LBD01465-02-9
S. 1958 2
WHO SHARES A LEGAL OBLIGATION WITH SUCH RESIDENT FOR REPAYING A STUDENT
LOAN.
3. "BORROWER BENEFIT" SHALL MEAN AN INCENTIVE OFFERED TO A BORROWER IN
CONNECTION WITH THE ORIGINATION OF A STUDENT LOAN, INCLUDING BUT NOT
LIMITED TO AN INTEREST RATE REDUCTION, PRINCIPAL REBATE, FEE WAIVER OR
REBATE, LOAN CANCELLATION, OR COSIGNER RELEASE.
4. "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN
BANKING CORPORATION, NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL
CREDIT UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN
ASSOCIATION, OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER
STATE.
5. "PERSON" SHALL MEAN ANY INDIVIDUAL, ASSOCIATION, CORPORATION,
LIMITED LIABILITY COMPANY, PARTNERSHIP, TRUST, UNINCORPORATED ORGANIZA-
TION, OR ANY OTHER ENTITY.
6. "SERVICER" OR "STUDENT LOAN SERVICER" SHALL MEAN A PERSON LICENSED
PURSUANT TO SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE TO ENGAGE IN
THE BUSINESS OF SERVICING ANY STUDENT LOAN OF A BORROWER.
7. "SERVICING" SHALL MEAN:
(A) RECEIVING ANY PAYMENT FROM A BORROWER PURSUANT TO THE TERMS OF ANY
STUDENT LOAN;
(B) APPLYING ANY PAYMENT TO A BORROWER'S ACCOUNT PURSUANT TO THE TERMS
OF A STUDENT LOAN OR THE CONTRACT GOVERNING THE SERVICING OF ANY SUCH
LOAN;
(C) PROVIDING ANY NOTIFICATION OF AMOUNTS OWED ON A STUDENT LOAN BY OR
ON ACCOUNT OF ANY BORROWER;
(D) DURING A PERIOD WHEN A BORROWER IS NOT REQUIRED TO MAKE A PAYMENT
ON A STUDENT LOAN, MAINTAINING ACCOUNT RECORDS FOR THE STUDENT LOAN AND
COMMUNICATING WITH THE BORROWER REGARDING THE STUDENT LOAN ON BEHALF OF
THE OWNER OF THE STUDENT LOAN PROMISSORY NOTE;
(E) INTERACTING WITH A BORROWER WITH RESPECT TO OR REGARDING ANY
ATTEMPT TO AVOID DEFAULT ON THE BORROWER'S STUDENT LOAN, OR FACILITATING
THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION; OR
(F) PERFORMING OTHER ADMINISTRATIVE SERVICES WITH RESPECT TO A BORROW-
ER'S STUDENT LOAN.
8. "STUDENT LOAN" SHALL MEAN ANY LOAN TO A BORROWER TO FINANCE POSTSE-
CONDARY EDUCATION OR EXPENSES RELATED TO POSTSECONDARY EDUCATION.
§ 711. LICENSING. 1. NO PERSON SHALL ENGAGE IN THE BUSINESS OF SERVIC-
ING STUDENT LOANS OWED BY ONE OR MORE BORROWERS RESIDING IN THIS STATE
WITHOUT FIRST BEING LICENSED BY THE SUPERINTENDENT AS A STUDENT LOAN
SERVICER IN ACCORDANCE WITH THIS ARTICLE AND SUCH REGULATIONS AS MAY BE
PRESCRIBED BY THE SUPERINTENDENT.
2. THE LICENSING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY
EXEMPT ORGANIZATION.
§ 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 1. THE
APPLICATION FOR A LICENSE TO BE A STUDENT LOAN SERVICER SHALL BE IN
WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER
LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION
FOR A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY
BE REQUIRED BY THIS ARTICLE BE MADE OR EXECUTED BY ELECTRONIC MEANS IF
HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE
ADMINISTRATION OF THIS ARTICLE. THE APPLICATION SHALL INCLUDE A
DESCRIPTION OF THE ACTIVITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR
SUCH PERIODS AS THE SUPERINTENDENT MAY REQUIRE, INCLUDING:
S. 1958 3
(A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION
REQUIREMENTS AS MAY BE REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO
SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT;
(B) A FINANCIAL STATEMENT PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT,
THE ACCURACY OF WHICH IS SWORN TO UNDER OATH BEFORE A NOTARY PUBLIC BY
AN OFFICER OR OTHER REPRESENTATIVE OF THE APPLICANT WHO IS AUTHORIZED TO
EXECUTE SUCH DOCUMENTS;
(C) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART-
NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWEN-
TY-ONE YEARS OF AGE;
(D) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS
RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, OR ITS
MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS AS MAY BE APPRO-
PRIATE; AND
(E) ANY ADDITIONAL DETAIL OR INFORMATION REQUIRED BY THE SUPERINTEN-
DENT.
