Relates to enacting the "community financial services access and modernization act of 2019"; modernizes existing statute to reflect the full scope of financial services available at neighborhood "check cashing" establishments; provides for a comprehensive regulatory framework for the delivery of the expanded financial services currently being offered.
STATE OF NEW YORK
________________________________________________________________________
5423
2019-2020 Regular Sessions
IN SENATE
April 30, 2019
___________
Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to enacting the "community
financial services access and modernization act of 2019"; 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 2019".
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; or
9 § 3. Section 366 of the banking law, as amended by chapter 49 of the
10 laws of 1961, subdivision 1 as amended by chapter 849 of the laws of
11 1964 and as further amended by section 104 of part A of chapter 62 of
12 the laws of 2011, and subdivisions 2 and 3 as renumbered by chapter 132
13 of the laws of 1969, is amended to read as follows:
14 § 366. Definitions. When used in this article. 1. The term "licensed
15 casher of checks" means any [individual, partnership, unincorporated
16 association or corporation] person duly licensed by the superintendent
17 of financial services to engage in business pursuant to the provisions
18 of this article.
19 2. The term "licensee" means a licensed casher of checks, drafts
20 and/or money orders.
21 3. The term ["mobile unit"] "limited station" means any vehicle or
22 other movable means from which the business of [cashing checks, drafts
23 or money orders] providing financial services regulated by this article
24 is to be conducted.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06923-02-9
S. 5423 2
1 4. The term "person" means any individual or other legal entity,
2 including any corporation, partnership, association or limited liability
3 company.
4 5. The term "financial services" means offering or providing any of
5 the following financial products or services: (a) the cashing of checks,
6 drafts and/or money orders,
7 (b) money transmission services as defined in article thirteen-B of
8 this chapter, provided, however, a licensed financial services provider
9 offering money transmission pursuant to article thirteen-B of this chap-
10 ter, other than as an agent of a licensee, shall first obtain a license
11 under that article,
12 (c) bill payment services,
13 (d) the sale of prepaid debit cards, and
14 (e) the dispensing of mass transit fare cards, or such other medium or
15 mechanism for the dispensing of mass transit fares.
16 6. The term "primary license" shall mean an original license issued by
17 the superintendent that authorizes a person to engage in the business of
18 cashing of checks and related financial services, and in the case of a
19 licensee who has multiple licensed business locations at the time of the
20 effective date of this subdivision, the initial longest site continuous-
21 ly licensed under this article.
22 7. The term "supplemental license" shall mean a license issued by the
23 superintendent that authorizes a person having a primary license to
24 engage in the business of cashing of checks and related financial
25 services at branch locations, and in the case of a licensee who has
26 multiple licensed business locations at the time of the effective date
27 of this subdivision, any license issued to an existing licensee after
28 the license for the original site.
29 § 4. Section 367 of the banking law, as amended by chapter 151 of the
30 laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
31 ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96
32 of the laws of 1981, is amended to read as follows:
33 § 367. License requirements; fees; capital requirements. 1. No
34 person[, partnership, association or corporation] shall engage in the
35 business of cashing checks, drafts or money orders for a consideration
36 without first obtaining a license from the superintendent.
37 2. Application for such license shall be in writing, under oath, and
38 in the form prescribed by the superintendent, and shall contain the
39 name, and the address both of the residence and place of business, of
40 the applicant, and if the applicant is a co-partnership [or], associ-
41 ation or limited liability company, of every member thereof, and if a
42 corporation, of each officer and director thereof; also, if the business
43 is to be conducted at a specific address, the address at which the busi-
44 ness is to be conducted, and if the business is to be conducted from a
45 [mobile unit] limited station, the New York state registration number or
46 other identification of such [mobile unit] limited station and the area
47 in which the applicant proposes to operate such [mobile unit] limited
48 station; and also such further information as the superintendent may
49 require.
