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 400.4 - Depositing of checks, etc

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
(1) Except as hereinafter stated all checks,
				  drafts and money orders must be deposited in the licensee's bank account in a
				  branch or principal office of a bank, savings bank, savings and loan
				  association, trust company, national bank, Federal savings bank, or Federal
				  savings and loan association or any other duly chartered depository institution
				  that is insured by the Federal Deposit Insurance Corporation, regardless of
				  whether the branch and/or principal office of the foregoing banking institution
				  is located within or without this State (collectively, "banking institution"),
				  not later than the first business day following the day on which they were
				  cashed. Such items must be deposited during the regular business hours of such
				  banking institution so as to enable it to credit the deposits to the licensee's
				  account on that business day.
(2)
				  Any account maintained by a licensee for the deposit of checks, drafts or money
				  orders in a banking institution shall be subject to a written account agreement
				  between the licensee and the banking institution that expressly provides for
				  the personal and in rem jurisdiction over the parties and the account,
				  respectively, of State and Federal courts located in the State of New York and
				  the agreement shall be governed by the laws of the State of New York, except
				  that this requirement shall not apply:
(i)
				  with respect to an account maintained in New York or in a State of New York-
				  chartered bank prior to November 1, 2005, unless or until such existing account
				  agreement is amended subsequent to November 1, 2005; or
(ii) if this requirement is waived in the
				  superintendent's discretion.
Every licensee or applicant for a license shall provide to
					 the superintendent a copy of any such account agreement within 15 days of
					 establishing any such account or any amendment thereto relating to the items
					 required by this subdivision. Every licensee shall maintain a copy of such
					 account agreement as part of its records available for examination by the
					 superintendent.
(3) Prior to depositing any checks, drafts or
				  money orders in an account at a banking institution, the licensee shall cause
				  such banking institution to give the superintendent written authorization to
				  conduct any such examination of all books, records, documents and materials,
				  including those in electronic form, as they relate to such account and any
				  checks, drafts, or money orders placed on deposit in such account, as the
				  superintendent in his/her discretion deems necessary, except that this written
				  authorization requirement shall not apply:
(i)
				  with respect to an account maintained in New York or in a State of New York-
				  chartered bank prior to November 1, 2005, unless or until such existing account
				  agreement is amended subsequent to November 1, 2005; or
(ii) if this requirement is waived in the
				  superintendent's discretion. The licensee shall pay the cost of any such
				  examination.
(4) When
				  the number of payroll checks cashed at a limited station amount to 50 or more,
				  the licensee may present those checks to the drawee bank or the maker of the
				  checks and receive in exchange a single draft, provided full details of the
				  transaction are recorded in a manner satisfactory to the
				  superintendent.