFECTIVE DATE: This act will take effect on the one hundred eightieth day after it shall have become a law; provided however, that effective immediately, any rules and regulations necessary to implement the provisions of this act on its effective date shall be added, amended and/or repealed on or before such date.
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A09634 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9634--B
 
                   IN ASSEMBLY
 
                                     March 23, 2016
                                       ___________
 
        Introduced  by  M. of A. RODRIGUEZ, BENEDETTO, PICHARDO, PERRY, LINARES,
          CRESPO, RIVERA, DILAN, TENNEY, SEPULVEDA, JEAN-PIERRE, WEPRIN, HARRIS,
          HEVESI -- Multi-Sponsored by -- M. of A. ABBATE,  CANCEL,  FARRELL  --
          read  once  and  referred  to  the  Committee  on  Banks  -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- reported and referred to the Committee  on  Codes
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee
 
        AN ACT to amend the banking law, in relation to enacting the  "community
          financial  services access and modernization act of 2016"; and provid-
          ing for the repeal of certain provisions upon expiration thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known as and may be cited as
     2  the "community financial services access and modernization act of 2016".
     3    §  2.  Paragraph  (b)  of subdivision 5 of section 18-a of the banking
     4  law, as amended by chapter 155 of the laws of 2012, is amended  to  read
     5  as follows:
     6    (b) two thousand dollars when the application relates to the licensing
     7  of  an  additional  location or change of location or the licensing of a
     8  [mobile unit]  limited station of a licensed [casher of  checks]  finan-
     9  cial services provider; or
    10    §  3.  The  third undesignated paragraph of section 340 of the banking
    11  law, as added by chapter 22 of the laws of 1990, is amended to  read  as
    12  follows:
    13    Nothing  in  this  article  shall  apply  to  licensed collateral loan
    14  brokers or licensed financial services providers.
    15    § 4. Section 366 of the banking law, as amended by chapter 49  of  the
    16  laws  of  1961,  subdivision  1 as amended by chapter 849 of the laws of
    17  1964 and as further amended by section 104 of part A of  chapter  62  of
    18  the  laws  of 2011, subdivisions 2 and 3 as renumbered by chapter 132 of
    19  the laws of 1969, is amended to read as follows:
    20    § 366. Definitions. When used in this article. 1. The  term  "licensed
    21  [casher  of  checks] financial services provider" means any [individual,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14451-10-6

        A. 9634--B                          2

     1  partnership, unincorporated  association  or  corporation]  person  duly
     2  licensed  by the superintendent of financial services to engage in busi-
     3  ness pursuant to the provisions of this article.
     4    2.  The  term  "licensee"  means  a person licensed [casher of checks,
     5  drafts and/or money orders] to provide financial services  regulated  by
     6  this article.
     7    3.  The  term  ["mobile  unit"] "limited station" means any vehicle or
     8  other movable means from which the business of [cashing  checks,  drafts
     9  or  money orders] providing financial services regulated by this article
    10  is to be conducted.
    11    4. The term "person" means  any  individual  or  other  legal  entity,
    12  including any corporation, partnership, association or limited liability
    13  company.
    14    5.  The  term  "conduit  services"  means any activity permitted to be
    15  offered by a licensee under this article to  its  customers  in  collab-
    16  oration with a state or federally chartered bank, trust company, savings
    17  bank,  savings  and  loan  association  or  credit  union subject to the
    18  approval of the superintendent, provided no conduit services under  this
    19  section  shall  be approved, which exceed prevailing usury provisions in
    20  state law, including but not limited to:
    21    (a) business and  commercial  loans  offered  by  licensees  that  are
    22  licensed  under  article  nine  of  this chapter provided, however, that
    23  prior to making a loan directly, a licensee is  required  to  offer  and
    24  process a loan from a collaborating bank or credit union with the licen-
    25  see  under  this  section  that may provide a more favorable rate and/or
    26  terms to the prospective borrower;
    27    (b) account access services;
    28    (c) bill payment services; and
    29    (d) assistance in preparation and submission of forms to be  processed
    30  by the collaborating bank or credit union.
    31    6.  The  term  "financial services" means offering or providing any of
    32  the following financial products or services: (a) the cashing of checks,
    33  drafts and/or money orders,
    34    (b) money transmission services as defined in  article  thirteen-B  of
    35  this  chapter, provided, however, a licensed financial services provider
    36  offering money transmission pursuant to article thirteen-B of this chap-
    37  ter, other than as an agent of a licensee, shall first obtain a  license
    38  under that article,
    39    (c) bill payment services,
    40    (d) the sale of prepaid debit cards; and
    41    (e) conduit services as defined in this article.
    42    7.  The term "master license" shall mean an original license issued by
    43  the superintendent that authorizes a person to engage in the business of
    44  cashing of checks and related financial services, and in the case  of  a
    45  licensee who has multiple licensed business locations at the time of the
    46  effective date of this subdivision, the initial longest site continuous-
    47  ly licensed under this article.
    48    8.  The term "supplemental license" shall mean a license issued by the
    49  superintendent that authorizes a  person  having  a  master  license  to
    50  engage  in  the  business  of  cashing  of  checks and related financial
    51  services at branch locations, and in the case  of  a  licensee  who  has
    52  multiple  licensed  business locations at the time of the effective date
    53  of this subdivision, any license issued to an  existing  licensee  after
    54  the license for the original site.
    55    §  5. Section 367 of the banking law, as amended by chapter 151 of the
    56  laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-