50 3. Such applicant at the time of making such application shall pay to
51 the superintendent a fee as prescribed pursuant to section eighteen-a of
52 this chapter for investigating the application. An application for a
53 primary license shall be in writing, under oath, and in the form
54 prescribed by the superintendent and shall contain such information as
55 the superintendent may require by regulation. The application shall set
56 forth all of the locations at which the applicant seeks to conduct busi-
S. 5423 3
1 ness hereunder. At the time of making the application for a primary
2 license, an existing licensee under this article shall pay to the super-
3 intendent the sum of two hundred fifty dollars for each proposed
4 location as a fee for investigating the application. An applicant that
5 does not currently hold a license under this article at the time of
6 application shall pay to the superintendent an application fee as
7 provided in this chapter for initial applications. Any licensee request-
8 ing a change of address, shall at the time of making such request, pay
9 to the superintendent a fee as prescribed pursuant to section eighteen-a
10 of this chapter for investigating the new address; provided, however,
11 that the superintendent may, in his or her discretion, waive such inves-
12 tigation fee if warranted, and provided further, that no fee shall be
13 payable for the relocation of a limited station.
14 4. Every applicant shall prove, in form satisfactory to the super-
15 intendent that he or it has available for the operation of such busi-
16 ness, for each location and for each [mobile unit] limited station spec-
17 ified in the application, liquid assets of at least ten thousand
18 dollars, and every licensee shall continuously maintain for the opera-
19 tion of such business for each location and for each [mobile unit]
20 limited station liquid assets of at least ten thousand dollars. Notwith-
21 standing the foregoing provisions of this subdivision, the superinten-
22 dent, upon application by an applicant and for good cause shown, may
23 permit a reduction from ten thousand dollars to not less than five thou-
24 sand dollars of minimum liquid assets required for each location.
25 § 5. Section 369 of the banking law, as amended by chapter 151 of the
26 laws of 1945, subdivision 1 as amended by chapter 233 of the laws of
27 2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of
28 1969, subdivision 6 as amended by section 1 of subpart A of part II of
29 chapter 55 of the laws of 2019, and subdivision 7 as added by chapter
30 485 of the laws of 1947, is amended to read as follows:
31 § 369. Conditions precedent to issuing license; issuance and filing of
32 license; posting license. 1. If the superintendent shall find that the
33 financial responsibility, experience, character, and general fitness of
34 the applicant, and of the members thereof if the applicant be a co-part-
35 nership [or], association or limited liability company, and of the offi-
36 cers and directors thereof if the applicant be a corporation, are such
37 as to command the confidence of the community and to warrant belief that
38 the business will be operated honestly, fairly, and efficiently within
39 the purposes of this article, and if the superintendent shall find that
40 the granting of such application will promote the convenience and advan-
41 tage of the area in which such business is to be conducted, and if the
42 superintendent shall find that the applicant has available for the oper-
43 ation of such business for each location and for each [mobile unit]
44 limited station specified in the application liquid assets of at least
45 ten thousand dollars, the superintendent shall thereupon execute a
46 primary license and if applicable one or more supplemental licenses in
47 duplicate to permit the [cashing of checks, drafts and money orders]
48 delivery of financial services in accordance with the provisions of this
49 article at the location or locations or in the area or areas specified
50 in such application. In finding whether the application will promote the
51 convenience and advantage to the public, the superintendent shall deter-
52 mine whether there is a community need for a new licensee in the
53 proposed area or areas to be served. No license shall be issued to an
54 applicant for a license, at a location to be licensed which is closer
55 than one thousand five hundred eighty-four feet (three-tenths of a mile)
56 from an existing licensee, except with the written consent of such
S. 5423 4
1 existing licensee or pursuant to subdivision three of section three
2 hundred seventy of this article, subject to any restriction or condition
3 as the superintendent may promulgate by regulation; provided, however,
4 the superintendent may permit a location to be licensed that is closer
5 than three-tenths of a mile from an existing licensee provided such
6 applicant engages in the cashing of checks, drafts or money orders only
7 for payees of such checks, drafts or money orders that are other than
8 natural persons at the location to be licensed and such applicant was
9 engaged in the cashing of such checks, drafts or money orders for payees
10 that are other than natural persons at such location on or before the
11 fourteenth day of July, two thousand four, and provided further that
12 upon licensing any such location by the superintendent, such license as
13 it pertains solely to such location shall not be affected thereafter by
14 any change of control of such license pursuant to section three hundred
15 seventy-a of this article, provided that the licensee continues there-
16 after to engage at that location in the cashing of checks, drafts or
17 money orders only for payees that are other than natural persons and
18 provided further that such license shall bear a legend stating that such
19 location is restricted to the cashing of checks, drafts or money orders
20 only for payees that are other than natural persons. The three-tenths of
21 a mile distance requirement as set forth in this section shall not apply
22 in cases where the existing licensee is a restricted location as author-
23 ized in the preceding sentence, or is any other licensed location that
24 engages solely in the cashing of checks, drafts or money orders only for
25 payees that are other than natural persons. For purposes of this
26 section, such distance shall be measured on a straight line along the
27 street between the nearest point of the store fronts of the check cash-
28 ing facilities. The primary business of the licensee, at the location to
29 be licensed, shall be financial services. The superintendent shall tran-
30 smit one copy of such license to the applicant and file another in the
31 office of the department. Notwithstanding the foregoing provisions of
32 this subdivision, the superintendent, upon application by an applicant
33 and for good cause shown, may permit a reduction from ten thousand
34 dollars to not less than five thousand dollars of minimum liquid assets
35 required for each location.
