S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5053
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2023
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Banks
 
 AN ACT to amend the banking law, in relation  to  providing  for  income
   access services in the state
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The banking law is amended by adding a new article  9-B  to
 read as follows:
                                   IX-B
                          INCOME ACCESS SERVICES
 SECTION 374-AA. DEFINITIONS.
         374-BB. LICENSE.
         374-CC. ACTION BY SUPERINTENDENT ON APPLICATION.
         374-DD. LICENSE PROVISIONS AND POSTING.
         374-EE. GROUNDS  FOR SUSPENSION OR REVOCATION OF LICENSE; PROCE-
                   DURE.
         374-FF. INVESTIGATIONS AND EXAMINATIONS.
         374-GG. COMPLIANCE.
         374-HH. ADVERTISING.
         374-II. REGULATIONS AND RULINGS.
         374-JJ. CHANGES IN CONTROL.
         374-KK. VIOLATION AND PENALTIES.
         374-LL. BOOKS AND RECORDS; REPORTS.
         374-MM. SEVERABILITY.
   § 374-AA. DEFINITIONS. AS USED IN THIS ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "CONSUMER"  MEANS  AN INDIVIDUAL WHO IS A RESIDENT OF THE STATE OF
 NEW YORK.
   2. "DEBT COLLECTION ACTIVITY" MEANS THE BUSINESS OF COLLECTION OF  ANY
 DEBTS, DIRECTLY OR INDIRECTLY, OWED OR DUE OR ASSERTED TO BE OWED OR DUE
 ANOTHER  AND  THE BUSINESS OF A BUYER OF DEBTS WHO SEEKS TO COLLECT SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08985-01-3
              

 A. 5053                             2
 
 DEBTS EITHER DIRECTLY OR INDIRECTLY, AS WELL  AS  THE  BUSINESS  OF  ANY
 CREDITOR  COLLECTING  ITS OWN DEBTS IF SUCH CREDITOR USES ANY NAME OTHER
 THAN ITS OWN THAT WOULD SUGGEST OR INDICATE THAT SOMEONE OTHER THAN SUCH
 CREDITOR IS COLLECTING OR ATTEMPTING TO COLLECT SUCH DEBTS.
   3.  "EARNED  BUT  UNPAID INCOME" MEANS WAGES OR COMPENSATION THAT HAVE
 BEEN EARNED OR HAVE ACCRUED TO THE BENEFIT OF A CONSUMER  BUT  HAVE  NOT
 BEEN PAID BY AN OBLIGOR TO THAT CONSUMER FOR LABOR OR SERVICES PERFORMED
 FOR OR ON BEHALF OF AN OBLIGOR.
   4.  "EARNED INCOME ACCESS RATE CAP" MEANS THE LIMIT ON THE AMOUNT THAT
 MAY BE CHARGED FOR AN EARNED INCOME ACCESS TRANSACTION  THAT  IS  ESTAB-
 LISHED BY THE SUPERINTENDENT BY REGULATION.
   5.  "EARNED INCOME ACCESS TRANSACTION" MEANS THE PAYMENT OF EARNED BUT
 UNPAID INCOME TO A CONSUMER AT A TIME OTHER THAN THE CONSUMER'S  REGULAR
 PAYDAY  OR  OTHER  REGULARLY SCHEDULED TIME ON WHICH THE OBLIGOR PAYS TO
 THE CONSUMER WAGES OR COMPENSATION EARNED OR THAT HAVE  ACCRUED  TO  THE
 BENEFIT OF SUCH CONSUMER.
   6.  "EARNED  INCOME  ACCESS  PROVIDER" OR "PROVIDER" MEANS A PERSON OR
 ENTITY THAT:
   (A) PROVIDES, OR OFFERS TO PROVIDE, ON BEHALF  OF  AN  OBLIGOR  EARNED
 INCOME  ACCESS  TRANSACTIONS  TO CONSUMERS EARNING WAGES OR COMPENSATION
 FROM THE OBLIGOR; OR
   (B) OFFERS EARNED INCOME ACCESS TRANSACTIONS TO, OR ENTERS INTO EARNED
 INCOME TRANSACTIONS WITH, CONSUMERS.
   7. "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION,  FOREIGN
 BANKING CORPORATION LICENSED BY THE SUPERINTENDENT OR THE COMPTROLLER OF
 THE  CURRENCY TO TRANSACT BUSINESS IN THIS STATE, NATIONAL BANK, FEDERAL
 SAVINGS BANK, FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL  CREDIT
 UNION,  OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSO-
 CIATION, OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE  OR
 ANY  INSTRUMENTALITY  CREATED BY THE UNITED STATES OR ANY STATE WITH THE
 POWER TO MAKE MORTGAGE LOANS. SUBJECT TO  SUCH  REGULATIONS  AS  MAY  BE
 PROMULGATED  BY  THE  SUPERINTENDENT,  "EXEMPT  ORGANIZATION"  MAY  ALSO
 INCLUDE ANY SUBSIDIARY OF SUCH ENTITIES.
   8. "NON-RECOURSE" MEANS THE  UNAVAILABILITY  OF  ANY  LEGAL  CAUSE  OF
 ACTION  OR REMEDY AGAINST A CONSUMER RELATING TO AN EARNED INCOME ACCESS
 TRANSACTION.
