LBD04514-01-1
A. 5192 2
or money orders] PROVIDING FINANCIAL SERVICES REGULATED BY THIS ARTICLE
is to be conducted.
4. THE TERM "PERSON" MEANS ANY INDIVIDUAL OR OTHER LEGAL ENTITY,
INCLUDING ANY CORPORATION, PARTNERSHIP, ASSOCIATION OR LIMITED LIABILITY
COMPANY.
5. THE TERM "FINANCIAL SERVICES" MEANS OFFERING OR PROVIDING ANY OF
THE FOLLOWING FINANCIAL PRODUCTS OR SERVICES: (A) THE CASHING OF CHECKS,
DRAFTS AND/OR MONEY ORDERS,
(B) MONEY TRANSMISSION SERVICES AS DEFINED IN ARTICLE THIRTEEN-B OF
THIS CHAPTER, PROVIDED, HOWEVER, A LICENSED FINANCIAL SERVICES PROVIDER
OFFERING MONEY TRANSMISSION PURSUANT TO ARTICLE THIRTEEN-B OF THIS CHAP-
TER, OTHER THAN AS AN AGENT OF A LICENSEE, SHALL FIRST OBTAIN A LICENSE
UNDER THAT ARTICLE,
(C) BILL PAYMENT SERVICES,
(D) THE SALE OF PREPAID DEBIT CARDS, AND
(E) THE DISPENSING OF MASS TRANSIT FARE CARDS, OR SUCH OTHER MEDIUM OR
MECHANISM FOR THE DISPENSING OF MASS TRANSIT FARES.
6. THE TERM "PRIMARY LICENSE" SHALL MEAN AN ORIGINAL LICENSE ISSUED BY
THE SUPERINTENDENT THAT AUTHORIZES A PERSON TO ENGAGE IN THE BUSINESS OF
CASHING OF CHECKS AND RELATED FINANCIAL SERVICES, AND IN THE CASE OF A
LICENSEE WHO HAS MULTIPLE LICENSED BUSINESS LOCATIONS AT THE TIME OF THE
EFFECTIVE DATE OF THIS SUBDIVISION, THE INITIAL LONGEST SITE CONTINUOUS-
LY LICENSED UNDER THIS ARTICLE.
7. THE TERM "SUPPLEMENTAL LICENSE" SHALL MEAN A LICENSE ISSUED BY THE
SUPERINTENDENT THAT AUTHORIZES A PERSON HAVING A PRIMARY LICENSE TO
ENGAGE IN THE BUSINESS OF CASHING OF CHECKS AND RELATED FINANCIAL
SERVICES AT BRANCH LOCATIONS, AND IN THE CASE OF A LICENSEE WHO HAS
MULTIPLE LICENSED BUSINESS LOCATIONS AT THE TIME OF THE EFFECTIVE DATE
OF THIS SUBDIVISION, ANY LICENSE ISSUED TO AN EXISTING LICENSEE AFTER
THE LICENSE FOR THE ORIGINAL SITE.
§ 4. Section 367 of the banking law, as amended by chapter 151 of the
laws of 1945, subdivision 3 as amended by section 7 of part D-1 of chap-
ter 109 of the laws of 2006, and subdivision 4 as amended by chapter 96
of the laws of 1981, is amended to read as follows:
§ 367. License requirements; fees; capital requirements. 1. No
person[, partnership, association or corporation] shall engage in the
business of cashing checks, drafts or money orders for a consideration
without first obtaining a license from the superintendent.
2. Application for such license shall be in writing, under oath, and
in the form prescribed by the superintendent, and shall contain the
name, and the address both of the residence and place of business, of
the applicant, and if the applicant is a co-partnership [or], associ-
ation OR LIMITED LIABILITY COMPANY, of every member thereof, and if a
corporation, of each officer and director thereof; also, if the business
is to be conducted at a specific address, the address at which the busi-
ness is to be conducted, and if the business is to be conducted from a
[mobile unit] LIMITED STATION, the New York state registration number or
other identification of such [mobile unit] LIMITED STATION and the area
in which the applicant proposes to operate such [mobile unit] LIMITED
STATION; and also such further information as the superintendent may
require.
