reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.1 - Introduction

Current through Register Vol. 46, No. 28, July 10, 2024
This Part contains regulations relating to the transmission
					 of money by licensees and their agents under article XIII-B of the Banking Law.
					 For purposes of this Part, the business of transmission of money will be
					 divided into three categories: the issuance and sale of travelers checks to the
					 public, the sale and issuance of money orders to the public, and the
					 transmission of money on behalf of the public by any and all other means or
					 manner including but not limited to transmissions within this country or to
					 locations abroad by wire, check, draft, facsimile or courier. Although a number
					 of the subdivisions of this Part apply to all licensees and their agents and
					 subagents, other subdivisions apply exclusively to those transmission
					 activities that fall within the scope of the third category of transmission. As
					 provided in Banking Law, section
					 641, the
					 provisions contained in this Part shall not apply to an agent of a payee as
					 defined in section
					 406.2(a) 
					 of this Part. Only agents of a payee which do not engage in any money
					 transmission activities other than as an agent of a payee are exempt from the
					 provisions of this Part.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part:
(a) The term money transmission shall include
				  all instruments sold or issued including travelers checks, money orders,
				  checks, drafts, orders, wire or electronic transfers, facsimile transfers and
				  shipments by courier for the transmission or payment of money.
(b) The term travelers check means an
				  instrument for the payment of money which:
(1) is designated on its face by the term
				  travelers check or by any similar term or spelling or is commonly known and
				  marketed as a travelers check, and not by the term money order or by any
				  substantially similar term; and
(2)
(i) if issued in United States currency, is
				  in the sum of $10 or a multiple thereof, if less than $100, or in the sum of
				  $100 or a whole multiple thereof; or
(ii) if issued in any foreign currency, is in
				  an even denomination of such currency; and
(3) contains a provision for a specimen
				  signature of the purchaser to be completed at the time of purchase;
				  and
(4) contains a provision for a
				  counter-signature of the purchaser to be completed at the time of
				  negotiation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.3 - Conduct of business

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Every licensee engaged in money transmission, except one engaged exclusively in
				  the sale or issuance of travelers checks and/or money orders, shall post and at
				  all times display in full public view, at both its principal office and at each
				  branch office in this State, where the general public is admitted and money
				  transmission is carried out, a sign or signs in the English language and in any
				  other predominant language spoken by the customers of the licensee each of
				  which sign shall be no less than 20 inches wide and 12 inches high with letters
				  at least one-half inch in height indicating the following:
(1) the name and principal address of the
				  licensee, the type of transmission activity the licensee is authorized to
				  engage in, and a telephone number established by the licensee to answer
				  questions and register complaints; and
(2) that the licensee is licensed and
				  regulated by the New York State Banking Department and that unresolved consumer
				  complaints may be mailed to the New York State Banking Department, Consumer
				  Services Division, as set forth in section
				  1.1  of
				  Supervisory Policy G 1 of this Title.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.5 - Agency contracts

