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
A. 9634--B 15
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
A. 9634--B 16
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.
