§ 716. Grounds for suspension or revocation of license. 1. After
notice and hearing, the superintendent may revoke or suspend any license
to engage in the business of a student loan servicer issued pursuant to
this article if he or she shall find 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) any fact or condition exists which, if it had existed at the time
of the original application for such license, would have warranted the
superintendent refusing originally to issue such license;

(c) a servicer does not cooperate with an examination or investigation
by the superintendent;

(d) a servicer engages in fraud, intentional misrepresentation, or
gross negligence in servicing a student loan;

(e) 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;

(f) the servicer engages in an unsafe or unsound practice;

(g) the servicer is insolvent, suspends payment of its obligations, or
makes a general assignment for the benefit of its creditors; or

(h) a servicer has violated the laws of this state, any other state or
any federal law involving fraudulent or dishonest dealing, or a final
judgement 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
or is likely to default in performing its financial engagements or
engages in dishonest or inequitable practices which may cause
substantial harm to the persons afforded the protection of this article.

3. Except as provided in subdivision two of this section, no license
shall be revoked or suspended except after notice and 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 it thereby surrenders such
license, but such surrender shall not affect such servicer's civil or
criminal liability for acts committed prior to such surrender. If such
surrender is made after the issuance by the superintendent of a
statement of charges and notice of hearing, the superintendent may
proceed against the servicer as if such 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
financial services.

6. Every license issued pursuant to this article shall remain in 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 such order in the office of the department and shall
forthwith serve the other copy upon the student loan servicer. Any such
order may be reviewed in the manner provided by article seventy-eight of
the civil practice law and rules.