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All
				  written contracts between licensees and agents and subagents entered into after
				  the effective date of this Part shall provide the following:
(1) a description of the category or
				  categories of money transmission activity the licensee is authorized to
				  lawfully engage in under its license which it may do through an agent and
				  subagent; and
(2) a prohibition in
				  the licensee's agents and subagents acting on behalf of the consumer as a
				  courier for the transmission of money which activity requires licensing as a
				  money transmitter and a requirement that all money orders sold may not be
				  retained by the agent and subagent but must be given to the purchasers of the
				  instruments for their own delivery to the beneficiary; and
(3) an acknowledgment that the superintendent
				  reserves the right to inspect, with or without prior notice to the licensee or
				  agent and subagent(s), the books and records of agent and subagent(s) of the
				  licensee and that the expenses incurred in making any such inspection shall be
				  borne by the licensee; and
(4) that
				  agents and subagents shall not sell any travelers check, money order or other
				  money transmission instrument in this State unless the name of the licensee
				  shall clearly appear on the face of the instrument and the licensee shall not
				  condition its engagement as obligor under the payment instrument upon the
				  remittance of the proceeds of sale from the agent and subagent; and
(5) that agents and subagents shall not sell
				  any travelers check, money order or other money transmission instrument in this
				  State, unless the agent and subagent has provided the superintendent with a
				  written and irrevocable consent to examine, have access to, and retain copies
				  of all of its books and records, wherever maintained, relating to these
				  activities; and
(6) that agents and
				  subagents in this State are under a duty to act only as authorized under the
				  agency contract and that an agent and subagent who exceeds its authority is
				  subject to cancellation of the agency contract and may result in further
				  disciplinary action against the licensee by the superintendent.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.6 - Advertising and solicitation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				  licensee or agent or subagent engaged in money transmission, except one engaged
				  exclusively in the sale or issuance of travelers checks and/or money orders,
				  shall advertise its money transmission services without including the name of
				  the licensee and the legend that such licensee is "Licensed as a Money
				  Transmitter by the Banking Department of the State of New York."
(b) No licensee or agent and subagent who
				  sells or issues travelers checks or money orders in this State shall advertise
				  its business in New York without including the legend: "Licensed as a Money
				  Transmitter by the Banking Department of the State of New York."
(c) Every licensee and designated agent and
				  subagent shall maintain a complete file of its advertisements (including
				  commercial scripts of all radio and television broadcasts) for examination by
				  the superintendent for a period of at least two years from the date of
				  publication.
(d) The legend
				  required in subdivisions (a) and (b) of this section shall apply only to
				  advertising in New York State.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.7 - Examinations

Current through Register Vol. 46, No. 28, July 10, 2024
The superintendent shall have the power to examine any
					 licensee at any time when in the judgment of the superintendent such
					 examination is necessary or advisable to determine:
(a) the financial condition of the
				  licensee;
(b) the safety and
				  soundness of the conduct of its business;
(c) the policies of its management;
(d) whether the requirements of law have been
				  complied with in the administration of its affairs;
(e) whether the licensee has policies and
				  procedures sufficient to control the activities of any authorized agents;
				  and
(f) such other matters, as the
				  superintendent may determine, including but not limited to any activities of
				  the licensee outside this State if in the opinion of the superintendent such
				  activities may affect the licensee's money transmission business in this
				  State.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.8 - Revocation; possession

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Licenses granted under article XIII-B of the Banking Law may be revoked for the
				  grounds specified in section 642  of the Banking Law after notice and
				  hearing conducted in accordance with the State Administrative Procedure Act and
				  Banking Department regulations.
(b)
				  The superintendent may take possession of the business and property of any
				  licensee as provided in article XIII-A of the Banking Law for the reasons
				  stated therein.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.9 - Books and records

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Each licensee shall make, keep and preserve its books and records in such form,
				  in such manner and for such time as is in accordance with generally accepted
				  accounting principles and in a condition which will allow the superintendent to
				  determine whether the licensee and agent and subagent is complying with article
				  XIII-B of the Banking Law. Preservation by photographic reproduction or in
				  photographic form shall constitute compliance with the requirements of this
				  Part.
(b) The books and records
				  maintained by each licensee and agent shall include:
(1) a daily record of instruments sold by
				  date;
(2) a general ledger
				  containing all asset, liability, capital, income and expense accounts which
				  general ledger shall be posted at least monthly;
(3) remittance reports received from agents
				  and subagents;
(4) bank statements
				  and bank reconciliation records which shall be kept for three years;
(5) outstanding money transmission
				  instruments by year of sale shall be maintained for at least five years after
				  the time which such instruments have been deemed, under the Abandoned Property
				  Law, to be abandoned property;
(6)
				  each money transmission instrument paid for a period of three years after the
				  date of payment;
(7) a list of the
				  names and addresses of all the agents who sell or issue its money transmission
				  instruments and copies of its agency agreements thereunder.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.10 - Reports

