Bill Text: NY S09689 | 2023-2024 | General Assembly | Introduced
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 1-0)
Status: (Introduced) 2024-05-21 - REFERRED TO BANKS [S09689 Detail]
Download: New_York-2023-S09689-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9689 IN SENATE May 21, 2024 ___________ Introduced by Sen. SANDERS -- 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 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. Grounds 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". 24 § 736. Definitions. As used in this article, the following terms shall 25 have the following meanings: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15022-04-4S. 9689 2 1 1. "Consumer" means an individual who is a resident of the state of 2 New York. 3 2. "Buy-now-pay-later loan" means credit provided to a consumer at the 4 time of purchase in connection with such consumer's particular purchase 5 of goods or services, other than a motor vehicle as defined under 6 section one hundred twenty-five of the vehicle and traffic law, that 7 requires repayment of the principal in a fixed number of substantially 8 equal installments with no interest. 9 3. "Buy-now-pay-later lender" means a person who offers buy-now-pay- 10 later loans in this state. For purposes of the preceding sentence, 11 "offer" means offering to extend credit through a buy-now-pay-later loan 12 directly to a consumer at the time of purchase or operating a platform, 13 software, or to operate a system with which a consumer interacts and the 14 primary purpose of which is to allow third parties to offer buy-now-pay- 15 later loans, or both. A person who sells goods or services to a consumer 16 and extends credit to such consumer in connection with such consumer's 17 particular purchase of such goods or services shall not be considered a 18 buy-now-pay-later lender with respect to such transactions. A person 19 shall not be considered a buy-now-pay-later lender on the basis of 20 isolated, incidental or occasional transactions which otherwise meet the 21 definitions of this section. 22 4. "Exempt organization" means any banking organization or foreign 23 banking corporation licensed by the superintendent or the comptroller of 24 the currency to transact business in this state, national bank, federal 25 savings bank, federal savings and loan association, or federal credit 26 union organized under the laws of any other state. Subject to such 27 regulations as may be promulgated by the superintendent, "exempt organ- 28 ization" may also include any subsidiary of such entities. 29 5. "Licensee" means a person who has been issued a license pursuant to 30 this article. 31 6. "Person" means an individual, partnership, corporation, association 32 or any other business organization. 33 § 737. License. 1. No person or other entity, except an exempt organ- 34 ization as defined in this article, shall engage in the business of 35 making buy-now-pay-later loans without first obtaining a buy-now-pay-la- 36 ter lender 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, including financial 48 statements, noting such capitalization requirements and access to such 49 credit or such other affirmation or information as may be prescribed by 50 the regulations of the superintendent. 51 § 738. Conditions precedent to issuing a license; procedure where 52 application is denied. 1. After the filing of an application for a 53 license accompanied by payment of the fee pursuant to subdivision three 54 of section seven hundred thirty-seven of this article, it shall be 55 substantively reviewed. After the application is deemed sufficient and 56 complete, if the superintendent finds that the financial responsibility,S. 9689 3 1 including meeting any capital requirements as established pursuant to 2 subdivision three of this section, experience, character and general 3 fitness of the applicant or any person associated with the applicant are 4 such as to command the confidence of the community and to warrant the 5 belief that the business will be conducted honestly, fairly and effi- 6 ciently within the purposes and intent of this article, the superinten- 7 dent shall issue the license. For the purpose of this subdivision, the 8 applicant shall be deemed to include all the members of the applicant if 9 it is a partnership or unincorporated association or organization, and 10 all the stockholders, officers and directors of the applicant if it is a 11 corporation. 12 2. If the superintendent refuses to issue a license, the superinten- 13 dent shall notify the applicant of the denial and retain the fee paid 14 pursuant to subdivision three of section seven hundred thirty-seven of 15 this article. 16 3. The superintendent may issue regulations setting capital require- 17 ments to ensure the solvency and financial integrity of licensees and 18 their ongoing operations, taking into account the risks, volume of busi- 19 ness, complexity, and other relevant factors regarding such licensees. 20 Further, the superintendent may issue rules and regulations prescribing 21 a methodology to calculate capital requirements with respect to licen- 22 sees or categories thereof. 23 § 739. License provisions and posting. 1. A license issued under this 24 article shall state the name and address of the licensee, and if the 25 licensee be a co-partnership or association, the names of the members 26 thereof, and if a corporation the date and place of its incorporation. 