36 2. Such license shall state the name of the licensee; and if the
37 licensee is a co-partnership [or], association or limited liability
38 company, the names of the members thereof; and if the licensee is a
39 corporation, the date of its incorporation; and if the business is to be
40 conducted at a specific address, the address at which such business is
41 to be conducted; and if the business is to be conducted through the use
42 of a [mobile unit] limited station, the New York state registration
43 number or other identification of such [mobile unit] limited station and
44 the area in which such [mobile unit] limited station is authorized to do
45 business.
46 3. [Such license] All licenses issued by the superintendent shall be
47 kept conspicuously posted in the place of business of the licensee or,
48 in the case of a [mobile unit] limited station, upon such [mobile unit]
49 limited station. Such license shall not be transferable or assignable.
50 4. Such license shall remain in full force and effect until it is
51 surrendered by the licensee or revoked or suspended as provided in this
52 article. In the case of a change of control of a location or a business
53 licensed hereunder, the licensee approved to acquire the business or
54 location may utilize a true copy of the existing license pending the
55 issuance of a new license by the superintendent.
S. 5423 5
1 5. If the superintendent shall find that the applicant fails to meet
2 any of the conditions set forth in subdivision one of this section, he
3 or she shall not issue such license, and he or she shall notify the
4 applicant of the denial. If an application is denied or withdrawn, the
5 superintendent shall retain the investigation fee to cover the costs of
6 investigating the application and return the license fee to the appli-
7 cant.
8 6. The superintendent may, consistent with article twenty-three-A of
9 the correction law, refuse to issue a license pursuant to this article
10 if he or she shall find that the applicant, or any person who is a
11 director, officer, partner, agent, employee or substantial stockholder
12 of the applicant, (a) has been convicted of a crime in any jurisdiction
13 or (b) is associating or consorting with any person who has, or persons
14 who have, been convicted of a crime or crimes in any jurisdiction or
15 jurisdictions. For the purposes of this article, a person shall be
16 deemed to have been convicted of a crime if such person shall have
17 pleaded guilty to a charge thereof before a court or magistrate, or
18 shall have been found guilty thereof by the decision or judgment of a
19 court or magistrate or by the verdict of a jury, irrespective of the
20 pronouncement of sentence or the suspension thereof. The term "substan-
21 tial stockholder," as used in this subdivision, shall be deemed to refer
22 to a person owning or controlling ten per centum or more of the total
23 outstanding stock of the corporation in which such person is a stock-
24 holder. In making a determination pursuant to this subdivision, the
25 superintendent shall require fingerprinting of the applicant. Such fing-
26 erprints shall be submitted to the division of criminal justice services
27 for a state criminal history record check, as defined in subdivision one
28 of section three thousand thirty-five of the education law, and may be
29 submitted to the federal bureau of investigation for a national criminal
30 history record check.
31 7. No license pursuant to this article shall be issued to any appli-
32 cant to do business at the place specified in the application as the
33 place where the business is to be conducted if, within the twelve months
34 preceding such application, a license to engage in business pursuant to
35 this article at such place shall have been revoked.