Current through Register Vol. 46, No. 28, July 10, 2024
Each licensee shall file the following reports giving such
					 information as may be required by the superintendent concerning its business
					 and operations.
(a) Reports of
				  locations. A licensee engaging in money transmission in this State, either
				  directly or through agents and subagents shall file with the superintendent, in
				  connection with its application for license or license renewal, a statement
				  showing the number of such locations within this State and the number of such
				  locations elsewhere in the United States as of 30 days preceding such
				  filing.
(b) Financial reports.
				  Every licensee shall file with the superintendent quarterly financial
				  statements within 45 days following the close of the licensee's fiscal quarter
				  and an annual financial statement, audited by an independent certified public
				  accountant, within 120 days following the close of the licensee's fiscal year.
				  Such financial statements shall include a balance sheet, a profit and loss
				  statement, and a statement of retained earnings.
(c) Reports of misconduct. Every licensee
				  shall submit a report to the superintendent immediately upon the discovery of
				  any of the events listed in Part 300 of the superintendent's regulations. Such
				  report shall be submitted as set forth in Part 300.
(d) Reports of business. Every licensee shall
				  submit a report to the superintendent within 45 days following the close of
				  each calendar quarter reflecting in dollars the monthly sales of travelers
				  checks, money orders, checks, drafts, wire or electronic transfers or other
				  instruments or orders for the transmission or payment of money in or from this
				  State by the licensee and its agents and subagents and the aggregate monthly
				  sales of such instruments sold elsewhere in the United States by the licensee
				  and its agents and subagents during the previous calendar quarter. Sales of
				  money orders, travelers checks and all other such instruments sold should be
				  reported separately for each instrument. In addition at the end of every
				  calendar quarter every licensee should report the amount of the permissive
				  investments (as defined in section 640.9 of the Banking Law) it holds and the
				  amount of its outstanding liabilities reported separately for travelers checks,
				  money orders and all other such instruments sold.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.11 - Changes in control; reports; applications

Current through Register Vol. 46, No. 28, July 10, 2024
(a) As required under Banking Law, section 652-a, no person may acquire direct or
				  indirect control (as defined in said section) of a licensee without the prior
				  approval of the superintendent. In addition, an unauthorized acquisition of
				  control may result in the voiding of the license to engage in the business of
				  money transmission as provided therein.
(b) Without limiting the responsibilities of
				  persons seeking to acquire control of licensees to make application to the
				  superintendent under section 652-a  of the Banking Law and subdivisions
				  (d) and (e) of this section, licensees shall be required to report to the
				  superintendent the following information within five days of the date the
				  licensee becomes aware of such information:
(1) the name and residence of each person (or
				  each member of a group of persons acting in concert) who becomes an owner of 10
				  percent or more of the outstanding shares of any class (voting or nonvoting) of
				  the licensee; and
(2) the name and
				  residence of each person who is to become a partner, director or principal
				  officer of the licensee.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.12 - Additional reporting

Current through Register Vol. 46, No. 28, July 10, 2024
As required under Banking Law, section 643.2 the licensee
					 shall give notice to the superintendent by registered or certified mail of any
					 action which shall be brought against the licensee and of any judgment which
					 shall be entered against the licensee by such purchaser or holder of a New York
					 instrument or a New York traveler's check, with details sufficient to identify
					 the action or judgment, within 10 days after the commencement of any such
					 action or notice to the licensee of entry of any such judgment. In addition
					 every licensee shall, immediately after the occurrence of the event becomes
					 known to the licensee, advise the superintendent in writing of:
(a) any criminal or civil action (excluding
				  any civil action in which the amount in controversy is less than $25,000 and
				  excluding any domestic relations action) brought against the licensee or any
				  proceeding to declare the licensee bankrupt, and of any judgment or settlement
				  entered in such an action or proceeding; and
(b) any criminal or civil action (excluding
				  any civil action in which the amount in controversy is less than $25,000 and
				  excluding any domestic relations action) brought against, or any proceeding
				  brought to declare bankrupt, any person who is a partner, principal
				  stockholder, director or principal officer of the licensee, or any partnership,
				  corporation or association other than the licensee of which such person is a
				  partner, principal stockholder, or principal officer, and of any judgment or
				  settlement entered in such an action or proceeding.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.13 - Provision for corporate surety bonds