3. Such applicant at the time of making such application shall pay to
the superintendent a fee as prescribed pursuant to section eighteen-a of
this chapter for investigating the application. AN APPLICATION FOR A
PRIMARY LICENSE SHALL BE IN WRITING, UNDER OATH, AND IN THE FORM
PRESCRIBED BY THE SUPERINTENDENT AND SHALL CONTAIN SUCH INFORMATION AS
A. 5192 3
THE SUPERINTENDENT MAY REQUIRE BY REGULATION. THE APPLICATION SHALL SET
FORTH ALL OF THE LOCATIONS AT WHICH THE APPLICANT SEEKS TO CONDUCT BUSI-
NESS HEREUNDER. AT THE TIME OF MAKING THE APPLICATION FOR A PRIMARY
LICENSE, AN EXISTING LICENSEE UNDER THIS ARTICLE SHALL PAY TO THE SUPER-
INTENDENT THE SUM OF TWO HUNDRED FIFTY DOLLARS FOR EACH PROPOSED
LOCATION AS A FEE FOR INVESTIGATING THE APPLICATION. AN APPLICANT THAT
DOES NOT CURRENTLY HOLD A LICENSE UNDER THIS ARTICLE AT THE TIME OF
APPLICATION SHALL PAY TO THE SUPERINTENDENT AN APPLICATION FEE AS
PROVIDED IN THIS CHAPTER FOR INITIAL APPLICATIONS. Any licensee request-
ing a change of address, shall at the time of making such request, pay
to the superintendent a fee as prescribed pursuant to section eighteen-a
of this chapter for investigating the new address; provided, however,
that the superintendent may, in his or her discretion, waive such inves-
tigation fee if warranted, and provided further, that no fee shall be
payable for the relocation of a limited station.
4. Every applicant shall prove, in form satisfactory to the super-
intendent that he or it has available for the operation of such busi-
ness, for each location and for each [mobile unit] LIMITED STATION spec-
ified in the application, liquid assets of at least ten thousand
dollars, and every licensee shall continuously maintain for the opera-
tion of such business for each location and for each [mobile unit]
LIMITED STATION liquid assets of at least ten thousand dollars. Notwith-
standing the foregoing provisions of this subdivision, the superinten-
dent, upon application by an applicant and for good cause shown, may
permit a reduction from ten thousand dollars to not less than five thou-
sand dollars of minimum liquid assets required for each location.
§ 5. Section 369 of the banking law, as amended by chapter 151 of the
laws of 1945, subdivision 1 as amended by chapter 233 of the laws of
2005, subdivisions 4 and 5 as amended by chapter 132 of the laws of
1969, subdivision 6 as amended by section 1 of subpart A of part II of
chapter 55 of the laws of 2019, and subdivision 7 as added by chapter
485 of the laws of 1947, is amended to read as follows:
§ 369. Conditions precedent to issuing license; issuance and filing of
license; posting license. 1. If the superintendent shall find that the
financial responsibility, experience, character, and general fitness of
the applicant, and of the members thereof if the applicant be a co-part-
nership [or], association OR LIMITED LIABILITY COMPANY, and of the offi-
cers and directors thereof if the applicant be a corporation, are such
as to command the confidence of the community and to warrant belief that
the business will be operated honestly, fairly, and efficiently within
the purposes of this article, and if the superintendent shall find that
the granting of such application will promote the convenience and advan-
tage of the area in which such business is to be conducted, and if the
superintendent shall find that the applicant has available for the oper-
ation of such business for each location and for each [mobile unit]
LIMITED STATION specified in the application liquid assets of at least
ten thousand dollars, the superintendent shall thereupon execute a
PRIMARY license AND IF APPLICABLE ONE OR MORE SUPPLEMENTAL LICENSES in
duplicate to permit the [cashing of checks, drafts and money orders]
DELIVERY OF FINANCIAL SERVICES in accordance with the provisions of this
article at the location OR LOCATIONS or in the area OR AREAS specified
in such application. In finding whether the application will promote the
convenience and advantage to the public, the superintendent shall deter-
mine whether there is a community need for a new licensee in the
proposed area OR AREAS to be served. No license shall be issued to an
applicant for a license, at a location to be licensed which is closer
A. 5192 4
than one thousand five hundred eighty-four feet (three-tenths of a mile)
from an existing licensee, except with the written consent of such
existing licensee or pursuant to subdivision three of section three
hundred seventy of this article, subject to any restriction or condition
as the superintendent may promulgate by regulation; provided, however,
the superintendent may permit a location to be licensed that is closer
than three-tenths of a mile from an existing licensee provided such
applicant engages in the cashing of checks, drafts or money orders only
for payees of such checks, drafts or money orders that are other than
natural persons at the location to be licensed and such applicant was
engaged in the cashing of such checks, drafts or money orders for payees