   9. "NOTICE" MEANS COMMUNICATION FROM THE PROVIDER TO THE CONSUMER IN A
 CLEAR AND CONSPICUOUS MANNER.
   10. "OBLIGOR" MEANS A PERSON OR ENTITY  WHO  IS  OBLIGATED  TO  PAY  A
 CONSUMER  ANY  SUM  OF  MONEY ON AN HOURLY, PROJECT-BASED, PIECEWORK, OR
 OTHER BASIS FOR LABOR OR SERVICES PERFORMED BY THE CONSUMER  FOR  OR  ON
 BEHALF  OF  THAT PERSON OR ENTITY. OBLIGOR DOES NOT INCLUDE THE CUSTOMER
 OF AN OBLIGOR OR ANOTHER THIRD PARTY THAT HAS AN OBLIGATION TO MAKE  ANY
 PAYMENT TO A CONSUMER BASED SOLELY ON THE CONSUMER'S AGENCY RELATIONSHIP
 WITH THE OBLIGOR.
   11. "FEES" MEANS ANY AMOUNT CHARGED BY A PROVIDER TO A CONSUMER FOR AN
 EARNED  INCOME  ACCESS  TRANSACTION,  INCLUDING  AMOUNTS  TO  BE PAID AS
 DESCRIBED IN PARAGRAPH (I) OF SUBDIVISION TWO OF SECTION  THREE  HUNDRED
 SEVENTY-FOUR-GG OF THIS ARTICLE.
   12.  "PROCEEDS"  MEANS  FUNDS  RECEIVED  BY  A CONSUMER PURSUANT TO AN
 EARNED INCOME ACCESS TRANSACTION.
   § 374-BB. LICENSE. 1. NO PERSON OR ENTITY, EXCEPT FOR AN EXEMPT ORGAN-
 IZATION AS DEFINED IN THIS ARTICLE, SHALL  ENGAGE  IN  THE  BUSINESS  OF
 PROVIDING OR OFFERING EARNED INCOME ACCESS TRANSACTIONS TO CONSUMERS, OR
 ENTER  INTO AN EARNED INCOME ACCESS TRANSACTION WITH A CONSUMER, WITHOUT
 FIRST OBTAINING A LICENSE.
 A. 5053                             3
 
   2. AN APPLICATION FOR A LICENSE UNDER THIS ARTICLE SHALL BE  IN  WRIT-
 ING, UNDER OATH AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT.
   3.  AT  THE TIME OF FILING AN APPLICATION FOR A LICENSE, THE APPLICANT
 SHALL PAY TO THE SUPERINTENDENT AN APPLICATION FEE. THE APPLICATION  FEE
 SHALL BE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER.
   4.  A  LICENSE  GRANTED PURSUANT TO THIS ARTICLE SHALL BE VALID UNLESS
 REVOKED OR SUSPENDED BY THE SUPERINTENDENT OR SURRENDERED BY THE  LICEN-
 SEE.
   § 374-CC. ACTION BY SUPERINTENDENT ON APPLICATION. 1. AFTER THE FILING
 OF  AN  APPLICATION FOR A LICENSE ACCOMPANIED BY PAYMENT OF THE FEES FOR
 LICENSE AND INVESTIGATION, IT SHALL BE SUBSTANTIVELY REVIEWED. AFTER THE
 APPLICATION IS DEEMED SUFFICIENT AND COMPLETE, THE SUPERINTENDENT  SHALL
 ISSUE THE LICENSE, OR THE SUPERINTENDENT MAY REFUSE TO ISSUE THE LICENSE
 IF  THE  SUPERINTENDENT  SHALL  FIND  THAT THE FINANCIAL RESPONSIBILITY,
 EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT OR ANY PERSON
 ASSOCIATED WITH THE APPLICANT ARE NOT SUCH AS TO COMMAND THE  CONFIDENCE
 OF  THE  COMMUNITY  AND  TO WARRANT THE BELIEF THAT THE BUSINESS WILL BE
 CONDUCTED HONESTLY, FAIRLY  AND  EFFICIENTLY  WITHIN  THE  PURPOSES  AND
 INTENT  OF THIS ARTICLE. FOR THE PURPOSE OF THIS SUBDIVISION, THE APPLI-
 CANT SHALL BE DEEMED TO INCLUDE ALL THE MEMBERS OF THE APPLICANT  IF  IT
 IS  A  PARTNERSHIP OR UNINCORPORATED ASSOCIATION, AND ALL THE STOCKHOLD-
 ERS, OFFICERS AND DIRECTORS OF THE APPLICANT IF  IT  IS  A  CORPORATION.
 SUCH  LICENSE TO ENGAGE IN BUSINESS IN ACCORDANCE WITH THE PROVISIONS OF
 THIS ARTICLE AT THE LOCATION  SPECIFIED  IN  THE  APPLICATION  SHALL  BE
 EXECUTED  IN  TRIPLICATE  BY  THE  SUPERINTENDENT AND THE SUPERINTENDENT
 SHALL TRANSMIT ONE COPY THEREOF TO THE APPLICANT, FILE  A  COPY  IN  THE
 OFFICE  OF  THE DEPARTMENT OF FINANCIAL SERVICES, AND FILE A COPY IN THE
 OFFICE OF THE CLERK OF THE COUNTY IN WHICH IS LOCATED THE  PLACE  DESIG-
 NATED IN SUCH LICENSE.
