S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   742

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 15, 2009
                               ___________

Introduced  by  Sens.  KRUEGER,  DUANE, C. JOHNSON, SCHNEIDERMAN -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government Operations

AN  ACT  to amend the tax law, in relation to enacting the refund antic-
  ipation loan act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 22 of the tax law is amended by adding a new part 7
to read as follows:

                   PART VII--REFUND ANTICIPATION LOAN
SECTION 700.   SHORT TITLE AND SCOPE.
        700-A. DEFINITIONS.
        700-B. REGISTRATION; BOND REQUIREMENT.
        700-C. REGISTRATION PROCEDURE.
        700-D. POSTING OF FEE SCHEDULE AND DISCLOSURES.
        700-E. APPLICATION DISCLOSURES.
        700-F. REQUIREMENTS  FOR  REFUND  ANTICIPATION  LOANS AND REFUND
                 ANTICIPATION CHECKS.
        700-G. PROHIBITED ACTIVITIES.
        700-H. FACILITATOR DUTY TO CONSUMER.
        700-I. PRIVATE RIGHT OF ACTION.
        700-J. RULES.
        700-K. RECORD KEEPING; ANNUAL REPORTS.
        700-L. SEVERABILITY.
  S 700. SHORT TITLE AND SCOPE. (A) SHORT  TITLE.  THIS  PART  SHALL  BE
KNOWN  AND  MAY BE CITED AS THE "REFUND ANTICIPATION LOAN ACT". THIS ACT
SHALL BE LIBERALLY CONSTRUED TO EFFECTUATE ITS PURPOSE. THE  PURPOSE  OF
THIS ACT IS TO PROTECT CONSUMERS WHO ENTER INTO REFUND ANTICIPATION LOAN
AND  REFUND ANTICIPATION CHECK TRANSACTIONS AND TO LIMIT FEES FOR REFUND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01151-02-9

              

S. 742                              2

ANTICIPATION LOANS FACILITATED IN NEW YORK STATE. THIS  PART  IS  TO  BE
CONSTRUED AS A CONSUMER PROTECTION STATUTE FOR ALL PURPOSES.
  (B) SCOPE. NO PERSON (INCLUDING ANY OFFICER, AGENT, EMPLOYEE OR REPRE-
SENTATIVE) MAY INDIVIDUALLY OR IN CONJUNCTION OR COOPERATION WITH ANOTH-
ER  PERSON: (1) SOLICIT THE EXECUTION OF, PROCESS, RECEIVE, OR ACCEPT AN
APPLICATION OR AGREEMENT FOR A REFUND ANTICIPATION LOAN OR REFUND ANTIC-
IPATION CHECK, OR (2) IN ANY OTHER MANNER FACILITATE  THE  MAKING  OF  A
REFUND ANTICIPATION LOAN OR REFUND ANTICIPATION CHECK UNLESS SUCH PERSON
HAS  COMPLIED  WITH  THE PROVISIONS OF THIS PART. THE PROVISIONS OF THIS
PART SHALL APPLY TO ANY PERSON WHO SEEKS TO EVADE ITS  APPLICABILITY  BY
ANY DEVICE, SUBTERFUGE, OR PRETENSE WHATSOEVER.
  (C) EXEMPTION. THIS ACT SHALL NOT APPLY TO CREDIT UNIONS, AS CHARTERED
BY  THE NATIONAL CREDIT UNION ADMINISTRATION OR THE NEW YORK STATE BANK-
ING DEPARTMENT.
  S 700-A. DEFINITIONS. THE FOLLOWING DEFINITIONS APPLY IN THIS PART:
  (A) "APPLICANT" SHALL MEAN A PERSON WHO APPLIES FOR REGISTRATION AS  A
FACILITATOR OF REFUND ANTICIPATION LOANS OR REFUND ANTICIPATION CHECKS.
  (B)  "BANKING  DEPARTMENT"  SHALL  MEAN  THE STATE OF NEW YORK BANKING
DEPARTMENT.
  (C) "BANKING SUPERINTENDENT" SHALL MEAN THE  SUPERINTENDENT  OF  BANKS
FOR THE STATE OF NEW YORK.
  (D)  "CONSUMER"  SHALL  MEAN ANY NATURAL PERSON WHO, SINGLY OR JOINTLY
WITH ANOTHER CONSUMER, IS SOLICITED FOR, APPLIES FOR,  OR  RECEIVES  THE
PROCEEDS OF A REFUND ANTICIPATION LOAN OR REFUND ANTICIPATION CHECK.
  (E)  "CREDITOR"  SHALL MEAN ANY PERSON WHO MAKES A REFUND ANTICIPATION
LOAN OR WHO TAKES AN ASSIGNMENT OF A REFUND ANTICIPATION LOAN.
  (F) "FACILITATOR" SHALL MEAN A PERSON WHO INDIVIDUALLY OR IN  CONJUNC-
TION  OR COOPERATION WITH ANOTHER PERSON: (1) SOLICITS THE EXECUTION OF,
PROCESSES, RECEIVES, OR ACCEPTS AN APPLICATION OR AGREEMENT FOR A REFUND
ANTICIPATION LOAN OR REFUND ANTICIPATION CHECK,  OR  (2)  IN  ANY  OTHER
MANNER  FACILITATES  THE  MAKING OF A REFUND ANTICIPATION LOAN OR REFUND
ANTICIPATION CHECK.
  (G) "PERSON" SHALL MEAN AN INDIVIDUAL, A FIRM, A PARTNERSHIP, AN ASSO-
CIATION, A CORPORATION, OR ANOTHER ENTITY.
  (H) "REFUND ANTICIPATION CHECK" SHALL  MEAN  A  CHECK,  CASH  PAYMENT,
DEBIT  CARD,  STORE CREDIT, OR OTHER PAYMENT MECHANISM: (1) REPRESENTING
THE PROCEEDS OF THE CONSUMER'S TAX REFUND; (2) WHICH  WAS  ISSUED  BY  A
DEPOSITORY INSTITUTION OR OTHER PERSON THAT RECEIVED A DIRECT DEPOSIT OF
THE CONSUMER'S TAX REFUND OR TAX CREDITS; AND (3) FOR WHICH THE CONSUMER
HAS PAID A FEE OR OTHER CONSIDERATION FOR SUCH PAYMENT MECHANISM.
  (I) "REFUND ANTICIPATION LOAN" SHALL MEAN A LOAN THAT IS SECURED BY OR
THAT  THE CREDITOR ARRANGES TO BE REPAID DIRECTLY OR INDIRECTLY FROM THE
PROCEEDS OF THE CONSUMER'S INCOME TAX REFUND OR TAX  CREDITS.  A  REFUND
ANTICIPATION  LOAN  ALSO INCLUDES ANY SALE, ASSIGNMENT, OR PURCHASE OF A
CONSUMER'S TAX REFUND AT A DISCOUNT OR FOR A FEE,  WHETHER  OR  NOT  THE
CONSUMER  IS  REQUIRED  TO  REPAY  THE BUYER OR ASSIGNEE IF THE INTERNAL
REVENUE SERVICE DENIES OR REDUCES THE CONSUMER'S TAX REFUND.
  (J) "REFUND ANTICIPATION LOAN FEE" SHALL MEAN THE  CHARGES,  FEES,  OR
OTHER  CONSIDERATION  CHARGED  OR  IMPOSED DIRECTLY OR INDIRECTLY BY THE
CREDITOR OR FACILITATOR FOR THE MAKING OF OR IN CONNECTION WITH A REFUND
ANTICIPATION LOAN. SUCH TERM INCLUDES ANY CHARGE, FEE, OR OTHER  CONSID-
ERATION  FOR  A  DEPOSIT  ACCOUNT,  IF  THE  DEPOSIT ACCOUNT IS USED FOR
RECEIPT OF THE CONSUMER'S TAX REFUND TO REPAY THE  AMOUNT  OWED  ON  THE
LOAN. SUCH TERM DOES NOT INCLUDE ANY CHARGE, FEE, OR OTHER CONSIDERATION
USUALLY  CHARGED OR IMPOSED BY THE FACILITATOR IN THE ORDINARY COURSE OF
BUSINESS, SUCH AS FEES FOR TAX RETURN PREPARATION AND FEES FOR ELECTRON-