        A. 9634--B                          3
 
     1  ter 109 of the laws of 2006, subdivision 4 as amended by chapter  96  of
     2  the laws of 1981, is amended to read as follows:
     3    § 367.   License  requirements;  fees;  capital  requirements.  1.  No
     4  person[, partnership, association or corporation] shall  engage  in  the
     5  business  of  cashing checks, drafts or money orders for a consideration
     6  without first obtaining a license from the superintendent.
     7    2. Application for such license shall be in writing, under  oath,  and
     8  in  the  form  prescribed  by  the superintendent, and shall contain the
     9  name, and the address both of the residence and place  of  business,  of
    10  the  applicant,  and  if the applicant is a co-partnership [or], associ-
    11  ation or limited liability company, of every member thereof,  and  if  a
    12  corporation, of each officer and director thereof; also, if the business
    13  is to be conducted at a specific address, the address at which the busi-
    14  ness  is  to be conducted, and if the business is to be conducted from a
    15  [mobile unit] limited station, the New York state registration number or
    16  other identification of such [mobile unit] limited station and the  area
    17  in  which  the  applicant proposes to operate such [mobile unit] limited
    18  station; and also such further information  as  the  superintendent  may
    19  require.
    20    3.  Such applicant at the time of making such application shall pay to
    21  the superintendent a fee as prescribed pursuant to section eighteen-a of
    22  this chapter for investigating the application.   An application  for  a
    23  master  license  shall  be  in  writing,  under  oath,  and  in the form
    24  prescribed by the superintendent and shall contain such  information  as
    25  the  superintendent may require by regulation. The application shall set
    26  forth all of the locations at which the applicant seeks to conduct busi-
    27  ness hereunder.  At the time of making  the  application  for  a  master
    28  license, an existing licensee under this article shall pay to the super-
    29  intendent  the  sum  of  two  hundred  fifty  dollars  for each proposed
    30  location as a fee for investigating the application. An  applicant  that
    31  does  not  currently  hold  a  license under this article at the time of
    32  application shall pay  to  the  superintendent  an  application  fee  as
    33  provided in this chapter for initial applications. Any licensee request-
    34  ing  a  change of address, shall at the time of making such request, pay
    35  to the superintendent a fee as prescribed pursuant to section eighteen-a
    36  of this chapter for investigating the new  address;  provided,  however,
    37  that the superintendent may, in his or her discretion, waive such inves-
    38  tigation  fee  if  warranted, and provided further, that no fee shall be
    39  payable for the relocation of a limited station.
    40    4. Every applicant shall prove, in form  satisfactory  to  the  super-
    41  intendent  that  he  or it has available for the operation of such busi-
    42  ness, for each location and for each [mobile unit] limited station spec-
    43  ified in the  application,  liquid  assets  of  at  least  ten  thousand
    44  dollars,  and  every licensee shall continuously maintain for the opera-
    45  tion of such business for each  location  and  for  each  [mobile  unit]
    46  limited station liquid assets of at least ten thousand dollars. Notwith-
    47  standing  the  foregoing provisions of this subdivision, the superinten-
    48  dent, upon application by an applicant and for  good  cause  shown,  may
    49  permit a reduction from ten thousand dollars to not less than five thou-
    50  sand dollars of minimum liquid assets required for each location.
    51    §  6. Section 369 of the banking law, as amended by chapter 151 of the
    52  laws of 1945, subdivision 1 as amended by chapter 233  of  the  laws  of
    53  2005,  subdivisions  4  and  5  as amended by chapter 132 of the laws of
    54  1969, subdivision 6 as amended by chapter 164 of the laws of 2003, para-
    55  graph (b) of subdivision 6 as amended by section 6 of part LL of chapter

        A. 9634--B                          4
 
     1  56 of the laws of 2010, and subdivision 7 as added by chapter 485 of the
     2  laws of 1947, is amended to read as follows:
     3    § 369. Conditions precedent to issuing license; issuance and filing of
     4  license;  posting  license. 1. If the superintendent shall find that the
     5  financial responsibility, experience, character, and general fitness  of
     6  the applicant, and of the members thereof if the applicant be a co-part-
     7  nership [or], association or limited liability company, and of the offi-
     8  cers  and  directors thereof if the applicant be a corporation, are such
     9  as to command the confidence of the community and to warrant belief that
    10  the business will be operated honestly, fairly, and  efficiently  within
    11  the  purposes of this article, and if the superintendent shall find that
    12  the granting of such application will promote the convenience and advan-
    13  tage of the area in which such business is to be conducted, and  if  the
    14  superintendent shall find that the applicant has available for the oper-
    15  ation  of  such  business  for  each location and for each [mobile unit]
    16  limited station specified in the application liquid assets of  at  least
    17  ten  thousand  dollars,  the  superintendent  shall  thereupon execute a
    18  master license and if applicable one or more  supplemental  licenses  in
    19  duplicate  to  permit  the  [cashing of checks, drafts and money orders]
    20  delivery of financial services in accordance with the provisions of this
    21  article at the location or locations or in the area or  areas  specified
    22  in such application. In finding whether the application will promote the
    23  convenience and advantage to the public, the superintendent shall deter-
    24  mine  whether  there  is  a  community  need  for  a new licensee in the
    25  proposed area or areas to be served. No license shall be  issued  to  an
    26  applicant  for  a  license, at a location to be licensed which is closer
    27  than one thousand five hundred eighty-four feet (three-tenths of a mile)
    28  from an existing licensee, except  with  the  written  consent  of  such
    29  existing  licensee  or  pursuant  to  subdivision three of section three
    30  hundred seventy of this article, subject to any restriction or condition
    31  as the superintendent may promulgate by regulation;  provided,  however,
    32  the  superintendent  may permit a location to be licensed that is closer
    33  than three-tenths of a mile from  an  existing  licensee  provided  such
    34  applicant  engages in the cashing of checks, drafts or money orders only
    35  for payees of such checks, drafts or money orders that  are  other  than
    36  natural  persons  at  the location to be licensed and such applicant was
    37  engaged in the cashing of such checks, drafts or money orders for payees
    38  that are other than natural persons at such location on  or  before  the
    39  fourteenth  day  of  July,  two thousand four, and provided further that
    40  upon licensing any such location by the superintendent, such license  as
    41  it  pertains solely to such location shall not be affected thereafter by
    42  any change of control of such license pursuant to section three  hundred
    43  seventy-a  of  this article, provided that the licensee continues there-
    44  after to engage at that location in the cashing  of  checks,  drafts  or
    45  money  orders  only  for  payees that are other than natural persons and
    46  provided further that such license shall bear a legend stating that such
    47  location is restricted to the cashing of checks, drafts or money  orders
    48  only for payees that are other than natural persons. The three-tenths of
    49  a mile distance requirement as set forth in this section shall not apply
    50  in cases where the existing licensee is a restricted location as author-
    51  ized  in  the preceding sentence, or is any other licensed location that
    52  engages solely in the cashing of checks, drafts or money orders only for
    53  payees that are  other  than  natural  persons.  For  purposes  of  this
    54  section,  such  distance  shall be measured on a straight line along the
    55  street between the nearest point of the store fronts of the check  cash-
    56  ing facilities. The primary business of the licensee, at the location to

