Bill Text: NY A09588 | 2023-2024 | General Assembly | Amended
Bill Title: Provides for the regulation of buy-now-pay-later lenders; requires such lenders to be licensed; establishes prohibited acts, limitations on loans, and consumer protections.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced) 2024-04-09 - reported referred to ways and means [A09588 Detail]
Download: New_York-2023-A09588-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9588--A IN ASSEMBLY March 22, 2024 ___________ Introduced by M. of A. HUNTER, WEPRIN, BURDICK, CUNNINGHAM -- read once and referred to the Committee on Banks -- reported and referred to the Committee on Codes -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to the regulation of buy- now-pay-later lenders The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new article 14-B to 2 read as follows: 3 ARTICLE XIV-B 4 BUY-NOW-PAY-LATER LENDERS 5 Section 735. Short title. 6 736. Definitions. 7 737. License. 8 738. Conditions precedent to issuing a license; procedure where 9 application is denied. 10 739. License provisions and posting. 11 740. Application for acquisition of control of buy-now-pay-later 12 lender by purchase of stock. 13 741. Ground for revocation or suspension of license; procedure. 14 742. Superintendent authorized to examine. 15 743. Licensee's books and records; reports. 16 744. Acts prohibited. 17 745. Limitation on charges on buy-now-pay-later loans. 18 746. Consumer protections. 19 747. Authority of superintendent. 20 748. Penalties. 21 749. Severability. 22 § 735. Short title. This article shall be known and may be cited as 23 the "Buy Now Pay Later act". EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15022-02-4A. 9588--A 2 1 § 736. Definitions. As used in this article, the following terms shall 2 have the following meanings: 3 1. "Consumer" means an individual who is a resident of the state of 4 New York. 5 2. "Buy-now-pay-later loan" means credit provided to a consumer at the 6 time of purchase in connection with such consumer's particular purchase 7 of goods or services, other than a motor vehicle as defined under 8 section one hundred twenty-five of the vehicle and traffic law, to be 9 repaid by the consumer in installments. 10 3. "Buy-now-pay-later lender" means a person who offers buy-now-pay- 11 later loans in this state. For purposes of the preceding sentence, 12 "offer" means offering to make a buy-now-pay-later loan by extending 13 credit directly to a consumer or operating a platform, software or 14 system with which a consumer interacts and the primary purpose of which 15 is to allow third parties to offer buy-now-pay-later loans, or both. A 16 person who sells goods or services to a consumer and extends credit to 17 such consumer in connection with such consumer's particular purchase of 18 such goods or services shall not be considered a buy-now-pay-later lend- 19 er with respect to such transactions. A person shall not be considered a 20 buy-now-pay-later lender on the basis of isolated, incidental or occa- 21 sional transactions which otherwise meet the definitions of this 22 section. 23 4. "Exempt organization" means any banking organization or foreign 24 banking corporation licensed by the superintendent or the comptroller of 25 the currency to transact business in this state, national bank, federal 26 savings bank, federal savings and loan association, or federal credit 27 union. Subject to such regulations as may be promulgated by the super- 28 intendent, "exempt organization" may also include any subsidiary of such 29 entities. 30 5. "Licensee" means a person who has been issued a license pursuant to 31 this article. 32 6. "Person" means an individual, partnership, corporation, association 33 or any other business organization. 34 § 737. License. 1. No person or other entity, except an exempt organ- 35 ization as defined in this article, shall act as a buy-now-pay-later 36 lender without first obtaining a license from the superintendent. 37 2. An application for a license shall be in writing, under oath, and 38 in the form and containing such information as the superintendent may 39 require. 40 3. At the time of filing an application for a license, the applicant 41 shall pay to the superintendent a fee as prescribed pursuant to section 42 eighteen-a of this chapter. 43 4. A license granted pursuant to this article shall be valid unless 44 revoked or suspended by the superintendent or unless surrendered by the 45 licensee and accepted by the superintendent. 46 5. In connection with an application for a license, the applicant 47 shall submit an affidavit of financial solvency noting such capitaliza- 48 tion requirements and access to such credit as may be prescribed by the 49 regulations of the superintendent. 50 § 738. Conditions precedent to issuing a license; procedure where 51 application is denied. 