S. 742                              3

IC FILING OF TAX RETURNS, IF THE  SAME  FEES  IN  THE  SAME  AMOUNT  ARE
CHARGED  TO THE FACILITATOR'S CUSTOMERS WHO DO NOT RECEIVE REFUND ANTIC-
IPATION LOANS OR REFUND ANTICIPATION CHECKS.
  (K)  "REFUND  ANTICIPATION LOAN INTEREST RATE" SHALL MEAN THE INTEREST
RATE FOR A REFUND ANTICIPATION LOAN CALCULATED  AS  FOLLOWS:  THE  TOTAL
AMOUNT  OF  REFUND  ANTICIPATION  LOAN  FEES  DIVIDED BY THE LOAN AMOUNT
(MINUS ANY LOAN FEES), THEN DIVIDED BY THE NUMBER OF DAYS  IN  THE  LOAN
TERM,  THEN  MULTIPLIED  BY  THREE HUNDRED SIXTY-FIVE AND EXPRESSED AS A
PERCENTAGE. THE TOTAL AMOUNT OF THE REFUND ANTICIPATION LOAN FEE USED IN
SUCH CALCULATION SHALL INCLUDE ALL  REFUND  ANTICIPATION  LOAN  FEES  AS
DEFINED  IN  SUBSECTION  (J)  OF  THIS  SECTION. IF A DEPOSIT ACCOUNT IS
ESTABLISHED OR MAINTAINED IN WHOLE OR IN PART FOR THE PURPOSE OF RECEIV-
ING THE CONSUMER'S TAX REFUND TO REPAY  THE  AMOUNT  OWED  ON  A  REFUND
ANTICIPATION  LOAN:  (1)  THE  MATURITY  OF  THE LOAN FOR THE PURPOSE OF
DETERMINING THE REFUND ANTICIPATION LOAN INTEREST RATE SHALL BE  ASSUMED
TO  BE  THE  ESTIMATED DATE WHEN THE TAX REFUND WILL BE DEPOSITED IN THE
DEPOSIT ACCOUNT; AND (2) ANY FEE CHARGED TO THE CONSUMER FOR SUCH DEPOS-
IT ACCOUNT SHALL BE CONSIDERED A LOAN FEE AND SHALL BE INCLUDED  IN  THE
CALCULATION OF THE REFUND ANTICIPATION LOAN INTEREST RATE. IF NO DEPOSIT
ACCOUNT  IS ESTABLISHED OR MAINTAINED FOR THE REPAYMENT OF THE LOAN, THE
MATURITY OF THE LOAN SHALL BE ASSUMED TO BE THE ESTIMATED DATE WHEN  THE
TAX REFUND IS RECEIVED BY THE CREDITOR.
  (1)  "REGISTRANT" SHALL MEAN A PERSON WHO IS REGISTERED AS A FACILITA-
TOR OF REFUND ANTICIPATION LOANS OR  REFUND  ANTICIPATION  CHECKS  UNDER
THIS PART.
  S 700-B. REGISTRATION; BOND REQUIREMENT. (A) REGISTRATION REQUIREMENT.
NO PERSON MAY INDIVIDUALLY OR IN CONJUNCTION OR COOPERATION WITH ANOTHER
PERSON  FACILITATE  IN  ANY  WAY,  SOLICIT  THE  EXECUTION  OF, PROCESS,
RECEIVE, OR ACCEPT AN APPLICATION OR AGREEMENT FOR A REFUND ANTICIPATION
LOAN OR REFUND ANTICIPATION CHECK WITHOUT FIRST  BEING  REGISTERED  WITH
THE  BANKING  SUPERINTENDENT  AND  POSTING A BOND IN ACCORDANCE WITH THE
PROCEDURES PROVIDED IN THIS PART.
  (B) BOND. EACH FACILITATOR MUST POST A  BOND  IN  THE  AMOUNT  OF  ONE
HUNDRED THOUSAND DOLLARS PER LOCATION, WHICH MUST CONTINUE IN EFFECT FOR
FIVE  YEARS  AFTER  THE  FACILITATOR CEASES OPERATION IN NEW YORK STATE.
SUCH BOND MUST BE AVAILABLE TO PAY FOR THE COST  OF  EXAMS,  ANY  UNPAID
REGISTRATION  FEES, AND ANY DAMAGES AND PENALTIES TO CONSUMERS HARMED BY
ANY VIOLATION OF THIS PART.
  (C) EXEMPTION. THIS SECTION DOES NOT APPLY TO A PERSON DOING  BUSINESS
AS  A BANK, THRIFT, SAVINGS ASSOCIATION, OR CREDIT UNION, UNDER THE LAWS
OF THE UNITED STATES OR OF NEW YORK STATE. A FACILITATOR IS  NOT  EXEMPT
MERELY  BECAUSE  THE  CREDITOR  DOES BUSINESS AS A BANK, THRIFT, SAVINGS
ASSOCIATION, OR CREDIT UNION, UNDER THE LAWS OF THE UNITED STATES OR  OF
NEW YORK STATE.
  S  700-C. REGISTRATION PROCEDURE. (A) INITIAL REGISTRATION. ANY PERSON
DOING BUSINESS IN THIS STATE AS A FACILITATOR  SHALL  BE  REGISTERED  IN
THIS  STATE AS PROVIDED IN THIS SECTION. AN APPLICATION TO BECOME REGIS-
TERED AS A FACILITATOR SHALL BE IN WRITING, UNDER OATH, AND  IN  A  FORM
PRESCRIBED  BY THE BANKING SUPERINTENDENT. THE APPLICATION SHALL CONTAIN
ALL INFORMATION PRESCRIBED BY THE BANKING SUPERINTENDENT. EACH  APPLICA-
TION  FOR  REGISTRATION  SHALL  BE  ACCOMPANIED BY A FEE OF FIVE HUNDRED
DOLLARS, PAYABLE TO THE BANKING SUPERINTENDENT, FOR  EACH  OFFICE  WHERE
THE REGISTRANT INTENDS TO FACILITATE REFUND ANTICIPATION LOANS OR REFUND
ANTICIPATION CHECKS.
  (1)  THE  BANKING  SUPERINTENDENT  SHALL  REQUIRE  THAT APPLICANTS FOR
LICENSES ISSUED PURSUANT TO THIS PART BE FINGERPRINTED FOR  THE  PURPOSE