2. AN APPLICATION TO BECOME A STUDENT LOAN SERVICER OR ANY APPLICATION
WITH RESPECT TO A STUDENT LOAN SERVICER SHALL BE ACCOMPANIED BY A FEE AS
PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
§ 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSI-
NESS OF STUDENT LOAN SERVICING. 1. UPON THE FILING OF AN APPLICATION FOR
A LICENSE, IF THE SUPERINTENDENT SHALL FIND THAT THE FINANCIAL RESPONSI-
BILITY, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF THE APPLICANT AND,
IF APPLICABLE, THE MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS
OF THE APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY
AND TO WARRANT BELIEF THAT THE BUSINESS WILL BE OPERATED HONESTLY, FAIR-
LY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE, THE SUPERINTEN-
DENT SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE TO ENGAGE IN THE BUSI-
NESS OF SERVICING STUDENT LOANS DESCRIBED IN SECTION SEVEN HUNDRED TEN
OF THIS ARTICLE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. IF
THE SUPERINTENDENT SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT ISSUE
A LICENSE, AND THE SUPERINTENDENT SHALL SO NOTIFY THE APPLICANT. THE
SUPERINTENDENT SHALL TRANSMIT ONE COPY OF A LICENSE TO THE APPLICANT AND
FILE ANOTHER COPY IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES.
UPON RECEIPT OF SUCH LICENSE, A STUDENT LOAN SERVICER SHALL BE AUTHOR-
IZED TO ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN ACCORDANCE
WITH THE PROVISIONS OF THIS ARTICLE. SUCH LICENSE SHALL REMAIN IN FULL
FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE SERVICER OR REVOKED OR
SUSPENDED AS HEREINAFTER PROVIDED.
2. THE SUPERINTENDENT MAY REFUSE TO 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, MEMBER OR SUBSTANTIAL
STOCKHOLDER OF THE APPLICANT:
(A) LACKS THE GOOD MORAL CHARACTER AND GENERAL FITNESS SUCH AS TO
WARRANT BELIEF THAT THE LICENSED ENTITY WOULD BE OPERATED HONESTLY,
FAIRLY AND EFFICIENTLY WITHIN THE PURPOSES OF THIS ARTICLE;
(B) HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR
ANY OTHER REGULATOR OR JURISDICTION;
(C) HAS BEEN AN OFFICER, DIRECTOR, PARTNER, MEMBER OR SUBSTANTIAL
STOCKHOLDER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED
BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; OR
(D) HAS BEEN AN AGENT, EMPLOYEE, OFFICER, DIRECTOR, PARTNER OR MEMBER
OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE
SUPERINTENDENT WHERE SUCH PERSON SHALL HAVE BEEN FOUND BY THE SUPER-
INTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH THE REVOCATION.
S. 1958 4
3. THE TERM "SUBSTANTIAL STOCKHOLDER", AS USED IN THIS SECTION, SHALL
BE DEEMED TO REFER TO A PERSON OWNING OR CONTROLLING DIRECTLY OR INDI-
RECTLY TEN PER CENTUM OR MORE OF THE TOTAL OUTSTANDING STOCK OF A CORPO-
RATION.
§ 714. CHANGES IN OFFICERS AND DIRECTORS. UPON ANY CHANGE OF ANY OF
THE EXECUTIVE OFFICERS, DIRECTORS, PARTNERS OR MEMBERS OF ANY STUDENT
LOAN SERVICER, THE STUDENT LOAN SERVICER SHALL SUBMIT TO THE SUPERINTEN-
DENT THE NAME, ADDRESS, AND OCCUPATION OF EACH NEW OFFICER, DIRECTOR,
PARTNER OR MEMBER, AND PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTEN-
DENT MAY REQUIRE.
§ 715. CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL, EXCEPT WITH THE
PRIOR APPROVAL OF THE SUPERINTENDENT, FOR ANY ACTION TO BE TAKEN WHICH
RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVI-
CER. PRIOR TO ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING
CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVICER SHALL MAKE WRITTEN
APPLICATION TO THE SUPERINTENDENT AND PAY AN INVESTIGATION FEE AS
PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER TO THE SUPER-
INTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS THE SUPER-
INTENDENT, BY RULE OR REGULATION, MAY PRESCRIBE AS NECESSARY OR APPRO-
PRIATE FOR THE PURPOSE OF MAKING THE DETERMINATION REQUIRED BY
SUBDIVISION TWO OF THIS SECTION. SUCH INFORMATION SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE INFORMATION AND OTHER MATERIAL REQUIRED FOR A STUDENT
LOAN SERVICER BY SUBDIVISION ONE OF SECTION SEVEN HUNDRED TWELVE OF THIS
ARTICLE.
2. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE
OF CONTROL OF A STUDENT LOAN SERVICER IN ACCORDANCE WITH THE PROVISIONS
OF SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE.