27 2. Such license shall be kept conspicuously posted on the mobile 28 application, website, or other consumer interface of the licensee, as 29 well as listed in the terms and conditions of any buy-now-pay-later loan 30 offered or entered into by the licensee. The superintendent may provide 31 by regulation an alternative form of notice of licensure. 32 3. A license issued under this article shall not be transferable or 33 assignable. 34 § 740. Application for acquisition of control of buy-now-pay-later 35 lender by purchase of stock. 1. It shall be unlawful except with the 36 prior approval of the superintendent for any action to be taken which 37 results in a change of control of the business of a licensee. Prior to 38 any change of control, the person desirous of acquiring control of the 39 business of a licensee shall make written application to the superinten- 40 dent and pay an investigation fee as prescribed pursuant to section 41 eighteen-a of this chapter to the superintendent. The application shall 42 contain such information as the superintendent, by regulation, may 43 prescribe as necessary or appropriate for the purpose of making the 44 determination required by subdivision two of this section. 45 2. The superintendent shall approve or disapprove the proposed change 46 of control of a licensee in accordance with the provisions of section 47 seven hundred thirty-eight of this article. 48 3. For a period of six months from the date of qualification thereof 49 and for such additional period of time as the superintendent may 50 prescribe, in writing, the provisions of subdivisions one and two of 51 this section shall not apply to a transfer of control by operation of 52 law to the legal representative, as hereinafter defined, of one who has 53 control of a licensee. Thereafter, such legal representative shall 54 comply with the provisions of subdivisions one and two of this section. 55 The provisions of subdivisions one and two of this section shall beS. 9689 4 1 applicable to an application made under such section by a legal repre- 2 sentative. 3 4. The term "legal representative," for the purposes of this section, 4 shall mean one duly appointed by a court of competent jurisdiction to 5 act as executor, administrator, trustee, committee, conservator or 6 receiver, including one who succeeds a legal representative and one 7 acting in an ancillary capacity thereto in accordance with the 8 provisions of such court appointment. 9 5. As used in this section, the term "control" means the possession, 10 directly or indirectly, of the power to direct or cause the direction of 11 the management and policies of a licensee, whether through the ownership 12 of voting stock of such licensee, the ownership of voting stock of any 13 person which possesses such power or otherwise. Control shall be 14 presumed to exist if any person, directly or indirectly, owns, controls 15 or holds with power to vote ten per centum or more of the voting stock 16 of any licensee or of any person which owns, controls or holds with 17 power to vote ten per centum or more of the voting stock of any licen- 18 see, but no person shall be deemed to control a licensee solely by 19 reason of being an officer or director of such licensee or person. The 20 superintendent may in the superintendent's discretion, upon the applica- 21 tion of a licensee or any person who, directly or indirectly, owns, 22 controls or holds with power to vote or seeks to own, control or hold 23 with power to vote any voting stock of such licensee, determine whether 24 or not the ownership, control or holding of such voting stock consti- 25 tutes or would constitute control of such licensee for purposes of this 26 section. 27 § 741. Grounds for revocation or suspension of license; procedure. 1. 28 A license granted pursuant to this section may be revoked or suspended 29 by the superintendent upon a finding that: 30 (a) The licensee has violated any applicable law or regulation; 31 (b) Any fact or condition exists which, if it had existed at the time 32 of the original application for such license, clearly would have 33 warranted the superintendent's refusal to issue such license; or 34 (c) The licensee has failed to pay any sum of money lawfully demanded 35 by the superintendent or to comply with any demand, ruling or require- 36 ment of the superintendent. 37 2. Any licensee may surrender any license by delivering to the super- 38 intendent written notice that the licensee thereby surrenders such 39 license. Such surrender shall be effective upon its acceptance by the 40 superintendent, and shall not affect such licensee's civil or criminal 41 liability for acts committed prior to such surrender. 42 3. Every license issued hereunder shall remain in force and effect 43 until the same shall have been surrendered, revoked or suspended, in 44 accordance with the provisions of this article, but the superintendent 45 shall have authority to reinstate suspended licenses or to issue a new 46 license to a licensee whose license has been revoked if no fact or 47 condition then exists which clearly would have warranted the superinten- 48 dent's refusal to issue such license. 