1. After the filing of an application for a 52 license accompanied by payment of the fee pursuant to subdivision three 53 of section seven hundred thirty-seven of this article, it shall be 54 substantively reviewed. After the application is deemed sufficient and 55 complete, if the superintendent finds that the financial responsibility, 56 including meeting any capital requirements as established pursuant toA. 9588--A 3 1 subdivision three of this section, experience, character and general 2 fitness of the applicant or any person associated with the applicant are 3 such as to command the confidence of the community and to warrant the 4 belief that the business will be conducted honestly, fairly and effi- 5 ciently within the purposes and intent of this article, the superinten- 6 dent shall issue the license. For the purpose of this subdivision, the 7 applicant shall be deemed to include all the members of the applicant if 8 it is a partnership or unincorporated association or organization, and 9 all the stockholders, officers and directors of the applicant if it is a 10 corporation. 11 2. If the superintendent refuses to issue a license, the superinten- 12 dent shall notify the applicant of the denial and retain the fee paid 13 pursuant to subdivision three of section seven hundred thirty-seven of 14 this article. 15 3. The superintendent may issue regulations setting capital require- 16 ments to ensure the solvency and financial integrity of licensees and 17 their ongoing operations, taking into account the risks, volume of busi- 18 ness, complexity, and other relevant factors regarding such licensees. 19 Further, the superintendent may issue rules and regulations prescribing 20 a methodology to calculate capital requirements with respect to licen- 21 sees or categories thereof. 22 § 739. License provisions and posting. 1. A license issued under this 23 article shall state the name and address of the licensee, and if the 24 licensee be a co-partnership or association, the names of the members 25 thereof, and if a corporation the date and place of its incorporation. 26 2. Such license shall be kept conspicuously posted on the mobile 27 application, website, or other consumer interface of the licensee, as 28 well as listed in the terms and conditions of any buy-now-pay-later loan 29 offered or entered into by the licensee. The superintendent may provide 30 by regulation an alternative form of notice of licensure. 31 3. A license issued under this article shall not be transferable or 32 assignable. 33 § 740. Application for acquisition of control of buy-now-pay-later 34 lender by purchase of stock. 1. It shall be unlawful except with the 35 prior approval of the superintendent for any action to be taken which 36 results in a change of control of the business of a licensee. Prior to 37 any change of control, the person desirous of acquiring control of the 38 business of a licensee shall make written application to the superinten- 39 dent and pay an investigation fee as prescribed pursuant to section 40 eighteen-a of this chapter to the superintendent. The application shall 41 contain such information as the superintendent, by regulation, may 42 prescribe as necessary or appropriate for the purpose of making the 43 determination required by subdivision two of this section. 44 2. The superintendent shall approve or disapprove the proposed change 45 of control of a licensee in accordance with the provisions of section 46 seven hundred thirty-eight of this article. 47 3. For a period of six months from the date of qualification thereof 48 and for such additional period of time as the superintendent may 49 prescribe, in writing, the provisions of subdivisions one and two of 50 this section shall not apply to a transfer of control by operation of 51 law to the legal representative, as hereinafter defined, of one who has 52 control of a licensee. Thereafter, such legal representative shall 53 comply with the provisions of subdivisions one and two of this section. 54 The provisions of subdivisions one and two of this section shall be 55 applicable to an application made under such section by a legal repre- 56 sentative.A. 9588--A 4 1 4. The term "legal representative," for the purposes of this section, 2 shall mean one duly appointed by a court of competent jurisdiction to 3 act as executor, administrator, trustee, committee, conservator or 4 receiver, including one who succeeds a legal representative and one 5 acting in an ancillary capacity thereto in accordance with the 6 provisions of such court appointment. 7 5. As used in this section, the term "control" means the possession, 8 directly or indirectly, of the power to direct or cause the direction of 9 the management and policies of a licensee, whether through the ownership 10 of voting stock of such licensee, the ownership of voting stock of any 11 person which possesses such power or otherwise. Control shall be 12 presumed to exist if any person, directly or indirectly, owns, controls 13 or holds with power to vote ten per centum or more of the voting stock 14 of any licensee or of any person which owns, controls or holds with 15 power to vote ten per centum or more of the voting stock of any licen- 16 see, but no person shall be deemed to control a licensee solely by 17 reason of being an officer or director of such licensee or person. The 18 superintendent may in the superintendent's discretion, upon the applica- 19 tion of a licensee or any person who, directly or indirectly, owns, 20 controls or holds with power to vote or seeks to own, control or hold 21 with power to vote any voting stock of such licensee, determine whether 22 or not the ownership, control or holding of such voting stock consti- 23 tutes or would constitute control of such licensee for purposes of this 24 section. 