        A. 9634--B                          5
 
     1  be licensed, shall be financial services. The superintendent shall tran-
     2  smit  one  copy of such license to the applicant and file another in the
     3  office of the department. Notwithstanding the  foregoing  provisions  of
     4  this  subdivision,  the superintendent, upon application by an applicant
     5  and for good cause shown, may  permit  a  reduction  from  ten  thousand
     6  dollars  to not less than five thousand dollars of minimum liquid assets
     7  required for each location.
     8    2. Such license shall state the name  of  the  licensee;  and  if  the
     9  licensee  is  a  co-partnership  [or], association, or limited liability
    10  company, the names of the members thereof; and  if  the  licensee  is  a
    11  corporation, the date of its incorporation; and if the business is to be
    12  conducted  at  a specific address, the address at which such business is
    13  to be conducted; and if the business is to be conducted through the  use
    14  of  a  [mobile  unit]  limited  station, the New York state registration
    15  number or other identification of such [mobile unit] limited station and
    16  the area in which such [mobile unit] limited station is authorized to do
    17  business.
    18    3. [Such license] All licenses issued by the superintendent  shall  be
    19  kept  conspicuously  posted in the place of business of the licensee or,
    20  in the case of a [mobile unit] limited station, upon such [mobile  unit]
    21  limited station.  Such license shall not be transferable or assignable.
    22    4.  Such  license  shall  remain  in full force and effect until it is
    23  surrendered by the licensee or revoked or suspended as provided in  this
    24  article.  In the case of a change of control of a location or a business
    25  licensed hereunder, the licensee approved to  acquire  the  business  or
    26  location  may  utilize  a  true copy of the existing license pending the
    27  issuance of a new license by the superintendent.
    28    5. If the superintendent shall find that the applicant fails  to  meet
    29  any  of  the conditions set forth in subdivision one of this section, he
    30  or she shall not issue such license, and he  or  she  shall  notify  the
    31  applicant  of the denial.  If an application is denied or withdrawn, the
    32  superintendent shall retain the investigation fee to cover the costs  of
    33  investigating  the  application and return the license fee to the appli-
    34  cant.
    35    6. The superintendent may refuse to issue a license pursuant  to  this
    36  article if he or she shall find that the applicant, or any person who is
    37  a director, officer, partner, agent, employee or substantial stockholder
    38  of  the applicant, (a) has been convicted of a crime in any jurisdiction
    39  or (b) is associating or consorting with any person who has, or  persons
    40  who  have,  been  convicted  of a crime or crimes in any jurisdiction or
    41  jurisdictions; provided, however,  that  the  superintendent  shall  not
    42  issue  such a license if he or she shall find that the applicant, or any
    43  person who is a director, officer, partner, agent, employee or  substan-
    44  tial stockholder of the applicant, has been convicted of a felony in any
    45  jurisdiction  or of a crime which, if committed within this state, would
    46  constitute a felony under the laws thereof. For  the  purposes  of  this
    47  article,  a  person shall be deemed to have been convicted of a crime if
    48  such person shall have pleaded guilty to a charge thereof before a court
    49  or magistrate, or shall have been found guilty thereof by  the  decision
    50  or  judgment of a court or magistrate or by the verdict of a jury, irre-
    51  spective of the pronouncement of sentence  or  the  suspension  thereof,
    52  unless such plea of guilty, or such decision, judgment or verdict, shall
    53  have  been set aside, reversed or otherwise abrogated by lawful judicial
    54  process or unless the person convicted of the crime shall have  received
    55  a  pardon therefor from the president of the United States or the gover-
    56  nor  or  other  pardoning  authority  in  the  jurisdiction  where   the

        A. 9634--B                          6
 
     1  conviction  was had, or shall have received a certificate of relief from
     2  disabilities or a certificate of good conduct pursuant to article  twen-
     3  ty-three of the correction law to remove the disability under this arti-
     4  cle  because  of such conviction. The term "substantial stockholder," as
     5  used in this subdivision, shall be deemed to refer to a person owning or
     6  controlling ten per centum or more of the total outstanding stock of the
     7  corporation in which such person is a stockholder. In making a  determi-
     8  nation  pursuant  to  this subdivision, the superintendent shall require
     9  fingerprinting of the applicant. Such fingerprints shall be submitted to
    10  the division of criminal justice services for a state  criminal  history
    11  record  check,  as  defined in subdivision one of section three thousand
    12  thirty-five of the education law, and may be submitted  to  the  federal
    13  bureau of investigation for a national criminal history record check.
    14    7.  No  license pursuant to this article shall be issued to any appli-
    15  cant to do business at the place specified in  the  application  as  the
    16  place where the business is to be conducted if, within the twelve months
    17  preceding  such application, a license to engage in business pursuant to
    18  this article at such place shall have been revoked.
    19    § 7. Section 370 of the banking law, as amended by chapter 151 of  the
    20  laws  of 1945, subdivision 2 as amended by section 38 of part O of chap-
    21  ter 59 of the laws of 2006 and subdivision 3 as amended by  chapter  703
    22  of the laws of 2006, is amended to read as follows:
    23    § 370.  Restrictions as to place or area of doing business; establish-
    24  ment of stations; change of location. 1. No more than one place of busi-
    25  ness or one [mobile unit] limited station shall be maintained under  the
    26  same  license;  provided,  however,  that  more  than one license may be
    27  issued to the same licensee [upon compliance with the provisions of this
    28  article for each new license] and if the superintendent determines  that
    29  an  existing  licensee  is  in  good standing and in compliance with the
    30  provisions of this article, a subsequent application  for  a  second  or
    31  multiple  supplemental  licenses  at  different, separate and additional
    32  locations shall be expedited by the superintendent provided the  minimum
    33  liquidity  requirements and community need criteria set forth in section
    34  three hundred sixty-nine of this article have been demonstrated  in  the
    35  application for the additional location or locations.
    36    2.  Any  licensed  [casher  of checks] financial services provider may
    37  open and maintain, within this state, one or more limited  stations  for
    38  the purpose of cashing checks, drafts or money orders for the particular
    39  group  or groups specified in the license authorizing each such station.
    40  Such stations shall be licensed pursuant to and be subject  to  all  the
    41  provisions  of  this  chapter  applicable to licensed cashers of checks,
    42  except that (a) [such station shall not be subject to the distance limi-
    43  tation set forth in subdivision one of section three hundred  sixty-nine
    44  of  this  article,  (b)] the fee for investigating the application for a
    45  station shall be as prescribed pursuant to section  eighteen-a  of  this
    46  chapter,  and  [(c)]  (b)  where  such a station is at the premises of a
    47  specified employer for the purpose of cashing checks, drafts  and  money
    48  orders  for  the  employees  of  such employer, the fees and charges for
    49  cashing such checks, drafts or money orders shall not be subject to  the
    50  limitations  of  subdivision one of section three hundred seventy-two of
    51  this article if such fees and charges are paid by such employer.
    52    3. A licensee may make a written application to the superintendent for
    53  leave to change his or her place of  business,  or  in  the  case  of  a
    54  [mobile unit] limited station, the area in which such unit is authorized
    55  to  be operated, stating the reasons for such proposed change and in the
    56  case where the applicant currently holds a master license to  operate  a