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Every person licensed to transmit money
				  pursuant to Banking Law, section
				  641, shall file
				  with the superintendent one or more corporate surety bonds, in form
				  satisfactory to the superintendent in such principal amount as the
				  superintendent shall have determined. Such corporate surety bond shall be
				  issued by a bonding company or insurance company authorized to do business in
				  this State.
(b) One such bond shall
				  be in favor of the superintendent for the protection of the purchasers and
				  holders of New York instruments sold by the licensee. The principal amount of
				  such bond shall be not less than $500,000 and it shall contain substantially
				  the following language:
"The proceeds of this bond shall constitute a trust fund
					 for the exclusive benefit of the purchasers and holders of the licensee's New
					 York instruments. In the event of the insolvency or bankruptcy of the licensee,
					 the proceeds of the bond shall be paid to the superintendent forthwith for
					 disposition in accordance with the applicable provisions of the Banking Law;
					 provided, however, if any New York instruments have been assigned to the fund,
					 the proceeds of the bond shall constitute a trust fund for the benefit of, and
					 shall be payable to, the fund to the extent of such assignment. As used herein,
					 the terms "New York instruments", "fund", "purchasers," and "holders" shall
					 have the meanings ascribed to them in section 653  of the
					 Banking Law."
(c) If the
				  licensee engages in the sale of New York traveler's checks, such licensee shall
				  file with the superintendent a separate bond. Said bond shall be in favor of
				  the superintendent for the protection of the purchasers and holders of New York
				  traveler's checks sold by the licensee. The principal amount of such bond shall
				  not be less than $750,000 and it shall contain substantially the following
				  language:
"The proceeds of this bond shall constitute a trust fund
					 for the exclusive benefit of the purchasers and holders of the licensee's New
					 York traveler's checks. In the event of the insolvency or bankruptcy of the
					 licensee, the proceeds of the bond shall be paid to the superintendent
					 forthwith for disposition in accordance with applicable provisions of the
					 Banking Law. As used herein, the terms "New York Traveler's checks",
					 "purchasers" and "holders" shall have the meanings ascribed to them in section 653  of the
					 Banking Law."
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.14 - Deposit of securities

Current through Register Vol. 46, No. 28, July 10, 2024
A licensee who in lieu of filing a corporate surety bond
					 elects to deposit securities pursuant to Banking Law, section
					 643(3), shall execute with
					 the depository bank, trust company or national bank a deposit agreement in form
					 satisfactory to the superintendent. An executed copy of this deposit agreement
					 shall be filed with the superintendent.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.15 - Payments by uninsured money transmitters to fund

Current through Register Vol. 46, No. 28, July 10, 2024
Upon receipt of notice of assessment issued pursuant to
					 section 657  of the Banking Law, each uninsured money
					 transmitter shall provide the superintendent, as administrator of the State
					 Transmitter of Money Fund, within such reasonable time as shall have been
					 specified in such notice, a statement certified by an executive officer,
					 showing the dollar amounts of the New York instruments issued by the uninsured
					 money transmitter that were outstanding at the end of each calendar quarter for
					 the calendar year preceding that in which the assessment is made, and the
					 average of said amount. (Said average shall consist of the quotient obtained
					 when dividing the sum of such amounts by the number of calendar quarters
					 involved.) Upon receipt of such statement, the superintendent shall notify the
					 uninsured money transmitter of the percentage of said average constituting the
					 assessment, and the uninsured money transmitter shall forthwith pay the
					 resulting assessment to the superintendent. Said percentage shall be uniform as
					 to all uninsured money transmitters. In no event shall the total amount
					 assessed in any one year against any uninsured money transmitter pursuant to
					 section 657  of the Banking Law exceed two per centum
					 of the New York instruments of such uninsured money transmitter, which were
					 outstanding at the end of the calendar year preceding the year in which such
					 assessments were made or $125,000, whichever is less.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 406 - Money Transmitters › Section 406.16 - Communications