   2.  IF  THE SUPERINTENDENT REFUSES TO ISSUE A LICENSE, THE SUPERINTEN-
 DENT SHALL NOTIFY THE APPLICANT OF THE DENIAL, RETURN TO  THE  APPLICANT
 THE SUM PAID AS A LICENSE FEE, BUT RETAIN THE INVESTIGATION FEE TO COVER
 THE COSTS OF INVESTIGATING THE APPLICANT.
   3.  EACH  LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FULL
 FORCE UNLESS IT IS SURRENDERED BY THE LICENSEE, REVOKED OR SUSPENDED.
   § 374-DD. LICENSE PROVISIONS AND POSTING. 1. A  LICENSE  ISSUED  UNDER
 THIS  ARTICLE  SHALL  STATE THE NAME AND ADDRESS OF THE LICENSEE, AND IF
 THE LICENSEE BE A  CO-PARTNERSHIP  OR  ASSOCIATION,  THE  NAMES  OF  THE
 MEMBERS THEREOF, AND IF A CORPORATION THE DATE AND PLACE OF ITS INCORPO-
 RATION.
   2.  SUCH  LICENSE  SHALL BE KEPT CONSPICUOUSLY POSTED IN THE OFFICE OF
 THE LICENSEE AND ON THE MOBILE APPLICATION OR WEBSITE  OF  THE  LICENSEE
 AND SHALL NOT BE TRANSFERABLE OR ASSIGNABLE.
   §  374-EE. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE; PROCEDURE.
 1.  A LICENSE GRANTED PURSUANT TO THIS SECTION SHALL NOT BE RENEWED, AND
 SHALL BE REVOKED OR SUSPENDED BY THE SUPERINTENDENT UPON A FINDING THAT:
   (A) THE LICENSEE HAS NOT COMPLIED WITH REPORTING REQUIREMENTS;
   (B) THE LICENSEE HAS VIOLATED ANY PROVISION OF THIS ARTICLE,  THE  ACT
 OF  CONGRESS  ENTITLED "TRUTH IN LENDING ACT" AND THE REGULATIONS THERE-
 UNDER, AS SUCH ACT AND REGULATIONS MAY FROM TIME TO TIME BE  AMENDED  OR
 ANY  RULE  OR  REGULATION  LAWFULLY MADE BY THE SUPERINTENDENT UNDER AND
 WITHIN THE AUTHORITY OF THIS ARTICLE;
   (C) ANY FACT OF CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE  TIME
 OF  THE  ORIGINAL  APPLICATION  FOR  SUCH  LICENSE,  CLEARLY  WOULD HAVE
 WARRANTED THE SUPERINTENDENT'S REFUSAL TO ISSUE SUCH LICENSE; OR
 A. 5053                             4
 
   (D) THE LICENSEE HAS FAILED TO PAY ANY SUM OF MONEY LAWFULLY  DEMANDED
 BY  THE  SUPERINTENDENT OR TO COMPLY WITH ANY DEMAND, RULING OR REQUIRE-
 MENT OF THE SUPERINTENDENT.
   2.  ANY LICENSEE MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPER-
 INTENDENT WRITTEN NOTICE  THAT  THE  LICENSEE  THEREBY  SURRENDERS  SUCH
 LICENSE,  BUT  SUCH  SURRENDER SHALL NOT AFFECT SUCH LICENSEE'S CIVIL OR
 CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO SUCH SURRENDER.
   3. EVERY LICENSE ISSUED HEREUNDER SHALL REMAIN  IN  FORCE  AND  EFFECT
 UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED, SUSPENDED, OR SHALL
 HAVE EXPIRED, IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, BUT THE
 SUPERINTENDENT  SHALL  HAVE AUTHORITY TO REINSTATE SUSPENDED LICENSES OR
 TO ISSUE NEW LICENSES TO A LICENSEE WHOSE LICENSE OR LICENSES SHALL HAVE
 BEEN REVOKED IF NO FACT OR CONDITION THEN  EXISTS  WHICH  CLEARLY  WOULD
 HAVE WARRANTED THE SUPERINTENDENT'S REFUSAL TO ISSUE SUCH LICENSE.
   4.  WHENEVER  THE  SUPERINTENDENT  SHALL  REVOKE  OR SUSPEND A LICENSE
 ISSUED PURSUANT TO THIS  ARTICLE,  THE  SUPERINTENDENT  SHALL  FORTHWITH
 EXECUTE IN TRIPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT
 SHALL  FILE ONE COPY OF SUCH ORDER IN THE OFFICE OF THE DEPARTMENT, FILE
 ANOTHER IN THE OFFICE OF THE CLERK OF THE COUNTY IN WHICH IS LOCATED THE
 PLACE DESIGNATED IN SUCH LICENSE AND FORTHWITH SERVE THE THIRD COPY UPON
 THE LICENSEE, WHICH ORDER MAY BE REVIEWED  IN  THE  MANNER  PROVIDED  BY
 ARTICLE  SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. SUCH SPECIAL
 PROCEEDING FOR REVIEW AS AUTHORIZED BY THIS SECTION  MUST  BE  COMMENCED
 WITHIN  THIRTY DAYS FROM THE DATE OF SUCH ORDER OF SUSPENSION OR REVOCA-
 TION.