49 4. Whenever the superintendent shall revoke or suspend a license 50 issued pursuant to this article, the superintendent shall forthwith 51 execute a written order to that effect, which order may be reviewed in 52 the manner provided by article seventy-eight of the civil practice law 53 and rules. Such special proceeding for review as authorized by this 54 section must be commenced within thirty days from the date of such order 55 of suspension or revocation.S. 9689 5 1 5. The superintendent may, for good cause, without notice and a hear- 2 ing, suspend any license issued pursuant to this article for a period 3 not exceeding thirty days, pending investigation. "Good cause," as used 4 in this subdivision, shall exist only when the licensee has engaged in 5 or is likely to engage in a practice prohibited by this article or the 6 regulations promulgated thereunder or engages in dishonest or inequita- 7 ble practices which may cause substantial harm to the public. 8 6. No revocation, suspension or surrender of any license shall impair 9 or affect the obligation of any pre-existing lawful contracts between 10 the licensee and any borrower. 11 § 742. Superintendent authorized to examine. 1. The superintendent 12 shall have the power to make such investigations as the superintendent 13 shall deem necessary to determine whether any buy-now-pay-later lender 14 or any other person has violated any of the provisions of this article 15 or any other applicable law, or whether any licensee has conducted 16 itself in such manner as would justify the revocation of its license, 17 and to the extent necessary therefor, the superintendent may require the 18 attendance of and examine any person under oath, and shall have the 19 power to compel the production of all relevant books, records, accounts, 20 and documents. 21 2. The superintendent shall have the power to make such examinations 22 of the books, records, accounts and documents used in the business of 23 any licensee as the superintendent shall deem necessary to determine 24 whether any such licensee has violated any of the provisions of this 25 chapter or any other applicable law or to secure information lawfully 26 required by the superintendent. 27 § 743. Licensee's books and records; reports. 1. A buy-now-pay-later 28 lender shall keep and use in its business such books, accounts and 29 records as will enable the superintendent to determine whether such 30 buy-now-pay-later lender is complying with the provisions of this arti- 31 cle and with the rules and regulations lawfully made by the superinten- 32 dent hereunder. Every buy-now-pay-later lender shall preserve such 33 books, accounts and records for at least six years after making the 34 final entry in respect to any buy-now-pay-later loan recorded therein; 35 provided, however, the preservation of photographic or digital reprod- 36 uctions thereof or records in photographic or digital form shall consti- 37 tute compliance with this requirement. 38 2. By a date to be set by the superintendent, each licensee shall 39 annually file a report with the superintendent giving such information 40 as the superintendent may require concerning the licensee's business and 41 operations during the preceding calendar year within the state under the 42 authority of this article. Such report shall be subscribed and affirmed 43 as true by the licensee under the penalties of perjury and be in the 44 form prescribed by the superintendent. In addition to such annual 45 reports, the superintendent may require of licensees such additional 46 regular or special reports as the superintendent may deem necessary to 47 the proper supervision of licensees under this article. Such additional 48 reports shall be in the form prescribed by the superintendent and shall 49 be subscribed and affirmed as true under the penalties of perjury. 50 § 744. Acts prohibited. 1. No buy-now-pay-later lender shall take or 51 cause to be taken any confession of judgment or any power of attorney to 52 confess judgment or to appear for the consumer in a judicial proceeding. 53 2. No buy-now-pay-later lender shall: 54 (a) Employ any scheme, device, or artifice to defraud or mislead a 55 borrower;S. 9689 6 1 (b) Engage in any unfair, deceptive or predatory act or practice 2 toward any person or misrepresent or omit any material information in 3 connection with the buy-now-pay-later loans, including, but not limited 4 to, misrepresenting the amount, nature or terms of any fee or payment 5 due or claimed to be due on the loan, the terms and conditions of the 6 loan agreement or the borrower's obligations under the loan; 7 (c) Misapply payments to the outstanding balance of any buy-now-pay- 8 later loan or to any related fees; 9 (d) Provide inaccurate information to a consumer reporting agency; or 10 (e) Make any false statement or make any omission of a material fact 11 in connection with any information or reports filed with a governmental 12 agency or in connection with any investigation conducted by the super- 13 intendent or another governmental agency. 14 § 745. Limitation on charges on buy-now-pay-later loans. 1. Notwith- 15 standing any other provision of law to the contrary, no buy-now-pay-la- 16 ter lender shall charge, contract for, or otherwise receive from a 17 consumer any interest, penalty, late fee, discount or other consider- 18 ation in connection to a buy-now-pay-later loan, whether directly or 19 indirectly, except as provided in this section. 20 2. The superintendent shall establish a standard amount or percentage 21 for total maximum charge or fee in connection with late payment, default 22 or any other violation of the buy-now-pay-later loan agreement that a 23 buy-now-pay-later lender can charge a consumer. Such fee or charge shall 24 not be collected more than once for the same violation. 