Current through Register Vol. 46, No. 28, July 10, 2024
It is requested that licensees direct their Banking
					 Department correspondence, reports, notices, statements and applications to the
					 Licensed Financial Services Division of the Banking Department at the address
					 set forth in section
					 1.1  of
					 Supervisory Policy G 1 of this Title.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 407 - Licensing Of Out-of-state Lenders Who Solicit, By Mail, Small Loans In New York State › Section 407.2 - Loans, books and records

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Every licensee must maintain records as provided in section
				  401.1 
				  of the superintendent's regulations. All such records and supporting documents
				  and any additional records which the superintendent may require relating to
				  loans made to New York State residents must be kept separate and apart from any
				  other records of the licensee and must be made available for examination at any
				  time by representatives of the New York State Banking Department. The licensee
				  will be required to pay the cost of all examinations, including travel expenses
				  for Banking Department personnel.
(b) Every licensee shall be subject to the
				  relevant provisions of sections
				  401.4,
				  401.5
				  and
				  401.6 
				  of the superintendent's regulations.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 407 - Licensing Of Out-of-state Lenders Who Solicit, By Mail, Small Loans In New York State › Section 407.3 - Offices within new york state

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  No licensee may operate any place of business within New York State, except for
				  the sole purpose of handling inquiries and complaints of existing borrowers of
				  the licensee. At such an office, no loans may be made, no loan applications
				  distributed to or received from the public and no monetary disbursements may be
				  made to or received from the public.
(b) Every licensee must either:
(1) operate at least one office in New York
				  State for the sole purpose of handling inquiries or complaints from existing
				  borrowers, or
(2) establish either
				  (i) a toll-free phone number or (ii) a phone number which may be called
				  "collect" for the purpose of enabling borrowers to make inquiries of or
				  complaints to the licensee. Every person granted a loan must be informed, in
				  writing, of this phone number at the time the loan is granted.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 407 - Licensing Of Out-of-state Lenders Who Solicit, By Mail, Small Loans In New York State › Section 407.4 - Lock box for payments

Current through Register Vol. 46, No. 28, July 10, 2024
Every licensee shall maintain a lock box in New York State
					 where borrowers may mail payments of principal, interest or other charges.
					 Every person granted a loan must be informed, in writing, of this at the time
					 the loan is granted. Payments from borrowers must be credited to the borrower's
					 account as of the day the payment is received at the lock box if this is a
					 business day or, if received on other than a business day, payment must be
					 credited on the first business day thereafter.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 407 - Licensing Of Out-of-state Lenders Who Solicit, By Mail, Small Loans In New York State › Section 407.5 - Provision in lieu of lock box

Current through Register Vol. 46, No. 28, July 10, 2024
In lieu of the lock box required to be maintained by
					 section
					 407.4  of
					 this Part, a licensee may provide in its loan agreements that the licensee
					 shall not impose any fine, penalty or late charge in connection with any loan
					 payment due and payable to the licensee from any borrower located in New York
					 State if such payment is received by the licensee on or before the 10th
					 calendar day following the due date of such payment. Any licensee discontinuing
					 the maintenance of such lock box shall:
(a) include in all loan agreements thereafter
				  written the provision called for by the preceding sentence; and
(b) within 30 days of the discontinuance of
				  such lock box mail to all previous borrowers with loans outstanding in this
				  State, notice of the availability of such "grace period" together with notice
				  of a new address at which payment will be received.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 408 - Extension Of Credit On A Nondiscriminatory Basis › Section 408.1 - Inquiries concerning marital history, status, and number of dependents

