2023 New York Laws › BNK - Banking › Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers › 44 - Violations; Penalties.

§ 44. Violations; penalties. 1. (a) Without limiting any power granted
to  the  superintendent  under  any other provision of this chapter, the
superintendent may, in a proceeding after notice and a hearing,  require
any  safe  deposit  company, licensed lender, licensed casher of checks,
licensed sales  finance  company,  licensed  insurance  premium  finance
agency,   licensed  transmitter  of  money,  licensed  mortgage  banker,
licensed student loan servicer,  registered  mortgage  broker,  licensed
mortgage  loan originator, registered mortgage loan servicer or licensed
budget planner to pay to the people of this  state  a  penalty  for  any
violation  of  this  chapter, any regulation promulgated thereunder, any
final or temporary order issued pursuant to section thirty-nine of  this
article,  any  condition  imposed  in  writing  by the superintendent in
connection with the grant of any application or request, or any  written
agreement entered into with the superintendent.
(b) The penalty for each violation prescribed in paragraph (a) of this
subdivision  shall not exceed two thousand five hundred dollars for each
day during which such violation continues.
(c)  Notwithstanding  paragraph  (b)  of  this  subdivision,  if   the
superintendent determines (i) that any such licensee, registrant or safe
deposit  company has committed a violation as described in paragraph (a)
of this subdivision, or has recklessly engaged in any unsafe and unsound
practice and (ii) that such violation or practice is part of  a  pattern
of  misconduct, results or is likely to result in more than minimal loss
to such licensee, registrant or safe  deposit  company,  or  results  in
pecuniary  gain  or  other  benefit to such licensee, registrant or safe
deposit company, then the penalty  shall  not  exceed  fifteen  thousand
dollars for each day during which such violation or practice continues.
(d)  Notwithstanding paragraphs (b) or (c) of this subdivision, if the
superintendent determines (i) that any such licensee, registrant or safe
deposit company has knowingly and willfully committed any  violation  as
described  in  paragraph  (a)  of this subdivision, or has knowingly and
willfully engaged in any unsafe and unsound practice, or (ii)  that  any
licensee, registrant or safe deposit company has knowingly committed any
violation   described   in  paragraph  (a)  of  this  subdivision  which
substantially  undermines  public  confidence  in  any  such   licensee,
registrant  or safe deposit company or in such licensees, registrants or
safe deposit companies generally, and, in either case, (iii)  that  such
licensee, registrant or safe deposit company has knowingly or recklessly
incurred so substantial a loss as a result of such violation or practice
as  to threaten the safety and soundness of such licensee, registrant or
safe deposit company, then the penalty  shall  not  exceed  seventy-five
thousand dollars for each day during which such violation continues.
(e)  The  superintendent,  in  determining  the  amount of any penalty
assessed pursuant to this subdivision, shall take into consideration the
net worth and annual business volume of such licensees,  registrants  or
safe deposit companies.
2.  (a) Without limiting any power granted to the superintendent under
any other provision of  this  chapter,  the  superintendent  may,  in  a
proceeding  after  notice and hearing, require any banking organization,
bank holding company out-of-state state bank that maintains a branch  or
branches  or  representative  or other offices in this state, or foreign
banking corporation licensed by the superintendent to maintain a branch,
agency or representative office in this state to pay to  the  people  of
this  state  a penalty for any violation of this chapter, any regulation
promulgated thereunder, any final or temporary order issued pursuant  to
section thirty-nine of this article, any condition imposed in writing by
the  superintendent  in  connection with the grant of any application or
request, or any written agreement entered into with the  superintendent.

