NY Educ L § 630 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 13-B - Student Lending Accountability, Transparency and Enforcement Act 630 - Penalties.

§  630. Penalties. 1. If after providing notice and an opportunity for   a hearing the  department  determines  that  a  covered  institution  or   lending  institution  has  violated  any  terms  or  provisions  of this   article, then the covered institution  or  lending  institution  may  be   liable for a civil penalty. Regardless of the department's determination   that a covered institution or lending institution is liable for a single   violation  or  a  series  of  violations under this article, the maximum   penalty shall not  exceed  fifty  thousand  dollars.  In  taking  action   against  a  covered  institution  or  lending institution, consideration   shall be given to the nature and severity of violations of this article.2. If after providing notice and an  opportunity  for  a  hearing  the   department  determines  that a covered institution employee has violated   any terms or provisions of this article, then  the  covered  institution   employee   may  be  liable  for  a  civil  penalty.  Regardless  of  the   department's determination that a covered institution employee is liable   for a single violation or a series of violations under this article, the   maximum penalty shall not exceed seven thousand five hundred dollars. In   taking action against  a  covered  institution  employee,  consideration   shall be given to the nature and severity of violations of this article.3.  If  after  providing  notice  and an opportunity for a hearing the   department determines that a lending institution has violated a term  or   provision  of this article, such lending institution shall not be placed   or remain on any covered  institution's  preferred  lender  list  unless   notice  of  such violation is provided to all potential borrowers of the   covered institution.4. Nothing in this section shall prohibit the department from reaching   a settlement agreement with a covered institution,  covered  institution   employee  or  lending institution in order to effectuate the purposes of   this section. Provided, however, if such settlement agreement is reached   with a covered institution or lending institution, the department  shall   provide  notice  of such action to all potential borrowers in a form and   manner prescribed by the department.5. The department shall deposit the funds generated from this  section   into   the   student  lending  education  account,  created  by  section   ninety-seven-hhhh of the state finance law. Such funds shall be given to   covered institutions upon application to the department for the purposes   of:a. Educating borrowers and potential borrowers on the educational loan   process, including, but  not  limited  to,  available  educational  loan   options,  understanding rates and terms of student loans, managing costs   and  credit  responsibilities,   student   loan   repayment   and   loan   consolidation; andb.  Reimbursing borrowers from inflated educational loan prices caused   by revenue sharing agreements between such  covered  institution  and  a   lending institution.