25 § 741. Ground for revocation or suspension of license; procedure. 1. A 26 license granted pursuant to this section may be revoked or suspended by 27 the superintendent upon a finding that: 28 (a) The licensee has violated any applicable law or regulation; 29 (b) Any fact or condition exists which, if it had existed at the time 30 of the original application for such license, clearly would have 31 warranted the superintendent's refusal to issue such license; or 32 (c) The licensee has failed to pay any sum of money lawfully demanded 33 by the superintendent or to comply with any demand, ruling or require- 34 ment of the superintendent. 35 2. Any licensee may surrender any license by delivering to the super- 36 intendent written notice that the licensee thereby surrenders such 37 license. Such surrender shall be effective upon its acceptance by the 38 superintendent, and shall not affect such licensee's civil or criminal 39 liability for acts committed prior to such surrender. 40 3. Every license issued hereunder shall remain in force and effect 41 until the same shall have been surrendered, revoked or suspended, in 42 accordance with the provisions of this article, but the superintendent 43 shall have authority to reinstate suspended licenses or to issue a new 44 license to a licensee whose license has been revoked if no fact or 45 condition then exists which clearly would have warranted the superinten- 46 dent's refusal to issue such license. 47 4. Whenever the superintendent shall revoke or suspend a license 48 issued pursuant to this article, the superintendent shall forthwith 49 execute a written order to that effect, which order may be reviewed in 50 the manner provided by article seventy-eight of the civil practice law 51 and rules. Such special proceeding for review as authorized by this 52 section must be commenced within thirty days from the date of such order 53 of suspension or revocation. 54 5. The superintendent may, for good cause, without notice and a hear- 55 ing, suspend any license issued pursuant to this article for a period 56 not exceeding thirty days, pending investigation. "Good cause," as usedA. 9588--A 5 1 in this subdivision, shall exist only when the licensee has engaged in 2 or is likely to engage in a practice prohibited by this article or the 3 regulations promulgated thereunder or engages in dishonest or inequita- 4 ble practices which may cause substantial harm to the public. 5 § 742. Superintendent authorized to examine. 1. The superintendent 6 shall have the power to make such investigations as the superintendent 7 shall deem necessary to determine whether any buy-now-pay-later lender 8 or any other person has violated any of the provisions of this article 9 or any other applicable law, or whether any licensee has conducted 10 itself in such manner as would justify the revocation of its license, 11 and to the extent necessary therefor, the superintendent may require the 12 attendance of and examine any person under oath, and shall have the 13 power to compel the production of all relevant books, records, accounts, 14 and documents. 15 2. The superintendent shall have the power to make such examinations 16 of the books, records, accounts and documents used in the business of 17 any licensee as the superintendent shall deem necessary to determine 18 whether any such licensee has violated any of the provisions of this 19 chapter or any other applicable law or to secure information lawfully 20 required by the superintendent. 21 § 743. Licensee's books and records; reports. 1. A buy-now-pay-later 22 lender shall keep and use in its business such books, accounts and 23 records as will enable the superintendent to determine whether such 24 buy-now-pay-later lender is complying with the provisions of this arti- 25 cle and with the rules and regulations lawfully made by the superinten- 26 dent hereunder. Every buy-now-pay-later lender shall preserve such 27 books, accounts and records for at least six years after making the 28 final entry in respect to any buy-now-pay-later loan recorded therein; 29 provided, however, the preservation of photographic or digital reprod- 30 uctions thereof or records in photographic or digital form shall consti- 31 tute compliance with this requirement. 