        A. 9634--B                          7
 
     1  business  established  under  this  article,  the  superintendent  shall
     2  streamline and reduce the information required from such applicant. Such
     3  application may be approved for relocation from  a  site  within  three-
     4  tenths of a mile of another licensee to another site within three-tenths
     5  of  a mile of such other licensee provided that such new site is farther
     6  from such existing licensee than the site from which permission to relo-
     7  cate is sought. Only in situations in which a licensee seeks  to  change
     8  its  place  of  business  due  to extraordinary circumstances, as may be
     9  determined by the superintendent pursuant to regulations, may the super-
    10  intendent, in his or her discretion, determine that an  application  may
    11  be  approved for relocation from a site within three-tenths of a mile of
    12  another licensee to a new site which is closer to such existing licensee
    13  than the site from which permission to relocate is sought. Notwithstand-
    14  ing any other provision of this subdivision,  a  licensee  may  relocate
    15  from  any  location  to a location that is within three-tenths of a mile
    16  from another licensee with the written consent of the other licensee. If
    17  the superintendent approves such application he or she shall issue a new
    18  license in duplicate in accordance with the provisions of section  three
    19  hundred  sixty-nine  of  this  article, stating the new location of such
    20  licensee or, in the case of a [mobile unit]  limited  station,  the  new
    21  area in which such [mobile unit] limited station may be operated.
    22    §  8. Section 370-a of the banking law, as added by chapter 142 of the
    23  laws of 1992, subdivision 1 as amended by section 39 of part O of  chap-
    24  ter 59 of the laws of 2006, is amended to read as follows:
    25    § 370-a.  Changes  in control. 1. It shall be unlawful except with the
    26  prior approval of the superintendent for any action to  be  taken  which
    27  results  in a change of control of the business of a licensee.  Prior to
    28  any change of control, the person desirous of acquiring control  of  the
    29  business  of  a licensee, if such person is not already a licensee under
    30  this article, shall make written application to the  superintendent  and
    31  pay an investigation fee as prescribed pursuant to section eighteen-a of
    32  this  chapter  to the superintendent. The application shall contain such
    33  information as the superintendent, by rule or regulation, may  prescribe
    34  as  necessary or appropriate, and in the case where the acquiring person
    35  currently holds a master license to operate a business established under
    36  this article, and in the case of a limited station license,  the  super-
    37  intendent shall streamline and reduce the information required from such
    38  applicant,  for  the  purpose  of  making  the determination required by
    39  subdivision two of this section.
    40    2. The superintendent shall approve or disapprove the proposed  change
    41  of  control  of a licensee in accordance with the provisions of subdivi-
    42  sions one and six of section three hundred sixty-nine of  this  article.
    43  The  superintendent shall approve or disapprove the application in writ-
    44  ing within ninety days after the date the application is filed with  the
    45  superintendent.
    46    3.  For  a period of six months from the date of qualification thereof
    47  and for such  additional  period  of  time  as  the  superintendent  may
    48  prescribe,  in  writing,  the  provisions of subdivisions one and two of
    49  this section shall not apply to a transfer of control  by  operation  of
    50  law  to the legal representative, as hereinafter defined, of one who has
    51  control of a  licensee.  Thereafter,  such  legal  representative  shall
    52  comply  with the provisions of subdivisions one and two of this section.
    53  The provisions of subdivisions one and two  of  this  section  shall  be
    54  applicable  to  an application made under such section by a legal repre-
    55  sentative.

        A. 9634--B                          8
 
     1    The term "legal representative", for the  purposes  of  this  section,
     2  shall  mean  one  duly appointed by a court of competent jurisdiction to
     3  act as  executor,  administrator,  trustee,  committee,  conservator  or
     4  receiver,  including  one  who  succeeds  a legal representative and one
     5  acting   in  an  ancillary  capacity  thereto  in  accordance  with  the
     6  provisions of such court appointment.
     7    4. As used in this section: (a) the term "person" includes an individ-
     8  ual, partnership, corporation, association, limited  liability  company,
     9  or  any  other  organization,  and  (b)  the  term  "control"  means the
    10  possession, directly or indirectly, of the power to direct or cause  the
    11  direction  of the management and policies of a licensee, whether through
    12  the ownership of voting stock of such licensee, the ownership of  voting
    13  stock  of  any  person  which possesses such power or otherwise. Control
    14  shall be presumed to exist if any person, directly or indirectly,  owns,
    15  controls  or  holds  with  power  to  vote ten per centum or more of the
    16  voting stock of any licensee or of any person which  owns,  controls  or
    17  holds  with  power to vote ten per centum or more of the voting stock of
    18  any licensee, but no person shall be deemed to control a licensee solely
    19  by reason of being an officer or director of such  licensee  or  person.
    20  The superintendent may in his or her discretion, upon the application of
    21  a  licensee or any person who, directly or indirectly, owns, controls or
    22  holds with power to vote or seeks to own, control or hold with power  to
    23  vote  any  voting  stock  of such licensee, determine whether or not the
    24  ownership, control or holding of such voting stock constitutes or  would
    25  constitute control of such licensee for purposes of this section.
    26    §  9.  Section  371 of the banking law, as added by chapter 151 of the
    27  laws of 1945, is amended to read as follows:
    28    § 371.  Regulations.  The  superintendent  is  hereby  authorized  and
    29  empowered to make such rules and regulations, and such specific rulings,
    30  demands,  and  findings  as  he or she may deem necessary for the proper
    31  conduct of the business  authorized  and  licensed  under  and  for  the
    32  enforcement  of  this  article,  in addition hereto and not inconsistent
    33  herewith.
    34    § 10. Section 372 of the banking law, as amended by chapter 151 of the
    35  laws of 1945, the section heading  and  subdivision  1  as  amended  and
    36  subdivision  7 as added by chapter 432 of the laws of 2004, subdivisions
    37  2, 3, and 4 as added and subdivisions 5 and 6 as renumbered  by  chapter
    38  263  of  the  laws of 1983, and subdivision 6 as added by chapter 485 of
    39  the laws of 1947, is amended to read as follows:
    40    § 372. Fees and charges; posting schedule; records and reports. 1. The
    41  superintendent shall, by regulation, establish the  maximum  fees  which
    42  may  be charged by licensees for cashing a check, draft, or money order.
    43  No licensee shall charge or collect any sum for cashing a check,  draft,
    44  or  money  order  in  excess of that established by the superintendent's
    45  regulations; provided, however, that no maximum fee shall apply  to  the
    46  charging of fees by licensees for the cashing of checks, drafts or money
    47  orders  for payees of such checks, drafts or money orders that are other
    48  than natural persons. The licensee shall pay to every customer tendering
    49  any check, draft or money order to be cashed, the entire face amount  of
    50  such  instrument,  less  any charges permitted by the superintendent, in
    51  such form and by such means as agreed upon by the customer on  the  same
    52  date upon which such instrument is presented.
    53    2. The schedule of fees and charges permitted under this section shall
    54  be  conspicuously  and  continuously posted in every location and [mobil
    55  unit] limited station licensed under this article. Whenever  a  licensee
    56  hereunder  is  authorized  under  this  article to offer other financial