3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF QUALIFICATION THEREOF
AND FOR SUCH ADDITIONAL PERIOD OF TIME AS THE SUPERINTENDENT MAY
PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF
THIS SECTION SHALL NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF
LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO HAS
CONTROL OF A STUDENT LOAN SERVICER. THEREAFTER, SUCH LEGAL REPRESEN-
TATIVE SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF
THIS SECTION. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION
SHALL BE APPLICABLE TO AN APPLICATION MADE UNDER THIS SECTION BY A LEGAL
REPRESENTATIVE. THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF
THIS SUBDIVISION, SHALL MEAN A PERSON DULY APPOINTED BY A COURT OF
COMPETENT JURISDICTION TO ACT AS EXECUTOR, ADMINISTRATOR, TRUSTEE,
COMMITTEE, CONSERVATOR OR RECEIVER, INCLUDING A PERSON WHO SUCCEEDS A
LEGAL REPRESENTATIVE AND A PERSON ACTING IN AN ANCILLARY CAPACITY THERE-
TO IN ACCORDANCE WITH THE PROVISIONS OF SUCH COURT APPOINTMENT.
4. AS USED IN THIS SECTION THE TERM "CONTROL" MEANS THE POSSESSION,
DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF
THE MANAGEMENT AND POLICIES OF A STUDENT LOAN SERVICER, WHETHER THROUGH
THE OWNERSHIP OF VOTING STOCK OF SUCH STUDENT LOAN SERVICER, THE OWNER-
SHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR OTHER-
WISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY OR
INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR
MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER OR OF ANY PERSON
WHICH OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE
OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER, BUT NO PERSON SHALL BE
DEEMED TO CONTROL A STUDENT LOAN SERVICER SOLELY BY REASON OF BEING AN
OFFICER OR DIRECTOR OF SUCH STUDENT LOAN SERVICER. THE SUPERINTENDENT
MAY IN HIS DISCRETION, UPON THE APPLICATION OF A STUDENT LOAN SERVICER
OR ANY PERSON WHO, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH
S. 1958 5
POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE ANY
VOTING STOCK OF SUCH STUDENT LOAN SERVICER, DETERMINE WHETHER OR NOT THE
OWNERSHIP, CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD
CONSTITUTE CONTROL OF SUCH STUDENT LOAN SERVICER FOR PURPOSES OF THIS
SECTION.
§ 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 1. THE SUPER-
INTENDENT MAY REVOKE ANY LICENSE TO ENGAGE IN THE BUSINESS OF A STUDENT
LOAN SERVICER ISSUED PURSUANT TO THIS ARTICLE IF A DETERMINATION HAS
BEEN MADE, AFTER NOTICE AND A HEARING, THAT:
(A) A SERVICER HAS VIOLATED ANY PROVISION OF THIS ARTICLE, ANY RULE OR
REGULATION PROMULGATED BY THE SUPERINTENDENT UNDER AND WITHIN THE
AUTHORITY OF THIS ARTICLE, OR ANY OTHER APPLICABLE LAW;
(B) A SERVICER ENGAGES IN FRAUD, INTENTIONAL MISREPRESENTATION, OR
GROSS NEGLIGENCE IN SERVICING A STUDENT LOAN;
(C) THE COMPETENCE, EXPERIENCE, CHARACTER, OR GENERAL FITNESS OF THE
SERVICER, AN INDIVIDUAL CONTROLLING, DIRECTLY OR INDIRECTLY, TEN PERCENT
OR MORE OF THE OUTSTANDING INTERESTS, OR ANY PERSON RESPONSIBLE FOR
SERVICING A STUDENT LOAN FOR THE SERVICER INDICATES THAT IT IS NOT IN
THE PUBLIC INTEREST TO PERMIT THE SERVICER TO CONTINUE SERVICING STUDENT
LOANS;
(D) THE SERVICER IS INSOLVENT, SUSPENDS PAYMENT OF ITS OBLIGATIONS, OR
MAKES A GENERAL ASSIGNMENT FOR THE BENEFIT OF ITS CREDITORS; OR
(E) THE SERVICER HAS VIOLATED THE LAWS OF THIS STATE, ANY OTHER STATE
LAW OR ANY FEDERAL LAW INVOLVING FRAUDULENT OR DISHONEST DEALING, OR A
FINAL JUDGMENT HAS BEEN ENTERED AGAINST A STUDENT LOAN SERVICER IN A
CIVIL ACTION UPON GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT.
2. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE THERE IS A
SUBSTANTIAL RISK OF PUBLIC HARM, SUSPEND ANY LICENSE FOR A PERIOD NOT
EXCEEDING THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN
THIS SUBDIVISION, SHALL EXIST WHEN A STUDENT LOAN SERVICER HAS DEFAULTED
IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQ-
UITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS
AFFORDED THE PROTECTION OF THIS ARTICLE.