S. 742                              4

OF SECURING CRIMINAL HISTORY RECORDS FROM THE STATE DIVISION OF CRIMINAL
JUSTICE  SERVICES.  THE APPLICANT SHALL PAY A PROCESSING FEE AS REQUIRED
BY THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES.  FINGERPRINTS  SHALL
BE  TAKEN OF THE INDIVIDUAL OWNER IF THE APPLICANT IS A SOLE PROPRIETOR-
SHIP; THE GENERAL PARTNERS OF THE APPLICANT IS A  PARTNERSHIP;  AND  THE
OFFICERS,  PRINCIPALS,  DIRECTORS, AND STOCKHOLDERS OWNING MORE THAN TEN
PERCENT OF THE OUTSTANDING STOCK OF THE CORPORATION IF THE APPLICANT  IS
A  CORPORATION. ANY PERSON REQUIRED TO BE FINGERPRINTED UNDER THIS PARA-
GRAPH SHALL FURNISH TO THE DEPARTMENT THREE CURRENT PASSPORT-SIZE PHOTO-
GRAPHS OF SUCH PERSON. NOTWITHSTANDING THE FOREGOING, THE SUPERINTENDENT
NEED NOT REQUIRE APPLICANTS FOR LICENSES REQUIRED UNDER THIS PART TO  BE
FINGERPRINTED IF CRIMINAL HISTORY RECORDS CONCERNING SUCH APPLICANTS ARE
NOT AVAILABLE FROM THE STATE DIVISION OF CRIMINAL JUSTICE SERVICES.
  (2) UPON THE FILING OF AN APPLICATION FOR REGISTRATION, IF THE BANKING
SUPERINTENDENT  FINDS THAT THE RESPONSIBILITY AND GENERAL FITNESS OF THE
APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND  TO
WARRANT  BELIEF  THAT  THE  BUSINESS OF FACILITATING REFUND ANTICIPATION
LOANS OR REFUND ANTICIPATION CHECKS WILL BE OPERATED WITHIN THE PURPOSES
OF THIS PART, THE BANKING SUPERINTENDENT SHALL  REGISTER  THE  APPLICANT
AND SHALL ISSUE AND TRANSMIT TO THE APPLICANT A CERTIFICATE ATTESTING TO
THE  REGISTRATION. IF THE BANKING SUPERINTENDENT DOES NOT SO FIND, HE OR
SHE SHALL NOT REGISTER THE APPLICANT AND SHALL NOTIFY THE  APPLICANT  OF
THE REASONS FOR THE DENIAL.
  (3)  UPON  RECEIPT  OF A CERTIFICATE OF REGISTRATION, THE APPLICANT IS
REGISTERED UNDER THIS PART AND MAY ENGAGE IN THE BUSINESS OF  FACILITAT-
ING  REFUND  ANTICIPATION  LOANS  AND  REFUND ANTICIPATION CHECKS AT THE
OFFICES IDENTIFIED ON THE APPLICATION FOR REGISTRATION.
  (B) RENEWAL, SUSPENSION AND REVOCATION. IN  ADDITION  TO  ANY  OF  THE
POWERS  THAT  MAY BE EXERCISED BY THE BANKING SUPERINTENDENT PURSUANT TO
THIS PART, THE BANKING SUPERINTENDENT, AFTER NOTICE AND  AN  OPPORTUNITY
TO  BE  HEARD, MAY REFUSE TO ISSUE OR RENEW, OR MAY SUSPEND OR REVOKE, A
LICENSE REQUIRED UNDER THIS PART IF THE APPLICANT OR LICENSEE, OR ANY OF
ITS PRINCIPALS, OFFICERS OR DIRECTORS, OR ANY OF ITS STOCKHOLDERS OWNING
MORE THAN TEN PERCENT OF THE OUTSTANDING STOCK OF  THE  CORPORATION  HAS
BEEN  CONVICTED  OF A CRIME WHICH, IN THE JUDGMENT OF THE BANKING SUPER-
INTENDENT, HAS A DIRECT RELATIONSHIP TO SUCH PERSON'S FITNESS OR ABILITY
TO PERFORM ANY OF THE ACTIVITIES FOR WHICH A LICENSE IS  REQUIRED  UNDER
THIS  PART OR HAS BEEN CONVICTED OF ANY OTHER CRIME WHICH, IN ACCORDANCE
WITH ARTICLE TWENTY-THREE-A OF  THE  CORRECTION  LAW,  WOULD  PROVIDE  A
JUSTIFICATION  FOR  THE  BANKING  SUPERINTENDENT  TO  REFUSE TO ISSUE OR
RENEW, OR TO SUSPEND OR REVOKE, SUCH LICENSE.   THE BANKING  SUPERINTEN-
DENT  MAY,  ON GOOD CAUSE SHOWN, OR WHERE THERE IS A SUBSTANTIAL RISK OF
PUBLIC HARM, SUSPEND ANY REGISTRATION OR DELETE THE NAME OF  ANY  REGIS-
TRANT  FOR  A  PERIOD  NOT EXCEEDING THIRTY DAYS, PENDING INVESTIGATION.
"GOOD CAUSE", AS USED IN THIS SUBSECTION,  SHALL  EXIST  ONLY  WHEN  THE
REGISTRANT  HAS  DEFAULTED  OR  IS  LIKELY  TO DEFAULT IN PERFORMING ITS
FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR  INEQUITABLE  PRACTICES
WHICH  MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION
OF THIS PART.
  (1) CEASE AND DESIST ORDER. WHENEVER THE BANKING  DEPARTMENT  BELIEVES
OR  HAS  NOTICE  THAT ANY ACTION OF A FACILITATOR MAY BE IN VIOLATION OF
THIS PART OR THE RULES OR REGULATIONS PROMULGATED UNDER  THIS  PART,  OR
THAT  THE FACILITATOR HAS ENGAGED IN AN UNFAIR OR DECEPTIVE ACT OR PRAC-
TICE, THE BANKING SUPERINTENDENT SHALL GIVE  REASONABLE  NOTICE  TO  THE
FACILITATOR  OF  THE  SUSPECTED  VIOLATION OR UNFAIR OR DECEPTIVE ACT OR
PRACTICE, AND AN OPPORTUNITY FOR THE FACILITATOR TO  BE  HEARD.  IF  THE