that are other than natural persons at such location on or before the
fourteenth day of July, two thousand four, and provided further that
upon licensing any such location by the superintendent, such license as
it pertains solely to such location shall not be affected thereafter by
any change of control of such license pursuant to section three hundred
seventy-a of this article, provided that the licensee continues there-
after to engage at that location in the cashing of checks, drafts or
money orders only for payees that are other than natural persons and
provided further that such license shall bear a legend stating that such
location is restricted to the cashing of checks, drafts or money orders
only for payees that are other than natural persons. The three-tenths of
a mile distance requirement as set forth in this section shall not apply
in cases where the existing licensee is a restricted location as author-
ized in the preceding sentence, or is any other licensed location that
engages solely in the cashing of checks, drafts or money orders only for
payees that are other than natural persons. For purposes of this
section, such distance shall be measured on a straight line along the
street between the nearest point of the store fronts of the check cash-
ing facilities. The primary business of the licensee, at the location to
be licensed, shall be financial services. The superintendent shall tran-
smit one copy of such license to the applicant and file another in the
office of the department. Notwithstanding the foregoing provisions of
this subdivision, the superintendent, upon application by an applicant
and for good cause shown, may permit a reduction from ten thousand
dollars to not less than five thousand dollars of minimum liquid assets
required for each location.
2. Such license shall state the name of the licensee; and if the
licensee is a co-partnership [or], association OR LIMITED LIABILITY
COMPANY, the names of the members thereof; and if the licensee is a
corporation, the date of its incorporation; and if the business is to be
conducted at a specific address, the address at which such business is
to be conducted; and if the business is to be conducted through the use
of a [mobile unit] LIMITED STATION, the New York state registration
number or other identification of such [mobile unit] LIMITED STATION and
the area in which such [mobile unit] LIMITED STATION is authorized to do
business.
3. [Such license] ALL LICENSES ISSUED BY THE SUPERINTENDENT shall be
kept conspicuously posted in the place of business of the licensee or,
in the case of a [mobile unit] LIMITED STATION, upon such [mobile unit]
LIMITED STATION. Such license shall not be transferable or assignable.
4. Such license shall remain in full force and effect until it is
surrendered by the licensee or revoked or suspended as provided in this
article. IN THE CASE OF A CHANGE OF CONTROL OF A LOCATION OR A BUSINESS
LICENSED HEREUNDER, THE LICENSEE APPROVED TO ACQUIRE THE BUSINESS OR
A. 5192 5
LOCATION MAY UTILIZE A TRUE COPY OF THE EXISTING LICENSE PENDING THE
ISSUANCE OF A NEW LICENSE BY THE SUPERINTENDENT.
5. If the superintendent shall find that the applicant fails to meet
any of the conditions set forth in subdivision one of this section, he
OR SHE shall not issue such license, and he OR SHE shall notify the
applicant of the denial. If an application is denied or withdrawn, the
superintendent shall retain the investigation fee to cover the costs of
investigating the application and return the license fee to the appli-
cant.
6. The superintendent may, consistent with article twenty-three-A of
the correction law, 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 or substantial stockholder
of the applicant, (a) has been convicted of a crime in any jurisdiction
or (b) is associating or consorting with any person who has, or persons
who have, been convicted of a crime or crimes in any jurisdiction or
jurisdictions. For the purposes of this article, a person shall be
deemed to have been convicted of a crime if such person shall have
pleaded guilty to a charge thereof before a court or magistrate, or
shall have been found guilty thereof by the decision or judgment of a
court or magistrate or by the verdict of a jury, irrespective of the
pronouncement of sentence or the suspension thereof. The term "substan-
tial stockholder," as used in this subdivision, shall be deemed to refer
to a person owning or controlling ten per centum or more of the total
outstanding stock of the corporation in which such person is a stock-
holder. In making a determination pursuant to this subdivision, the
superintendent shall require fingerprinting of the applicant. Such fing-
erprints shall be submitted to the division of criminal justice services
for a state criminal history record check, as defined in subdivision one
of section three thousand thirty-five of the education law, and may be
submitted to the federal bureau of investigation for a national criminal
history record check.