3. NO LICENSE SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER NOTICE AND A
HEARING THEREON. ANY ORDER OF SUSPENSION ISSUED AFTER NOTICE AND A
HEARING MAY INCLUDE AS A CONDITION OF REINSTATEMENT THAT THE STUDENT
LOAN SERVICER MAKE RESTITUTION TO CONSUMERS OF FEES OR OTHER CHARGES
WHICH HAVE BEEN IMPROPERLY CHARGED OR COLLECTED, INCLUDING BUT NOT
LIMITED TO BY ALLOCATING PAYMENTS CONTRARY TO A BORROWER'S DIRECTION OR
IN A MANNER THAT FAILS TO HELP A BORROWER AVOID DEFAULT, AS DETERMINED
BY THE SUPERINTENDENT. ANY HEARING HELD PURSUANT TO THE PROVISIONS OF
THIS SECTION SHALL BE NOTICED, CONDUCTED AND ADMINISTERED IN COMPLIANCE
WITH THE STATE ADMINISTRATIVE PROCEDURE ACT.
4. ANY STUDENT LOAN SERVICER MAY SURRENDER ANY LICENSE BY DELIVERING
TO THE SUPERINTENDENT WRITTEN NOTICE THAT THE STUDENT LOAN SERVICER
THEREBY SURRENDERS SUCH LICENSE, BUT SUCH SURRENDER SHALL NOT AFFECT THE
SERVICER'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO THE
SURRENDER. IF SUCH SURRENDER IS MADE AFTER THE ISSUANCE BY THE SUPER-
INTENDENT OF A STATEMENT OF CHARGES AND NOTICE OF HEARING, THE SUPER-
INTENDENT MAY PROCEED AGAINST THE SERVICER AS IF THE SURRENDER HAD NOT
TAKEN PLACE.
5. NO REVOCATION, SUSPENSION, OR SURRENDER OF ANY LICENSE SHALL IMPAIR
OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING LAWFUL CONTRACT BETWEEN THE
STUDENT LOAN SERVICER AND ANY PERSON, INCLUDING THE DEPARTMENT OF FINAN-
CIAL SERVICES.
S. 1958 6
6. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FULL
FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED OR
SUSPENDED IN ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE.
7. WHENEVER THE SUPERINTENDENT SHALL REVOKE OR SUSPEND A LICENSE
ISSUED PURSUANT TO THIS ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE IN
DUPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE
ONE COPY OF THE ORDER IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL
SERVICES AND SHALL FORTHWITH SERVE THE OTHER COPY UPON THE STUDENT LOAN
SERVICER. ANY SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTI-
CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
§ 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 1. EACH
STUDENT LOAN SERVICER SHALL KEEP AND USE IN ITS BUSINESS SUCH BOOKS,
ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTENDENT TO DETERMINE
WHETHER THE SERVICER IS COMPLYING WITH THE PROVISIONS OF THIS ARTICLE
AND WITH THE RULES AND REGULATIONS LAWFULLY MADE BY THE SUPERINTENDENT.
EVERY SERVICER SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND RECORDS, FOR AT
LEAST THREE YEARS.
2. (A) EACH STUDENT LOAN SERVICER SHALL ANNUALLY, ON OR BEFORE A DATE
TO BE DETERMINED BY THE SUPERINTENDENT, FILE A REPORT WITH THE SUPER-
INTENDENT GIVING SUCH INFORMATION AS THE SUPERINTENDENT MAY REQUIRE
CONCERNING THE BUSINESS AND OPERATIONS DURING THE PRECEDING CALENDAR
YEAR OF SUCH SERVICER UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL
BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES
OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
(B) IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH
ADDITIONAL REGULAR OR SPECIAL REPORTS AS HE OR SHE MAY DEEM NECESSARY TO
THE PROPER SUPERVISION OF STUDENT LOAN SERVICERS UNDER THIS ARTICLE.
SUCH ADDITIONAL REPORTS SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE
SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM
PRESCRIBED BY THE SUPERINTENDENT.
3. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY
OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT ANY
SUBMISSION OR APPROVAL AS MAY BE REQUIRED BY THE SUPERINTENDENT BE MADE
OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO
ENSURE THE EFFICIENT ADMINISTRATION OF THIS ARTICLE.
§ 718. RULES AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY
OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY
AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY
IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF
THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS
ARTICLE, INCLUDING, BUT NOT LIMITED TO:
(A) SUCH RULES AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF
STUDENT LOAN SERVICERS AS MAY BE NECESSARY AND APPROPRIATE FOR THE
PROTECTION OF BORROWERS IN THIS STATE;
(B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO
DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH
THE ACTIVITIES OF STUDENT LOAN SERVICERS IN SERVICING STUDENT LOANS;
(C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS
ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE-
MENT THE PROVISIONS OF THIS ARTICLE; AND
(D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
OF THIS ARTICLE.
2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH
SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE SUPERINTENDENT MAY DEEM
NECESSARY FOR THE PROPER CONDUCT OF THE STUDENT LOAN SERVICING INDUSTRY.