32 2. By a date to be set by the superintendent, each licensee shall 33 annually file a report with the superintendent giving such information 34 as the superintendent may require concerning the licensee's business and 35 operations during the preceding calendar year within the state under the 36 authority of this article. Such report shall be subscribed and affirmed 37 as true by the licensee under the penalties of perjury and be in the 38 form prescribed by the superintendent. In addition to such annual 39 reports, the superintendent may require of licensees such additional 40 regular or special reports as the superintendent may deem necessary to 41 the proper supervision of licensees under this article. Such additional 42 reports shall be in the form prescribed by the superintendent and shall 43 be subscribed and affirmed as true under the penalties of perjury. 44 § 744. Acts prohibited. 1. No buy-now-pay-later lender shall take or 45 cause to be taken any confession of judgment or any power of attorney to 46 confess judgment or to appear for the consumer in a judicial proceeding. 47 2. No buy-now-pay-later lender shall make or cause to be made an 48 advertisement for a buy-now-pay-later loan that is false, misleading, or 49 deceptive. 50 § 745. Limitation on charges on buy-now-pay-later loans. Notwith- 51 standing any other provision of law to the contrary, no buy-now-pay-la- 52 ter lender shall charge, contract for, or otherwise receive from a 53 consumer any interest, penalty, late fee, discount or other consider- 54 ation in connection to a buy-now-pay-later loan, whether directly or 55 indirectly.A. 9588--A 6 1 § 746. Consumer protections. 1. Disclosures. A buy-now-pay-later lend- 2 er shall disclose or cause to be disclosed to consumers the terms of 3 buy-now-pay-later loans, including the cost, repayment schedule, and 4 other material conditions, in a clear and conspicuous manner. 5 2. Ability to repay. Subject to regulations to be promulgated by the 6 superintendent, a buy-now-pay-later lender shall, before providing or 7 causing to be provided a buy-now-pay-later loan to a consumer, make, or 8 cause to be made, a reasonable determination that such consumer has the 9 ability to repay the buy-now-pay-later loan. 10 3. Credit reporting prohibition. A buy-now-pay-later lender shall not 11 report any consumer data obtained through a buy-now-pay-later loan to 12 any credit reporting agency. 13 4. Refunds and credits. A buy-now-pay-later lender shall provide or 14 cause to be provided refunds or credits for goods or services purchased 15 in connection with a buy-now-pay-later loan, upon consumer request, as 16 necessary. A buy-now-pay-later lender shall maintain or cause to be 17 maintained policies and procedures to provide such refunds or credits. 18 Such policies and procedures shall be fair, transparent, and not unduly 19 burdensome to the consumer. A buy-now-pay-later lender shall disclose 20 or cause to be disclosed, in a clear and conspicuous manner, such poli- 21 cies and procedures. 22 5. Consumer disputes. A buy-now-pay-later lender shall resolve or 23 cause to be resolved disputes in a manner that is fair and transparent 24 to consumers. A buy-now-pay-later lender shall create or cause to be 25 created a readily available and prominently disclosed method for consum- 26 ers to bring a dispute to the buy-now-pay-later lender. A buy-now-pay- 27 later lender shall maintain policies and procedures for handling consum- 28 er disputes. 29 6. Use of consumer data. A buy-now-pay-later lender shall clearly and 30 conspicuously disclose or cause to be disclosed to a consumer to which 31 it provides a loan how such consumer's data may be used by the buy-now- 32 pay-later lender. The buy-now-pay-later lender shall provide the consum- 33 er the opportunity to provide consent to such collection and use of 34 consumer data, provided that without such consent the buy-now-pay-later 35 lender shall not collect or use such consumer data. The superintendent, 36 in their discretion, may by regulation prohibit certain uses of consumer 37 data if such use poses an undue risk to consumers. 38 7. Unauthorized use. The superintendent may issue rules and regu- 39 lations regarding treatment of unauthorized use, so that consumers are 40 liable for use of buy-now-pay-later loans in their name only under 41 circumstances where such liability would be fair and reasonable. 42 8. Void buy-now-pay-later loans. Any buy-now-pay-later loan made by a 43 person not licensed under this article, other than an exempt organiza- 44 tion, shall be void, and such person shall have no right to collect or 45 receive any principal, interest or charge whatsoever. 46 § 747. Authority of superintendent. The superintendent is authorized 47 to promulgate such general rules and regulations as may be appropriate, 48 in their sole discretion, to implement the provisions of this article, 49 protect consumers, and ensure the solvency and financial integrity of 50 buy-now-pay-later lenders. The superintendent is further authorized to 51 make such specific rulings, demands, and findings as may be necessary 52 for the proper conduct of the business authorized and licensed under and 53 for the enforcement of this article, in addition hereto and not incon- 54 sistent herewith. 55 § 748. Penalties. 