Bill Text: NY S00703 | 2013-2014 | General Assembly | Introduced

---

Bill Title: Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO BANKS [S00703 Detail]

Download: New_York-2013-S00703-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          703
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Banks
       AN ACT to amend the banking law, in relation to mail-loan checks
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivisions 2 and 3 of section 9-t of the banking law, as
    2  added by chapter 309 of the laws of 2002, are amended and a new subdivi-
    3  sion 4 is added to read as follows:
    4    2. Any lending institution which issues mail-loan checks shall:
    5    (a) include on the face of each check issued to a non-customer a writ-
    6  ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
    7  ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
    8  ing or accepting a mail-loan check for deposit may require more than one
    9  form of identification;
   10    (b) make no reference on the outside  of  the  envelope  containing  a
   11  mail-loan  check  that  indicates  that  a check is enclosed within such
   12  envelope;
   13    (c) provide that all mail-loan checks shall be non-transferable; and
   14    (d) include THE TRANSACTION FEE AND INTEREST RATE  AND  an  expiration
   15  date  of not more than six months on the mail-loan check, AS WELL AS ANY
   16  ADDITIONAL INFORMATION THAT THE SUPERINTENDENT MAY REQUIRE.
   17    3. NO LENDING INSTITUTION SHALL ISSUE A  MAIL-LOAN  CHECK,  EXCEPT  IN
   18  RESPONSE TO A REQUEST OR APPLICATION THEREFOR.
   19    4. FAILURE TO DESTROY OR RETURN A MAIL-LOAN CHECK SHALL NOT CONSTITUTE
   20  ACCEPTANCE OF THE CHECK.
   21    5.  Any lending institution which mails a mail-loan check in violation
   22  of the provisions of this section shall be liable for  a  civil  penalty
   23  not to exceed five hundred dollars for each such violation.
   24    S 2. This act shall take effect on the one hundred twentieth day after
   25  it shall have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00560-01-3