        A. 9634--B                          9
 
     1  services, the posting and signage requirements thereunder  shall  super-
     2  sede other signage requirements under this article.
     3    3.  No  change in fees shall become effective earlier than thirty days
     4  after the superintendent shall notify the majority leader of the senate,
     5  the speaker of the assembly, and the chairmen of  both  the  senate  and
     6  assembly committees on banks of his or her intention to change fees.
     7    4.  The fees in effect immediately prior to the effective date of this
     8  subdivision shall continue  to  be  the  maximum  allowable  fees  until
     9  revised by the superintendent's regulations.
    10    5.  Each  licensee  shall  keep  and  use  in its business such books,
    11  accounts, and records as the superintendent may require  to  carry  into
    12  effect the provisions of this article and the rules and regulations made
    13  by  the  superintendent  hereunder.  Every  licensee shall preserve such
    14  books, accounts and records for at least two years.  A licensee shall be
    15  deemed to be in compliance with this requirement if the  licensee  main-
    16  tains  all  information  related  to the financial services transactions
    17  conducted by said licensee according to the provisions of section  thir-
    18  ty-six-b of this chapter.
    19    6.  Before  a licensee shall deposit with any banking organization, or
    20  with any organization engaged in the business of banking, a check, draft
    21  or money order cashed by such licensee, the same must be  endorsed  with
    22  the  actual  name  under  which such licensee is doing business and must
    23  have the words "licensed [casher of checks] financial services provider"
    24  legibly written or stamped immediately after or below such name.
    25    7. Every licensee shall submit to the superintendent, or  such  person
    26  as the superintendent may designate, such suspicious activity reports or
    27  currency  transaction reports as are required to be submitted to federal
    28  authorities pursuant to provisions of the Bank Secrecy  Act  (subchapter
    29  11, chapter 53, title 31, United States code) and regulations and admin-
    30  istrative orders related thereto, as amended, within the periods of time
    31  as required by such act and regulations. A licensee may submit a copy of
    32  any such report to the superintendent, or such person as the superinten-
    33  dent  may  designate,  that  is filed with such federal authorities. The
    34  superintendent may adopt such regulations  or  require  such  additional
    35  reports as he or she deems necessary to insure the effective enforcement
    36  of this subdivision.
    37    § 11. Section 372-a of the banking law, as added by chapter 432 of the
    38  laws of 2004, is amended to read as follows:
    39    §  372-a.  Superintendent authorized to examine. 1. For the purpose of
    40  discovering violations of this article or securing information  lawfully
    41  required  in  this  section,  the superintendent may at any time, and as
    42  often as may be determined, either personally or by a person duly desig-
    43  nated by the superintendent,  investigate  the  [cashing  of  checks  by
    44  licensees] business practices of a licensee rendering financial services
    45  authorized by this article and examine the books, accounts, records, and
    46  files used therein of every licensee.
    47    2. For the purpose established in subdivision one of this section, the
    48  superintendent and his or her duly designated representatives shall have
    49  free  access  to  the  offices  and places of business, books, accounts,
    50  papers, records, files, safes and vaults  of  all  such  licensees.  The
    51  superintendent  shall have authority to require the attendance of and to
    52  examine under oath all persons whose testimony may be required  relative
    53  to such cashing of checks or such business.
    54    § 12. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
    55  sion  1  as amended by chapter 432 of the laws of 2004 and subdivision 2

        A. 9634--B                         10
 
     1  as amended by chapter 132 of the laws of 1969, are amended  to  read  as
     2  follows:
     3    1.  No licensee shall engage in the business of making loans of money,
     4  credit, goods or things or discounting  of  notes,  bills  of  exchange,
     5  checks, or other evidences of debt pursuant to the provisions of article
     6  nine  of  this  chapter, nor shall a loan business or the negotiation of
     7  loans or the discounting of notes, bills of exchange,  checks  or  other
     8  evidences  of  debt be conducted on the same premises where the licensee
     9  is conducting business pursuant  to  the  provisions  of  this  article.
    10  Notwithstanding  any other provision of this subdivision, a licensee may
    11  engage in the business of making business and commercial loans  pursuant
    12  to  this article provided the licensee has first obtained a license from
    13  the superintendent pursuant to article nine of this  chapter;  provided,
    14  however,  no  licensee shall make any loans to individuals for personal,
    15  family, household or investment purposes and in the case of an  applica-
    16  tion  for a loan from a business which is a sole proprietorship or part-
    17  nership, no loan may be extended except upon the written assurance  from
    18  the borrower in a notarized document that the proceeds of such loan will
    19  be used solely for business or commercial purposes, and upon the reason-
    20  able determination by the lender that the loan is solely for business or
    21  commercial  purposes, including but not limited to receipt of documenta-
    22  tion that the borrower is operating as a bona fide  business  operation.
    23  In  order  to  assure  that the business and commercial loans authorized
    24  under articles nine and nine-A of this chapter are properly  and  solely
    25  made  for  commercial  and  business  purposes, the superintendent shall
    26  develop and promulgate rules and regulations requiring  such  applicants
    27  to  submit  the  underwriting  criteria  and  processes  and information
    28  verification methodology the licensee will utilize to evaluate the abil-
    29  ity of borrowers to repay the business or commercial  loans  and,  addi-
    30  tionally the procedures such licensee will undertake to assure that sole
    31  proprietorships  or  partnerships business or commercial loans cannot be
    32  diverted by the borrower for personal, household, family  or  investment
    33  purposes.  Except as otherwise provided by regulation of the superinten-
    34  dent, all checks, drafts and money orders  shall  be  deposited  in  the
    35  licensee's  bank account not later than the first business day following
    36  the day on which they were cashed. No licensee shall at any time cash or
    37  advance any moneys on a post-dated check or draft or engage in the busi-
    38  ness  of  transmitting  money  or  receiving  money  for   transmission;
    39  provided,  however,  that  a  licensee  may cash a check [payable on the
    40  first banking business day following the date of  cashing  (a)  if  such
    41  check is drawn by the United States, the state of New York, or any poli-
    42  tical  subdivision  of  the  state  of  New  York, or by any department,
    43  bureau, agency, authority, instrumentality or  officer,  acting  in  his
    44  official  capacity,  of the United States or of the state of New York or
    45  of any political subdivision of the state of New York, or  (b)  if  such
    46  check  is  a  payroll  check  drawn  by  an employer to the order of its
    47  employee in payment for services performed  by  such  employee]  without
    48  regard to the date imprinted on the check as long as the check is depos-
    49  ited  in  the  licensee's bank account not later than the first business
    50  day following the day on which it was cashed. No licensee shall cash any
    51  check, draft or money order if the face amount for which it is drawn  is
    52  in  excess of [fifteen] twenty-five thousand dollars; provided, however,
    53  that this restriction shall not apply to the cashing of  checks,  drafts
    54  or  money  orders  drawn  by the United States, any state thereof or any
    55  political subdivision of any such state, or by any  department,  bureau,
    56  agency,  authority,  instrumentality  or officer, acting in his official

