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

                                  3832

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 21, 2013
                               ___________

Introduced  by  Sen.  FARLEY -- 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  applications  for  a
  license  to engage in the business of mortgage banking and to register
  as a mortgage broker

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

  Section 1. Subdivision 2 of section 592 of the banking law, as amended
by chapter 472 of the laws of 2008, is amended to read as follows:
  2. [The] NOTWITHSTANDING ANY OTHER LAW, THE superintendent [may refuse
to]  SHALL  NOT  issue  a  license pursuant to this article if he or she
shall find that the applicant, or any person who is a director, officer,
partner, agent, employee,  substantial  stockholder  of  the  applicant,
consultant or person having a relationship with the applicant similar to
a  consultant,  (a) has been convicted of [a crime involving an activity
which is a felony under  this  chapter  or  under  article  one  hundred
fifty-five,  one  hundred seventy, one hundred seventy-five, one hundred
seventy-six, one hundred eighty, one hundred  eighty-five,  one  hundred
eighty-seven,  one  hundred ninety, two hundred, two hundred ten or four
hundred seventy of the penal law or any comparable felony under the laws
of any other state or the United States, provided that such crime  would
be a felony if committed and prosecuted under the laws of this state] OR
PLED  NOLO  CONTENDERE  TO, A FELONY IN A DOMESTIC, FOREIGN, OR MILITARY
COURT DURING THE SEVEN-YEAR PERIOD PRECEDING THE DATE OF THE APPLICATION
FOR LICENSING OR AT ANY TIME PRECEDING SUCH DATE OF APPLICATION, IF SUCH
FELONY INVOLVED AN ACT OF FRAUD, DISHONESTY, OR A BREACH  OF  TRUST,  OR
MONEY LAUNDERING or (b) has had a MORTGAGE BANKER license [or], MORTGAGE
BROKER  registration  OR MORTGAGE LOAN ORIGINATOR AUTHORIZATION, LICENSE
OR LICENSE EQUIVALENT revoked [by the  superintendent]  IN  ANY  GOVERN-
MENTAL  JURISDICTION,  EXCEPT  THAT A SUBSEQUENT FORMAL VACATION OF SUCH
REVOCATION SHALL NOT BE DEEMED TO BE A REVOCATION  or  (c)  has  been  a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08149-01-3
              

S. 3832                             2

director, partner, or substantial stockholder of an entity which has had
a  license or registration revoked by the superintendent or (d) has been
an agent, employee or officer of an  entity,  or  a  consultant  to,  or
person  having had a similar relationship with, any entity which has had
a license or registration  revoked  by  the  superintendent  where  such
person  shall have been found by the superintendent to bear responsibil-
ity in connection with the revocation. The term "substantial  stockhold-
er",  as  used in this subdivision, shall be deemed to refer to a person
owning or controlling directly or indirectly ten [per centum] PERCENT or
more of the total outstanding stock of a corporation.
  S 2. Subdivision 2 of section 592-a of the banking law, as amended  by
chapter 472 of the laws of 2008, is amended to read as follows:
  2. [The] NOTWITHSTANDING ANY OTHER LAW, THE superintendent [may refuse
to]  SHALL NOT issue a certificate pursuant to this article if he or she
shall find that the applicant, or any person who is a director, officer,
partner, agent, employee,  substantial  stockholder  of  the  applicant,
consultant or person having a relationship with the applicant similar to
a  consultant,  (a) has been convicted [of a crime involving an activity
which is a felony under  this  chapter  or  under  article  one  hundred
fifty-five,  one  hundred seventy, one hundred seventy-five, one hundred
seventy-six, one hundred eighty, one hundred  eighty-five,  one  hundred
eighty-seven,  one  hundred ninety, two hundred, two hundred ten or four
hundred seventy of the penal law or any comparable felony under the laws
of any other state or the United States, provided that such crime  would
be a felony if committed and prosecuted under the laws of this state] IN
A  DOMESTIC,  FOREIGN,  OR  MILITARY COURT OR PLED NOLO CONTENDERE TO, A
FELONY DURING THE SEVEN-YEAR PERIOD PRECEDING THE DATE OF  THE  APPLICA-
TION FOR LICENSING OR AT ANY TIME PRECEDING SUCH DATE OF APPLICATION, IF
SUCH  FELONY INVOLVED AN ACT OF FRAUD, DISHONESTY, OR A BREACH OF TRUST,
OR MONEY LAUNDERING or (b) has had a MORTGAGE BANKER license [or], MORT-
GAGE BROKER registration  OR  MORTGAGE  LOAN  ORIGINATOR  AUTHORIZATION,
LICENSE  OR  LICENSE  EQUIVALENT  revoked [by the superintendent] IN ANY
GOVERNMENTAL JURISDICTION, EXCEPT THAT A SUBSEQUENT FORMAL  VACATION  OF
SUCH REVOCATION SHALL NOT BE DEEMED TO BE A REVOCATION or (c) has been a
director, partner, or substantial stockholder of an entity which has had
a  license or registration revoked by the superintendent or (d) has been
an agent, employee or officer of an  entity,  or  a  consultant  to,  or
person  having had a similar relationship with, any entity which has had
a license or registration  revoked  by  the  superintendent  where  such
person  shall have been found by the superintendent to bear responsibil-
ity in connection with the revocation. The term "substantial  stockhold-
er",  as  used in this subdivision, shall be deemed to refer to a person
owning or controlling directly or indirectly ten [per centum] PERCENT or
more of the total outstanding stock of a corporation.
  S 3. This act shall take effect immediately.