36 § 6. Section 370 of the banking law, as amended by chapter 151 of the
37 laws of 1945, subdivision 2 as amended by section 38 of part O of chap-
38 ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703
39 of the laws of 2006, is amended to read as follows:
40 § 370. Restrictions as to place or area of doing business; establish-
41 ment of stations; change of location. 1. No more than one place of busi-
42 ness or one [mobile unit] limited station shall be maintained under the
43 same license; provided, however, that more than one license may be
44 issued to the same licensee [upon compliance with the provisions of this
45 article for each new license] and if the superintendent determines that
46 an existing licensee is in good standing and in compliance with the
47 provisions of this article, a subsequent application for a second or
48 multiple supplemental licenses at different, separate and additional
49 locations shall be expedited by the superintendent provided the minimum
50 liquidity requirements and community need criteria set forth in section
51 three hundred sixty-nine of this article have been demonstrated in the
52 application for the additional location or locations.
53 2. Any licensed casher of checks may open and maintain, within this
54 state, one or more limited stations for the purpose of cashing checks,
55 drafts or money orders for the particular group or groups specified in
56 the license authorizing each such station. Such stations shall be
S. 5423 6
1 licensed pursuant to and be subject to all the provisions of this chap-
2 ter applicable to licensed cashers of checks, except that (a) [such
3 station shall not be subject to the distance limitation set forth in
4 subdivision one of section three hundred sixty-nine of this article,
5 (b)] the fee for investigating the application for a station shall be as
6 prescribed pursuant to section eighteen-a of this chapter, and [(c)] (b)
7 where such a station is at the premises of a specified employer for the
8 purpose of cashing checks, drafts and money orders for the employees of
9 such employer, the fees and charges for cashing such checks, drafts or
10 money orders shall not be subject to the limitations of subdivision one
11 of section three hundred seventy-two of this article if such fees and
12 charges are paid by such employer.
13 3. A licensee may make a written application to the superintendent for
14 leave to change his or her place of business, or in the case of a
15 [mobile unit] limited station, the area in which such unit is authorized
16 to be operated, stating the reasons for such proposed change and in the
17 case where the applicant currently holds a primary license to operate a
18 business established under this article, the superintendent shall
19 streamline and reduce the information required from such applicant. Such
20 application may be approved for relocation from a site within three-
21 tenths of a mile of another licensee to another site within three-tenths
22 of a mile of such other licensee provided that such new site is farther
23 from such existing licensee than the site from which permission to relo-
24 cate is sought. Only in situations in which a licensee seeks to change
25 its place of business due to extraordinary circumstances, as may be
26 determined by the superintendent pursuant to regulations, may the super-
27 intendent, in his or her discretion, determine that an application may
28 be approved for relocation from a site within three-tenths of a mile of
29 another licensee to a new site which is closer to such existing licensee
30 than the site from which permission to relocate is sought. Notwithstand-
31 ing any other provision of this subdivision, a licensee may relocate
32 from any location to a location that is within three-tenths of a mile
33 from another licensee with the written consent of the other licensee. If
34 the superintendent approves such application he or she shall issue a new
35 license in duplicate in accordance with the provisions of section three
36 hundred sixty-nine of this article, stating the new location of such
37 licensee or, in the case of a [mobile unit] limited station, the new
38 area in which such [mobile unit] limited station may be operated.
39 § 7. Section 370-a of the banking law, as added by chapter 142 of the
40 laws of 1992, subdivision 1 as amended by section 39 of part O of chap-
41 ter 59 of the laws of 2006, is amended to read as follows:
42 § 370-a. Changes in control. 1. It shall be unlawful except with the
43 prior approval of the superintendent for any action to be taken which
44 results in a change of control of the business of a licensee. Prior to
45 any change of control, the person desirous of acquiring control of the
46 business of a licensee, if such person is not already a licensee under
47 this article, shall make written application to the superintendent and
48 pay an investigation fee as prescribed pursuant to section eighteen-a of
49 this chapter to the superintendent. The application shall contain such
50 information as the superintendent, by rule or regulation, may prescribe
51 as necessary or appropriate, and in the case where the acquiring person
52 currently holds a primary license to operate a business established
53 under this article, and in the case of a limited station license, the
54 superintendent shall streamline and reduce the information required from
55 such applicant, for the purpose of making the determination required by
56 subdivision two of this section.
