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A09588 Text:



 
                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.
                                                                   LBD15022-02-4

        A. 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 to

        A. 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 used

        A. 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 the

        A. 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, registered

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     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 connection

        A. 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.
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