        A. 9634--B                         11
 
     1  capacity, of the United States,  any  state  thereof  or  any  political
     2  subdivision  of  any  such  state, or any banking institution, or to any
     3  check or draft drawn by any insurance  company,  any  broker  or  dealer
     4  registered  with the securities and exchange commission, or any attorney
     5  for the settlement of claims, or to any check issued as an advance to  a
     6  lawsuit or as part of a structured settlement, or to any check which has
     7  been certified by the banking institution on which it has been drawn, or
     8  if  such check is drawn on a bona fide workers' compensation fund issued
     9  by a third-party payor, or if such check is drawn by an employer from  a
    10  pension  or  profit  sharing  fund, or if such check is drawn by a union
    11  from a pension or benefit fund; provided further, however, that any such
    12  restriction upon the maximum face amount that may be cashed by a  licen-
    13  see  shall not apply to the cashing of checks, drafts or money orders by
    14  licensees for payees of such checks, drafts or  money  orders  that  are
    15  other  than  natural persons. For purposes of this subdivision, "banking
    16  institution" means any bank, trust company, savings  bank,  savings  and
    17  loan  association  or  credit  union which is incorporated, chartered or
    18  organized under the laws of this state or any other state or the  United
    19  States.
    20    2.  The  superintendent  may suspend or revoke any license or licenses
    21  issued pursuant to this article if, after notice and a  hearing,  he  or
    22  she shall find that the licensee (a) has committed any fraud, engaged in
    23  any  dishonest  activities  or  made  any  misrepresentation; or (b) has
    24  violated any provisions of the banking  law  or  any  regulation  issued
    25  pursuant  thereto, or has violated any other law in the course of its or
    26  his dealings as a [licensed casher of checks] licensee delivering  check
    27  cashing  and  related  financial services to the public pursuant to this
    28  article; or (c) has made a false statement in the application  for  such
    29  license  or  failed  to give a true reply to a question in such applica-
    30  tion; or (d) has demonstrated his or its incompetency or  untrustworthi-
    31  ness  to act as a [licensed casher of checks] licensee delivering finan-
    32  cial services to the public pursuant to this  article;  or  (e)  is  not
    33  doing  sufficient  business  pursuant  to  this  article  to justify the
    34  continuance of the license, or if he or she shall find that  any  ground
    35  or grounds exist which would require or warrant the refusal of an appli-
    36  cation  for the issuance of the license if such an application were then
    37  before him or her.  Such a hearing shall be held in the manner and  upon
    38  such  notice  as  may  be  prescribed  by the superintendent. Pending an
    39  investigation or a hearing for  the  suspension  or  revocation  of  any
    40  license  or licenses issued pursuant to this article, the superintendent
    41  may temporarily suspend such license or licenses for  a  period  not  to
    42  exceed  ninety  days, provided the superintendent shall find that such a
    43  temporary suspension is in the public interest.
    44    § 13. The banking law is amended by adding a new section 373-a to read
    45  as follows:
    46    § 373-a. Report of lending activity. 1. Any licensee who issues  busi-
    47  ness  or  commercial  loans pursuant to the authority granted in section
    48  three hundred seventy-three of this article shall submit information  to
    49  the  superintendent annually beginning January first, two thousand eigh-
    50  teen regarding the following:
    51    (a) the number of loans issued the previous year;
    52    (b) the default rate, if any, with respect to such loans;
    53    (c) the average cost of such loans, including fees and interest  rates
    54  charged; and
    55    (d) such other information as the superintendent deems relevant.