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of Executive Law, section
					 296-a(1)(c), it shall not
					 be considered an expression of limitation, specification or discrimination on
					 the basis of sex or marital status if:
(a) a creditor requires an applicant to
				  disclose the name or names by which he or she has previously been known,
				  provided that this information is used solely to determine the applicant's
				  identity and previous credit history;
(b) where application is made for a mortgage
				  and the creditor determines that the signature of the spouse is required in
				  order to pass clear title in the event of a default, a creditor requests
				  information concerning marital status, provided that the information disclosed
				  by such inquiry is used solely for the purpose of perfecting title;
(c) a creditor inquires as to the number of
				  the applicant's dependents, provided that the information disclosed by such
				  inquiry is used solely to determine costs and expenses payable by the
				  applicant.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 408 - Extension Of Credit On A Nondiscriminatory Basis › Section 408.2 - Statement of reasons for rejection

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of Executive Law, section
					 296-a(4)(a), a statement
					 of the specific reasons for rejection of an application for credit shall be
					 deemed to be in compliance with this section if it is a clear and meaningful
					 statement of all of the factors which justified rejection.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 408 - Extension Of Credit On A Nondiscriminatory Basis › Section 408.3 - Attribution of past joint obligations

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of Executive Law, section
					 296-a(4)(b), a response
					 to a request for a separate credit history, made after July 15, 1974, shall
					 include all obligations, whenever entered into, as to which the creditor or
					 credit reporting bureau then has information in its files. In creating such a
					 separate history, all obligations on which two parties were jointly liable
					 shall be reported as the obligation of each irrespective of the actual source
					 of payments.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.2 - Applicability

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Except as
				  provided in subdivision (b) of this section or as explicitly provided for in
				  another section of this part, all provisions of this part shall apply to every
				  student loan servicer.
(b) The
				  following sections shall not apply to a student loan servicer that services
				  only federal student loans:
(1) section
				  409.3;
(2) section 409.4;
(3) section 409.5;
(4) section 409.6; and
(5) section 409.7.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.3 - Licensing

Current through Register Vol. 46, No. 28, July 10, 2024
(a) License
				  required.
(1) Except as provided in
				  subdivisions (2) and (3), every person engaged in the business of servicing
				  student loans owed must be licensed by the superintendent as a student loan
				  servicer in accordance with this section.
(2) An exempt organization is not required to
				  apply for or receive a license under this section to engage in the business of
				  servicing student loans, provided that unless preempted by federal law such
				  exempt organization notifies the superintendent that it is servicing student
				  loans in this state. In the event that a student loan servicer ceases to be an
				  exempt organization, that person may not service student loans without first
				  being licensed by the superintendent as a student loan servicer in accordance
				  with this section.
(3) A student
				  loan servicer that services only federal student loans is not required to apply
				  for or receive a license under this section to engage in the business of
				  servicing student loans. In the event that a student loan servicer ceases to be
				  a student loan servicer that services only federal student loans seeks to begin
				  servicing student loans which are not federal student loans, that person may
				  not service student loans other than federal student loans owed by one or more
				  borrowers residing in this state without first being licensed by the
				  superintendent as a student loan servicer in accordance with this
				  section.
(4)
(i) A debt collector whose student loan debt
				  collection business, and business operations, involve collecting, or attempting
				  to collect, on a Direct Loan or FFELP Loan for which no payment has been
				  received for 270 days or more, a Perkins Loan in default, or on a private
				  student loan in default according to the terms of the loan documents shall not
				  be required to obtain a license under paragraph (1) of this
				  subdivision.
(ii) Notwithstanding
				  subparagraph (i) of this paragraph any debt collector who services
				  non-defaulted student loans, as part of their business, and business
				  operations, shall be deemed to be engaged in the business of servicing student
				  loans and shall be required to obtain a license pursuant to paragraph (1) of
				  this subdivision.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.4 - Temporary license during transition period

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notwithstanding section 409.3  of this
				  part, any student loan servicer required to obtain a license under that
				  section, that is engaged in the business of servicing student loans prior to
				  October 9, 2019 and that on or before such date submits a complete application
				  pursuant to that section, shall be deemed to possess a temporary license to
				  continue its engagement in the business of student loan services subject to the
				  conditions and limitations set forth in subdivision (b) of this
				  section.
(b) Temporary license.
(1) The temporary license provided for in
				  subdivision (a) of this section, shall be effective from October 9, 2019 and
				  shall expire upon the superintendent's issuance of a license, the
				  superintendent's refusal to issue a license, or the withdrawal of the
				  application, whichever occurs first.
(2) A temporary license provided for in
				  subdivision (a) of this section may be terminated without a hearing if the
				  superintendent, in her sole discretion, finds that there is a risk of public
				  harm or other good cause for such termination.
(3) A temporary license provided for in
				  subdivision (a) of this section shall not be renewable.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.5 - Continuing duty to update licensing information; changes in officers and directors