   5. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE  THERE  IS  A
 SUBSTANTIAL  RISK  OF PUBLIC HARM, WITHOUT NOTICE AND A HEARING, SUSPEND
 ANY LICENSE ISSUED PURSUANT TO THIS ARTICLE FOR A PERIOD  NOT  EXCEEDING
 THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDI-
 VISION,  SHALL  EXIST ONLY WHEN THE LICENSEE HAS ENGAGED IN OR IS LIKELY
 TO ENGAGE IN A PRACTICE PROHIBITED BY THIS ARTICLE OR ENGAGES IN DISHON-
 EST OR INEQUITABLE PRACTICES WHICH MAY CAUSE  SUBSTANTIAL  HARM  TO  THE
 PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE.
   § 374-FF. INVESTIGATIONS AND EXAMINATIONS. 1. THE SUPERINTENDENT SHALL
 HAVE  THE  POWER TO MAKE SUCH INVESTIGATIONS AS THE SUPERINTENDENT SHALL
 DEEM NECESSARY TO DETERMINE WHETHER ANY PROVIDER OR ANY OTHER PERSON HAS
 VIOLATED ANY OF THE PROVISIONS OF THIS ARTICLE, OR WHETHER ANY  LICENSEE
 HAS  CONDUCTED  ITSELF IN SUCH MANNER AS WOULD JUSTIFY THE REVOCATION OF
 ITS LICENSE, AND TO THE EXTENT NECESSARY  THEREFOR,  THE  SUPERINTENDENT
 MAY  REQUIRE  THE  ATTENDANCE  OF AND EXAMINE ANY PERSON UNDER OATH, AND
 SHALL HAVE THE POWER TO COMPEL THE PRODUCTION  OF  ALL  RELEVANT  BOOKS,
 RECORDS, ACCOUNTS, AND DOCUMENTS.
   2.  THE  SUPERINTENDENT SHALL HAVE THE POWER TO MAKE SUCH EXAMINATIONS
 OF THE BOOKS, RECORDS, ACCOUNTS AND DOCUMENTS USED IN  THE  BUSINESS  OF
 ANY  LICENSEE  AS  THE  SUPERINTENDENT SHALL DEEM NECESSARY TO DETERMINE
 WHETHER ANY SUCH LICENSEE HAS VIOLATED ANY OF  THE  PROVISIONS  OF  THIS
 ARTICLE.
   3.  THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO SUBDI-
 VISION TWO OF THIS SECTION SHALL BE ASSESSED AGAINST  AND  PAID  BY  THE
 LICENSEE  SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO
 INCURRED SHALL  BE  CHARGED  AGAINST  AND  PAID  BY  LICENSEES  IN  SUCH
 PROPORTIONS  AS  THE  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
 SUPERINTENDENT  OF  THE  TOTAL  AMOUNT  OF SUCH ASSESSMENT, THE LICENSEE
 A. 5053                             5
 
 SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTEN-
 DENT.
   4. ALL REPORTS OF EXAMINATIONS AND INVESTIGATIONS, AND ALL CORRESPOND-
 ENCE  AND  MEMORANDA  CONCERNING  OR ARISING OUT OF SUCH EXAMINATIONS OR
 INVESTIGATIONS, INCLUDING ANY DULY AUTHENTICATED COPY OR COPIES  THEREOF
 IN  THE POSSESSION OF ANY LICENSEE OR THE DEPARTMENT, SHALL BE CONFIDEN-
 TIAL 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 OTHER MATERIAL  REFERRED  TO
 IN  THIS  SUBDIVISION, OR ANY PART THEREOF, IN SUCH MANNER AS THE SUPER-
 INTENDENT MAY DEEM PROPER.
