New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 400 - Licensed Cashers Of Checks › Section 400.14 - Relocation of licensed location

Current through Register Vol. 46, No. 28, July 10, 2024
Background. Chapter 546 of the Laws of 1994 altered the
					 licensing criteria applicable to check cashers by substantially amending
					 section 369  of the Banking Law to require, among
					 other things, that the superintendent determine whether there is a community
					 need for a new licensee in the proposed area to be served and to prohibit
					 entirely the granting of a license at a location which is less than
					 three-tenths of a mile from an existing licensee. In so acting, the Legislature
					 adopted a specific statutory finding of legislative intent, to wit, "The
					 legislature hereby finds and declares that check cashers provide important and
					 vital services to New York citizens; that the business of check cashers shall
					 be supervised and regulated through the Banking Department in such a manner as
					 to maintain consumer confidence in such business and protect the public
					 interest; that the licensing of check cashers shall be determined in accordance
					 with the needs of the communities they are to serve; and that it is in the
					 public interest to promote the stability of the check cashing business for the
					 purpose of meeting the needs of the communities that are served by check
					 cashers." However, the legislation left unamended Banking Law, section
					 370 which permits a licensee to apply to the
					 superintendent for leave to change its place of business to any other location
					 and which does not make explicit the standards to be applied by the
					 superintendent in granting permission to relocate. A licensee must obtain a new
					 license to conduct business at another location. In order to promote and
					 maintain the stability of the check cashing business while accommodating the
					 reasonable needs of current licensees to relocate, the following standards
					 shall be applied by the superintendent in determining whether to approve
					 applications for relocation to any site which is within three-tenths of a mile
					 of another licensed location:
(a) No
				  relocation shall be permitted to a site within three-tenths of a mile of
				  another existing licensee location from a location greater than three-tenths of
				  a mile from such existing licensee location, unless such other existing
				  licensee engages in the cashing of checks, drafts or money orders only for
				  payees of such checks, drafts or money orders that are other than natural
				  persons at a restricted location authorized pursuant to subdivision 1 of
				  section 369  of the Banking Law or at any other
				  licensed location whereat the licensee engages solely in the cashing of checks,
				  drafts or money orders only for payees that are other than natural
				  persons.
(b) A relocation may be
				  approved, from a site within three-tenths of mile of another licensee to
				  another site within three-tenths of a mile of such other licensee so long as
				  such new site is farther from such existing licensee than the site from which
				  permission to relocate is sought. If, however, a licensee seeks to relocate
				  from a site within three-tenths of a mile of another licensee and the new site
				  is closer to an existing licensee, the superintendent shall approve the
				  relocation only under the following conditions:
(1) the relocation is consistent with the
				  legislative intent as expressed in chapter 546 of the Laws of 1994;
(2) the licensee seeking to relocate must
				  demonstrate that extraordinary circumstances are forcing it to relocate (e.g.,
				  fire, condemnation). The superintendent, in his or her sole discretion, shall
				  determine the existence of "extraordinary circumstances"; and
(3) the licensee seeking to relocate has no
				  reasonable alternative but to move closer to another licensee.
If the licensee seeks to relocate from a site within
					 three-tenths of a mile of another licensee to another site within three-tenths
					 of a mile of another licensee and the new site is closer to an existing
					 licensee it may relocate to such site without complying with the conditions set
					 forth in paragraphs (1), (2) and (3) of this subdivision if the licensee which
					 is impacted by the relocation gives its written consent to such relocation. A
					 copy of this consent shall be submitted to the superintendent by the licensee
					 seeking to relocate together with its application. The superintendent shall
					 approve or disapprove such application in accordance with the provisions of
					 section 370 (3)  of the Banking Law.
					 In the case in which a licensee applies to relocate to a site which is not
					 within three-tenths of a mile from another licensed location, in the absence of
					 special factors, public convenience and advantage shall be deemed to be
					 promoted without demonstration of community need therefor where the new
					 location is no greater than three-tenths of a mile from the site from which
					 permission to relocate is sought. For purposes of this subdivision, the term "
					 special factors" shall include such interceding geographic or topographic
					 features as may inhibit reasonable foot traffic between such locations (e.g.,
					 major roads or highways, bridges, mountains or the lack of reasonably direct
					 street access).