§ 719. PROHIBITED PRACTICES. NO STUDENT LOAN SERVICER SHALL:
S. 1958 7
1. DIRECTLY EMPLOY ANY SCHEME, DEVICE OR ARTIFICE TO DEFRAUD OR
MISLEAD A BORROWER.
2. INTENTIONALLY ENGAGE IN ANY UNFAIR, DECEPTIVE OR PREDATORY ACT OR
PRACTICE TOWARD ANY PERSON OR MISREPRESENT OR OMIT ANY MATERIAL INFORMA-
TION IN CONNECTION WITH THE SERVICING OF A STUDENT LOAN, INCLUDING, BUT
NOT LIMITED TO, MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY FEE
OR PAYMENT DUE OR CLAIMED TO BE DUE ON A STUDENT LOAN, THE TERMS AND
CONDITIONS OF THE LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE
LOAN.
3. INTENTIONALLY MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF ANY
STUDENT LOAN OR TO ANY RELATED INTEREST OR FEES.
4. INTENTIONALLY PROVIDE MISLEADING INFORMATION TO A CONSUMER REPORT-
ING AGENCY.
5. REFUSE TO COMMUNICATE WITH AN AUTHORIZED REPRESENTATIVE OF THE
BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED BY THE BORROWER,
PROVIDED THAT THE SERVICER MAY ADOPT PROCEDURES REASONABLY RELATED TO
VERIFYING THAT THE REPRESENTATIVE IS IN FACT AUTHORIZED TO ACT ON BEHALF
OF THE BORROWER.
6. KNOWINGLY MAKE ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATE-
RIAL FACT IN CONNECTION WITH ANY INFORMATION OR REPORTS FILED WITH A
GOVERNMENTAL AGENCY OR IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY
THE SUPERINTENDENT OR ANOTHER GOVERNMENTAL AGENCY.
§ 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. WHENEVER, IN THE
OPINION OF THE SUPERINTENDENT, A PERSON IS ENGAGED IN THE BUSINESS OF
SERVICING STUDENT LOANS, EITHER ACTUALLY OR THROUGH SUBTERFUGE, WITHOUT
A LICENSE FROM THE SUPERINTENDENT, THE SUPERINTENDENT MAY ORDER THAT
PERSON TO DESIST AND REFRAIN FROM ENGAGING IN THE BUSINESS OF SERVICING
STUDENT LOANS IN THE STATE. IF, WITHIN THIRTY DAYS AFTER AN ORDER IS
SERVED, A REQUEST FOR A HEARING IS FILED IN WRITING AND THE HEARING IS
NOT HELD WITHIN SIXTY DAYS OF THE FILING, THE ORDER SHALL BE RESCINDED.
§ 721. RESPONSIBILITIES. 1. IF A STUDENT LOAN SERVICER REGULARLY
REPORTS INFORMATION TO A CONSUMER REPORTING AGENCY, THE SERVICER SHALL
ACCURATELY REPORT A BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE
CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS
ON A NATIONWIDE BASIS AS DEFINED IN SECTION 603(P) OF THE FEDERAL FAIR
CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)), UPON ACCEPTANCE AS A
DATA FURNISHER BY THAT CONSUMER REPORTING AGENCY.
2. (A) EXCEPT AS PROVIDED IN FEDERAL LAW OR REQUIRED BY A STUDENT LOAN
AGREEMENT, A STUDENT LOAN SERVICER SHALL INQUIRE OF A BORROWER HOW TO
APPLY A BORROWER'S NONCONFORMING PAYMENT. A BORROWER'S DIRECTION ON HOW
TO APPLY A NONCONFORMING PAYMENT SHALL REMAIN IN EFFECT FOR ANY FUTURE
NONCONFORMING PAYMENT DURING THE TERM OF A STUDENT LOAN UNTIL THE
BORROWER PROVIDES DIFFERENT DIRECTIONS.
(B) FOR PURPOSES OF THIS SUBDIVISION, "NONCONFORMING PAYMENT" SHALL
MEAN A PAYMENT THAT IS EITHER MORE OR LESS THAN THE BORROWER'S REQUIRED
STUDENT LOAN PAYMENT.
3. (A) IF THE SALE, ASSIGNMENT, OR OTHER TRANSFER OF THE SERVICING OF
A STUDENT LOAN RESULTS IN A CHANGE IN THE IDENTITY OF THE PERSON TO WHOM
THE BORROWER IS REQUIRED TO SEND SUBSEQUENT PAYMENTS OR DIRECT ANY
COMMUNICATIONS CONCERNING THE STUDENT LOAN, A STUDENT LOAN SERVICER
SHALL TRANSFER ALL INFORMATION REGARDING A BORROWER, A BORROWER'S
ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE
BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH
THE BORROWER'S STUDENT LOAN, TO THE NEW STUDENT LOAN SERVICER SERVICING
THE BORROWER'S STUDENT LOAN WITHIN FORTY-FIVE DAYS.