S. 5423 7
1 2. The superintendent shall approve or disapprove the proposed change
2 of control of a licensee in accordance with the provisions of subdivi-
3 sions one and six of section three hundred sixty-nine of this article.
4 The superintendent shall approve or disapprove the application in writ-
5 ing within ninety days after the date the application is filed with the
6 superintendent.
7 3. For a period of six months from the date of qualification thereof
8 and for such additional period of time as the superintendent may
9 prescribe, in writing, the provisions of subdivisions one and two of
10 this section shall not apply to a transfer of control by operation of
11 law to the legal representative, as hereinafter defined, of one who has
12 control of a licensee. Thereafter, such legal representative shall
13 comply with the provisions of subdivisions one and two of this section.
14 The provisions of subdivisions one and two of this section shall be
15 applicable to an application made under such section by a legal repre-
16 sentative.
17 The term "legal representative", for the purposes of this section,
18 shall mean one duly appointed by a court of competent jurisdiction to
19 act as executor, administrator, trustee, committee, conservator or
20 receiver, including one who succeeds a legal representative and one
21 acting in an ancillary capacity thereto in accordance with the
22 provisions of such court appointment.
23 4. As used in this section: (a) the term "person" includes an individ-
24 ual, partnership, corporation, association, limited liability company,
25 or any other organization, and (b) the term "control" means the
26 possession, directly or indirectly, of the power to direct or cause the
27 direction of the management and policies of a licensee, whether through
28 the ownership of voting stock of such licensee, the ownership of voting
29 stock of any person which possesses such power or otherwise. Control
30 shall be presumed to exist if any person, directly or indirectly, owns,
31 controls or holds with power to vote ten per centum or more of the
32 voting stock of any licensee or of any person which owns, controls or
33 holds with power to vote ten per centum or more of the voting stock of
34 any licensee, but no person shall be deemed to control a licensee solely
35 by reason of being an officer or director of such licensee or person.
36 The superintendent may in his or her discretion, upon the application of
37 a licensee or any person who, directly or indirectly, owns, controls or
38 holds with power to vote or seeks to own, control or hold with power to
39 vote any voting stock of such licensee, determine whether or not the
40 ownership, control or holding of such voting stock constitutes or would
41 constitute control of such licensee for purposes of this section.
42 § 8. Section 371 of the banking law, as added by chapter 151 of the
43 laws of 1945, is amended to read as follows:
44 § 371. Regulations. The superintendent is hereby authorized and
45 empowered to make such rules and regulations, and such specific rulings,
46 demands, and findings as he or she may deem necessary for the proper
47 conduct of the business authorized and licensed under and for the
48 enforcement of this article, in addition hereto and not inconsistent
49 herewith.
50 § 9. Section 372 of the banking law, as amended by chapter 151 of the
51 laws of 1945, the section heading and subdivision 1 as amended and
52 subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions
53 2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter
54 263 of the laws of 1983, and subdivision 6 as added by chapter 485 of
55 the laws of 1947, is amended to read as follows:
S. 5423 8
1 § 372. Fees and charges; posting schedule; records and reports. 1. The
2 superintendent shall, by regulation, establish the maximum fees which
3 may be charged by licensees for cashing a check, draft, or money order.
4 No licensee shall charge or collect any sum for cashing a check, draft,
5 or money order in excess of that established by the superintendent's
6 regulations; provided, however, that no maximum fee shall apply to the
7 charging of fees by licensees for the cashing of checks, drafts or money
8 orders for payees of such checks, drafts or money orders that are other
9 than natural persons. The licensee shall pay to every customer tendering
10 any check, draft or money order to be cashed, the entire face amount of
11 such instrument, less any charges permitted by the superintendent, in
12 such form and by such means as agreed upon by the customer on the same
13 date upon which such instrument is presented.
14 2. The schedule of fees and charges permitted under this section shall
15 be conspicuously and continuously posted in every location and [mobil
16 unit] limited station licensed under this article.
17 3. In the case of an internet, digital or other electronic advertise-
18 ment or solicitation, a licensee shall be deemed to have fulfilled the
19 disclosure requirements required by law by displaying the disclosures on
20 its website, so long as the advertisement or solicitation includes a
21 link directly to such website.
