§ 713. Application process to receive license to engage in the
business of student loan servicing. 1. Upon the filing of an application
for a license, if the superintendent shall find that the financial
responsibility, 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, fairly, and efficiently within the purpose of this article,
the superintendent shall thereupon issue a license in duplicate to
engage in the business 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 in the office of the
department of financial services. Upon receipt of such license, a
student loan servicer shall be authorized 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) within the last ten years prior to the date of application, has
committed any act involving dishonesty, fraud, deceit, or has been
convicted of, or pleaded nolo contendere to, a crime directly related to
the qualifications, functions, or duties related to servicing student
loans, provided that any criminal conviction be evaluated consistent
with article twenty-three-A of the correction law;

(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
superintendent to bear responsibility in connection with the revocation.

3. The term "substantial stockholder", as used in this section, shall
be deemed to refer to a person owning or controlling directly or
indirectly ten per centum or more of the total outstanding stock of a
corporation.