S. 1958 8
(B) A STUDENT LOAN SERVICER SHALL ADOPT POLICIES AND PROCEDURES TO
VERIFY THAT IT HAS RECEIVED ALL INFORMATION REGARDING A BORROWER, A
BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT
LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS
ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, WHEN THE SERVICER OBTAINS
THE RIGHT TO SERVICE A STUDENT LOAN.
4. IF A STUDENT LOAN SERVICER SELLS, ASSIGNS, OR OTHERWISE TRANSFERS
THE SERVICING OF A STUDENT LOAN TO A NEW SERVICER, THE SALE, ASSIGNMENT
OR OTHER TRANSFER SHALL BE COMPLETED AT LEAST SEVEN DAYS BEFORE THE
BORROWER'S NEXT PAYMENT IS DUE.
5. (A) A STUDENT LOAN SERVICER THAT SELLS, ASSIGNS, OR OTHERWISE
TRANSFERS THE SERVICING OF A STUDENT LOAN SHALL REQUIRE AS A CONDITION
OF SUCH SALE, ASSIGNMENT OR OTHER TRANSFER THAT THE NEW STUDENT LOAN
SERVICER SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS
BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN
AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE
REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET
QUALIFIED.
(B) A STUDENT LOAN SERVICER THAT OBTAINS THE RIGHT TO SERVICE A
STUDENT LOAN SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS
BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN
AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE
REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET
QUALIFIED.
6. A STUDENT LOAN SERVICER SHALL RESPOND WITHIN THIRTY DAYS AFTER
RECEIPT TO A WRITTEN INQUIRY FROM A BORROWER OR A BORROWER'S AUTHORIZED
REPRESENTATIVE.
7. A STUDENT LOAN SERVICER SHALL PRESERVE RECORDS OF EACH STUDENT LOAN
AND ALL COMMUNICATIONS WITH BORROWERS FOR NOT LESS THAN TWO YEARS
FOLLOWING THE FINAL PAYMENT ON A STUDENT LOAN OR THE SALE, ASSIGNMENT OR
OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN, WHICHEVER OCCURS
FIRST, OR SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION
OF LAW.
§ 722. EXAMINATIONS. 1. THE SUPERINTENDENT MAY AT ANY TIME, AND AS
OFTEN AS HE OR SHE MAY DETERMINE, EITHER PERSONALLY OR BY A PERSON DULY
DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE THE BUSINESS AND EXAMINE
THE BOOKS, ACCOUNTS, RECORDS, AND FILES USED THEREIN OF EVERY STUDENT
LOAN SERVICER. FOR THAT PURPOSE THE SUPERINTENDENT 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 STUDENT LOAN SERVICERS. THE SUPERINTENDENT AND ANY PERSON
DULY DESIGNATED BY HIM OR HER SHALL HAVE THE AUTHORITY TO REQUIRE THE
ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL PERSONS WHOSE TESTIMONY HE
OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS.
2. NO PERSON SUBJECT TO INVESTIGATION OR EXAMINATION UNDER THIS
SECTION MAY KNOWINGLY WITHHOLD, ABSTRACT, REMOVE, MUTILATE, DESTROY OR
SECRETE ANY BOOKS, RECORDS, COMPUTER RECORDS OR OTHER INFORMATION.
3. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO THIS
SECTION SHALL BE ASSESSED AGAINST AND PAID BY THE STUDENT LOAN SERVICER
SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO INCURRED
SHALL BE CHARGED AGAINST AND PAID BY SERVICERS IN SUCH PROPORTIONS AS
THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND SUCH PROPOR-
TIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES
INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE SUPERINTEN-
DENT OF THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE SERVICER SHALL BECOME
LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTENDENT.
S. 1958 9
4. IN ANY HEARING IN WHICH A DEPARTMENT EMPLOYEE ACTING UNDER AUTHORI-
TY OF THIS CHAPTER IS AVAILABLE FOR CROSS-EXAMINATION, ANY OFFICIAL
WRITTEN REPORT, WORKSHEET, OTHER RELATED PAPERS, OR DULY CERTIFIED COPY
THEREOF, COMPILED, PREPARED, DRAFTED, OR OTHERWISE MADE BY SUCH DEPART-
MENT EMPLOYEE, AFTER BEING DULY AUTHENTICATED BY THE EMPLOYEE, MAY BE
ADMITTED AS COMPETENT EVIDENCE UPON THE OATH OF THE EMPLOYEE THAT SUCH
WORKSHEET, INVESTIGATIVE REPORT, OR OTHER RELATED DOCUMENTS WERE
PREPARED AS A RESULT OF AN EXAMINATION OF THE BOOKS AND RECORDS OF A
SERVICER OR OTHER PERSON, CONDUCTED PURSUANT TO THE AUTHORITY OF THIS
CHAPTER.