7. No license pursuant to this article shall be issued to any appli-
cant to do business at the place specified in the application as the
place where the business is to be conducted if, within the twelve months
preceding such application, a license to engage in business pursuant to
this article at such place shall have been revoked.
§ 6. Section 370 of the banking law, as amended by chapter 151 of the
laws of 1945, subdivision 2 as amended by section 38 of part O of chap-
ter 59 of the laws of 2006 and subdivision 3 as amended by chapter 703
of the laws of 2006, is amended to read as follows:
§ 370. Restrictions as to place or area of doing business; establish-
ment of stations; change of location. 1. No more than one place of busi-
ness or one [mobile unit] LIMITED STATION shall be maintained under the
same license; provided, however, that more than one license may be
issued to the same licensee [upon compliance with the provisions of this
article for each new license] AND IF THE SUPERINTENDENT DETERMINES THAT
AN EXISTING LICENSEE IS IN GOOD STANDING AND IN COMPLIANCE WITH THE
PROVISIONS OF THIS ARTICLE, A SUBSEQUENT APPLICATION FOR A SECOND OR
MULTIPLE SUPPLEMENTAL LICENSES AT DIFFERENT, SEPARATE AND ADDITIONAL
LOCATIONS SHALL BE EXPEDITED BY THE SUPERINTENDENT PROVIDED THE MINIMUM
LIQUIDITY REQUIREMENTS AND COMMUNITY NEED CRITERIA SET FORTH IN SECTION
THREE HUNDRED SIXTY-NINE OF THIS ARTICLE HAVE BEEN DEMONSTRATED IN THE
APPLICATION FOR THE ADDITIONAL LOCATION OR LOCATIONS.
2. Any licensed casher of checks may open and maintain, within this
state, one or more limited stations for the purpose of cashing checks,
A. 5192 6
drafts or money orders for the particular group or groups specified in
the license authorizing each such station. Such stations shall be
licensed pursuant to and be subject to all the provisions of this chap-
ter applicable to licensed cashers of checks, except that (a) [such
station shall not be subject to the distance limitation set forth in
subdivision one of section three hundred sixty-nine of this article,
(b)] the fee for investigating the application for a station shall be as
prescribed pursuant to section eighteen-a of this chapter, and [(c)] (B)
where such a station is at the premises of a specified employer for the
purpose of cashing checks, drafts and money orders for the employees of
such employer, the fees and charges for cashing such checks, drafts or
money orders shall not be subject to the limitations of subdivision one
of section three hundred seventy-two of this article if such fees and
charges are paid by such employer.
3. A licensee may make a written application to the superintendent for
leave to change his or her place of business, or in the case of a
[mobile unit] LIMITED STATION, the area in which such unit is authorized
to be operated, stating the reasons for such proposed change AND IN THE
CASE WHERE THE APPLICANT CURRENTLY HOLDS A PRIMARY LICENSE TO OPERATE A
BUSINESS ESTABLISHED UNDER THIS ARTICLE, THE SUPERINTENDENT SHALL
STREAMLINE AND REDUCE THE INFORMATION REQUIRED FROM SUCH APPLICANT. Such
application may be approved for relocation from a site within three-
tenths of a mile of another licensee to another site within three-tenths
of a mile of such other licensee provided that such new site is farther
from such existing licensee than the site from which permission to relo-
cate is sought. Only in situations in which a licensee seeks to change
its place of business due to extraordinary circumstances, as may be
determined by the superintendent pursuant to regulations, may the super-
intendent, in his or her discretion, determine that an application may
be approved for relocation from a site within three-tenths of a mile of
another licensee to a new site which is closer to such existing licensee
than the site from which permission to relocate is sought. Notwithstand-
ing any other provision of this subdivision, a licensee may relocate
from any location to a location that is within three-tenths of a mile
from another licensee with the written consent of the other licensee. If
the superintendent approves such application he or she shall issue a new
license in duplicate in accordance with the provisions of section three
hundred sixty-nine of this article, stating the new location of such
licensee or, in the case of a [mobile unit] LIMITED STATION, the new
area in which such [mobile unit] LIMITED STATION may be operated.