S. 742                              5

BANKING  SUPERINTENDENT  FINDS  THAT  AN ACTION OF THE FACILITATOR IS IN
VIOLATION OF THIS PART OR THE RULES  OR  REGULATIONS  PROMULGATED  UNDER
THIS  PART OR THAT THE FACILITATOR HAS ENGAGED IN AN UNFAIR OR DECEPTIVE
ACT  OR PRACTICE, THE BANKING SUPERINTENDENT SHALL ORDER THE FACILITATOR
TO CEASE AND DESIST FROM THE ACTION. THE BANKING SUPERINTENDENT MAY MAKE
INVESTIGATIONS, SUBPOENA WITNESSES, AND REQUIRE AUDITS AND  REPORTS  AND
SHALL MAKE FINDINGS OF FACT AND CONCLUSIONS OF LAW.
  IF  THE  FACILITATOR  CONTINUES TO ENGAGE IN AN ACTION IN VIOLATION OF
THE BANKING SUPERINTENDENT'S ORDER TO CEASE AND DESIST FROM THE  ACTION,
THE  FACILITATOR  SHALL  BE  SUBJECT TO A PENALTY OF UP TO FIVE THOUSAND
DOLLARS FOR EACH ACTION IT TAKES IN VIOLATION OF THE BANKING SUPERINTEN-
DENT'S ORDER.
  (2) REVOCATION OF REGISTRATION. UPON THE FINDING THAT A REGISTRANT HAS
(I) ENGAGED IN A COURSE OF CONDUCT THAT IS IN VIOLATION OF THIS PART  OR
THE  RULES  OR REGULATIONS PROMULGATED UNDER THIS PART OR (II) CONTINUED
TO ENGAGE IN AN ACTION IN VIOLATION OF A CEASE AND DESIST ORDER  OF  THE
BANKING  SUPERINTENDENT THAT HAS NOT BEEN STAYED UPON APPLICATION OF THE
REGISTRANT, THE BANKING SUPERINTENDENT MAY REVOKE  THE  REGISTRATION  OF
THE REGISTRANT TEMPORARILY OR PERMANENTLY AT THE DISCRETION OF THE BANK-
ING  SUPERINTENDENT.  NO  REVOCATION,  SUSPENSION,  OR  SURRENDER OF ANY
REGISTRATION SHALL RELIEVE THE REGISTRANT FROM CIVIL OR CRIMINAL LIABIL-
ITY FOR ACTS COMMITTED PRIOR THERETO.
  (3) RENEWAL FEES. EACH REGISTRATION AS A FACILITATOR OF REFUND  ANTIC-
IPATION  LOANS  AND  REFUND ANTICIPATION CHECKS SHALL EXPIRE ON DECEMBER
THIRTY-FIRST FOLLOWING THE DATE IT WAS ISSUED, UNLESS IT IS RENEWED  FOR
THE SUCCEEDING YEAR. BEFORE THE REGISTRATION EXPIRES, THE REGISTRANT MAY
RENEW  THE  REGISTRATION  BY  FILING  WITH THE BANKING SUPERINTENDENT AN
APPLICATION FOR RENEWAL IN  THE  FORM  AND  CONTAINING  ALL  INFORMATION
PRESCRIBED  BY  THE BANKING SUPERINTENDENT. EACH APPLICATION FOR RENEWAL
OF REGISTRATION SHALL BE ACCOMPANIED BY A FEE OF  FIVE  HUNDRED  DOLLARS
FOR EACH OFFICE WHERE THE REGISTRANT INTENDS TO FACILITATE REFUND ANTIC-
IPATION LOANS OR REFUND ANTICIPATION CHECKS DURING THE SUCCEEDING YEAR.
  (4)  RENEWAL  CRITERION. UPON THE FILING OF AN APPLICATION FOR RENEWAL
OF REGISTRATION UNDER THIS PART, THE BANKING SUPERINTENDENT SHALL  RENEW
THE  REGISTRATION,  PROVIDED THAT NO REGISTRATION SHALL BE ISSUED IF THE
BANKING SUPERINTENDENT FINDS THAT THE REGISTRANT HAS VIOLATED THIS  PART
OR  DETERMINES  THAT  THE FITNESS OF THE REGISTRANT OR THE OPERATIONS OF
THE REGISTRANT WOULD NOT SUPPORT REGISTRATION OF  THE  REGISTRANT  UNDER
SUBSECTION (A) OF THIS SECTION. IF THE BANKING SUPERINTENDENT MAKES SUCH
A  FINDING  OR  DETERMINATION, HE OR SHE SHALL SO NOTIFY THE REGISTRANT,
STATING THE REASONS FOR THE DETERMINATION.
  (C) COMPLAINT PROCESS. THE BANKING  SUPERINTENDENT  SHALL  MAINTAIN  A
LIST  OF  REGISTRANTS WHICH SHALL BE AVAILABLE TO INTERESTED PERSONS AND
THE PUBLIC. THE BANKING SUPERINTENDENT SHALL CREATE  A  TOLL-FREE  TELE-
PHONE  NUMBER WHEREBY CONSUMERS MAY OBTAIN INFORMATION ABOUT REGISTRANTS
AND COMPLAINT  FORMS.  THE  BANKING  SUPERINTENDENT  SHALL  ESTABLISH  A
COMPLAINT  PROCESS  WHEREBY  AN  AGGRIEVED CONSUMER OR ANY MEMBER OF THE
PUBLIC MAY FILE A COMPLAINT AGAINST A REGISTRANT OR  NON-REGISTRANT  WHO
VIOLATES  ANY PROVISION OF THIS PART. ALL COMPLAINTS SHALL BE CONSIDERED
PUBLIC RECORDS PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS  LAW  WITH
THE  EXCEPTION  OF  THE  COMPLAINANT'S  NAME, ADDRESS, OR OTHER PERSONAL
IDENTIFYING INFORMATION. THE BANKING SUPERINTENDENT SHALL HOLD A HEARING
PURSUANT TO SUBSECTION (A) OF THIS SECTION UPON THE REQUEST OF  A  PARTY
TO  THE  COMPLAINT.  THE  BANKING  SUPERINTENDENT MAY AFTER SUCH HEARING
ISSUE CEASE AND DESIST ORDERS PURSUANT TO PARAGRAPH  ONE  OF  SUBSECTION

S. 742                              6

(B)  OF THIS SECTION, OR SUSPEND OR REVOKE A REGISTRATION AS PROVIDED IN
PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION.
  (D)  DISPLAY OF CERTIFICATE. EACH REGISTRANT SHALL PROMINENTLY DISPLAY
A CERTIFICATE ISSUED UNDER THIS PART IN EACH PLACE OF  BUSINESS  IN  THE
STATE WHERE THE REGISTRANT FACILITATES THE MAKING OF REFUND ANTICIPATION
LOANS  OR  REFUND  ANTICIPATION  CHECKS.    IT SHALL BE UNLAWFUL FOR ANY
REGISTRANT TO CARRY ON HIS OR HER BUSINESS AT ANY PLACE OTHER  THAN  THE
ONE DESIGNATED IN SUCH LICENSE.
  (E) ANY PERSON WHO SHALL VIOLATE ANY OF THE PROVISIONS OF THIS PART OR
ANY RULE OR REGULATION ISSUED UNDER THIS PART SHALL BE GUILTY OF A CLASS
A  MISDEMEANOR  AND UPON THE FIRST CONVICTION BE SUBJECT TO A FINE OF AT
LEAST FIVE HUNDRED DOLLARS AND UPON ANY SUBSEQUENT CONVICTION BE SUBJECT
TO A FINE OF UP TO FIVE THOUSAND DOLLARS AND/OR IMPRISONMENT OF AT LEAST
FIFTEEN DAYS.
  (F) FOR THE PURPOSE OF DISCOVERING VIOLATIONS OF THIS PART OR SECURING
INFORMATION LAWFULLY REQUIRED BY HIM OR HER UNDER THIS PART, THE BANKING
SUPERINTENDENT MAY AT ANY TIME, AND AS OFTEN AS HE OR SHE MAY DETERMINE,
EITHER PERSONALLY OR BY A PERSON DULY DESIGNATED BY HIM OR HER, INVESTI-
GATE THE BUSINESS AND EXAMINE THE BOOKS, ACCOUNTS,  RECORDS,  AND  FILES
USED  THEREIN  OF  EVERY REGISTRANT. FOR THAT PURPOSE THE BANKING SUPER-
INTENDENT AND HIS OR HER DULY DESIGNATED REPRESENTATIVE SHALL HAVE  FREE
ACCESS  TO  THE OFFICES AND PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS,
RECORDS, FILES, SAFES AND VAULTS OF ALL SUCH  REGISTRANTS.  THE  BANKING
SUPERINTENDENT  AND  ANY PERSON DULY DESIGNATED BY HIM OR HER SHALL HAVE
AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO  EXAMINE  UNDER  OATH  ALL
PERSONS WHOSE TESTIMONY HE OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS.
THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO THIS SECTION
SHALL BE ASSESSED AGAINST AND PAID BY THE REGISTRANT SO EXAMINED, EXCEPT
THAT  TRAVELING  AND  SUBSISTENCE  EXPENSES SO INCURRED SHALL BE CHARGED
AGAINST AND PAID BY REGISTRANTS  IN  SUCH  PROPORTIONS  AS  THE  BANKING
SUPERINTENDENT  SHALL  DEEM  JUST AND REASONABLE, AND SUCH PROPORTIONATE
CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES  INCURRED
UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE BANKING SUPERINTENDENT
OF  THE  TOTAL  AMOUNT  OF  SUCH ASSESSMENT, THE REGISTRANT SHALL BECOME
LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO SUCH SUPERINTENDENT.
  S 700-D. POSTING OF FEE SCHEDULE AND DISCLOSURES. (A) EVERY  FACILITA-
TOR  SHALL  PROMINENTLY DISPLAY AT EACH OFFICE WHERE REFUND ANTICIPATION
LOANS OR REFUND ANTICIPATION CHECKS ARE FACILITATED A  SCHEDULE  SHOWING
THE  CURRENT  FEES  FOR  REFUND  ANTICIPATION  LOANS FACILITATED AT SUCH
OFFICE, FOR REFUND ANTICIPATION CHECKS FACILITATED AT SUCH  OFFICE,  AND
FOR ELECTRONIC FILING OF THE CONSUMER'S TAX RETURN.
  (B)  EVERY  FACILITATOR SHALL DISPLAY ON EACH FEE SCHEDULE EXAMPLES OF
THE REFUND ANTICIPATION LOAN  INTEREST  RATES  FOR  REFUND  ANTICIPATION
LOANS  OF  TWO  HUNDRED  DOLLARS,  FIVE  HUNDRED  DOLLARS,  ONE THOUSAND
DOLLARS, ONE THOUSAND FIVE HUNDRED DOLLARS, TWO  THOUSAND  DOLLARS,  AND
FIVE  THOUSAND DOLLARS. THE REFUND ANTICIPATION LOAN INTEREST RATE SHALL
BE CALCULATED AS SET FORTH IN SUBSECTION (K) OF SECTION SEVEN  HUNDRED-A
OF THIS PART.
  (C) EVERY FACILITATOR SHALL ALSO PROMINENTLY DISPLAY ON EACH FEE SCHE-
DULE:  (1) A LEGEND, CENTERED, IN BOLD, CAPITAL LETTERS, AND IN ONE-INCH
LETTERS STATING: NOTICE CONCERNING REFUND ANTICIPATION  LOANS;  AND  (2)
THE  FOLLOWING  VERBATIM  STATEMENT:  "WHEN YOU TAKE OUT A REFUND ANTIC-
IPATION LOAN, YOU ARE BORROWING MONEY AGAINST YOUR TAX REFUND.  IF  YOUR
TAX REFUND IS LESS THAN EXPECTED, YOU MUST STILL REPAY THE ENTIRE AMOUNT
OF  THE  LOAN. IF YOUR REFUND IS DELAYED, YOU MAY HAVE TO PAY ADDITIONAL
COSTS. YOU CAN GET YOUR REFUND IN ABOUT 10 DAYS WITHOUT GETTING A  LOAN.