   § 374-GG. COMPLIANCE. 1. AN EARNED INCOME ACCESS  PROVIDER  SHALL  NOT
 OPERATE IN THIS STATE UNLESS:
   (A)  THE  PROVIDER  IS  LICENSED  PURSUANT TO THIS ARTICLE, UNLESS THE
 PROVIDER IS AN EXEMPT ORGANIZATION PURSUANT TO THIS ARTICLE;
   (B) IN THE EVENT A PROVIDER TAKES CUSTODY OF A CONSUMER'S  EARNED  BUT
 UNPAID  INCOME  BEFORE  PAYING  PROCEEDS  TO  THE CONSUMER, THE PROVIDER
 ENSURES THAT THE PROCEEDS ARE  FULLY  INSURED  BY  THE  FEDERAL  DEPOSIT
 INSURANCE CORPORATION AT THE CONSUMER'S INDIVIDUAL ACCOUNT LEVEL;
   (C) THE PROVIDER COMPLIES WITH NATIONAL AUTOMATED CLEARING HOUSE ASSO-
 CIATION RULES, AND WHEN A DEBIT IS INITIATED TO A CONSUMER'S ACCOUNT FOR
 A  PAYMENT,  AND  THE  DEBIT IS RETURNED FOR INSUFFICIENT OR UNCOLLECTED
 FUNDS, THE DEBIT CAN BE REINITIATED ONLY IN  ACCORDANCE  WITH  PARAGRAPH
 (D) OF SUBDIVISION TWO OF THIS SECTION;
   (D)  THE PROVIDER DOES NOT PROVIDE TO ANY THIRD PARTY, INCLUDING OBLI-
 GORS, ANY NON-PUBLIC PERSONAL  INFORMATION  ABOUT  CONSUMERS  EXCEPT  IN
 COMPLIANCE  WITH APPLICABLE FEDERAL AND STATE LAW, AND THE PROVIDER DOES
 NOT SELL, SHARE, OR OTHERWISE DISCLOSE  PERSONAL  INFORMATION  THAT  THE
 PROVIDER SOLICITS OR COLLECTS FROM CONSUMERS IN CONNECTION WITH OFFERING
 EARNED INCOME ACCESS TRANSACTIONS OR RELATED SERVICES;
   (E)  THE  PROVIDER GIVES NOTICE TO THE CONSUMER OF THE COSTS OF EARNED
 INCOME TRANSACTIONS IN ACCORDANCE WITH RULES ESTABLISHED BY  THE  SUPER-
 INTENDENT; AND
   (F)  THE  PROVIDER, NO LESS FREQUENTLY THAN QUARTERLY, DELIVERS NOTICE
 IN WRITING TO EACH CONSUMER TO WHOM IT HAS PAID PROCEEDS IN THAT QUARTER
 CONTAINING INFORMATION TO BE PRESCRIBED BY THE SUPERINTENDENT, INCLUDING
 BUT NOT LIMITED TO AN ITEMIZATION OF TRANSACTIONS AND COSTS,  THE  TOTAL
 AMOUNT  THE  CONSUMER  HAS  PAID  IN  FEES, INFORMATION ON HOW TO REPORT
 COMPLAINTS TO THE PROVIDER AND TO THE DEPARTMENT OF FINANCIAL  SERVICES,
 DEFINITIONS OF TERMS USED IN THE NOTICE, AND AN EXPLANATION OF THE COSTS
 OF THE SERVICES PROVIDED;
   2.  IT  IS  A  VIOLATION  OF  THIS ARTICLE TO CONDUCT AN EARNED INCOME
 ACCESS TRANSACTION UNLESS:
   (A) THE TRANSACTION IS NON-RECOURSE;
   (B) THE PROVIDER HAS A REASONABLE BASIS  TO  BELIEVE  THAT  THE  TOTAL
 AMOUNT OF THE PROCEEDS AND FEES ASSOCIATED WITH THE TRANSACTION DOES NOT
 EXCEED  A PERCENTAGE, TO BE SET BY THE SUPERINTENDENT, OF THE CONSUMER'S
 EARNED BUT UNPAID INCOME;
   (C) THE PROVIDER DOES NOT ENGAGE IN DEBT COLLECTION ACTIVITY OR RETAIN
 THE SERVICES OF  ANOTHER  TO  ENGAGE  IN  DEBT  COLLECTION  ACTIVITY  IN
 CONNECTION WITH THE EARNED INCOME ACCESS TRANSACTION AND DOES NOT CONVEY
 THE DEBT ITSELF;
 A. 5053                             6
 
   (D)  IF  REPAYMENT  IS  TO  BE  MADE  THROUGH  A DEBIT OF A CONSUMER'S
 ACCOUNT, THE DEBIT IS MADE IN ACCORDANCE WITH RULES ESTABLISHED  BY  THE
 SUPERINTENDENT;
   (E)  THE  PROVIDER  CHARGES  A FEE FOR THE EARNED INCOME ACCESS TRANS-
 ACTION THAT DOES NOT EXCEED THE EARNED INCOME ACCESS RATE CAP OR CHARGES
 NO FEE FOR THE EARNED INCOME ACCESS TRANSACTION;
   (F) NO PORTION OF THE EARNED BUT UNPAID INCOME TO BE PAID AS  PART  OF
 THE  EARNED  INCOME  ACCESS  TRANSACTION  IS  USED BEFORE RECEIPT BY THE
 CONSUMER TO SETTLE OR PAY DOWN AN OBLIGATION ARISING FROM A PRIOR EARNED
 INCOME ACCESS TRANSACTION, AND NO PROCEEDS ROLL OVER OR  ARE  STRUCTURED
 IN  ANY  WAY  TO CREATE ANY CONTINUING OBLIGATION TO THE PROVIDER ON THE
 PART OF A CONSUMER;
   (G) THE CONSUMER RECEIVES THE PROCEEDS NO LESS THAN ONE  BUSINESS  DAY
 PRIOR TO THE NEXT REGULARLY SCHEDULED DATE ON WHICH THE OBLIGOR IS SCHE-
 DULED TO PAY EARNED WAGES OR INCOME TO SUCH CONSUMER;