25 3. Any transaction fee charged to the consumer by or on behalf of a 26 buy-now-pay-later lender shall be limited to reasonable and actual costs 27 of processing and executing the transaction. 28 § 746. Consumer protections. 1. Disclosures. A buy-now-pay-later lend- 29 er shall disclose or cause to be disclosed to consumers the terms of 30 buy-now-pay-later loans, including the cost, repayment schedule, whether 31 the transaction will or will not be reported to a credit reporting agen- 32 cy, and other material conditions, in a clear and conspicuous manner. 33 Disclosures shall comply with applicable federal regulations, including 34 but not limited to regulation Z of title I of the Consumer Credit 35 Protection Act. 36 2. Ability to repay. Subject to regulations to be promulgated by the 37 superintendent, a buy-now-pay-later lender shall, before providing or 38 causing to be provided a buy-now-pay-later loan to a consumer, make, or 39 cause to be made, a reasonable determination that such consumer has the 40 ability to repay the buy-now-pay-later loan. 41 3. Credit reporting. A buy-now-pay-later lender shall not report any 42 consumer data obtained through a buy-now-pay-later loan to any credit 43 reporting agency except as authorized in regulations promulgated by the 44 superintendent and in the form and manner prescribed therein. The super- 45 intendent, in consultation with the director of the division of consumer 46 protection, shall establish provisions regarding the use of such data by 47 the credit reporting agencies. No licensee shall collect, evaluate, 48 report, or maintain in the file on a borrower the credit worthiness, 49 credit standing, or credit capacity of members of the borrower's social 50 network for purposes of determining the credit worthiness of the borrow- 51 er; the average credit worthiness, credit standing, or credit capacity 52 of members of the borrower's social network; or any group score that is 53 not the borrower's own credit worthiness, credit standing, or credit 54 capacity. 55 4. Refunds and credits. A buy-now-pay-later lender shall provide or 56 cause to be provided refunds or credits for goods or services purchasedS. 9689 7 1 in connection with a buy-now-pay-later loan, upon consumer request, as 2 necessary. A buy-now-pay-later lender shall maintain or cause to be 3 maintained policies and procedures to provide such refunds or credits. 4 Such policies and procedures shall be fair, transparent, and not unduly 5 burdensome to the consumer. A buy-now-pay-later lender shall disclose 6 or cause to be disclosed, in a clear and conspicuous manner, such poli- 7 cies and procedures. 8 5. Consumer disputes. A buy-now-pay-later lender shall resolve or 9 cause to be resolved disputes in a manner that is fair and transparent 10 to consumers. A buy-now-pay-later lender shall create or cause to be 11 created a readily available and prominently disclosed method for consum- 12 ers to bring a dispute to the buy-now-pay-later lender. A buy-now-pay- 13 later lender shall maintain policies and procedures for handling consum- 14 er disputes. 15 6. Use of consumer data. A buy-now-pay-later lender shall clearly and 16 conspicuously disclose or cause to be disclosed to a consumer to which 17 it provides a loan how such consumer's data may be used, shared or sold 18 by the buy-now-pay-later lender. In addition to any other consent or 19 privacy requirements in law, the buy-now-pay-later lender shall provide 20 the consumer the opportunity to provide affirmative consent to such 21 collection, sale, sharing, and use of consumer data, provided that with- 22 out such consent the buy-now-pay-later lender shall not collect, sell, 23 share, or use such consumer data. The superintendent, in their 24 discretion, may by regulation prohibit certain uses of consumer data. 25 7. Unauthorized use. The superintendent may issue rules and regu- 26 lations regarding treatment of unauthorized use, so that consumers are 27 liable for use of buy-now-pay-later loans in their name only under 28 circumstances where such liability would be fair and reasonable. 29 8. Void buy-now-pay-later loans. Any buy-now-pay-later loan made by a 30 person not licensed under this article, other than an exempt organiza- 31 tion, shall be void, and such person shall have no right to collect or 32 receive any principal, interest or charge whatsoever. 33 § 747. Authority of superintendent. 1. The superintendent is author- 34 ized to promulgate such general rules and regulations as may be appro- 35 priate to implement the provisions of this article, protect consumers, 36 and ensure the solvency and financial integrity of buy-now-pay-later 37 lenders. The superintendent is further authorized to make such specific 38 rulings, demands, and findings as may be necessary for the proper 39 conduct of the business authorized and licensed under and for the 40 enforcement of this article, in addition hereto and not inconsistent 41 herewith. 