S. 742                              7

YOU CAN HAVE YOUR TAX RETURN FILED ELECTRONICALLY AND YOUR REFUND DIRECT
DEPOSITED  INTO YOUR OWN BANK ACCOUNT WITHOUT OBTAINING A LOAN OR PAYING
FEES FOR AN EXTRA PRODUCT. IF YOU DO NOT HAVE A BANK  ACCOUNT,  YOU  CAN
SIGN  UP  FOR A BASIC BANKING ACCOUNT AT ANY NEW YORK BANK FOR A MINIMAL
FEE."
  (D) THE POSTINGS REQUIRED BY THIS SECTION SHALL BE  MADE  IN  NO  LESS
THAN  TWENTY-EIGHT-POINT  TYPE  ON  A  DOCUMENT  MEASURING  NO LESS THAN
SIXTEEN INCHES BY TWENTY INCHES. THE POSTINGS REQUIRED IN  THIS  SECTION
SHALL  BE  DISPLAYED  IN  A  PROMINENT LOCATION AT EACH OFFICE WHERE THE
FACILITATOR IS FACILITATING REFUND ANTICIPATION LOANS.
  (E) NO FACILITATOR MAY FACILITATE A REFUND ANTICIPATION LOAN OR REFUND
ANTICIPATION CHECK UNLESS (1) THE DISCLOSURES REQUIRED BY  THIS  SECTION
ARE  DISPLAYED; (2) THE FEE ACTUALLY CHARGED FOR THE REFUND ANTICIPATION
LOAN OR REFUND ANTICIPATION CHECK IS THE SAME AS THE  FEE  DISPLAYED  ON
THE  SCHEDULE;  AND (3) FOR REFUND ANTICIPATION LOANS, THE REFUND ANTIC-
IPATION LOAN INTEREST RATE DOES  NOT  EXCEED  TWENTY-FIVE  PERCENT.  THE
REFUND  ANTICIPATION LOAN INTEREST RATE SHALL BE CALCULATED AS SET FORTH
IN SUBSECTION (K) OF SECTION SEVEN HUNDRED-A OF THIS PART.
  S 700-E.  APPLICATION DISCLOSURES. AT THE TIME A CONSUMER APPLIES  FOR
A  REFUND  ANTICIPATION LOAN OR CHECK, THE FACILITATOR OR CREDITOR SHALL
DISCLOSE TO THE CONSUMER ON A FORM  SEPARATE  FROM  THE  APPLICATION  IN
FOURTEEN-POINT TYPE, UNLESS OTHERWISE NOTED:
  (A)  THE  FEE  FOR THE REFUND ANTICIPATION LOAN OR REFUND ANTICIPATION
CHECK.
  (B) THE FEE FOR ELECTRONIC FILING OF A TAX RETURN.
  (C) ANY AND ALL OTHER FEES CHARGED FOR THE TRANSACTION, INCLUDING, BUT
NOT LIMITED TO, FINANCE CHARGES, ADMINISTRATIVE  FEES,  TAX  PREPARATION
FEES, AND ACCOUNT CREATION FEES.
  (D) THE TIME WITHIN WHICH THE PROCEEDS OF THE REFUND ANTICIPATION LOAN
OR CHECK WILL BE PAID TO THE CONSUMER IF THE LOAN OR CHECK IS APPROVED.
  (E)  FOR  REFUND  ANTICIPATION LOANS, THE FOLLOWING DISCLOSURES: (1) A
LEGEND, CENTERED, IN BOLD, CAPITAL LETTERS, AND IN  EIGHTEEN-POINT  TYPE
STATING:  NOTICE;  AND  (2) THE FOLLOWING VERBATIM STATEMENT: "THIS IS A
LOAN. THIS LOAN IS BORROWING MONEY AGAINST YOUR TAX REFUND. IF YOUR  TAX
REFUND  IS LESS THAN EXPECTED, YOU MUST STILL REPAY THE ENTIRE AMOUNT OF
THE LOAN.  YOU CAN GET YOUR REFUND IN ABOUT 10 DAYS WITHOUT GETTING THIS
LOAN. YOU CAN HAVE YOUR TAX RETURN FILED ELECTRONICALLY AND YOUR  REFUND
DIRECT  DEPOSITED INTO YOUR OWN BANK ACCOUNT WITHOUT OBTAINING A LOAN OR
OTHER PAID PRODUCT. IF YOU DO NOT  TAKE  OUT  THIS  REFUND  ANTICIPATION
LOAN,  YOU  ARE  ELIGIBLE TO RECEIVE A GROSS TAX REFUND OF APPROXIMATELY
$(INSERT AMOUNT). IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN,  YOU
WILL RECEIVE APPROXIMATELY $(INSERT AMOUNT)."
  (F)  FOR  REFUND  ANTICIPATION  LOANS, DISCLOSURE OF THE REFUND ANTIC-
IPATION LOAN INTEREST RATE. THE REFUND ANTICIPATION LOAN  INTEREST  RATE
SHALL  BE  CALCULATED  AS  SET  FORTH IN SUBSECTION (K) OF SECTION SEVEN
HUNDRED-A OF THIS PART.
  (G) FOR REFUND ANTICIPATION CHECKS, THE FOLLOWING DISCLOSURES:  (1)  A
LEGEND,  CENTERED,  IN BOLD, CAPITAL LETTERS, AND IN EIGHTEEN-POINT TYPE
STATING: NOTICE; AND (2) THE  FOLLOWING  VERBATIM  STATEMENT:  "YOU  ARE
PAYING  (AMOUNT  OF  REFUND  ANTICIPATION  CHECK FEE) TO GET YOUR REFUND
CHECK THROUGH (NAME OF ISSUER OF REFUND  ANTICIPATION  CHECK).  YOU  CAN
AVOID  THIS FEE AND STILL RECEIVE YOUR REFUND IN ABOUT 10 DAYS BY HAVING
THE IRS DIRECT DEPOSIT YOUR REFUND INTO YOUR OWN BANK ACCOUNT."
  (H) FOR BOTH REFUND ANTICIPATION LOANS AND REFUND ANTICIPATION CHECKS,
THE FOLLOWING VERBATIM STATEMENT: "IF YOU CAN  WAIT  10  DAYS  FOR  YOUR
REFUND  BUT  YOU DO NOT HAVE A BANK ACCOUNT, YOU CAN SIGN UP FOR A BASIC