1. Any person, including any member, officer, direc- 56 tor or employee of a buy-now-pay-later lender, who violates or partic-A. 9588--A 7 1 ipates in the violation of section seven hundred thirty-seven of this 2 article, or who knowingly makes any incorrect statement of a material 3 fact in any application, report or statement filed pursuant to this 4 article, or who knowingly omits to state any material fact necessary to 5 give the superintendent any information lawfully required by the super- 6 intendent or refuses to permit any lawful investigation or examination, 7 shall be guilty of a misdemeanor and, upon conviction, shall be fined 8 not more than five hundred dollars or imprisoned for not more than six 9 months or both, in the discretion of the court. 10 2. Without limiting any power granted to the superintendent under any 11 other provision of this chapter, the superintendent may, in a proceeding 12 after notice and a hearing require a buy-now-pay-later lender, whether 13 or not a licensee, to pay to the people of this state a penalty for any 14 violation of this chapter, any regulation promulgated thereunder, any 15 final or temporary order issued pursuant to section thirty-nine of this 16 chapter, any condition imposed in writing by the superintendent in 17 connection with the grant of any application or request, or any written 18 agreement entered into with the superintendent, and for knowingly making 19 any incorrect statement of a material fact in any application, report or 20 statement filed pursuant to this article, or knowingly omitting to state 21 any material fact necessary to give the superintendent any information 22 lawfully required by the superintendent or refusing to permit any lawful 23 investigation or examination. As to any buy-now-pay-later lender that is 24 not a licensee or an exempt organization, the superintendent is author- 25 ized to impose a penalty in the same amount authorized in section 26 forty-four of this chapter for a violation of this chapter by any person 27 licensed, certified, registered, authorized, chartered, accredited, 28 incorporated or otherwise approved by the superintendent pursuant to 29 this chapter. 30 3. No buy-now-pay-later lender shall make, directly or indirectly, 31 orally or in writing, or by any method, practice or device, a represen- 32 tation that such buy-now-pay-later lender is licensed under the banking 33 law except that a licensee under this chapter may make a representation 34 that the licensee is licensed as a buy-now-pay-later lender under this 35 chapter. 36 § 749. Severability. If any provision of this article or the applica- 37 tion thereof to any person or circumstances is held to be invalid, such 38 invalidity shall not affect other provisions or applications of this 39 article which can be given effect without the invalid provision or 40 application, and to this end the provisions of this article are severa- 41 ble. 42 § 2. Subdivision 1 of section 36 of the banking law, as amended by 43 chapter 146 of the laws of 1961, is amended to read as follows: 44 1. The superintendent shall have the power to examine every banking 45 organization, every bank holding company and any non-banking subsidiary 46 thereof (as such terms "bank holding company" and "non-banking subsid- 47 iary" are defined in article three-A of this chapter) and every licensed 48 lender and licensed buy-now-pay-later lender at any time prior to its 49 dissolution whenever in his judgment such examination is necessary or 50 advisable. 51 § 3. Subdivision 10 of section 36 of the banking law, as amended by 52 section 2 of part L of chapter 58 of the laws of 2019, is amended to 53 read as follows: 54 10. All reports of examinations and investigations, correspondence and 55 memoranda concerning or arising out of such examination and investi- 56 gations, including any duly authenticated copy or copies thereof in theA. 9588--A 8 1 possession of any banking organization, bank holding company or any 2 subsidiary thereof (as such terms "bank holding company" and "subsid- 3 iary" are defined in article three-A of this chapter), any corporation 4 or any other entity affiliated with a banking organization within the 5 meaning of subdivision six of this section and any non-banking subsid- 6 iary of a corporation or any other entity which is an affiliate of a 7 banking organization within the meaning of subdivision six-a of this 8 section, foreign banking corporation, licensed lender, licensed buy-now- 9 pay-later lender, licensed casher of checks, licensed mortgage banker, 10 registered mortgage broker, licensed mortgage loan originator, licensed 11 sales finance company, registered mortgage loan servicer, licensed 12 student loan servicer, licensed insurance premium finance agency, 13 licensed transmitter of money, licensed budget planner, any other person 14 or entity subject to supervision under this chapter, or the department, 15 shall be confidential communications, shall not be subject to subpoena 16 and shall not be made public unless, in the judgment of the superinten- 