Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.
STATE OF NEW YORK
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4894
2021-2022 Regular Sessions
IN SENATE
February 18, 2021
___________
Introduced by Sen. SANDERS -- 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 mail-loan checks
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 2 and 3 of section 9-t of the banking law, as
2 added by chapter 309 of the laws of 2002, are amended and a new subdivi-
3 sion 4 is added to read as follows:
4 2. Any lending institution which issues mail-loan checks shall:
5 (a) include on the face of each check issued to a non-customer a writ-
6 ten statement, in legible type reading "ONE FORM OF VALID PHOTOGRAPHIC
7 ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
8 ing or accepting a mail-loan check for deposit may require more than one
9 form of identification;
10 (b) make no reference on the outside of the envelope containing a
11 mail-loan check that indicates that a check is enclosed within such
12 envelope;
13 (c) provide that all mail-loan checks shall be non-transferable; and
14 (d) include the transaction fee and interest rate and an expiration
15 date of not more than six months on the mail-loan check, as well as any
16 additional information that the superintendent may require.
17 3. No lending institution shall issue a mail-loan check, except in
18 response to a request or application therefor.
19 4. Failure to destroy or return a mail-loan check shall not constitute
20 acceptance of the check.
21 5. Any lending institution which mails a mail-loan check in violation
22 of the provisions of this section shall be liable for a civil penalty
23 not to exceed five hundred dollars for each such violation.
24 § 2. This act shall take effect on the one hundred twentieth day after
25 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00135-01-1