42 2. In addition to such powers as may otherwise be prescribed by law, 43 the superintendent is hereby authorized and empowered to promulgate such 44 rules and regulations as may in the judgment of the superintendent be 45 consistent with the purposes of this article, or appropriate for the 46 effective administration of this article, including, but not limited to: 47 (a) Such rules and regulations in connection with the activities of 48 buy-now-pay-later lenders as may be necessary and appropriate for the 49 protection of borrowers in this state; 50 (b) Such rules and regulations as may be necessary and appropriate to 51 define unfair, deceptive, or abusive acts or practices in connection 52 with the activities of buy-now-pay-later lenders; 53 (c) Such rules and regulations as may define the terms used in this 54 article and as may be necessary and appropriate to interpret and imple- 55 ment the provisions of this article; andS. 9689 8 1 (d) Such rules and regulations as may be necessary for the enforcement 2 of this article. 3 § 748. Penalties. 1. Any person, including any member, officer, direc- 4 tor or employee of a buy-now-pay-later lender, who violates or partic- 5 ipates in the violation of section seven hundred thirty-seven of this 6 article, or who knowingly makes any incorrect statement of a material 7 fact in any application, report or statement filed pursuant to this 8 article, or who knowingly omits to state any material fact necessary to 9 give the superintendent any information lawfully required by the super- 10 intendent or refuses to permit any lawful investigation or examination, 11 shall be guilty of a misdemeanor and, upon conviction, shall be fined 12 not more than five hundred dollars or imprisoned for not more than six 13 months or both, in the discretion of the court. 14 2. Without limiting any power granted to the superintendent under any 15 other provision of this chapter, the superintendent may, in a proceeding 16 after notice and a hearing require a buy-now-pay-later lender, whether 17 or not a licensee, to pay to the people of this state a penalty for any 18 violation of this chapter, any regulation promulgated thereunder, any 19 final or temporary order issued pursuant to section thirty-nine of this 20 chapter, any condition imposed in writing by the superintendent in 21 connection with the grant of any application or request, or any written 22 agreement entered into with the superintendent, and for knowingly making 23 any incorrect statement of a material fact in any application, report or 24 statement filed pursuant to this article, or knowingly omitting to state 25 any material fact necessary to give the superintendent any information 26 lawfully required by the superintendent or refusing to permit any lawful 27 investigation or examination. As to any buy-now-pay-later lender that is 28 not a licensee or an exempt organization, the superintendent is author- 29 ized to impose a penalty in the same amount authorized in section 30 forty-four of this chapter for a violation of this chapter by any person 31 licensed, certified, registered, authorized, chartered, accredited, 32 incorporated or otherwise approved by the superintendent pursuant to 33 this chapter. 34 3. No person shall make, directly or indirectly, orally or in writing, 35 or by any method, practice or device, a representation that such person 36 is licensed under the banking law except that a licensee under this 37 chapter may make a representation that the licensee is licensed as a 38 buy-now-pay-later lender under this chapter. 39 § 749. Severability. If any provision of this article or the applica- 40 tion thereof to any person or circumstances is held to be invalid, such 41 invalidity shall not affect other provisions or applications of this 42 article which can be given effect without the invalid provision or 43 application, and to this end the provisions of this article are severa- 44 ble. 45 § 2. Subdivision 1 of section 36 of the banking law, as amended by 46 chapter 146 of the laws of 1961, is amended to read as follows: 47 1. The superintendent shall have the power to examine every banking 48 organization, every bank holding company and any non-banking subsidiary 49 thereof (as such terms "bank holding company" and "non-banking subsid- 50 iary" are defined in article three-A of this chapter) and every licensed 51 lender and licensed buy-now-pay-later lender at any time prior to its 52 dissolution whenever in his judgment such examination is necessary or 53 advisable. 54 § 3. Subdivision 10 of section 36 of the banking law, as amended by 55 section 2 of part L of chapter 58 of the laws of 2019, is amended to 56 read as follows:S. 9689 9 1 10. All reports of examinations and investigations, correspondence and 2 memoranda concerning or arising out of such examination and investi- 3 gations, including any duly authenticated copy or copies thereof in the 4 possession of any banking organization, bank holding company or any 5 subsidiary thereof (as such terms "bank holding company" and "subsid- 6 iary" are defined in article three-A of this chapter), any corporation 7 or any other entity affiliated with a banking organization within the 8 meaning of subdivision six of this section and any non-banking subsid- 9 iary of a corporation or any other entity which is an affiliate of a 10 banking organization within the meaning of subdivision six-a of this 11 section, foreign banking corporation, licensed lender, licensed buy-now- 12 pay-later lender, licensed casher of checks, licensed mortgage banker, 13 registered mortgage broker, licensed mortgage loan originator, licensed 14 sales finance company, registered mortgage loan servicer, licensed 15 student loan servicer, licensed insurance premium