New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 402 - Budget Planners › Section 402.2 - Application for a license

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Application form. Application for a license shall be made upon a form provided
				  by the New York State Banking Department (Banking Department). Each application
				  shall be signed by every individual or entity that will be a control party if a
				  license is granted.
(b) Application
				  procedure. Applications should be delivered to the Banking Department, Attn:
				  Licensed Financial Services Division, and must be accompanied by payment of the
				  fee specified in section
				  1.2  of
				  Supervisory Policy G 1 of this Title. The application shall include the
				  following information:
(1) the exact name and
				  the address of the applicant and its date of incorporation;
(2) the name and the complete business and
				  residential address and occupation of each director, whether or not a member of
				  the governing board, and any other individual who supervises the daily
				  operations of the applicant;
(3)
				  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, county and state;
(4)
				  if the applicant engages in the business of budget planning, as defined in
				  section 455(1) of the New York General Business Law, in another state(s),
				  identify such state(s) and provide the name and address of the regulatory
				  agency, if any;
(5) a copy of the
				  applicant's filing receipt, certified by the Secretary of State of New York,
				  or, for out-of-state budget planners, a certificate of qualification to do
				  business certified by the Secretary of State of New York;
(6) a copy of the applicant's
				  bylaws;
(7) letter of tax exemption
				  from the Internal Revenue Service indicating 501(c)(3) tax status, if
				  applicable;
(8) charities
				  registration statement from the State of New York Office of the Attorney
				  General, Charities Bureau;
(9)
				  schedule providing the following information with respect to each control
				  party: name, prospective corporate title with licensee, employer's name,
				  occupation and title, business address, and residential address;
(10) the name and residence of each holder of
				  capital certificate whether voting or non- voting and/or subvention
				  certificate;
(11) documentation
				  demonstrating that a director, whether or not a member of the governing board,
				  of such applicant has at least one year of experience in financial services or
				  related fields applicable to budget planning. The superintendent may require
				  that a director have more than one year experience if it is determined that
				  such enhanced experience is in accordance with the purposes of article 12-C of
				  the New York Banking Law;
(12) a
				  set of completed fingerprint cards must be submitted by each individual who
				  signs the application. In the case of an applicant which is not a natural
				  person, each control party shall submit completed fingerprint cards;
(13) a background report prepared by an
				  independent licensed private investigation firm for every applicant. In the
				  case in which an individual is signing an application on behalf of an applicant
				  that is not a natural person, a background report shall be prepared for both
				  such individual and the entity for which he or she is signing the
				  application;
(14) a description of
				  the services that will be provided to the debtor by the applicant citing
				  specifically the topics to be discussed and the related timeframes
				  involved;
(15) a litigation
				  affidavit prepared for each applicant;
(16) a statement of merit describing the
				  proposed operation including but not limited to:
(i) a list of all fees to be charged by the
				  applicant;
(ii) the sources of
				  funding and financing available to the applicant; and
(iii) a business plan which describes in
				  detail the budgeting, educational, and counseling services to be offered; the
				  policies and procedures governing each such service including the curriculum to
				  be utilized to provide the educational services; the person(s) responsible for
				  administering each such service and the training to be provided to employees
				  engaged in the rendering of each such service;
(17) the applicant's financial statements for
				  the past three years or, for new corporations, a pro forma financial statement.
				  Financial statements shall include a balance sheet, a statement of revenues and
				  expenses, and a statement of cash flows;
(18) a copy of the contract to be used with
				  debtors or potential debtors which shall at a minimum include:
(i) a complete list of the debtor's
				  obligations to be adjusted, including the name of each creditor;
(ii) the total fees agreed to for such
				  services, including any adjustments for estimated available rebates from
				  creditors, provided that nothing in this subdivision shall require a licensee
				  to share rebates with its clients;
(iii) the commencement and termination date
				  of the contract;
(iv) a pro forma
				  statement of the total fees to be charged, including expected available rebates
				  from creditors, expressed as a percentage of the total obligations, principal
				  and interest to be adjusted under such contract.