2023 New York Laws › BNK - Banking › Article 14-A - Student Loan Servicers › 715 - Changes in Control.

§  715.  Changes  in  control. 1. It shall be unlawful except with the
  prior approval of the superintendent for any action to  be  taken  which
  results  in  a  change  of  control  of  the  business of a student loan
  servicer required to be licensed under section seven hundred  eleven  of
  this  article.  Prior  to  any change of control, the person desirous of
  acquiring control of the business of a student loan servicer shall  make
  written  application  to the superintendent and pay an investigation fee
  as prescribed pursuant to section eighteen-a  of  this  chapter  to  the
  superintendent.  The  application  shall contain such information as the
  superintendent, by rule or regulation, may  prescribe  as  necessary  or
  appropriate  for  the  purpose  of  making the determination required by
  subdivision two of this section. This information shall include but  not
  be  limited to the information and other material required for a student
  loan servicer by subdivision one of section seven hundred twelve of this
  article.
2. The superintendent shall approve or disapprove the proposed  change
  of  control  of  a  student  loan servicer required to be licensed under
  section seven hundred eleven of this  article  in  accordance  with  the
  provisions of section seven hundred thirteen of this article.
3.  For  a period of six months from the date of qualification thereof
  and for such  additional  period  of  time  as  the  superintendent  may
  prescribe,  in  writing,  the  provisions of subdivisions one and two of
  this section shall not apply to a transfer of control  by  operation  of
  law  to the legal representative, as hereinafter defined, of one who has
  control  of  a   student   loan   servicer.   Thereafter,   such   legal
  representative  shall comply with the provisions of subdivisions one and
  two of this section.  The provisions of subdivisions one and two of this
  section shall be applicable to an application made under such section by
  a  legal  representative.  The  term  "legal  representative",  for  the
  purposes  of  this subdivision, shall mean one duly appointed by a court
  of competent jurisdiction to act as  executor,  administrator,  trustee,
  committee,  conservator  or receiver, including one who succeeds a legal
  representative and one  acting  in  an  ancillary  capacity  thereto  in
  accordance with the provisions of such court appointment.
4.  As  used  in this section the term "control" means the possession,
  directly or indirectly, of the power to direct or cause the direction of
  the management and policies of a student loan servicer, whether  through
  the  ownership  of  voting  stock  of  such  student  loan servicer, the
  ownership of voting stock of any person which possesses  such  power  or
  otherwise. Control shall be presumed to exist if any person, directly or
  indirectly, owns, controls or holds with power to vote ten per centum or
  more  of  the voting stock of any student loan servicer or of any person
  which owns, controls or holds with power to vote ten per centum or  more
  of the voting stock of any student loan servicer, but no person shall be
  deemed  to  control a student loan servicer solely by reason of being an
  officer or director of such student loan  servicer.  The  superintendent
  may  in  his  or  her discretion, upon the application of a student loan
  servicer or any person who, directly or indirectly,  owns,  controls  or
  holds  with power to vote or seeks to own, control or hold with power to
  vote any voting stock of such student loan servicer,  determine  whether
  or   not  the  ownership,  control  or  holding  of  such  voting  stock
  constitutes or would constitute control of such  student  loan  servicer
  for purposes of this section.