finance agency, 16 licensed transmitter of money, licensed budget planner, any other person 17 or entity subject to supervision under this chapter, or the department, 18 shall be confidential communications, shall not be subject to subpoena 19 and shall not be made public unless, in the judgment of the superinten- 20 dent, the ends of justice and the public advantage will be subserved by 21 the publication thereof, in which event the superintendent may publish 22 or authorize the publication of a copy of any such report or any part 23 thereof in such manner as may be deemed proper or unless such laws 24 specifically authorize such disclosure. For the purposes of this subdi- 25 vision, "reports of examinations and investigations, and any correspond- 26 ence and memoranda concerning or arising out of such examinations and 27 investigations", includes any such materials of a bank, insurance or 28 securities regulatory agency or any unit of the federal government or 29 that of this state any other state or that of any foreign government 30 which are considered confidential by such agency or unit and which are 31 in the possession of the department or which are otherwise confidential 32 materials that have been shared by the department with any such agency 33 or unit and are in the possession of such agency or unit. 34 § 4. Subdivisions 3 and 5 of section 37 of the banking law, as amended 35 by chapter 360 of the laws of 1984, are amended to read as follows: 36 3. In addition to any reports expressly required by this chapter to be 37 made, the superintendent may require any banking organization, licensed 38 lender, licensed buy-now-pay-later lender, licensed casher of checks, 39 licensed mortgage banker, foreign banking corporation licensed by the 40 superintendent to do business in this state, bank holding company and 41 any non-banking subsidiary thereof, corporate affiliate of a corporate 42 banking organization within the meaning of subdivision six of section 43 thirty-six of this article and any non-banking subsidiary of a corpo- 44 ration which is an affiliate of a corporate banking organization within 45 the meaning of subdivision six-a of section thirty-six of this article 46 to make special reports to [him] the superintendent at such times as 47 [he] the superintendent may prescribe. 48 5. The superintendent may extend at [his] the superintendent's 49 discretion the time within which a banking organization, foreign banking 50 corporation licensed by the superintendent to do business in this state, 51 bank holding company or any non-banking subsidiary thereof, licensed 52 casher of checks, licensed mortgage banker, private banker, licensed 53 buy-now-pay-later lender or licensed lender is required to make and file 54 any report to the superintendent. 55 § 5. Section 39 of the banking law, as amended by section 3 of part L 56 of chapter 58 of the laws of 2019, is amended to read as follows:S. 9689 10 1 § 39. Orders of superintendent. 1. To appear and explain an apparent 2 violation. Whenever it shall appear to the superintendent that any bank- 3 ing organization, bank holding company, registered mortgage broker, 4 licensed mortgage banker, licensed student loan servicer, registered 5 mortgage loan servicer, licensed mortgage loan originator, licensed 6 lender, 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, out-of-state 9 state bank that maintains a branch or branches or representative or 10 other offices in this state, or foreign banking corporation licensed by 11 the superintendent to do business or maintain a representative office in 12 this state has violated any law or regulation, [he or she] the super- 13 intendent may, in [his or her] the superintendent's discretion, issue an 14 order describing such apparent violation and requiring such banking 15 organization, bank holding company, registered mortgage broker, licensed 16 mortgage banker, licensed student loan servicer, licensed mortgage loan 17 originator, licensed lender, licensed buy-now-pay-later lender, licensed 18 casher of checks, licensed sales finance company, licensed insurance 19 premium finance agency, licensed transmitter of money, licensed budget 20 planner, out-of-state state bank that maintains a branch or branches or 21 representative or other offices in this state, or foreign banking corpo- 22 ration to appear before [him or her] the superintendent, at a time and 23 place fixed in said order, to present an explanation of such apparent 24 violation. 25 2. To discontinue unauthorized or unsafe and unsound practices. When- 26 ever it shall appear to the superintendent that any banking organiza- 27 tion, bank holding company, registered mortgage broker, licensed mort- 28 gage banker, licensed student loan servicer, registered mortgage loan 29 servicer, licensed mortgage loan originator, licensed lender, licensed 30 buy-now-pay-later lender, licensed casher of checks, licensed sales 31 finance company, licensed insurance premium finance agency, licensed 32 transmitter of money, licensed budget planner, out-of-state state bank 33 that maintains a branch or branches or representative or other offices 34 in this state, or foreign banking corporation licensed by the super- 35 intendent to do business in this state is conducting business in an 36 unauthorized or unsafe and unsound manner, [he or she] the superinten- 37 dent may, in [his or her] the superintendent's discretion, issue an 38 order