   (H)  BEFORE  A  CONSUMER  ENTERS  INTO THE EARNED INCOME ACCESS TRANS-
 ACTION, THE PROVIDER GIVES THE CONSUMER NOTICE, IN WRITING, OF ALL  FEES
 ASSOCIATED WITH THE EARNED INCOME ACCESS TRANSACTION AND THE COST OF THE
 TRANSACTION, INCLUDING THE COST EXPRESSED AS AN ANNUAL PERCENTAGE RATE;
   (I)  IF  THE PROVIDER OFFERS CONSUMERS THE OPPORTUNITY TO PAY AN ADDI-
 TIONAL AMOUNT FOR AN EARNED INCOME ACCESS TRANSACTION VOLUNTARILY,  SUCH
 AS  A TIP, (I) THE PROVIDER GIVES NOTICE TO THE CONSUMER IN WRITING THAT
 PAYING SUCH ADDITIONAL AMOUNT  IS  NOT  REQUIRED  FOR  THE  CONSUMER  TO
 RECEIVE  THE  PROCEEDS,  (II) THE PROVIDER DOES NOT SUGGEST AN AMOUNT TO
 THE CONSUMER BY, FOR EXAMPLE, OFFERING AMOUNT  OPTIONS  FROM  WHICH  THE
 CONSUMER  MAY  SELECT  OR  PRE-FILLING AN AMOUNT IN ANY FORM USED IN THE
 TRANSACTION PROCESS, OR OTHERWISE USING A TRANSACTION  PROCESS  DESIGNED
 TO  REQUIRE  THE CONSUMER TO TAKE AFFIRMATIVE ACTION TO AVOID OR OPT OUT
 OF PAYING SUCH ADDITIONAL  AMOUNT,  AND  (III)  SUCH  VOLUNTARY  PAYMENT
 AMOUNTS  DO  NOT, WHEN ADDED TO THE TOTAL COST OF THE TRANSACTION, CAUSE
 THE TOTAL FEES FOR THE EARNED INCOME ACCESS TRANSACTION  TO  EXCEED  THE
 EARNED INCOME ACCESS RATE CAP;
   (J)  THE  PROVIDER DOES NOT CHARGE A LATE FEE OR PREPAYMENT PENALTY ON
 THE EARNED INCOME ACCESS TRANSACTION;
   (K) THE PROVIDER DOES NOT PULL A CREDIT  REPORT  OR  OTHERWISE  ASSESS
 CREDIT RISK OF THE CONSUMER PRIOR TO, DURING, OR AFTER THE EARNED INCOME
 ACCESS  TRANSACTION  EXCEPT  THAT THE PROVIDER MAY VERIFY THE CONSUMER'S
 SOURCE OF INCOME AS PART OF DETERMINING THE AMOUNT OF THE PROCEEDS;
   (L) THE PROVIDER DOES NOT REPORT ON THE EARNED  INCOME  ACCESS  TRANS-
 ACTION  TO  A  CONSUMER  REPORTING AGENCY PRIOR TO, DURING, OR AFTER THE
 TRANSACTION;
   (M) THE PROVIDER DOES NOT REQUIRE A CONSUMER TO  WAIVE  THE  RIGHT  TO
 CLASS ACTION TO ENGAGE IN AN EARNED INCOME ACCESS TRANSACTION;
   (N)  THE  PROVIDER GIVES A CONSUMER WRITTEN NOTICE OF ANY AMENDMENT TO
 THE CONTRACT OR TERMS OF SERVICE FOR EARNED INCOME ACCESS  TRANSACTIONS,
 AND  THE  CONSUMER  AGREES  TO SUCH AMENDMENTS BEFORE PROCEEDING WITH AN
 EARNED INCOME ACCESS TRANSACTION TO WHICH SUCH AMENDMENTS  WOULD  APPLY;
 AND
   (O) THE CONSUMER IS EIGHTEEN YEARS OF AGE OR OLDER.
   3.  TRANSACTIONS  MADE  IN  ACCORDANCE  WITH THIS SECTION SHALL NOT BE
 SUBJECT TO USURY LAWS.
   4. IF A PROVIDER CHARGES INDIRECT TRANSACTION FEES,  SUCH  FEES  SHALL
 NOT EXCEED THE MAXIMUM ALLOWABLE AMOUNT AS SET BY THE SUPERINTENDENT.
   § 374-HH. ADVERTISING. 1. NO ADVERTISEMENT FOR AN EARNED INCOME ACCESS
 TRANSACTION SERVICE SHALL BE MISLEADING OR OTHERWISE DECEPTIVE.
 A. 5053                             7
 
   2. AN ADVERTISEMENT FOR EARNED INCOME ACCESS TRANSACTION SERVICE SHALL
 CLEARLY AND ACCURATELY DISCLOSE THE COSTS OF THE SERVICE TO CONSUMERS.
   3.  THE  SUPERINTENDENT  SHALL  ADOPT  RULES  GOVERNING ADVERTISING OF
 EARNED INCOME TRANSACTION SERVICES CONSISTENT WITH THE PURPOSES OF  THIS
 SECTION.
   §  374-II.  REGULATIONS  AND  RULINGS.  THE  SUPERINTENDENT  IS HEREBY
 AUTHORIZED AND EMPOWERED TO MAKE SUCH  RULES  AND  REGULATIONS,  CONDUCT
 HEARINGS AND MAKE SUCH SPECIFIC RULINGS, ORDERS, DEMANDS AND FINDINGS AS
 MAY  BE  NECESSARY FOR THE PROPER CONDUCT OF THE BUSINESS AUTHORIZED AND
 LICENSED UNDER AND FOR THE ENFORCEMENT OF THIS ARTICLE.
   § 374-JJ. 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 SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTEN-
 DENT 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 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-
 SION ONE OF THIS SECTION.