22 4. No change in fees shall become effective earlier than thirty days
23 after the superintendent shall notify the majority leader of the senate,
24 the speaker of the assembly, and the chairmen of both the senate and
25 assembly committees on banks of his or her intention to change fees.
26 [4.] 5. The fees in effect immediately prior to the effective date of
27 this subdivision shall continue to be the maximum allowable fees until
28 revised by the superintendent's regulations.
29 [5.] 6. Each licensee shall keep and use in its business such books,
30 accounts, and records as the superintendent may require to carry into
31 effect the provisions of this article and the rules and regulations made
32 by the superintendent hereunder. Every licensee shall preserve such
33 books, accounts and records for at least two years.
34 [6.] 7. Before a licensee shall deposit with any banking organization,
35 or with any organization engaged in the business of banking, a check,
36 draft or money order cashed by such licensee, the same must be endorsed
37 with the actual name under which such licensee is doing business and
38 must have the words "licensed casher of checks" legibly written or
39 stamped immediately after or below such name.
40 [7.] 8. Every licensee shall submit to the superintendent, or such
41 person as the superintendent may designate, such suspicious activity
42 reports or currency transaction reports as are required to be submitted
43 to federal authorities pursuant to provisions of the Bank Secrecy Act
44 (subchapter 11, chapter 53, title 31, United States code) and regu-
45 lations and administrative orders related thereto, as amended, within
46 the periods of time as required by such act and regulations. A licensee
47 may submit a copy of any such report to the superintendent, or such
48 person as the superintendent may designate, that is filed with such
49 federal authorities. The superintendent may adopt such regulations or
50 require such additional reports as he or she deems necessary to insure
51 the effective enforcement of this subdivision.
52 § 10. Section 372-a of the banking law, as added by chapter 432 of the
53 laws of 2004, is amended to read as follows:
54 § 372-a. Superintendent authorized to examine. 1. For the purpose of
55 discovering violations of this article or securing information lawfully
56 required in this section, the superintendent may at any time, and as
S. 5423 9
1 often as may be determined, either personally or by a person duly desig-
2 nated by the superintendent, investigate the [cashing of checks by
3 licensees] business practices of a licensee rendering financial services
4 authorized by this article and examine the books, accounts, records, and
5 files used therein of every licensee.
6 2. For the purpose established in subdivision one of this section, the
7 superintendent and his or her duly designated representatives shall have
8 free access to the offices and places of business, books, accounts,
9 papers, records, files, safes and vaults of all such licensees. The
10 superintendent shall have authority to require the attendance of and to
11 examine under oath all persons whose testimony may be required relative
12 to such cashing of checks or such business.
13 § 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
14 sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2
15 as amended by chapter 132 of the laws of 1969, are amended to read as
16 follows:
17 1. No licensee shall engage in the business of making loans of money,
18 credit, goods or things or discounting of notes, bills of exchange,
19 checks, or other evidences of debt pursuant to the provisions of article
20 nine of this chapter, nor shall a loan business or the negotiation of
21 loans or the discounting of notes, bills of exchange, checks or other
22 evidences of debt be conducted on the same premises where the licensee
23 is conducting business pursuant to the provisions of this article.