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Every student
				  loan servicer required to obtain a license pursuant to section 409.3  of this
				  Part, shall within five days of any change in any of its executive officers,
				  directors, partners or members notify the superintendent of the change by
				  executing an amendment in NMLS which contains the information required to be
				  submitted by the checklist and instructions for such an amendment posted on
				  NMLS.
(b) Every student loan
				  servicer required to obtain a license pursuant to section 409.3  of this Part,
				  shall file with NMLS an amendment as soon as practicable, but in no event more
				  than ten days, after any information contained in the application or the NMLS
				  file, as the case may be, ceases to be true and correct or
				  applicable.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.6 - Change in control application; prior approval

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Definition of Control.
(1) As used in this part 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.
(2) Control shall be
				  presumed to exist if any person, directly or indirectly, owns, controls, or
				  holds with power to vote ten percent or more of the voting stock of any student
				  loan servicer or of any person which, directly or indirectly, owns, controls,
				  or holds with power to vote ten percent 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. Such presumption may not be rebutted except by a determination of the
				  superintendent on an application under subdivision (g) of this section.
(3) As used in this section the
				  term "person" means individual, partnership, firm, association, corporation,
				  joint-stock company, trust, any similar entity or any combination of the
				  foregoing acting in concert.
(4) As
				  used in this part the term "substantial stockholder" means a person owning or
				  controlling directly or indirectly ten percent or more of the total outstanding
				  stock of a corporation.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.8 - Servicing standards

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				  student loan servicer shall not misrepresent or omit any material information
				  in connection with the servicing of a student loan, including, but not limited
				  to, misrepresenting or omitting:
(1) the
				  amount, nature, or terms of any fee or payment due or claimed to be due on a
				  student loan;
(2) the terms and
				  conditions of a student loan or a borrower's obligations under a student loan;
				  or
(3) the availability of any
				  program or protection specific to or applicable to military borrowers,
				  borrowers working in public service, older borrowers, cosigners, or borrowers
				  with disabilities.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.9 - Prohibited Practices