§ 7. Section 370-a of the banking law, as added by chapter 142 of the
laws of 1992, subdivision 1 as amended by section 39 of part O of chap-
ter 59 of the laws of 2006, is amended to read as follows:
§ 370-a. 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 licensee. Prior to
any change of control, the person desirous of acquiring control of the
business of a licensee, IF SUCH PERSON IS NOT ALREADY A LICENSEE UNDER
THIS ARTICLE, shall make written application to the superintendent and
pay an investigation fee as prescribed pursuant to section eighteen-a of
this chapter to the superintendent. The application shall contain such
information as the superintendent, by rule or regulation, may prescribe
as necessary or appropriate, AND IN THE CASE WHERE THE ACQUIRING PERSON
CURRENTLY HOLDS A PRIMARY LICENSE TO OPERATE A BUSINESS ESTABLISHED
UNDER THIS ARTICLE, AND IN THE CASE OF A LIMITED STATION LICENSE, THE
SUPERINTENDENT SHALL STREAMLINE AND REDUCE THE INFORMATION REQUIRED FROM
A. 5192 7
SUCH APPLICANT, for the purpose of making the determination required by
subdivision two of this section.
2. The superintendent shall approve or disapprove the proposed change
of control of a licensee in accordance with the provisions of subdivi-
sions one and six of section three hundred sixty-nine of this article.
The superintendent shall approve or disapprove the application in writ-
ing within ninety days after the date the application is filed with the
superintendent.
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 licensee. Thereafter, such legal representative 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 such section by a legal repre-
sentative.
The term "legal representative", for the purposes of this section,
shall mean one duly appointed by a court of competent jurisdiction to
act as executor, administrator, trustee, committee, conservator or
receiver, including one who succeeds a legal representative and one
acting in an ancillary capacity thereto in accordance with the
provisions of such court appointment.
4. As used in this section: (a) the term "person" includes an individ-
ual, partnership, corporation, association, LIMITED LIABILITY COMPANY,
or any other organization, and (b) 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 licensee, whether through
the ownership of voting stock of such licensee, the ownership of voting
stock of any person which possesses such power or otherwise. 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 licensee or of any person which owns, controls or
holds with power to vote ten per centum or more of the voting stock of
any licensee, but no person shall be deemed to control a licensee solely
by reason of being an officer or director of such licensee or person.
The superintendent may in his OR HER discretion, upon the application of
a licensee or any person who, directly or indirectly, owns, controls or
holds with power to vote or seeks to own, control or hold with power to
vote any voting stock of such licensee, determine whether or not the
ownership, control or holding of such voting stock constitutes or would
constitute control of such licensee for purposes of this section.
§ 8. Section 371 of the banking law, as added by chapter 151 of the
laws of 1945, is amended to read as follows:
§ 371. Regulations. The superintendent is hereby authorized and
empowered to make such rules and regulations, and such specific rulings,
demands, and findings as he OR SHE may deem necessary for the proper
conduct of the business authorized and licensed under and for the
enforcement of this article, in addition hereto and not inconsistent
herewith.
§ 9. Section 372 of the banking law, as amended by chapter 151 of the
laws of 1945, the section heading and subdivision 1 as amended and
subdivision 7 as added by chapter 432 of the laws of 2004, subdivisions
2, 3 and 4 as added and subdivisions 5 and 6 as renumbered by chapter
A. 5192 8
263 of the laws of 1983, and subdivision 6 as added by chapter 485 of
the laws of 1947, is amended to read as follows:
§ 372. Fees and charges; posting schedule; records and reports. 1. The
superintendent shall, by regulation, establish the maximum fees which
may be charged by licensees for cashing a check, draft, or money order.
No licensee shall charge or collect any sum for cashing a check, draft,
or money order in excess of that established by the superintendent's
regulations; provided, however, that no maximum fee shall apply to the
charging of fees by licensees for the cashing of checks, drafts or money
orders for payees of such checks, drafts or money orders that are other
than natural persons. THE LICENSEE SHALL PAY TO EVERY CUSTOMER TENDERING
ANY CHECK, DRAFT OR MONEY ORDER TO BE CASHED, THE ENTIRE FACE AMOUNT OF
SUCH INSTRUMENT, LESS ANY CHARGES PERMITTED BY THE SUPERINTENDENT, IN
SUCH FORM AND BY SUCH MEANS AS AGREED UPON BY THE CUSTOMER ON THE SAME
DATE UPON WHICH SUCH INSTRUMENT IS PRESENTED.
2. The schedule of fees and charges permitted under this section shall
be conspicuously and continuously posted in every location and [mobil
unit] LIMITED STATION licensed under this article.