5. UNLESS OTHERWISE EXEMPT PURSUANT TO SUBDIVISION TWO OF SECTION
SEVEN HUNDRED ELEVEN OF THIS ARTICLE, AFFILIATES OF A STUDENT LOAN
SERVICER SHALL BE SUBJECT TO EXAMINATION BY THE SUPERINTENDENT ON THE
SAME TERMS AS THE SERVICER, BUT ONLY WHEN REPORTS FROM, OR EXAMINATION
OF, A SERVICER PROVIDES EVIDENCE OF UNLAWFUL ACTIVITY BETWEEN A SERVICER
AND AFFILIATE BENEFITTING, AFFECTING, OR ARISING FROM THE ACTIVITIES
REGULATED BY THIS ARTICLE.
§ 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 1. IN ADDITION TO SUCH
PENALTIES AS MAY OTHERWISE BE APPLICABLE BY LAW, THE SUPERINTENDENT MAY,
AFTER NOTICE AND HEARING, REQUIRE ANY PERSON FOUND VIOLATING THE
PROVISIONS OF THIS ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HERE-
UNDER TO PAY TO THE PEOPLE OF THIS STATE A PENALTY FOR EACH VIOLATION OF
THIS ARTICLE OR ANY REGULATION OR POLICY PROMULGATED HEREUNDER A SUM NOT
TO EXCEED AN AMOUNT AS DETERMINED PURSUANT TO SECTION FORTY-FOUR OF THIS
CHAPTER FOR EACH SUCH VIOLATION.
2. NOTHING IN THIS ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW
RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW.
§ 724. SEVERABILITY OF PROVISIONS. IF ANY PROVISION OF THIS ARTICLE,
OR THE APPLICATION OF SUCH PROVISION TO ANY PERSON OR CIRCUMSTANCE,
SHALL BE HELD INVALID, ILLEGAL OR UNENFORCEABLE, THE REMAINDER OF THE
ARTICLE, AND THE APPLICATION OF SUCH PROVISION TO PERSONS OR CIRCUM-
STANCES OTHER THAN THOSE AS TO WHICH IT IS HELD INVALID, ILLEGAL OR
UNENFORCEABLE, SHALL NOT BE AFFECTED THEREBY.
§ 725. COMPLIANCE WITH OTHER LAWS. 1. STUDENT LOAN SERVICERS SHALL
ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN CONFORMITY WITH THE
PROVISIONS OF THIS CHAPTER, SUCH RULES AND REGULATIONS AS MAY BE PROMUL-
GATED BY THE SUPERINTENDENT THEREUNDER AND ALL APPLICABLE FEDERAL LAWS
AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.
2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY OTHERWISE
APPLICABLE STATE OR FEDERAL LAW OR REGULATIONS.
§ 2. Subdivision 10 of section 36 of the banking law, as amended by
chapter 182 of the laws of 2011, is amended to read as follows:
10. All reports of examinations and investigations, correspondence and
memoranda concerning or arising out of such examination and investi-
gations, including any duly authenticated copy or copies thereof in the
possession of any banking organization, bank holding company or any
subsidiary thereof (as such terms "bank holding company" and "subsid-
iary" are defined in article three-A of this chapter), any corporation
or any other entity affiliated with a banking organization within the
meaning of subdivision six of this section and any non-banking subsid-
iary of a corporation or any other entity which is an affiliate of a
banking organization within the meaning of subdivision six-a of this
section, foreign banking corporation, licensed lender, licensed casher
of checks, licensed mortgage banker, registered mortgage broker,
licensed mortgage loan originator, licensed sales finance company,
S. 1958 10
registered mortgage loan servicer, LICENSED STUDENT LOAN SERVICER,
licensed insurance premium finance agency, licensed transmitter of
money, licensed budget planner, any other person or entity subject to
supervision under this chapter, or the department, shall be confidential
communications, shall not be subject to subpoena and shall not be made
public unless, in the judgment of the superintendent, the ends of
justice and the public advantage will be subserved by the publication
thereof, in which event the superintendent may publish or authorize the
publication of a copy of any such report or any part thereof in such
manner as may be deemed proper or unless such laws specifically author-
ize such disclosure. For the purposes of this subdivision, "reports of
examinations and investigations, and any correspondence and memoranda
concerning or arising out of such examinations and investigations",
includes any such materials of a bank, insurance or securities regulato-
ry agency or any unit of the federal government or that of this state
any other state or that of any foreign government which are considered
confidential by such agency or unit and which are in the possession of
the department or which are otherwise confidential materials that have
been shared by the department with any such agency or unit and are in
the possession of such agency or unit.