17 dent, the ends of justice and the public advantage will be subserved by 18 the publication thereof, in which event the superintendent may publish 19 or authorize the publication of a copy of any such report or any part 20 thereof in such manner as may be deemed proper or unless such laws 21 specifically authorize such disclosure. For the purposes of this subdi- 22 vision, "reports of examinations and investigations, and any correspond- 23 ence and memoranda concerning or arising out of such examinations and 24 investigations", includes any such materials of a bank, insurance or 25 securities regulatory agency or any unit of the federal government or 26 that of this state any other state or that of any foreign government 27 which are considered confidential by such agency or unit and which are 28 in the possession of the department or which are otherwise confidential 29 materials that have been shared by the department with any such agency 30 or unit and are in the possession of such agency or unit. 31 § 4. Subdivisions 3 and 5 of section 37 of the banking law, as amended 32 by chapter 360 of the laws of 1984, are amended to read as follows: 33 3. In addition to any reports expressly required by this chapter to be 34 made, the superintendent may require any banking organization, licensed 35 lender, licensed buy-now-pay-later lender, licensed casher of checks, 36 licensed mortgage banker, foreign banking corporation licensed by the 37 superintendent to do business in this state, bank holding company and 38 any non-banking subsidiary thereof, corporate affiliate of a corporate 39 banking organization within the meaning of subdivision six of section 40 thirty-six of this article and any non-banking subsidiary of a corpo- 41 ration which is an affiliate of a corporate banking organization within 42 the meaning of subdivision six-a of section thirty-six of this article 43 to make special reports to him at such times as he may prescribe. 44 5. The superintendent may extend at his discretion the time within 45 which a banking organization, foreign banking corporation licensed by 46 the superintendent to do business in this state, bank holding company or 47 any non-banking subsidiary thereof, licensed casher of checks, licensed 48 mortgage banker, private banker, licensed buy-now-pay-later lender or 49 licensed lender is required to make and file any report to the super- 50 intendent. 51 § 5. Section 39 of the banking law, as amended by section 3 of part L 52 of chapter 58 of the laws of 2019, is amended to read as follows: 53 § 39. Orders of superintendent. 1. To appear and explain an apparent 54 violation. Whenever it shall appear to the superintendent that any bank- 55 ing organization, bank holding company, registered mortgage broker, 56 licensed mortgage banker, licensed student loan servicer, registeredA. 9588--A 9 1 mortgage loan servicer, licensed mortgage loan originator, licensed 2 lender, licensed buy-now-pay-later lender, licensed casher of checks, 3 licensed sales finance company, licensed insurance premium finance agen- 4 cy, licensed transmitter of money, licensed budget planner, out-of-state 5 state bank that maintains a branch or branches or representative or 6 other offices in this state, or foreign banking corporation licensed by 7 the superintendent to do business or maintain a representative office in 8 this state has violated any law or regulation, he or she may, in his or 9 her discretion, issue an order describing such apparent violation and 10 requiring such banking organization, bank holding company, registered 11 mortgage broker, licensed mortgage banker, licensed student loan servi- 12 cer, licensed mortgage loan originator, licensed lender, licensed buy- 13 now-pay-later lender, licensed casher of checks, licensed sales finance 14 company, licensed insurance premium finance agency, licensed transmitter 15 of money, licensed budget planner, out-of-state state bank that main- 16 tains a branch or branches or representative or other offices in this 17 state, or foreign banking corporation to appear before him or her, at a 18 time and place fixed in said order, to present an explanation of such 19 apparent violation. 20 2. To discontinue unauthorized or unsafe and unsound practices. When- 21 ever it shall appear to the superintendent that any banking organiza- 22 tion, bank holding company, registered mortgage broker, licensed mort- 23 gage banker, licensed student loan servicer, registered mortgage loan 24 servicer, licensed mortgage loan originator, licensed lender, licensed 25 buy-now-pay-later lender, licensed casher of checks, licensed sales 26 finance company, licensed insurance premium finance agency, licensed 27 transmitter of money, licensed budget planner, out-of-state state bank 28 that maintains a branch or branches or representative or other offices 29 in this state, or foreign banking corporation licensed by the super- 30 intendent to do business in this state is conducting business in an 31 unauthorized or unsafe and unsound manner, he or she may, in his or her 