N.Y. BNK Law § 44 — New York Code / Act BNK / Article 2 / Section 44
Violations; penalties
Status: in_force

§ 44. Violations; penalties. 1.  * (a) Without limiting any power\ngranted to the superintendent under any other provision of this chapter,\nthe superintendent may, in a proceeding after notice and a hearing,\nrequire any safe deposit company, licensed lender, licensed casher of\nchecks, licensed sales finance company, licensed insurance premium\nfinance agency, licensed transmitter of money, licensed mortgage banker,\nlicensed student loan servicer, registered mortgage broker, licensed\nmortgage loan originator, registered mortgage loan servicer or licensed\nbudget planner to pay to the people of this state a penalty for any\nviolation of this chapter, any regulation promulgated thereunder, any\nfinal or temporary order issued pursuant to section thirty-nine of this\narticle, any condition imposed in writing by the superintendent in\nconnection with the grant of any application or request, or any written\nagreement entered into with the superintendent.\n  * NB Effective until certain provisions are met (see Ch. 58 of 2025,\nPart Y, § 13)\n  * (a) Without limiting any power granted to the superintendent under\nany other provision of this chapter, the superintendent may, in a\nproceeding after notice and a hearing, require any safe deposit company,\nlicensed lender, licensed buy-now-pay-later lender, licensed casher of\nchecks, licensed sales finance company, licensed insurance premium\nfinance agency, licensed transmitter of money, licensed mortgage banker,\nlicensed student loan servicer, registered mortgage broker, licensed\nmortgage loan originator, registered mortgage loan servicer or licensed\nbudget planner to pay to the people of this state a penalty for any\nviolation of this chapter, any regulation promulgated thereunder, any\nfinal or temporary order issued pursuant to section thirty-nine of this\narticle, any condition imposed in writing by the superintendent in\nconnection with the grant of any application or request, or any written\nagreement entered into with the superintendent.\n  * NB Effective upon the one hundred eightieth day after the\npromulgation of rules and/or regulations by the department of financial\nservices to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §\n13)\n  (b) The penalty for each violation prescribed in paragraph (a) of this\nsubdivision shall not exceed two thousand five hundred dollars for each\nday during which such violation continues.\n  (c) Notwithstanding paragraph (b) of this subdivision, if the\nsuperintendent determines (i) that any such licensee, registrant or safe\ndeposit company has committed a violation as described in paragraph (a)\nof this subdivision, or has recklessly engaged in any unsafe and unsound\npractice and (ii) that such violation or practice is part of a pattern\nof misconduct, results or is likely to result in more than minimal loss\nto such licensee, registrant or safe deposit company, or results in\npecuniary gain or other benefit to such licensee, registrant or safe\ndeposit company, then the penalty shall not exceed fifteen thousand\ndollars for each day during which such violation or practice continues.\n  (d) Notwithstanding paragraphs (b) or (c) of this subdivision, if the\nsuperintendent determines (i) that any such licensee, registrant or safe\ndeposit company has knowingly and willfully committed any violation as\ndescribed in paragraph (a) of this subdivision, or has knowingly and\nwillfully engaged in any unsafe and unsound practice, or (ii) that any\nlicensee, registrant or safe deposit company has knowingly committed any\nviolation described in paragraph (a) of this subdivision which\nsubstantially undermines public confidence in any such licensee,\nregistrant or safe deposit company or in such licensees, registrants or\nsafe deposit companies generally, and, in either case, (iii) that such\nlicensee, registrant or safe deposit company has knowingly or recklessly\nincurred so substantial a loss as a result of such violation or practice\nas to threaten the safety and soundness of such licensee, registrant or\nsafe deposit company, then the penalty shall not exceed seventy-five\nthousand dollars for each day during which such violation continues.\n  (e) The superintendent, in determining the amount of any penalty\nassessed pursuant to this subdivision, shall take into consideration the\nnet worth and annual business volume of such licensees, registrants or\nsafe deposit companies.\n  2. (a) Without limiting any power granted to the superintendent under\nany other provision of this chapter, the superintendent may, in a\nproceeding after notice and hearing, require any banking organization,\nbank holding company out-of-state state bank that maintains a branch or\nbranches or representative or other offices in this state, or foreign\nbanking corporation licensed by the superintendent to maintain a branch,\nagency or representative office in this state to pay to the people of\nthis state a penalty for any violation of this chapter, any regulation\npromulgated thereunder, any final or temporary order issued pursuant to\nsection thirty-nine of this article, any condition imposed in writing by\nthe superintendent in connection with the grant of any application or\nrequest, or any written agreement entered into with the superintendent.