§ 3. Subdivisions 1, 2, 3 and 5 of section 39 of the banking law,
subdivisions 1, 2 and 5 as amended by chapter 123 of the laws of 2009
and subdivision 3 as amended by chapter 155 of the laws of 2012, are
amended to read as follows:
1. To appear and explain an apparent violation. Whenever it shall
appear to the superintendent that any banking organization, bank holding
company, registered mortgage broker, licensed mortgage banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan originator, licensed lender, licensed casher of checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
state bank that maintains a branch or branches or representative or
other offices in this state, or foreign banking corporation licensed by
the superintendent to do business or maintain a representative office in
this state has violated any law or regulation, he or she may, in his or
her discretion, issue an order describing such apparent violation and
requiring such banking organization, bank holding company, registered
mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVI-
CER, licensed mortgage loan originator, licensed lender, licensed casher
of checks, licensed sales finance company, licensed insurance premium
finance agency, licensed transmitter of money, licensed budget planner,
out-of-state state bank that maintains a branch or branches or represen-
tative or other offices in this state, or foreign banking corporation to
appear before him or her, at a time and place fixed in said order, to
present an explanation of such apparent violation.
2. To discontinue unauthorized or unsafe and unsound practices. When-
ever it shall appear to the superintendent that any banking organiza-
tion, bank holding company, registered mortgage broker, licensed mort-
gage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan
servicer, licensed mortgage loan originator, licensed lender, licensed
casher of checks, licensed sales finance company, licensed insurance
premium finance agency, licensed transmitter of money, licensed budget
planner, out-of-state state bank that maintains a branch or branches or
representative or other offices in this state, or foreign banking corpo-
ration licensed by the superintendent to do business in this state is
conducting business in an unauthorized or unsafe and unsound manner, he
S. 1958 11
or she may, in his or her discretion, issue an order directing the
discontinuance of such unauthorized or unsafe and unsound practices, and
fixing a time and place at which such banking organization, bank holding
company, registered mortgage broker, licensed mortgage banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan originator, licensed lender, licensed casher of checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, out-of-state
state bank that maintains a branch or branches or representative or
other offices in this state, or foreign banking corporation may volun-
tarily appear before him or her to present any explanation in defense of
the practices directed in said order to be discontinued.
3. To make good impairment of capital or to ensure compliance with
financial requirements. Whenever it shall appear to the superintendent
that the capital or capital stock of any banking organization, bank
holding company or any subsidiary thereof which is organized, licensed
or registered pursuant to this chapter, is impaired, or the financial
requirements imposed by subdivision one of section two hundred two-b of
this chapter or any regulation of the superintendent on any branch or
agency of a foreign banking corporation or the financial requirements
imposed by this chapter or any regulation of the superintendent on any
licensed lender, registered mortgage broker, licensed mortgage banker,
LICENSED STUDENT LOAN SERVICER, licensed casher of checks, licensed
sales finance company, licensed insurance premium finance agency,
licensed transmitter of money, licensed budget planner or private banker
are not satisfied, the superintendent may, in the superintendent's
discretion, issue an order directing that such banking organization,
bank holding company, branch or agency of a foreign banking corporation,
registered mortgage broker, licensed mortgage banker, LICENSED STUDENT
LOAN SERVICER, licensed lender, licensed casher of checks, licensed
sales finance company, licensed insurance premium finance agency,
licensed transmitter of money, licensed budget planner, or private bank-
er make good such deficiency forthwith or within a time specified in
such order.
5. To keep books and accounts as prescribed. Whenever it shall appear
to the superintendent that any banking organization, bank holding compa-
ny, registered mortgage broker, licensed mortgage banker, LICENSED
STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort-
gage loan originator, licensed lender, licensed casher of checks,
licensed sales finance company, licensed insurance premium finance agen-
cy, licensed transmitter of money, licensed budget planner, agency or
branch of a foreign banking corporation licensed by the superintendent
to do business in this state, does not keep its books and accounts in
such manner as to enable him or her to readily ascertain its true condi-
tion, he or she may, in his or her discretion, issue an order requiring
such banking organization, bank holding company, registered mortgage
broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis-
tered mortgage loan servicer, licensed mortgage loan originator,
licensed lender, licensed casher of checks, licensed sales finance
company, licensed insurance premium finance agency, licensed transmitter
of money, licensed budget planner, or foreign banking corporation, or
the officers or agents thereof, or any of them, to open and keep such
books or accounts as he or she may, in his or her discretion, determine
and prescribe for the purpose of keeping accurate and convenient records
of its transactions and accounts.
S. 1958 12
§ 4. Paragraph (a) of subdivision 1 of section 44 of the banking law,
as amended by chapter 155 of the laws of 2012, is amended to read as
follows:
(a) Without limiting any power granted to the superintendent under any
other provision of this chapter, the superintendent may, in a proceeding
after notice and a hearing, require any safe deposit company, licensed
lender, licensed casher of checks, licensed sales finance company,
licensed insurance premium finance agency, licensed transmitter of
money, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis-
tered mortgage broker, licensed mortgage loan originator, registered
mortgage loan servicer or licensed budget planner to pay to the people
of this state a penalty for any violation of this chapter, any regu-
lation promulgated thereunder, any final or temporary order issued
pursuant to section thirty-nine of this article, any condition imposed
in writing by the superintendent in connection with the grant of any
application or request, or any written agreement entered into with the
superintendent.
§ 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