3. IN THE CASE OF AN INTERNET, DIGITAL OR OTHER ELECTRONIC ADVERTISE-
MENT OR SOLICITATION, A LICENSEE SHALL BE DEEMED TO HAVE FULFILLED THE
DISCLOSURE REQUIREMENTS REQUIRED BY LAW BY DISPLAYING THE DISCLOSURES ON
ITS WEBSITE, SO LONG AS THE ADVERTISEMENT OR SOLICITATION INCLUDES A
LINK DIRECTLY TO SUCH WEBSITE.
4. No change in fees shall become effective earlier than thirty days
after the superintendent shall notify the majority leader of the senate,
the speaker of the assembly, and the chairmen of both the senate and
assembly committees on banks of his OR HER intention to change fees.
[4.] 5. The fees in effect immediately prior to the effective date of
this subdivision shall continue to be the maximum allowable fees until
revised by the superintendent's regulations.
[5.] 6. Each licensee shall keep and use in its business such books,
accounts, and records as the superintendent may require to carry into
effect the provisions of this article and the rules and regulations made
by the superintendent hereunder. Every licensee shall preserve such
books, accounts and records for at least two years.
[6.] 7. Before a licensee shall deposit with any banking organization,
or with any organization engaged in the business of banking, a check,
draft or money order cashed by such licensee, the same must be endorsed
with the actual name under which such licensee is doing business and
must have the words "licensed casher of checks" legibly written or
stamped immediately after or below such name.
[7.] 8. Every licensee shall submit to the superintendent, or such
person as the superintendent may designate, such suspicious activity
reports or currency transaction reports as are required to be submitted
to federal authorities pursuant to provisions of the Bank Secrecy Act
(subchapter 11, chapter 53, title 31, United States code) and regu-
lations and administrative orders related thereto, as amended, within
the periods of time as required by such act and regulations. A licensee
may submit a copy of any such report to the superintendent, or such
person as the superintendent may designate, that is filed with such
federal authorities. The superintendent may adopt such regulations or
require such additional reports as he or she deems necessary to insure
the effective enforcement of this subdivision.
§ 10. Section 372-a of the banking law, as added by chapter 432 of the
laws of 2004, is amended to read as follows:
A. 5192 9
§ 372-a. Superintendent authorized to examine. 1. For the purpose of
discovering violations of this article or securing information lawfully
required in this section, the superintendent may at any time, and as
often as may be determined, either personally or by a person duly desig-
nated by the superintendent, investigate the [cashing of checks by
licensees] BUSINESS PRACTICES OF A LICENSEE RENDERING FINANCIAL SERVICES
AUTHORIZED BY THIS ARTICLE and examine the books, accounts, records, and
files used therein of every licensee.
2. For the purpose established in subdivision one of this section, the
superintendent and his or her duly designated representatives shall have
free access to the offices and places of business, books, accounts,
papers, records, files, safes and vaults of all such licensees. The
superintendent shall have authority to require the attendance of and to
examine under oath all persons whose testimony may be required relative
to such cashing of checks or such business.
§ 11. Subdivisions 1 and 2 of section 373 of the banking law, subdivi-
sion 1 as amended by chapter 432 of the laws of 2004 and subdivision 2
as amended by chapter 132 of the laws of 1969, are amended to read as
follows:
1. No licensee shall engage in the business of making loans of money,
credit, goods or things or discounting of notes, bills of exchange,
checks, or other evidences of debt pursuant to the provisions of article
nine of this chapter, nor shall a loan business or the negotiation of
loans or the discounting of notes, bills of exchange, checks or other
evidences of debt be conducted on the same premises where the licensee
is conducting business pursuant to the provisions of this article.