directing the discontinuance of such unauthorized or unsafe and 39 unsound practices, and fixing a time and place at which such banking 40 organization, bank holding company, registered mortgage broker, licensed 41 mortgage banker, licensed student loan servicer, registered mortgage 42 loan servicer, licensed mortgage loan originator, licensed lender, 43 licensed buy-now-pay-later lender, licensed casher of checks, licensed 44 sales finance company, licensed insurance premium finance agency, 45 licensed transmitter of money, licensed budget planner, out-of-state 46 state bank that maintains a branch or branches or representative or 47 other offices in this state, or foreign banking corporation may volun- 48 tarily appear before [him or her] the superintendent to present any 49 explanation in defense of the practices directed in said order to be 50 discontinued. 51 3. To make good impairment of capital or to ensure compliance with 52 financial requirements. Whenever it shall appear to the superintendent 53 that the capital or capital stock of any banking organization, bank 54 holding company or any subsidiary thereof which is organized, licensed 55 or registered pursuant to this chapter, is impaired, or the financial 56 requirements imposed by subdivision one of section two hundred two-b ofS. 9689 11 1 this chapter or any regulation of the superintendent on any branch or 2 agency of a foreign banking corporation or the financial requirements 3 imposed by this chapter or any regulation of the superintendent on any 4 licensed lender, licensed buy-now-pay-later lender, registered mortgage 5 broker, licensed mortgage banker, licensed student loan servicer, 6 licensed casher of checks, licensed sales finance company, licensed 7 insurance premium finance agency, licensed transmitter of money, 8 licensed budget planner or private banker are not satisfied, the super- 9 intendent may, in the superintendent's discretion, issue an order 10 directing that such banking organization, bank holding company, branch 11 or agency of a foreign banking corporation, registered mortgage broker, 12 licensed mortgage banker, licensed student loan servicer, licensed lend- 13 er, licensed buy-now-pay-later lender, licensed casher of checks, 14 licensed sales finance company, licensed insurance premium finance agen- 15 cy, licensed transmitter of money, licensed budget planner, or private 16 banker make good such deficiency forthwith or within a time specified in 17 such order. 18 4. To make good encroachments on reserves. Whenever it shall appear to 19 the superintendent that either the total reserves or reserves on hand of 20 any banking organization, branch or agency of a foreign banking corpo- 21 ration are below the amount required by or pursuant to this chapter or 22 any other applicable provision of law or regulation to be maintained, or 23 that such banking organization, branch or agency of a foreign banking 24 corporation is not keeping its reserves on hand as required by this 25 chapter or any other applicable provision of law or regulation, [he or26she] the superintendent may, in [his or her] the superintendent's 27 discretion, issue an order directing that such banking organization, 28 branch or agency of a foreign banking corporation make good such 29 reserves forthwith or within a time specified in such order, or that it 30 keep its reserves on hand as required by this chapter. 31 5. To keep books and accounts as prescribed. Whenever it shall appear 32 to the superintendent that any banking organization, bank holding compa- 33 ny, registered mortgage broker, licensed mortgage banker, licensed 34 student loan servicer, registered mortgage loan servicer, licensed mort- 35 gage loan originator, licensed lender, licensed buy-now-pay-later lend- 36 er, licensed casher of checks, licensed sales finance company, licensed 37 insurance premium finance agency, licensed transmitter of money, 38 licensed budget planner, agency or branch of a foreign banking corpo- 39 ration licensed by the superintendent to do business in this state, does 40 not keep its books and accounts in such manner as to enable [him or her] 41 the superintendent to readily ascertain its true condition, [he or she] 42 the superintendent may, in [his or her] the superintendent's discretion, 43 issue an order requiring such banking organization, bank holding compa- 44 ny, registered mortgage broker, licensed mortgage banker, licensed 45 student loan servicer, registered mortgage loan servicer, licensed mort- 46 gage loan originator, licensed lender, licensed buy-now-pay-later lend- 47 er, licensed casher of checks, licensed sales finance company, licensed 48 insurance premium finance agency, licensed transmitter of money, 49 licensed budget planner, or foreign banking corporation, or the officers 50 or agents thereof, or any of them, to open and keep such books or 51 accounts as [he or she] the superintendent may, in [his or her] the 52 superintendent's discretion, determine and prescribe for the purpose of 53 keeping accurate and convenient records of its transactions and 54 accounts.S. 9689 12 1 6. As used in this section, "bank holding company" shall have the same 2 meaning as that term is defined in section one hundred forty-one of this 3 chapter. 