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				  student loan servicer shall undertake any unlawful action including:
(1) employing any scheme, device or artifice
				  to defraud or mislead a borrower;
(2) engaging in any unfair, deceptive,
				  abusive, or predatory act or practice;
(3) misapplying payments to the outstanding
				  balance of any student loan or to any related interest or fees;
(4) making any false statement or make any
				  omission of a material fact in connection with any information or reports filed
				  with a governmental agency or in connection with any investigation conducted by
				  the superintendent or another governmental agency;
(5) failing to respond within fifteen
				  calendar days to communications from the department, or within such other time
				  as the department may provide in its communication;
(6) failing to provide a response pursuant to
				  the requirements of this Part, to a consumer complaint submitted to the student
				  loan servicer by the department or a consumer; or
(7) altering any license issued by the
				  department.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.10 - Examinations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
				  superintendent may at any time, and as often as she may determine, either
				  personally or by a person duly designated by the superintendent, investigate
				  the business and examine the books, accounts, records, and files used therein
				  of every student loan servicer.
(b)
				  The superintendent and her duly designated representative shall have free
				  access to the offices and places of business, books, accounts, papers, records,
				  files, safes and vaults of all student loan servicers.
(c) The superintendent and any person duly
				  designated by her may require the attendance of and may examine under oath all
				  persons relative to the acts, operations, or business of a student loan
				  servicer. Such attendance may be required at any office of the department or
				  any office of the student loan servicer in the superintendent's sole
				  discretion.
(d) The superintendent
				  and any person duly designated by her shall have authority to require the
				  production of documents, or copies thereof, in hard copy or electronic form.
				  Such production can be required to be made at any office of the department or
				  any office of the student loan servicer in the superintendent's sole
				  discretion. The superintendent may permit such production by means other than
				  personal delivery of the documents, including by electronic mail.
(e) No person subject to investigation or
				  examination under this section may knowingly withhold, abstract, remove,
				  mutilate, destroy or secrete any books, records, computer records or other
				  information.
(f) An examination
				  under this section may be used to determine any matter the determination of
				  which in the judgment of the superintendent is necessary or advisable. Such
				  matters shall include:
(1) the financial
				  condition of the licensee;
(2) the
				  safety and soundness of the conduct of its business;
(3) the policies of its management;
(4) whether the requirements of law have been
				  complied with in the administration of its affairs; and
(5) such other matters, as the Superintendent
				  may determine, including any activities of the licensee outside this State if
				  in the opinion of the Superintendent such activities may affect the licensee's
				  servicing business in this State.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.11 - Reporting requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Annual Reporting.
(1) Each year by the first
				  of February the superintendent shall publish instructions for the submission of
				  an annual report by each student loan servicer on the website of the
				  department, which instructions shall set forth the content of such report for
				  the previous calendar year.
(2)
				  Each student loan servicer shall, by the first of April of each year, submit an
				  annual report, which complies with the instructions published pursuant to
				  paragraph (1) of this subdivision, in the manner set forth in those
				  instructions.
(3) Extensions.
(i) In an exercise of discretion, the
				  superintendent may extend the dates established by this subdivision for such
				  period as she determines is necessary.
(ii) A student loan servicer may request an
				  extension to its time to file an annual report by making such request in
				  writing at least fifteen days prior to the date on which the annual report is
				  due. Such request shall set forth the reasons such an extension is necessary
				  and provide all information relevant to the request. Making such a request
				  shall not stay the date on which the report is due. The superintendent may
				  grant such a request in her discretion, but failure to respond to such a
				  request within five days shall be deemed a denial.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.12 - Confidential supervisory information

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The following, including any duly
				  authenticated copy or copies thereof, shall be deemed confidential
				  communications under subdivision (10) of section 36  of the banking law:
(1) All communications between the department
				  and any student loan servicer.
(2)
				  Any materials compiled by the department in the course of the supervision of
				  any student loan servicer.
(3) Any
				  reports provided to the department by any student loan servicer.
(4) Any reports of examinations or
				  investigations, correspondence, and memoranda concerning or arising out of such
				  examination and investigations.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.13 - Books and records

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  Each student loan servicer shall keep and use in its business such books,
				  accounts, and records as will enable the superintendent to determine whether
				  such student loan servicer is complying with the provisions of this article and
				  with the rules and regulations lawfully made by the superintendent.
(b) Every student loan servicer shall
				  preserve such books, accounts, and records, for at least three years or such
				  longer period as may be required by any other provision of law.
(c) In addition to the requirements of
				  subdivision (b) of this section, each student loan servicer shall keep records
				  of each student loan, including at a minimum all the information listed in
				  paragraph (d)(1) of section 409.8  of this part, and all communications with
				  borrowers for not less than two years following the final payment on such
				  student loan or the sale, assignment or other transfer of the servicing of the
				  student loan to which they relate.
(d) A licensee who surrenders its license
				  shall remain under the obligations of this section to maintain books, accounts,
				  and records notwithstanding the surrender.
New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 409 - STUDENT LOAN SERVICERS › Section 409.14 - Cybersecurity

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Every student
				  loan servicer, other than an exempt organization, is a Covered Entity under
				  Part 500 of title 23 and shall comply with that part.
(b) A student loan servicer shall have until
				  April 9, 2020 to comply with Part 500 of title 23, except that a student loan
				  servicer shall have until October 9, 2020 to comply with the requirements of
				  sections 500.06, 500.08, 500.11, 500.13, 500.14(a) and 500.15 of that
				  part.