Except as otherwise provided by regulation of the superintendent, all
checks, drafts and money orders shall be deposited in the licensee's
bank account not later than the first business day following the day on
which they were cashed. No licensee shall at any time cash or advance
any moneys on a post-dated check or draft or engage in the business of
transmitting money or receiving money for transmission; provided, howev-
er, that a licensee may cash a check [payable on the first banking busi-
ness day following the date of cashing (a) if such check is drawn by the
United States, the state of New York, or any political subdivision of
the state of New York, or by any department, bureau, agency, authority,
instrumentality or officer, acting in his official capacity, of the
United States or of the state of New York or of any political subdivi-
sion of the state of New York, or (b) if such check is a payroll check
drawn by an employer to the order of its employee in payment for
services performed by such employee] WITHOUT REGARD TO THE DATE
IMPRINTED ON THE CHECK AS LONG AS THE CHECK IS DEPOSITED IN THE
LICENSEE'S BANK ACCOUNT NOT LATER THAN THE FIRST BUSINESS DAY FOLLOWING
THE DAY ON WHICH IT WAS CASHED. No licensee shall cash any check, draft
or money order if the face amount for which it is drawn is in excess of
[fifteen] TWENTY thousand dollars; provided, however, that this
restriction shall not apply to the cashing of checks, drafts or money
orders drawn by the United States, any state thereof or any political
subdivision of any such state, or by any department, bureau, agency,
authority, instrumentality or officer, acting in his official capacity,
of the United States, any state thereof or any political subdivision of
any such state, or any [banking] FINANCIAL institution, or to any check
or draft drawn by OR ON ACCOUNT OF any insurance company, attorney for
the settlement of claims, or to any check which has been certified OR
GUARANTEED by the banking institution on which it has been drawn, OR IF
SUCH CHECK IS DRAWN ON A BONA FIDE WORKERS' COMPENSATION FUND ISSUED BY
A. 5192 10
A THIRD-PARTY PAYOR, OR IF SUCH CHECK IS DRAWN BY AN EMPLOYER FROM A
PENSION OR PROFIT SHARING FUND, OR IF SUCH CHECK IS DRAWN BY A UNION
FROM A PENSION OR BENEFIT FUND OR IF SUCH CHECK IS DRAWN BY A UNION;
provided further, however, that any such restriction upon the maximum
face amount that may be cashed by a licensee shall not apply to the
cashing of checks, drafts or money orders by licensees for payees of
such checks, drafts or money orders that are other than natural persons.
For purposes of this subdivision, "[banking] FINANCIAL institution"
means any bank, trust company, savings bank, savings and loan associ-
ation [or], credit union OR OTHER FINANCIAL INSTITUTION which is incor-
porated, chartered [or], organized OR LICENSED under the laws of this
state or any other state or the United States.
2. The superintendent may suspend or revoke any license or licenses
issued pursuant to this article if, after notice and a hearing, he OR
SHE shall find that the licensee (a) has committed any fraud, engaged in
any dishonest activities or made any misrepresentation; or (b) has
violated any provisions of the banking law or any regulation issued
pursuant thereto, or has violated any other law in the course of its or
his dealings as a licensed casher of checks; or (c) has made a false
statement in the application for such license or failed to give a true
reply to a question in such application; or (d) has demonstrated his or
its incompetency or untrustworthiness to act as a licensed casher of
checks; or (e) is not doing sufficient business pursuant to this article
to justify the continuance of the license, or if he OR SHE shall find
that any ground or grounds exist which would require or warrant the
refusal of an application for the issuance of the license if such an
application were then before him OR HER. Such a hearing shall be held
in the manner and upon such notice as may be prescribed by the super-
intendent. Pending an investigation or a hearing for the suspension or
revocation of any license or licenses issued pursuant to this article,
the superintendent may temporarily suspend such license or licenses for
a period not to exceed ninety days, provided the superintendent shall
find that such a temporary suspension is in the public interest.
§ 12. Subdivision 3 of section 37 of the banking law, as amended by
chapter 360 of the laws of 1984, is amended to read as follows:
3. In addition to any reports expressly required by this chapter to be
made, the superintendent may require any banking organization, licensed
lender, licensed casher of checks, licensed mortgage banker, foreign
banking corporation licensed by the superintendent to do business in
this state, bank holding company and any non-banking subsidiary thereof,
corporate affiliate of a corporate banking organization within the mean-
ing of subdivision six of section thirty-six of this article and any
non-banking subsidiary of a corporation which is an affiliate of a
corporate banking organization within the meaning of subdivision six-a
of section thirty-six of this article to make special reports to him OR
HER at such times as he OR SHE may prescribe.
§ 13. This act shall take effect on the one hundred eightieth day
after it shall have become a law; provided, however, that:
(a) the amendments to section 373 of the banking law made by section
eleven of this act shall expire and be deemed repealed June 30, 2026;
and
(b) any contract, instrument, argument or other written obligation
entered into by a financial service provider authorized under section
373 of the banking law prior to June 30, 2026 shall be deemed valid and
enforceable after such date.
A. 5192 11
Effective immediately the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.