\nFor purposes of this section, any reference to a "banking organization"\nshall be deemed to exclude a safe deposit company and any reference to a\n"foreign bank licensee" shall be deemed to include an out-of-state state\nbank that maintains a branch or branches or representative or other\noffices in this state and a foreign banking corporation licensed to\nmaintain a branch, agency or representative office in this state.\n  (b) The penalty for each violation prescribed in paragraph (a) of this\nsubdivision shall not exceed five thousand dollars for each day during\nwhich such violation continues.\n  3. Notwithstanding paragraph (b) of subdivision two of this section,\nif the superintendent determines: (a) that any banking organization,\nbank holding company, or foreign bank licensee has committed any\nviolation described in subdivision two of this section or has recklessly\nengaged in any unsafe and unsound practice, and\n  (b) that such violation or practice is part of a pattern of\nmisconduct, results or is likely to result in more than minimal loss to\nthe banking organization, bank holding company, or foreign bank\nlicensee, or results in pecuniary gain or other benefit to the banking\norganization, bank holding company, or foreign bank licensee, then the\npenalty shall not exceed twenty-five thousand dollars for each day\nduring which such violation or practice continues.\n  4. Notwithstanding paragraph (b) of subdivision two and subdivision\nthree of this section, if the superintendent determines: (a) (i) that\nany banking organization, bank holding company, or foreign bank licensee\nhas knowingly and willfully committed any violation described in\nsubdivision two of this section or has knowingly and willfully engaged\nin any unsafe and unsound practice, or (ii) that any banking\norganization, bank holding company, or foreign bank licensee has\nknowingly committed any violation described in subdivision two of this\nsection which substantially undermines public confidence in any such\nbanking organization, bank holding company, or foreign bank licensee or\nin banking organizations, bank holding companies, or foreign bank\nlicensees generally, and, in either case, (b) that the banking\norganization, bank holding company, or foreign bank licensee has\nknowingly or recklessly incurred so substantial a loss as a result of\nsuch violation or practice as to threaten the safety and soundness of\nsuch banking organization, bank holding company, or foreign bank\nlicensee, then the penalty shall not exceed the lesser of (i) two\nhundred fifty thousand dollars or (ii) one percent of the total assets\nof such banking organization, or one percent of the total assets of the\nbanking subsidiaries, as such term is defined pursuant to section one\nhundred forty-one of this chapter, of such bank holding company, or one\npercent of the total assets in this state of such foreign bank licensee,\nas applicable, for each day during which such violation or practice\ncontinues.\n  5. In assessing any penalty against any entity listed in paragraph (a)\nof subdivision one or paragraph (a) of subdivision two of this section,\nthe superintendent shall take into account, without limitation, factors\nincluding: (a) the extent, if any, to which senior management or board\ndirectors or trustees participated therein, (b) the extent to which the\nentity has cooperated with the superintendent in the investigation of\nsuch conduct, (c) any sanction imposed by any other regulatory agency,\n(d) the financial resources and good faith of the entity, (e) the\ngravity of the violation, (f) any history of prior violations, and (g)\nsuch other matters as justice and the public interest may require.\n  6. Whenever the superintendent shall require the payment of such\npenalty by any such entity, he shall forthwith execute in duplicate a\nwritten order to that effect. On the date such order is executed, the\nsuperintendent shall file one copy of such order in the office of the\ndepartment and serve the second copy upon such entity either personally\nor by registered or certified mail, return receipt requested, directed\nto the entity's principal place of business or, in the case of a\nlicensee or registrant, its last known address of record. Such order may\nbe reviewed in the manner provided by article seventy-eight of the civil\npractice law and rules. Such special proceeding for review as authorized\nby this section must be commenced within thirty days from the service of\nsuch order.\n  7. The superintendent may compromise, modify, or remit any penalty\nwhich he or she may assess or had already assessed under this section.\n  8. The superintendent may prescribe regulations to carry out the\nprovisions and purposes of this section.\n  9. As used in this section, "bank holding company" shall have the same\nmeaning as that term is defined in subdivision six of section\nthirty-nine of this article.\n