        A. 9634--B                         12
 
     1    2. The superintendent shall thereafter issue a report to the governor,
     2  temporary  president  of the senate and speaker of the assembly on April
     3  first, two thousand  eighteen  and  annually  thereafter  compiling  and
     4  analyzing  the  information received pursuant to subdivision one of this
     5  section.
     6    §  14.  Subdivision 10 of section 36 of the banking law, as amended by
     7  chapter 182 of the laws of 2011, is amended to read as follows:
     8    10. All reports of examinations and investigations, correspondence and
     9  memoranda concerning or arising out of  such  examination  and  investi-
    10  gations,  including any duly authenticated copy or copies thereof in the
    11  possession of any banking organization,  bank  holding  company  or  any
    12  subsidiary  thereof  (as  such terms "bank holding company" and "subsid-
    13  iary" are defined in article three-A of this chapter),  any  corporation
    14  or  any  other  entity affiliated with a banking organization within the
    15  meaning of subdivision six of this section and any  non-banking  subsid-
    16  iary  of  a  corporation  or any other entity which is an affiliate of a
    17  banking organization within the meaning of  subdivision  six-a  of  this
    18  section,  foreign banking corporation, licensed lender, licensed [casher
    19  of checks] financial services provider, licensed mortgage banker, regis-
    20  tered mortgage broker, licensed mortgage loan originator, licensed sales
    21  finance company, registered mortgage loan servicer,  licensed  insurance
    22  premium  finance  agency, licensed transmitter of money, licensed budget
    23  planner, any other person or entity subject to  supervision  under  this
    24  chapter,  or the department, shall be confidential communications, shall
    25  not be subject to subpoena and shall not be made public unless,  in  the
    26  judgment  of  the  superintendent,  the  ends  of justice and the public
    27  advantage will be subserved by the publication thereof, in  which  event
    28  the superintendent may publish or authorize the publication of a copy of
    29  any  such  report  or  any  part thereof in such manner as may be deemed
    30  proper or unless such laws specifically authorize such  disclosure.  For
    31  the  purposes of this subdivision, "reports of examinations and investi-
    32  gations, and any correspondence and memoranda concerning or arising  out
    33  of such examinations and investigations", includes any such materials of
    34  a  bank,  insurance  or  securities regulatory agency or any unit of the
    35  federal government or that of this state any other state or that of  any
    36  foreign  government  which are considered confidential by such agency or
    37  unit and which are in the possession of  the  department  or  which  are
    38  otherwise confidential materials that have been shared by the department
    39  with any such agency or unit and are in the possession of such agency or
    40  unit.
    41    §  15.  Subdivisions  3  and  5  of  section 37 of the banking law, as
    42  amended by chapter 360 of the laws of  1984,  are  amended  to  read  as
    43  follows:
    44    3. In addition to any reports expressly required by this chapter to be
    45  made,  the superintendent may require any banking organization, licensed
    46  lender,  licensed  [casher  of  checks]  financial  services   provider,
    47  licensed  mortgage  banker,  foreign banking corporation licensed by the
    48  superintendent to do business in this state, bank  holding  company  and
    49  any  non-banking  subsidiary thereof, corporate affiliate of a corporate
    50  banking organization within the meaning of subdivision  six  of  section
    51  thirty-six  of  this  article and any non-banking subsidiary of a corpo-
    52  ration which is an affiliate of a corporate banking organization  within
    53  the  meaning  of subdivision six-a of section thirty-six of this article
    54  to make special reports to him or her at such times as  he  or  she  may
    55  prescribe.

        A. 9634--B                         13
 
     1    5.  The  superintendent  may  extend at his discretion the time within
     2  which a banking organization, foreign banking  corporation  licensed  by
     3  the superintendent to do business in this state, bank holding company or
     4  any  non-banking  subsidiary thereof, licensed [casher of checks] finan-
     5  cial  services  provider,  licensed  mortgage  banker, private banker or
     6  licensed lender is required to make and file any report  to  the  super-
     7  intendent.
     8    §  16.  Subdivisions  1,  2, 3 and 5 of section 39 of the banking law,
     9  subdivisions 1, 2 and 5 as amended by chapter 123 of the  laws  of  2009
    10  and  subdivision  3  as  amended by chapter 155 of the laws of 2012, are
    11  amended to read as follows:
    12    1. To appear and explain an  apparent  violation.  Whenever  it  shall
    13  appear to the superintendent that any banking organization, bank holding
    14  company,  registered  mortgage  broker, licensed mortgage banker, regis-
    15  tered  mortgage  loan  servicer,  licensed  mortgage  loan   originator,
    16  licensed   lender,   licensed  [casher  of  checks]  financial  services
    17  provider, licensed sales finance  company,  licensed  insurance  premium
    18  finance  agency, licensed transmitter of money, licensed budget planner,
    19  out-of-state state bank that maintains a branch or branches or represen-
    20  tative or other offices in this state, or  foreign  banking  corporation
    21  licensed  by  the  superintendent to do business or maintain a represen-
    22  tative office in this state has violated any law or  regulation,  he  or
    23  she may, in his or her discretion, issue an order describing such appar-
    24  ent  violation  and  requiring  such  banking organization, bank holding
    25  company, registered mortgage broker, licensed mortgage banker,  licensed
    26  mortgage  loan  originator, licensed lender, licensed [casher of checks]
    27  financial services provider, licensed sales  finance  company,  licensed
    28  insurance   premium  finance  agency,  licensed  transmitter  of  money,
    29  licensed budget planner, out-of-state state bank that maintains a branch
    30  or branches or representative or other offices in this state, or foreign
    31  banking corporation to appear before him or her, at  a  time  and  place
    32  fixed  in  said  order,  to  present  an  explanation  of  such apparent
    33  violation.
    34    2. To discontinue unauthorized or unsafe and unsound practices.  When-
    35  ever  it  shall  appear to the superintendent that any banking organiza-
    36  tion, bank holding company, registered mortgage broker,  licensed  mort-
    37  gage  banker,  registered mortgage loan servicer, licensed mortgage loan
    38  originator, licensed  lender,  licensed  [casher  of  checks]  financial
    39  services  provider,  licensed  sales finance company, licensed insurance
    40  premium finance agency, licensed transmitter of money,  licensed  budget
    41  planner,  out-of-state state bank that maintains a branch or branches or
    42  representative or other offices in this state, or foreign banking corpo-
    43  ration licensed by the superintendent to do business in  this  state  is
    44  conducting  business in an unauthorized or unsafe and unsound manner, he
    45  or she may, in his or her  discretion,  issue  an  order  directing  the
    46  discontinuance of such unauthorized or unsafe and unsound practices, and
    47  fixing a time and place at which such banking organization, bank holding
    48  company,  registered  mortgage  broker, licensed mortgage banker, regis-
    49  tered  mortgage  loan  servicer,  licensed  mortgage  loan   originator,
    50  licensed   lender,   licensed  [casher  of  checks]  financial  services
    51  provider, licensed sales finance  company,  licensed  insurance  premium
    52  finance  agency, licensed transmitter of money, licensed budget planner,
    53  out-of-state state bank that maintains a branch or branches or represen-
    54  tative or other offices in this state, or  foreign  banking  corporation
    55  may  voluntarily  appear before him or her to present any explanation in
    56  defense of the practices directed in said order to be discontinued.