   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.
   4.  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.
   5. AS USED IN THIS SECTION: (A) THE TERM "PERSON" INCLUDES AN INDIVID-
 UAL, PARTNERSHIP, CORPORATION, ASSOCIATION 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 THE
 SUPERINTENDENT'S 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
 A. 5053                             8
 
 OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE  CONTROL
 OF SUCH LICENSEE FOR PURPOSES OF THIS SECTION.
   §  374-KK.  VIOLATION  AND  PENALTIES.  1.  ANY  PERSON, INCLUDING ANY
 MEMBER, OFFICER, DIRECTOR OR EMPLOYEE OF A  PROVIDER,  WHO  VIOLATES  OR
 PARTICIPATES  IN  THE VIOLATION OF ANY PROVISION OF THIS ARTICLE, OR WHO
 KNOWINGLY MAKES ANY INCORRECT STATEMENT OF A MATERIAL FACT IN ANY APPLI-
 CATION, REPORT OR STATEMENT FILED PURSUANT TO THIS ARTICLE, OR WHO KNOW-
 INGLY OMITS TO STATE ANY MATERIAL FACT NECESSARY TO GIVE THE SUPERINTEN-
 DENT ANY INFORMATION LAWFULLY REQUIRED BY THE SUPERINTENDENT OR  REFUSES
 TO  PERMIT ANY LAWFUL INVESTIGATION OR EXAMINATION, SHALL BE GUILTY OF A
 MISDEMEANOR AND, UPON CONVICTION, SHALL BE  FINED  NOT  MORE  THAN  FIVE
 HUNDRED  DOLLARS  OR IMPRISONED FOR NOT MORE THAN SIX MONTHS OR BOTH, IN
 THE DISCRETION OF THE COURT.
   2. NO PROVIDER SHALL MAKE, DIRECTLY OR INDIRECTLY, ORALLY OR IN  WRIT-
 ING,  OR  BY  ANY METHOD, PRACTICE OR DEVICE, A REPRESENTATION THAT SUCH
 PROVIDER IS LICENSED UNDER THE BANKING LAW EXCEPT THAT A LICENSEE  UNDER
 THIS  CHAPTER MAY MAKE A REPRESENTATION THAT THE LICENSEE IS LICENSED AS
 AN EARNED INCOME ACCESS PROVIDER UNDER THIS CHAPTER.
   § 374-LL. BOOKS AND RECORDS; REPORTS. 1. THE PROVIDER SHALL  KEEP  AND
 USE  IN ITS BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE
 SUPERINTENDENT TO DETERMINE WHETHER SUCH PROVIDER IS COMPLYING WITH  THE
 PROVISIONS  OF  THIS ARTICLE AND WITH THE RULES AND REGULATIONS LAWFULLY
 MADE BY THE SUPERINTENDENT HEREUNDER. EVERY PROVIDER SHALL PRESERVE SUCH
 BOOKS, ACCOUNTS AND RECORDS FOR AT LEAST  SIX  YEARS  AFTER  MAKING  THE
 FINAL  ENTRY  IN  RESPECT TO ANY EARNED WAGE ACCESS TRANSACTION RECORDED
 THEREIN; PROVIDED, HOWEVER, THE  PRESERVATION  OF  PHOTOGRAPHIC  REPROD-
 UCTIONS THEREOF OR RECORDS IN PHOTOGRAPHIC FORM SHALL CONSTITUTE COMPLI-
 ANCE WITH THIS REQUIREMENT.
   2.  BY  A  DATE  TO  BE SET BY THE SUPERINTENDENT, EACH PROVIDER SHALL
 ANNUALLY FILE A REPORT WITH THE SUPERINTENDENT GIVING  SUCH  INFORMATION
 AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS
 DURING  THE  PRECEDING  CALENDAR  YEAR  OF THE PROVIDER WITHIN THE STATE
 UNDER THE AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND
 AFFIRMED AS TRUE BY THE PROVIDER UNDER THE PENALTIES OF PERJURY  AND  BE
 IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. IN ADDITION TO SUCH ANNUAL
 REPORTS,  THE  SUPERINTENDENT  MAY  REQUIRE OF PROVIDERS SUCH ADDITIONAL
 REGULAR OR SPECIAL REPORTS AS THE SUPERINTENDENT MAY DEEM  NECESSARY  TO
 THE  PROPER SUPERVISION OF PROVIDERS UNDER THIS ARTICLE. SUCH ADDITIONAL
 REPORTS SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT AND  SHALL
 BE SUBSCRIBED AND AFFIRMED AS TRUE UNDER THE PENALTIES OF PERJURY.
   § 374-MM. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLI-
 CATION THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, THE INVA-
 LIDITY  THEREOF SHALL NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THE
 ARTICLE WHICH CAN BE GIVEN  EFFECT  WITHOUT  THE  INVALID  PROVISION  OR
 APPLICATION,  AND TO THIS END THE PROVISIONS OF THIS ARTICLE ARE SEVERA-
 BLE.