4 § 6. Subdivision 1 of section 42 of the banking law, as amended by 5 chapter 65 of the laws of 1948, is amended to read as follows: 6 1. The name and the location of the principal office of every proposed 7 corporation, private banker, licensed lender, licensed buy-now-pay-later 8 lender and licensed casher of checks, the organization certificate, 9 private banker's certificate or application for license of which has 10 been filed for examination, and the date of such filing. 11 § 7. Subdivision 2 of section 42 of the banking law, as amended by 12 chapter 553 of the laws of 1960, is amended to read as follows: 13 2. The name and location of every licensed lender, licensed buy-now- 14 pay-later lender and licensed casher of checks, and the name, location, 15 amount of capital stock or permanent capital and amount of surplus of 16 every corporation and private banker and the minimum assets required of 17 every branch of a foreign banking corporation authorized to commence 18 business, and the date of authorization or licensing. 19 § 8. Subdivision 3 of section 42 of the banking law, as amended by 20 chapter 553 of the laws of 1960, is amended to read as follows: 21 3. The name of every proposed corporation, private banker, branch of a 22 foreign banking corporation, licensed lender, licensed buy-now-pay-later 23 lender and licensed casher of checks to which a certificate of authori- 24 zation or a license has been refused and the date of notice of refusal. 25 § 9. Subdivision 4 of section 42 of the banking law, as amended by 26 chapter 60 of the laws of 1957, is amended to read as follows: 27 4. The name and location of every private banker, licensed lender, 28 licensed casher of checks, sales finance company, licensed buy-now-pay- 29 later lender and foreign corporation the authorization certificate or 30 license of which has been revoked, and the date of such revocation. 31 § 10. Subdivision 5 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 5. The name of every banking organization, licensed lender, licensed 34 casher of checks, licensed buy-now-pay-later lender and foreign corpo- 35 ration which has applied for leave to change its place or one of its 36 places of business and the places from and to which the change is 37 proposed to be made; the name of every banking organization which has 38 applied to change the designation of its principal office to a branch 39 office and to change the designation of one of its branch offices to its 40 principal office, and the location of the principal office which is 41 proposed to be redesignated as a branch office and of the branch office 42 which is proposed to be redesignated as the principal office. 43 § 11. Subdivision 6 of section 42 of the banking law, as amended by 44 chapter 249 of the laws of 1968, is amended to read as follows: 45 6. The name of every banking organization, licensed lender, licensed 46 casher of checks, licensed buy-now-pay-later lender and foreign corpo- 47 ration authorized to change its place or one of its places of business 48 and the date when and the places from and to which the change is author- 49 ized to be made; the name of every banking organization authorized to 50 change the designation of its principal office to a branch office and to 51 change the designation of a branch office to its principal office, the 52 location of the redesignated principal office and of the redesignated 53 branch office, and the date of such change. 54 § 12. Paragraph (a) of subdivision 1 of section 44 of the banking law, 55 as amended by section 4 of part L of chapter 58 of the laws of 2019, is 56 amended to read as follows:S. 9689 13 1 (a) Without limiting any power granted to the superintendent under any 2 other provision of this chapter, the superintendent may, in a proceeding 3 after notice and a hearing, require any safe deposit company, licensed 4 lender, licensed buy-now-pay-later lender, licensed casher of checks, 5 licensed sales finance company, licensed insurance premium finance agen- 6 cy, licensed transmitter of money, licensed mortgage banker, licensed 7 student loan servicer, registered mortgage broker, licensed mortgage 8 loan originator, registered mortgage loan servicer or licensed budget 9 planner to pay to the people of this state a penalty for any violation 10 of this chapter, any regulation promulgated thereunder, any final or 11 temporary order issued pursuant to section thirty-nine of this article, 12 any condition imposed in writing by the superintendent in connection 13 with the grant of any application or request, or any written agreement 14 entered into with the superintendent. 15 § 13. This act shall take effect on the one hundred eightieth day 16 after the department of financial services shall have promulgated rules 17 and/or regulations necessary to effectuate the provisions of this act; 18 provided that the department of financial services shall notify the 19 legislative bill drafting commission upon the occurrence of the promul- 20 gation of the rules and regulations necessary to effectuate and enforce 21 the provisions of section two of this act, in order that the commission 22 may maintain an accurate and timely effective record of the official 23 text of the laws of the state of New York in furtherance of effectuating 24 the provisions of section 44 of the legislative law and section 70-b of 25 the public officers law. Effective immediately, the addition, amendment 26 and/or repeal of any rule or regulation authorized to be made by the 27 superintendent pursuant to this act is authorized to be made and 28 completed on or before such effective date.