        A. 9634--B                         14
 
     1    3. To make good impairment of capital or  to  ensure  compliance  with
     2  financial  requirements.  Whenever it shall appear to the superintendent
     3  that the capital or capital stock  of  any  banking  organization,  bank
     4  holding  company  or any subsidiary thereof which is organized, licensed
     5  or  registered  pursuant  to this chapter, is impaired, or the financial
     6  requirements imposed by subdivision one of section two hundred two-b  of
     7  this  chapter  or  any regulation of the superintendent on any branch or
     8  agency of a foreign banking corporation or  the  financial  requirements
     9  imposed  by  this chapter or any regulation of the superintendent on any
    10  licensed lender, registered mortgage broker, licensed  mortgage  banker,
    11  licensed  [casher of checks] financial services provider, licensed sales
    12  finance company, licensed insurance  premium  finance  agency,  licensed
    13  transmitter  of money, licensed budget planner or private banker are not
    14  satisfied, the superintendent may, in the  superintendent's  discretion,
    15  issue  an  order  directing that such banking organization, bank holding
    16  company, branch or agency of a foreign banking  corporation,  registered
    17  mortgage  broker,  licensed  mortgage  banker, licensed lender, licensed
    18  [casher of checks] financial services provider, licensed  sales  finance
    19  company, licensed insurance premium finance agency, licensed transmitter
    20  of  money,  licensed  budget  planner,  or private banker make good such
    21  deficiency forthwith or within a time specified in such order.
    22    5. To keep books and accounts as prescribed. Whenever it shall  appear
    23  to the superintendent that any banking organization, bank holding compa-
    24  ny,  registered  mortgage  broker,  licensed mortgage banker, registered
    25  mortgage loan servicer,  licensed  mortgage  loan  originator,  licensed
    26  lender,   licensed  [casher  of  checks]  financial  services  provider,
    27  licensed sales finance company, licensed insurance premium finance agen-
    28  cy, licensed transmitter of money, licensed budget  planner,  agency  or
    29  branch  of  a foreign banking corporation licensed by the superintendent
    30  to do business in this state, does not keep its books  and  accounts  in
    31  such manner as to enable him or her to readily ascertain its true condi-
    32  tion,  he or she may, in his or her discretion, issue an order requiring
    33  such banking organization, bank  holding  company,  registered  mortgage
    34  broker,  licensed  mortgage  banker,  registered mortgage loan servicer,
    35  licensed mortgage loan originator, licensed lender, licensed [casher  of
    36  checks]  financial  services  provider,  licensed sales finance company,
    37  licensed insurance  premium  finance  agency,  licensed  transmitter  of
    38  money,  licensed  budget planner, or foreign banking corporation, or the
    39  officers or agents thereof, or any of them, to open and keep such  books
    40  or  accounts  as  he or she may, in his or her discretion, determine and
    41  prescribe for the purpose of keeping accurate and convenient records  of
    42  its transactions and accounts.
    43    §  17.  Subdivisions  1, 2, 3, 4, 5 and 6 of section 42 of the banking
    44  law, subdivision 1 as amended by chapter 65 of the laws of 1948,  subdi-
    45  visions  2 and 3 as amended by chapter 553 of the laws of 1960, subdivi-
    46  sion 4 as amended by chapter 60 of the laws of 1957 and  subdivisions  5
    47  and 6 as amended by chapter 249 of the laws of 1968, are amended to read
    48  as follows:
    49    1. The name and the location of the principal office of every proposed
    50  corporation,  private  banker,  licensed  lender and licensed [casher of
    51  checks]  financial  services  provider,  the  organization  certificate,
    52  private  banker's  certificate  or  application for license of which has
    53  been filed for examination, and the date of such filing.
    54    2. The name and location of every licensed lender and licensed [casher
    55  of checks] financial services provider, and the name,  location,  amount
    56  of  capital  stock  or  permanent capital and amount of surplus of every

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     1  corporation and private banker and the minimum assets required of  every
     2  branch of a foreign banking corporation authorized to commence business,
     3  and the date of authorization or licensing.
     4    3. The name of every proposed corporation, private banker, branch of a
     5  foreign  banking  corporation,  licensed  lender and licensed [casher of
     6  checks] financial services providers to which a certificate of  authori-
     7  zation or a license has been refused and the date of notice of refusal.
     8    4.  The  name  and  location of every private banker, licensed lender,
     9  licensed [casher of checks] financial services provider,  sales  finance
    10  company and foreign corporation the authorization certificate or license
    11  of which has been revoked, and the date of such revocation.
    12    5.  The  name of every banking organization, licensed lender, licensed
    13  [casher of checks] financial services provider and  foreign  corporation
    14  which  has applied for leave to change its place or one of its places of
    15  business and the places from and to which the change is proposed  to  be
    16  made; the name of every banking organization which has applied to change
    17  the designation of its principal office to a branch office and to change
    18  the  designation  of  one of its branch offices to its principal office,
    19  and the location of the principal office which is proposed to be  redes-
    20  ignated as a branch office and of the branch office which is proposed to
    21  be redesignated as the principal office.
    22    6.  The  name of every banking organization, licensed lender, licensed
    23  [casher of checks] financial services provider and  foreign  corporation
    24  authorized  to change its place or one of its places of business and the
    25  date when and the places from and to which the change is  authorized  to
    26  be made; the name of every banking organization authorized to change the
    27  designation of its principal office to a branch office and to change the
    28  designation  of a branch office to its principal office, the location of
    29  the redesignated principal office and of the redesignated branch office,
    30  and the date of such change.
    31    § 18. Paragraph (a) of subdivision 1 of section 44 of the banking law,
    32  as amended by chapter 155 of the laws of 2012, is  amended  to  read  as
    33  follows:
    34    (a) Without limiting any power granted to the superintendent under any
    35  other provision of this chapter, the superintendent may, in a proceeding
    36  after  notice  and a hearing, require any safe deposit company, licensed
    37  lender,  licensed  [casher  of  checks]  financial  services   provider,
    38  licensed sales finance company, licensed insurance premium finance agen-
    39  cy,  licensed transmitter of money, licensed mortgage banker, registered
    40  mortgage broker, licensed mortgage loan originator, registered  mortgage
    41  loan  servicer  or  licensed budget planner to pay to the people of this
    42  state a penalty for  any  violation  of  this  chapter,  any  regulation
    43  promulgated  thereunder, any final or temporary order issued pursuant to
    44  section thirty-nine of this article, any condition imposed in writing by
    45  the superintendent in connection with the grant of  any  application  or
    46  request, or any written agreement entered into with the superintendent.
    47    §  19.  This  act  shall  take effect on the one hundred eightieth day
    48  after it shall have become a law; provided, however, that:
    49    (a) effective immediately, any  rules  and  regulations  necessary  to
    50  implement  the  provisions  of  this  act on its effective date shall be
    51  added, amended and/or repealed on or before such date;
    52    (b) the amendments to section 373 of the banking law made  by  section
    53  twelve of this act shall expire and be deemed repealed June 30, 2021;
    54    (c)  section  373-a of the banking law as added by section thirteen of
    55  this act shall expire and be deemed repealed June 30, 2021; and

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     1    (d) any contract, instrument, argument  or  other  written  obligation
     2  entered  into  by  a financial service provider authorized under section
     3  373 of the banking law prior to June 30, 2021 shall be deemed valid  and
     4  enforceable after such date.
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