For  purposes of this section, any reference to a "banking organization"
shall be deemed to exclude a safe deposit company and any reference to a
"foreign bank licensee" shall be deemed to include an out-of-state state
bank  that  maintains  a  branch  or branches or representative or other
offices in this state and a  foreign  banking  corporation  licensed  to
maintain a branch, agency or representative office in this state.
(b) The penalty for each violation prescribed in paragraph (a) of this
subdivision  shall  not exceed five thousand dollars for each day during
which such violation continues.
3. Notwithstanding paragraph (b) of subdivision two of  this  section,
if  the  superintendent  determines:  (a) that any banking organization,
bank holding  company,  or  foreign  bank  licensee  has  committed  any
violation described in subdivision two of this section or has recklessly
engaged in any unsafe and unsound practice, and
(b)  that  such  violation  or  practice  is  part  of  a  pattern  of
misconduct, results or is likely to result in more than minimal loss  to
the   banking  organization,  bank  holding  company,  or  foreign  bank
licensee, or results in pecuniary gain or other benefit to  the  banking
organization,  bank  holding company, or foreign bank licensee, then the
penalty shall not exceed  twenty-five  thousand  dollars  for  each  day
during which such violation or practice continues.
4.  Notwithstanding  paragraph  (b) of subdivision two and subdivision
three of this section, if the superintendent determines:  (a)  (i)  that
any banking organization, bank holding company, or foreign bank licensee
has  knowingly  and  willfully  committed  any  violation  described  in
subdivision two of this section or has knowingly and  willfully  engaged
in   any   unsafe  and  unsound  practice,  or  (ii)  that  any  banking
organization,  bank  holding  company,  or  foreign  bank  licensee  has
knowingly  committed  any violation described in subdivision two of this
section which substantially undermines public  confidence  in  any  such
banking  organization, bank holding company, or foreign bank licensee or
in banking  organizations,  bank  holding  companies,  or  foreign  bank
licensees   generally,  and,  in  either  case,  (b)  that  the  banking
organization,  bank  holding  company,  or  foreign  bank  licensee  has
knowingly  or  recklessly  incurred so substantial a loss as a result of
such violation or practice as to threaten the safety  and  soundness  of
such  banking  organization,  bank  holding  company,  or  foreign  bank
licensee, then the penalty shall  not  exceed  the  lesser  of  (i)  two
hundred  fifty  thousand dollars or (ii) one percent of the total assets
of such banking organization, or one percent of the total assets of  the
banking  subsidiaries,  as  such term is defined pursuant to section one
hundred forty-one of this chapter, of such bank holding company, or  one
percent of the total assets in this state of such foreign bank licensee,
as  applicable,  for  each  day  during which such violation or practice
continues.
5. In assessing any penalty against any entity listed in paragraph (a)
of subdivision one or paragraph (a) of subdivision two of this  section,
the  superintendent shall take into account, without limitation, factors
including: (a) the extent, if any, to which senior management  or  board
directors  or trustees participated therein, (b) the extent to which the
entity has cooperated with the superintendent in  the  investigation  of
such  conduct,  (c) any sanction imposed by any other regulatory agency,
(d) the financial resources and  good  faith  of  the  entity,  (e)  the
gravity  of  the violation, (f) any history of prior violations, and (g)
such other matters as justice and the public interest may require.
6. Whenever the superintendent  shall  require  the  payment  of  such
penalty  by  any  such entity, he shall forthwith execute in duplicate a
written order to that effect. On the date such order  is  executed,  the

superintendent  shall  file  one copy of such order in the office of the
department and serve the second copy upon such entity either  personally
or  by  registered or certified mail, return receipt requested, directed
to  the  entity's  principal  place  of  business  or,  in the case of a
licensee or registrant, its last known address of record. Such order may
be reviewed in the manner provided by article seventy-eight of the civil
practice law and rules. Such special proceeding for review as authorized
by this section must be commenced within thirty days from the service of
such order.
7. The superintendent may compromise, modify,  or  remit  any  penalty
which he or she may assess or had already assessed under this section.
8.  The  superintendent  may  prescribe  regulations  to carry out the
provisions and purposes of this section.
9. As used in this section, "bank holding company" shall have the same
meaning  as  that  term  is  defined  in  subdivision  six  of   section
thirty-nine of this article.