S. 742                              8

BANKING ACCOUNT AT ANY NEW YORK STATE BANK FOR A MINIMAL  FEE.  YOU  MAY
ALSO BE ELIGIBLE TO JOIN A CREDIT UNION."
  (I) THIS FORM SHALL BE SIGNED AND DATED BY THE CONSUMER AND THE REGIS-
TRANT, AND EACH PARTY SHALL RETAIN A COPY.
  S  700-F. REQUIREMENTS FOR REFUND ANTICIPATION LOANS AND REFUND ANTIC-
IPATION CHECKS. ANY PERSON (INCLUDING ANY OFFICER,  AGENT,  EMPLOYEE  OR
REPRESENTATIVE)  WHO  MAKES OR FACILITATES A REFUND ANTICIPATION LOAN OR
REFUND ANTICIPATION CHECK SHALL:
  (A) ARRANGE SUCH LOAN OR CHECK, OR INFORM THE CONSUMER THAT THE APPLI-
CATION IS REJECTED, PROMPTLY AFTER THE CONSUMER APPLIES FOR THE LOAN  OR
CHECK.
  (B)  PROVIDE  TO  THE  CONSUMER,  PRIOR TO CONSUMMATION OF THE LOAN OR
CHECK TRANSACTION IN A FORM THAT CAN BE KEPT BY THE CONSUMER: (1) A COPY
OF THE COMPLETED LOAN OR CHECK  APPLICATION    AND  AGREEMENT;  (2)  THE
SIGNED DISCLOSURES REQUIRED BY SECTION SEVEN HUNDRED-E OF THIS PART; AND
(3)  FOR  REFUND  ANTICIPATION  LOANS,  THE  DISCLOSURES REQUIRED BY THE
FEDERAL TRUTH-IN-LENDING ACT.
  (C) PROVIDE THE DISCLOSURES REQUIRED BY  SECTION  SEVEN  HUNDRED-E  OF
THIS  PART  IN ENGLISH AND IN THE LANGUAGE IN WHICH THE LOAN WAS NEGOTI-
ATED.
  S 700-G. PROHIBITED ACTIVITIES.   NO PERSON,  INCLUDING  ANY  OFFICER,
AGENT,  EMPLOYEE  OR  REPRESENTATIVE  OF  SUCH  PERSON, IN THE MAKING OR
FACILITATING OF A REFUND ANTICIPATION LOAN OR REFUND ANTICIPATION  CHECK
SHALL:
  (A)  ENGAGE IN UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN THE FACILITAT-
ING OF A REFUND ANTICIPATION CHECK OR IN THE MAKING OR FACILITATING OF A
REFUND ANTICIPATION LOAN, INCLUDING MISREPRESENTING A FACTOR  OR  CONDI-
TION  OF  SUCH LOAN OR CHECK OR MAKING ANY ORAL STATEMENTS CONTRADICTING
ANY OF THE INFORMATION REQUIRED TO BE DISCLOSED UNDER THIS PART.
  (B) FAIL TO COMPLY WITH ANY PROVISION OF THIS PART.
  (C) THREATEN TO TAKE ANY ACTION THAT IS PROHIBITED BY THIS PART OR  BY
ANY OTHER LAW, OR THAT THE PERSON DOES NOT ACTUALLY INTEND TO TAKE.
  (D) MAKE OR FACILITATE A REFUND ANTICIPATION LOAN FOR WHICH THE REFUND
ANTICIPATION LOAN INTEREST RATE IS GREATER THAN TWENTY-FIVE PERCENT. THE
REFUND  ANTICIPATION LOAN INTEREST RATE SHALL BE CALCULATED AS SET FORTH
IN SUBSECTION (K) OF SECTION SEVEN HUNDRED-A OF THIS  PART.  ANY  REFUND
ANTICIPATION  LOAN  FOR WHICH THE REFUND ANTICIPATION LOAN INTEREST RATE
EXCEEDS TWENTY-FIVE PERCENT SHALL BE VOID AB  INITIO,  INSOFAR  AS  THIS
PROVISION  DOES  NOT OBSTRUCT, IMPAIR, OR CONDITION POWERS GRANTED UNDER
FEDERAL LAW.
  (E) ADVERTISE OR PROMOTE REFUND ANTICIPATION LOANS WITHOUT PROMINENTLY
FEATURING THE WORD "LOAN." IF  THE  ADVERTISEMENT  DOES  NOT  APPEAR  IN
ENGLISH,  THE  DIRECT TRANSLATION OF THE WORD "LOAN" MUST BE PROMINENTLY
FEATURED IN SUCH ADVERTISEMENT. PROVIDED, FURTHER, NO PERSON SHALL:
  (1) ADVERTISE OR PROMOTE REFUND  ANTICIPATION  LOANS  WITHOUT  DISTIN-
GUISHING  SUCH  A  LOAN  FROM A REFUND EXPEDITING SERVICE OFFERED BY THE
INTERNAL REVENUE SERVICE, SUCH AS DIRECT DEPOSIT OR  ELECTRONIC  FILING.
DIRECT  DEPOSIT  AND ELECTRONIC FILING SHALL NOT BE ADVERTISED IN SUCH A
WAY AS TO STATE OR SUGGEST THAT SUCH A SERVICE WILL DELIVER A REFUND  TO
THE  CONSUMER  WITHOUT  ANY WAITING TIME OR IN AS LITTLE AS TWO TO THREE
DAYS. SUCH ADVERTISING SHALL  DISTINGUISH  BETWEEN  REFUND  ANTICIPATION
LOAN PRODUCTS AND NON-LOAN PRODUCTS, WHETHER IT APPEARS IN ENGLISH OR IN
ANY OTHER LANGUAGE.
  (2)  MAKE  ANY  CLAIMS  IN  ADVERTISING  THAT OVERSTATE THE TIME FRAME
DURING WHICH INTERNAL REVENUE SERVICE REFUNDS  CAN  BE  EXPECTED  TO  BE
RECEIVED,  ABSENT  A REFUND ANTICIPATION LOAN. THE TIME FRAME CLAIMED IN