24 Except as otherwise provided by regulation of the superintendent, all
25 checks, drafts and money orders shall be deposited in the licensee's
26 bank account not later than the first business day following the day on
27 which they were cashed. No licensee shall at any time cash or advance
28 any moneys on a post-dated check or draft or engage in the business of
29 transmitting money or receiving money for transmission; provided, howev-
30 er, that a licensee may cash a check [payable on the first banking busi-
31 ness day following the date of cashing (a) if such check is drawn by the
32 United States, the state of New York, or any political subdivision of
33 the state of New York, or by any department, bureau, agency, authority,
34 instrumentality or officer, acting in his official capacity, of the
35 United States or of the state of New York or of any political subdivi-
36 sion of the state of New York, or (b) if such check is a payroll check
37 drawn by an employer to the order of its employee in payment for
38 services performed by such employee] without regard to the date
39 imprinted on the check as long as the check is deposited in the
40 licensee's bank account not later than the first business day following
41 the day on which it was cashed. No licensee shall cash any check, draft
42 or money order if the face amount for which it is drawn is in excess of
43 [fifteen] twenty thousand dollars; provided, however, that this
44 restriction shall not apply to the cashing of checks, drafts or money
45 orders drawn by the United States, any state thereof or any political
46 subdivision of any such state, or by any department, bureau, agency,
47 authority, instrumentality or officer, acting in his official capacity,
48 of the United States, any state thereof or any political subdivision of
49 any such state, or any [banking] financial institution, or to any check
50 or draft drawn by or on account of any insurance company, attorney for
51 the settlement of claims, or to any check which has been certified or
52 guaranteed by the banking institution on which it has been drawn, or if
53 such check is drawn on a bona fide workers' compensation fund issued by
54 a third-party payor, or if such check is drawn by an employer from a
55 pension or profit sharing fund, or if such check is drawn by a union
56 from a pension or benefit fund or if such check is drawn by a union;
S. 5423 10
1 provided further, however, that any such restriction upon the maximum
2 face amount that may be cashed by a licensee shall not apply to the
3 cashing of checks, drafts or money orders by licensees for payees of
4 such checks, drafts or money orders that are other than natural persons.
5 For purposes of this subdivision, "[banking] financial institution"
6 means any bank, trust company, savings bank, savings and loan associ-
7 ation [or], credit union or other financial institution which is incor-
8 porated, chartered [or], organized or licensed under the laws of this
9 state or any other state or the United States.
10 2. The superintendent may suspend or revoke any license or licenses
11 issued pursuant to this article if, after notice and a hearing, he or
12 she shall find that the licensee (a) has committed any fraud, engaged in
13 any dishonest activities or made any misrepresentation; or (b) has
14 violated any provisions of the banking law or any regulation issued
15 pursuant thereto, or has violated any other law in the course of its or
16 his dealings as a licensed casher of checks; or (c) has made a false
17 statement in the application for such license or failed to give a true
18 reply to a question in such application; or (d) has demonstrated his or
19 its incompetency or untrustworthiness to act as a licensed casher of
20 checks; or (e) is not doing sufficient business pursuant to this article
21 to justify the continuance of the license, or if he or she shall find
22 that any ground or grounds exist which would require or warrant the
23 refusal of an application for the issuance of the license if such an
24 application were then before him or her. Such a hearing shall be held
25 in the manner and upon such notice as may be prescribed by the super-
26 intendent. Pending an investigation or a hearing for the suspension or
27 revocation of any license or licenses issued pursuant to this article,
28 the superintendent may temporarily suspend such license or licenses for
29 a period not to exceed ninety days, provided the superintendent shall
30 find that such a temporary suspension is in the public interest.
31 § 12. Subdivision 3 of section 37 of the banking law, as amended by
32 chapter 360 of the laws of 1984, is amended to read as follows:
33 3. In addition to any reports expressly required by this chapter to be
34 made, the superintendent may require any banking organization, licensed
35 lender, licensed casher of checks, licensed mortgage banker, foreign
36 banking corporation licensed by the superintendent to do business in
37 this state, bank holding company and any non-banking subsidiary thereof,
38 corporate affiliate of a corporate banking organization within the mean-
39 ing of subdivision six of section thirty-six of this article and any
40 non-banking subsidiary of a corporation which is an affiliate of a
41 corporate banking organization within the meaning of subdivision six-a
42 of section thirty-six of this article to make special reports to him or
43 her at such times as he or she may prescribe.
44 § 13. This act shall take effect on the one hundred eightieth day
45 after it shall have become a law; provided, however, that:
46 (a) the amendments to section 373 of the banking law made by section
47 eleven of this act shall expire and be deemed repealed June 30, 2024;
48 and
49 (b) any contract, instrument, argument or other written obligation
50 entered into by a financial service provider authorized under section
51 373 of the banking law prior to June 30, 2024 shall be deemed valid and
52 enforceable after such date.
53 Effective immediately the addition, amendment and/or repeal of any
54 rule or regulation necessary for the implementation of this act on its
55 effective date are authorized to be made and completed on or before such
56 effective date.