   § 2. Subdivision 1 of section 36 of the banking  law,  as  amended  by
 chapter 146 of the laws of 1961, is amended to read as follows:
   1.  The  superintendent  shall have the power to examine every banking
 organization, every bank holding company and any non-banking  subsidiary
 thereof  (as  such terms "bank holding company" and "non-banking subsid-
 iary" are defined in article three-A of this chapter) and every licensed
 lender AND LICENSED EARNED INCOME ACCESS PROVIDER at any time  prior  to
 its  dissolution  whenever in his judgment such examination is necessary
 or advisable.
 A. 5053                             9

   § 3. Subdivisions 3 and 5 of section 37 of the banking law, as amended
 by chapter 360 of the laws of 1984, are 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 EARNED  INCOME  ACCESS  PROVIDER,  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  corpo-
 rate  banking  organization  within  the  meaning  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  at  such  times  as he may
 prescribe.
   5. The superintendent may extend at his  discretion  the  time  within
 which  a  banking  organization, foreign banking corporation licensed by
 the superintendent to do business in this state, bank holding company or
 any non-banking subsidiary thereof, licensed casher of checks,  licensed
 mortgage  banker, private banker, LICENSED EARNED INCOME ACCESS PROVIDER
 or licensed lender is required to make and file any report to the super-
 intendent.
   § 4. Section 39 of the banking law, as amended by section 3 of part  L
 of chapter 58 of the laws of 2019, is amended to read as follows:
   § 39.  Orders  of superintendent. 1. To appear and explain an apparent
 violation. Whenever it shall appear to the superintendent that any bank-
 ing organization, bank  holding  company,  registered  mortgage  broker,
 licensed  mortgage  banker,  licensed  student loan servicer, registered
 mortgage loan servicer,  licensed  mortgage  loan  originator,  licensed
 lender,  LICENSED  EARNED  INCOME  ACCESS  PROVIDER,  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
 licensed  by  the  superintendent to do business or maintain a represen-
 tative office in this state has violated any law or  regulation,  he  or
 she may, in his or her discretion, issue an order describing such appar-
 ent  violation  and  requiring  such  banking organization, bank holding
 company, registered mortgage broker, licensed mortgage banker,  licensed
 student loan servicer, licensed mortgage loan originator, licensed lend-
 er,  LICENSED  EARNED INCOME ACCESS PROVIDER, 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 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
 EARNED INCOME ACCESS PROVIDER, 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 corporation licensed by the super-
 A. 5053                            10
 
 intendent to do business in this state  is  conducting  business  in  an
 unauthorized  or unsafe and unsound manner, he or she may, in his or her
 discretion, issue an order directing the discontinuance  of  such  unau-
 thorized or unsafe and unsound practices, and fixing a time and place at
 which  such banking organization, bank holding company, registered mort-
 gage broker, licensed mortgage banker, licensed student  loan  servicer,
 registered  mortgage  loan  servicer, licensed mortgage loan originator,
 licensed lender, LICENSED EARNED INCOME ACCESS PROVIDER, 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
 may  voluntarily  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,  LICENSED  EARNED  INCOME  ACCESS PROVIDER, registered
 mortgage broker, licensed mortgage banker, licensed student loan  servi-
 cer, 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  super-
 intendent  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 lend-
 er, LICENSED EARNED INCOME ACCESS PROVIDER, licensed casher  of  checks,
 licensed sales finance company, licensed insurance premium finance agen-
 cy,  licensed  transmitter of money, licensed budget planner, or private
 banker make good such deficiency forthwith or within a time specified in
 such order.
   4. To make good encroachments on reserves. Whenever it shall appear to
 the superintendent that either the total reserves or reserves on hand of
 any banking organization, branch or agency of a foreign  banking  corpo-
 ration  are  below the amount required by or pursuant to this chapter or
 any other applicable provision of law or regulation to be maintained, or
 that such banking organization, branch or agency of  a  foreign  banking
 corporation  is  not  keeping  its  reserves on hand as required by this
 chapter or any other applicable provision of law or  regulation,  he  or
 she  may,  in  his or her discretion, issue an order directing that such
 banking organization, branch or agency of a foreign banking  corporation
 make  good  such  reserves  forthwith or within a time specified in such
 order, or that it keep its reserves on hand as required by this chapter.
   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  EARNED  INCOME  ACCESS
 PROVIDER,  licensed  casher  of  checks, licensed sales finance company,
 licensed insurance  premium  finance  agency,  licensed  transmitter  of
 A. 5053                            11
 
 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 condition, 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,  registered  mortgage  loan servicer,
 licensed mortgage loan  originator,  licensed  lender,  LICENSED  EARNED
 INCOME  ACCESS  PROVIDER,  licensed  casher  of  checks,  licensed sales
 finance company, licensed insurance  premium  finance  agency,  licensed
 transmitter of money, licensed budget planner, or foreign banking corpo-
 ration,  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 conven-
 ient records of its transactions and accounts.
   6. As used in this section, "bank holding company" shall have the same
 meaning as that term is defined in section one hundred forty-one of this
 chapter.
   § 5. Paragraph (a) of subdivision 1 of section 44 of the banking  law,
 as  amended by section 4 of part L of chapter 58 of the laws of 2019, 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  EARNED  INCOME  ACCESS  PROVIDER,  licensed casher of
 checks, licensed  sales  finance  company,  licensed  insurance  premium
 finance agency, licensed transmitter of money, licensed mortgage banker,
 licensed  student  loan  servicer,  registered 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 regulation  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.
   § 6. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.