S. 742                              9

THE ADVERTISEMENT SHALL BE IN ACCORD  WITH  AVAILABLE  INTERNAL  REVENUE
SERVICE  STATISTICS;  SUCH  STATISTICS  ARE  AVAILABLE AT WWW.IRS.GOV OR
THROUGH A LOCAL INTERNAL REVENUE SERVICE OFFICE IN NEW YORK STATE.
  (F) DIRECTLY OR INDIRECTLY CHARGE, OR ARRANGE FOR THE CHARGING OF, ANY
INTEREST,  FEE OR CHARGE RELATED TO A REFUND ANTICIPATION LOAN OR REFUND
ANTICIPATION CHECK, OTHER THAN THOSE  SPECIFICALLY  AUTHORIZED  BY  THIS
PART,  INCLUDING  BUT  NOT  LIMITED  TO:  (1) CHARGES FOR INSURANCE; (2)
ATTORNEYS FEES OR OTHER COLLECTION COSTS; OR (3) CHECK CASHING.
  (G) INCLUDE ANY OF THE FOLLOWING PROVISIONS IN ANY  DOCUMENT  PROVIDED
OR SIGNED IN CONNECTION WITH A REFUND ANTICIPATION LOAN OR REFUND ANTIC-
IPATION CHECK, INCLUDING THE LOAN APPLICATION OR AGREEMENT:
  (1) A HOLD HARMLESS CLAUSE;
  (2) A CONFESSION OF JUDGEMENT CLAUSE;
  (3)  A  WAIVER  OF  THE  RIGHT  TO A JURY TRIAL, IF APPLICABLE, IN ANY
ACTION BROUGHT BY OR AGAINST THE CONSUMER;
  (4) ANY ASSIGNMENT OF OR ORDER FOR PAYMENT OF WAGES OR  OTHER  COMPEN-
SATION FOR SERVICES;
  (5)  A  PROVISION IN WHICH THE CONSUMER AGREES NOT TO ASSERT ANY CLAIM
OR DEFENSE ARISING OUT OF THE CONTRACT, OR TO SEEK ANY REMEDIES PURSUANT
TO SECTION SEVEN HUNDRED-I OF THIS PART;
  (6) A WAIVER OF ANY PROVISION OF THIS PART. ANY SUCH WAIVER  SHALL  BE
DEEMED NULL, VOID AND OF NO EFFECT;
  (7)  A WAIVER OF THE RIGHT TO INJUNCTIVE, DECLARATORY, OTHER EQUITABLE
RELIEF, OR RELIEF ON A CLASSWIDE BASIS; OR
  (8) A PROVISION REQUIRING THAT ANY ASPECT OF A RESOLUTION OF A DISPUTE
BETWEEN THE PARTIES TO THE AGREEMENT BE KEPT  CONFIDENTIAL.  THIS  PARA-
GRAPH  SHALL  NOT  AFFECT THE RIGHT OF THE PARTIES TO AGREE THAT CERTAIN
SPECIFIED INFORMATION IS A TRADE SECRET OR OTHERWISE CONFIDENTIAL OR  TO
LATER  AGREE,  AFTER  THE DISPUTE ARISES, TO KEEP A RESOLUTION CONFIDEN-
TIAL.
  (H) TAKE OR ARRANGE FOR A CREDITOR TO TAKE A SECURITY INTEREST IN  ANY
PROPERTY  OF  THE CONSUMER OTHER THAN THE PROCEEDS OF THE CONSUMER'S TAX
REFUND TO SECURE PAYMENT OF A REFUND ANTICIPATION LOAN.
  (I) DIRECTLY OR INDIRECTLY, INDIVIDUALLY OR IN CONJUNCTION OR  COOPER-
ATION WITH ANOTHER PERSON, ENGAGE IN THE COLLECTION OF AN OUTSTANDING OR
DELINQUENT  REFUND  ANTICIPATION  LOAN  FOR  ANY  CREDITOR  OR ASSIGNEE,
INCLUDING SOLICITING THE EXECUTION OF, PROCESSING, RECEIVING, OR ACCEPT-
ING AN APPLICATION OR AGREEMENT FOR A REFUND ANTICIPATION LOAN OR REFUND
ANTICIPATION CHECK THAT CONTAINS A PROVISION PERMITTING THE CREDITOR  TO
REPAY,  BY  OFFSET  OR  OTHER MEANS, AN OUTSTANDING OR DELINQUENT REFUND
ANTICIPATION LOAN FOR THAT CREDITOR OR ANY CREDITOR FROM THE PROCEEDS OF
THE CONSUMER'S TAX REFUND.
  (J) FACILITATE, REFER, OR SOLICIT CONSUMERS ON BEHALF OF A THIRD PARTY
ENGAGED IN CHECK CASHING FOR A FEE, OR PERMIT THIRD PARTY CHECK  CASHING
FOR  A  FEE  IN  ANY PLACE OF BUSINESS IDENTIFIED ON THE APPLICATION FOR
REGISTRATION.
  (K) FACILITATE ANY LOAN THAT  IS  SECURED  BY  OR  THAT  THE  CREDITOR
ARRANGES  TO  BE REPAID DIRECTLY FROM THE PROCEEDS OF THE CONSUMER'S NEW
YORK STATE TAX REFUND FROM THE NEW YORK STATE DIVISION OF THE TREASURY.
  (L) OFFER A REFUND ANTICIPATION LOAN OR REFUND ANTICIPATION CHECK  FOR
GREATER  THAN FIFTY PERCENT OF THE APPLICANT'S TOTAL ANTICIPATED FEDERAL
TAX REFUND, OR PERMIT A CONSUMER TO ACCEPT A REFUND ANTICIPATION LOAN OR
REFUND ANTICIPATION CHECK FOR GREATER THAN FIFTY PERCENT OF THE  CONSUM-
ER'S TOTAL ANTICIPATED FEDERAL TAX REFUND.
  (M)  MAKE  OR  FACILITATE  A  REFUND  ANTICIPATION LOAN THAT COMPOUNDS
INTEREST OR CHARGES INTEREST ON INTEREST.

