2023 New York Laws › BNK - Banking › Article 12-C - Budget Planners › 580 - Application for License.

§  580. Application for license. 1. Application for a license required
under this article shall be in writing, under  oath,  and  in  the  form
prescribed by the superintendent, and shall contain the following:
(a)  The  exact  name and the address of the applicant and its date of
incorporation; and
(b) The  name  and  complete  business  and  residential  address  and
occupation of each officer and director of the applicant; and
(c)  The complete address where the business of the applicant is to be
conducted, showing the street  and  number,  if  any,  post  office  and
building  and  room number, if any, the office building and room number,
if any, and the municipality and county; and
(d) If the  applicant  has  one  or  more  branches,  subsidiaries  or
affiliates  operating  in  this state, the complete address of each such
place of business; and
(e)  Such  other  pertinent  information  as  the  superintendent  may
require,  including  but  not  limited  to  evidence indicating that the
applicant, or officer, director, or manager of  such  applicant  has  at
least  one  year  of  experience in financial services or related fields
applicable to budget planning.
2. Where an applicant operates several places  of  business,  separate
applications for license shall be made for each such place of business.
3.  Upon original application for a license or licenses to operate one
or more places of business, the applicant shall pay an investigation fee
in an aggregate amount as prescribed pursuant to section  eighteen-a  of
this  chapter. No additional investigation fee shall be required for any
subsequent  application  for  a  license  unless  such  application   is
subsequent  to  a  denial of a license or to a revocation, suspension or
surrender of a license.
4. As a condition for the issuance and retention of a  budget  planner
license,  and  subject  to  such regulations as the superintendent shall
prescribe, applicants for a license shall file with the superintendent a
surety bond in form satisfactory  to  the  superintendent  issued  by  a
bonding  company  or insurance company authorized to do business in this
state. Except as provided hereunder, the principal amount of  such  bond
shall  be  two  hundred  fifty  thousand dollars. The superintendent may
require a larger bond if he or  she  determines,  in  his  or  her  sole
discretion,  that  a  licensee  has  engaged  in  a  pattern  of conduct
resulting in bona fide consumer complaints of misconduct and  that  such
increased  bond  is  necessary  for  the protection of consumers; or the
superintendent may increase or decrease  the  amount  of  such  bond  or
deposit  based  upon  the applicant's or licensee's financial condition,
business plan, and the actual or estimated aggregate amount of  payments
and  fees  paid  by  debtors  to such licensee. In lieu of such bond, an
applicant may keep on deposit with such banks,  savings  banks,  savings
and loan associations, trust companies, private bankers, national banks,
federal  savings  banks, or federal savings and loan associations in the
state as such licensee may designate and the superintendent may approve,
interest-bearing bonds, notes, debentures, or other obligations  of  the
United States or any agency or instrumentality thereof, or guaranteed by
the  United  States,  or  of  this  state,  or  of a city, county, town,
village, school district, or instrumentality of this state or guaranteed
by this state, or dollar deposits, or such other assets  or  letters  of
credit  as  the  superintendent  shall by rule or regulation permit. The
proceeds of each bond or deposit shall constitute a  trust  fund  to  be
used  exclusively  to  reimburse  payments by debtors that have not been
properly distributed to creditors or to reimburse fees determined by the
superintendent to be improperly charged or collected and, in  the  event
of  the  insolvency, liquidation, or bankruptcy of such licensee, to pay

outstanding department  of  financial  services  examination  costs  and
assessments.  Within  ninety  days  after  the  effective  date  of this
subdivision, each licensee shall comply with the  requirements  of  this
subdivision.