32 discretion, issue an order directing the discontinuance of such unau- 33 thorized or unsafe and unsound practices, and fixing a time and place at 34 which such banking organization, bank holding company, registered mort- 35 gage broker, licensed mortgage banker, licensed student loan servicer, 36 registered mortgage loan servicer, licensed mortgage loan originator, 37 licensed lender, licensed buy-now-pay-later lender, licensed casher of 38 checks, licensed sales finance company, licensed insurance premium 39 finance agency, licensed transmitter of money, licensed budget planner, 40 out-of-state state bank that maintains a branch or branches or represen- 41 tative or other offices in this state, or foreign banking corporation 42 may voluntarily appear before him or her to present any explanation in 43 defense of the practices directed in said order to be discontinued. 44 3. To make good impairment of capital or to ensure compliance with 45 financial requirements. Whenever it shall appear to the superintendent 46 that the capital or capital stock of any banking organization, bank 47 holding company or any subsidiary thereof which is organized, licensed 48 or registered pursuant to this chapter, is impaired, or the financial 49 requirements imposed by subdivision one of section two hundred two-b of 50 this chapter or any regulation of the superintendent on any branch or 51 agency of a foreign banking corporation or the financial requirements 52 imposed by this chapter or any regulation of the superintendent on any 53 licensed lender, licensed buy-now-pay-later lender, registered mortgage 54 broker, licensed mortgage banker, licensed student loan servicer, 55 licensed casher of checks, licensed sales finance company, licensed 56 insurance premium finance agency, licensed transmitter of money,A. 9588--A 10 1 licensed budget planner or private banker are not satisfied, the super- 2 intendent may, in the superintendent's discretion, issue an order 3 directing that such banking organization, bank holding company, branch 4 or agency of a foreign banking corporation, registered mortgage broker, 5 licensed mortgage banker, licensed student loan servicer, licensed lend- 6 er, licensed buy-now-pay-later lender, licensed casher of checks, 7 licensed sales finance company, licensed insurance premium finance agen- 8 cy, licensed transmitter of money, licensed budget planner, or private 9 banker make good such deficiency forthwith or within a time specified in 10 such order. 11 4. To make good encroachments on reserves. Whenever it shall appear to 12 the superintendent that either the total reserves or reserves on hand of 13 any banking organization, branch or agency of a foreign banking corpo- 14 ration are below the amount required by or pursuant to this chapter or 15 any other applicable provision of law or regulation to be maintained, or 16 that such banking organization, branch or agency of a foreign banking 17 corporation is not keeping its reserves on hand as required by this 18 chapter or any other applicable provision of law or regulation, he or 19 she may, in his or her discretion, issue an order directing that such 20 banking organization, branch or agency of a foreign banking corporation 21 make good such reserves forthwith or within a time specified in such 22 order, or that it keep its reserves on hand as required by this chapter. 23 5. To keep books and accounts as prescribed. Whenever it shall appear 24 to the superintendent that any banking organization, bank holding compa- 25 ny, registered mortgage broker, licensed mortgage banker, licensed 26 student loan servicer, registered mortgage loan servicer, licensed mort- 27 gage loan originator, licensed lender, licensed buy-now-pay-later lend- 28 er, licensed casher of checks, licensed sales finance company, licensed 29 insurance premium finance agency, licensed transmitter of money, 30 licensed budget planner, agency or branch of a foreign banking corpo- 31 ration licensed by the superintendent to do business in this state, does 32 not keep its books and accounts in such manner as to enable him or her 33 to readily ascertain its true condition, he or she may, in his or her 34 discretion, issue an order requiring such banking organization, bank 35 holding company, registered mortgage broker, licensed mortgage banker, 36 licensed student loan servicer, registered mortgage loan servicer, 37 licensed mortgage loan originator, licensed lender, licensed buy-now- 38 pay-later lender, licensed casher of checks, licensed sales finance 39 company, licensed insurance premium finance agency, licensed transmitter 40 of money, licensed budget planner, or foreign banking corporation, or 41 the officers or agents thereof, or any of them, to open and keep such 42 books or accounts as he or she may, in his or her discretion, determine 43 and prescribe for the purpose of keeping accurate and convenient records 44 of its transactions and accounts. 45 6. As used in this section, "bank holding company" shall have the same 46 meaning as that term is defined in section one hundred forty-one of this 47 chapter. 