S. 742                             10

  (N) CHARGE OR FACILITATE A LOAN THAT CHARGES LATE FEES FOR THE DELAYED
PAYMENT OF A REFUND.
  (O)  MAKE  A  MISREPRESENTATION  OF FACT IN OBTAINING OR ATTEMPTING TO
OBTAIN A REGISTRATION AS A FACILITATOR.
  (P) ENGAGE IN ANY OTHER ACTION PROHIBITED BY RULES PROMULGATED BY  THE
BANKING DEPARTMENT.
  S  700-H.    FACILITATOR  DUTY TO CONSUMER.   (A) THE FACILITATOR IS A
BROKER OF REFUND ANTICIPATION LOANS OR REFUND  ANTICIPATION  CHECKS  AND
SHALL UPHOLD THE DUTIES OF BROKERS REQUIRED BY LAW.
  (B) A FACILITATOR, INCLUDING ANY REGISTRANT AND ANY PERSON REQUIRED TO
BE  REGISTERED  AS A FACILITATOR UNDER THIS PART, SHALL HAVE A FIDUCIARY
DUTY TO THE CONSUMER, AND SHALL, IN ADDITION TO OTHER DUTIES IMPOSED  BY
LAW:
  (1)  SAFEGUARD  AND  ACCOUNT FOR ANY MONEY HANDLED FOR THE CONSUMER OR
BORROWER;
  (2) FOLLOW REASONABLE AND LAWFUL INSTRUCTIONS  FROM  THE  CONSUMER  OR
BORROWER;
  (3)  MAKE  REASONABLE  EFFORTS TO ENSURE THAT THE AMOUNT OF THE REFUND
ANTICIPATION LOAN OFFERED TO THE BORROWER IS REASONABLY ADVANTAGEOUS  TO
THE  CONSUMER,  OR BORROWER CONSIDERING ALL THE CIRCUMSTANCES, INCLUDING
THE LIKELIHOOD THAT SUCH CONSUMER, OR BORROWER, WILL RECEIVE HIS OR  HER
REFUND IN THE PROJECTED AMOUNT AND THE PROJECTED TIMEFRAME;
  (4) DISCLOSE ANY AND ALL OFFSETS TO WHICH THE CONSUMER'S OR BORROWER'S
PROJECTED  TAX  REFUND  WOULD  BE  EXPOSED  PURSUANT TO ANY CROSS-LENDER
AGREEMENTS BETWEEN THE CONSUMER'S OR BORROWER'S CREDITOR AND OTHER LEND-
ERS. THE FACILITATOR SHALL  DISCLOSE  POTENTIAL  OFFSETS  PRIOR  TO  THE
DISTRIBUTION OF THE LOAN PROCEEDS, AT WHICH TIME THE CONSUMER OR BORROW-
ER, MAY DECLINE TO TAKE THE REFUND ANTICIPATION LOAN OR CHECK; AND
  (5) ACT WITH REASONABLE SKILL, CARE AND DILIGENCE.
  S  700-I.  PRIVATE  RIGHT OF ACTION. (A) THE REMEDIES PROVIDED IN THIS
SECTION ARE CUMULATIVE AND APPLY  TO  REGISTRANTS  AND  TO  UNREGISTERED
PERSONS TO WHOM THIS PART APPLIES AND WHO FAIL TO REGISTER.
  (B) ANY VIOLATION RELATING TO THE MAKING OF A REFUND ANTICIPATION LOAN
OR  REFUND ANTICIPATION CHECK BY A FACILITATOR OF ANY PROVISION OF ARTI-
CLE TWENTY-TWO-A OF THE  GENERAL  BUSINESS  LAW  PROHIBITING  UNFAIR  OR
DECEPTIVE ACTS OR PRACTICES CONSTITUTES A VIOLATION OF THIS PART.
  (C)  ANY  VIOLATION  OF  THIS  PART CONSTITUTES A VIOLATION OF ARTICLE
TWENTY-TWO-A OF THE GENERAL BUSINESS LAW PROHIBITING UNFAIR OR DECEPTIVE
ACTS OR PRACTICES.
  (D) A FACILITATOR WHO FAILS TO COMPLY WITH ANY PROVISION OF THIS  PART
IS LIABLE TO THE CONSUMER FOR: (1) ACTUAL AND CONSEQUENTIAL DAMAGES; (2)
STATUTORY  DAMAGES  OF  TWO  THOUSAND  DOLLARS (TO BE INCREASED ANNUALLY
BASED PROPORTIONALLY ON CHANGES IN THE CONSUMER PRICE INDEX, WITH  FRAC-
TIONAL  AMOUNTS ROUNDED TO THE NEAREST DOLLAR) OR THREE TIMES THE AMOUNT
OF THE REFUND ANTICIPATION LOAN FEE OR OTHER UNAUTHORIZED CHARGE, WHICH-
EVER IS GREATER; AND (3) REASONABLE ATTORNEY'S FEES AND COSTS.
  (E) ANY PERSON MAY SUE FOR INJUNCTIVE OR OTHER  APPROPRIATE  EQUITABLE
RELIEF TO ENFORCE THIS PART.
  (F)  ANY  CONSUMER MAY BRING A CLASS ACTION SUIT TO ENFORCE THIS PART.
IN ANY SUCH CLASS ACTION, A FACILITATOR WHO FAILS  TO  COMPLY  WITH  ANY
PROVISION  OF  THIS  PART  IS  LIABLE  FOR: (1) ACTUAL AND CONSEQUENTIAL
DAMAGES FOR EACH CLASS MEMBER; (2) STATUTORY DAMAGES  AS  SET  FORTH  IN
PARAGRAPH  TWO  OF SUBSECTION (D) OF THIS SECTION FOR EACH CLASS MEMBER;
AND (3) REASONABLE ATTORNEY'S FEES AND COSTS.
  (G) THE REMEDIES PROVIDED IN THIS SECTION ARE NOT INTENDED TO  BE  THE
EXCLUSIVE REMEDIES AVAILABLE TO A CONSUMER NOR MUST THE CONSUMER EXHAUST

S. 742                             11

ANY ADMINISTRATIVE REMEDIES PROVIDED UNDER THIS PART OR ANY OTHER APPLI-
CABLE LAW.
  S 700-J. RULES. THE BANKING DEPARTMENT MAY ADOPT RULES AS NECESSARY TO
EFFECTUATE  THE  PURPOSE  OF THIS PART, TO PROVIDE FOR THE PROTECTION OF
THE BORROWING PUBLIC, AND TO ASSIST FACILITATORS  IN  INTERPRETING  THIS
PART.  THE  BANKING  DEPARTMENT MAY MODIFY THE DISCLOSURES IN SUBSECTION
(C) OF SECTION SEVEN HUNDRED-D  AND  SUBSECTION  (D)  OF  SECTION  SEVEN
HUNDRED-E  OF  THIS  PART  TO  THE EXTENT THAT A REVISION OF THE TEN DAY
ESTIMATE FOR RECEIVING A REFUND FROM THE INTERNAL REVENUE SERVICE  (WITH
ELECTRONIC FILING AND DIRECT DEPOSIT) IS APPROPRIATE.
  S  700-K.  RECORD  KEEPING;  ANNUAL REPORTS. (A) THE FACILITATOR SHALL
KEEP RECORDS OF ALL REFUND ANTICIPATION  LOANS  THAT  IT  ISSUES.  THESE
RECORDS  SHALL  INCLUDE  THE DISCLOSURE FORMS SIGNED BY CONSUMERS. THESE
RECORDS SHALL BE OPEN TO THE INSPECTION OF THE  BANKING  SUPERINTENDENT,
MUNICIPAL DEPARTMENTS OF CONSUMER AFFAIRS, OR ANY PERSON DULY AUTHORIZED
IN  WRITING  FOR  SUCH  PURPOSES BY THE BANKING SUPERINTENDENT WHO SHALL
EXHIBIT SUCH WRITTEN AUTHORITY TO THE FACILITATOR.
  (B) ON OR BEFORE JULY FIRST OF EACH YEAR, BEGINNING  JULY  FIRST,  TWO
THOUSAND  TEN,  EACH  FACILITATOR  SHALL  FILE AN ANNUAL REPORT WITH THE
BANKING SUPERINTENDENT PURSUANT TO PROCEDURES THAT  THE  BANKING  SUPER-
INTENDENT  SHALL  ESTABLISH.  AN  ANNUAL  CONSOLIDATED  REPORT  SHALL BE
PREPARED BY THE BANKING SUPERINTENDENT AND MADE AVAILABLE TO THE PUBLIC.
THESE REPORTS SHALL INCLUDE THE FOLLOWING INFORMATION FOR THE TIME PERI-
OD OF APRIL FIFTEENTH OF THE PRIOR YEAR TO APRIL FIFTEENTH OF THAT YEAR:
  (1) THE TOTAL NUMBER AND DOLLAR AMOUNT OF  REFUND  ANTICIPATION  LOANS
FACILITATED BY THE FACILITATOR.
  (2)  THE  TOTAL NUMBER AND DOLLAR AMOUNT OF REFUND ANTICIPATION CHECKS
FACILITATED BY THE FACILITATOR.
  (3) THE AVERAGE NUMBER OF DAYS FOR  WHICH  REFUND  ANTICIPATION  LOANS
FACILITATED BY THE FACILITATOR WERE OUTSTANDING BEFORE BEING REPAID.
  (4)  THE NAME AND ADDRESS OF ANY CREDITOR OR PERSON FOR WHOM THE FACI-
LITATOR FACILITATES REFUND ANTICIPATION  LOANS  OR  REFUND  ANTICIPATION
CHECKS.
  (5) ANY OTHER INFORMATION REQUIRED BY THE BANKING SUPERINTENDENT.
  S 700-L. SEVERABILITY. IF ANY PORTION OF THIS PART IS DETERMINED TO BE
INVALID  FOR  ANY  REASON BY A FINAL NONAPPEALABLE ORDER OF ANY COURT OF
NEW YORK STATE OR OF A FEDERAL COURT OF COMPETENT JURISDICTION, THEN  IT
SHALL BE SEVERED FROM THIS PART. ALL OTHER PROVISIONS OF THIS PART SHALL
REMAIN IN FULL FORCE AND EFFECT.
  S  2.  This  act  shall take effect January 1, 2010 and shall apply to
refund anticipation loans or refund anticipation  checks  issued  on  or
after  such date; provided however that effective immediately, the addi-
tion, amendment and/or repeal of any rule or  regulation  necessary  for
the  implementation of this act on its effective date are authorized and
directed to be made and completed on or before such effective date.