48 § 6. Subdivision 1 of section 42 of the banking law, as amended by 49 chapter 65 of the laws of 1948, is amended to read as follows: 50 1. The name and the location of the principal office of every proposed 51 corporation, private banker, licensed lender, licensed buy-now-pay-later 52 lender and licensed casher of checks, the organization certificate, 53 private banker's certificate or application for license of which has 54 been filed for examination, and the date of such filing. 55 § 7. Subdivision 2 of section 42 of the banking law, as amended by 56 chapter 553 of the laws of 1960, is amended to read as follows:A. 9588--A 11 1 2. The name and location of every licensed lender, licensed buy-now- 2 pay-later lender and licensed casher of checks, and the name, location, 3 amount of capital stock or permanent capital and amount of surplus of 4 every corporation and private banker and the minimum assets required of 5 every branch of a foreign banking corporation authorized to commence 6 business, and the date of authorization or licensing. 7 § 8. Subdivision 3 of section 42 of the banking law, as amended by 8 chapter 553 of the laws of 1960, is amended to read as follows: 9 3. The name of every proposed corporation, private banker, branch of a 10 foreign banking corporation, licensed lender, licensed buy-now-pay-later 11 lender and licensed casher of checks to which a certificate of authori- 12 zation or a license has been refused and the date of notice of refusal. 13 § 9. Subdivision 4 of section 42 of the banking law, as amended by 14 chapter 60 of the laws of 1957, is amended to read as follows: 15 4. The name and location of every private banker, licensed lender, 16 licensed casher of checks, sales finance company, licensed buy-now-pay- 17 later lender and foreign corporation the authorization certificate or 18 license of which has been revoked, and the date of such revocation. 19 § 10. Subdivision 5 of section 42 of the banking law, as amended by 20 chapter 249 of the laws of 1968, is amended to read as follows: 21 5. The name of every banking organization, licensed lender, licensed 22 casher of checks, licensed buy-now-pay-later lender and foreign corpo- 23 ration which has applied for leave to change its place or one of its 24 places of business and the places from and to which the change is 25 proposed to be made; the name of every banking organization which has 26 applied to change the designation of its principal office to a branch 27 office and to change the designation of one of its branch offices to its 28 principal office, and the location of the principal office which is 29 proposed to be redesignated as a branch office and of the branch office 30 which is proposed to be redesignated as the principal office. 31 § 11. Subdivision 6 of section 42 of the banking law, as amended by 32 chapter 249 of the laws of 1968, is amended to read as follows: 33 6. The name of every banking organization, licensed lender, licensed 34 casher of checks, licensed buy-now-pay-later lender and foreign corpo- 35 ration authorized to change its place or one of its places of business 36 and the date when and the places from and to which the change is author- 37 ized to be made; the name of every banking organization authorized to 38 change the designation of its principal office to a branch office and to 39 change the designation of a branch office to its principal office, the 40 location of the redesignated principal office and of the redesignated 41 branch office, and the date of such change. 42 § 12. Paragraph (a) of subdivision 1 of section 44 of the banking law, 43 as amended by section 4 of part L of chapter 58 of the laws of 2019, is 44 amended to read as follows: 45 (a) Without limiting any power granted to the superintendent under any 46 other provision of this chapter, the superintendent may, in a proceeding 47 after notice and a hearing, require any safe deposit company, licensed 48 lender, licensed buy-now-pay-later lender, licensed casher of checks, 49 licensed sales finance company, licensed insurance premium finance agen- 50 cy, licensed transmitter of money, licensed mortgage banker, licensed 51 student loan servicer, registered mortgage broker, licensed mortgage 52 loan originator, registered mortgage loan servicer or licensed budget 53 planner to pay to the people of this state a penalty for any violation 54 of this chapter, any regulation promulgated thereunder, any final or 55 temporary order issued pursuant to section thirty-nine of this article, 56 any condition imposed in writing by the superintendent in connectionA. 9588--A 12 1 with the grant of any application or request, or any written agreement 2 entered into with the superintendent. 3 § 13. This act shall take effect one year after it shall have become a 4 law. Effective immediately, the addition, amendment and/or repeal of 5 any rule or regulation authorized to be made by the superintendent 6 pursuant to this act is authorized to be made and completed on or before 7 such effective date.
