SECTION 640
Definitions
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 640. Definitions. In this article, unless the context or subject
matter otherwise requires:
1. “Person” means an individual, partnership, corporation,
association, joint stock association, trust or other group, however
organized.
2. “Licensee” means any person duly licensed by the superintendent
pursuant to this article.
3. “Check” means any check, draft, travelers check, money order or
other instrument for the transmission or payment of money.
4. “purchaser”, “holder”, “New York instrument” and “New York
traveler’s check” shall have the respective meanings ascribed to such
terms by section six hundred fifty-three of this chapter.
5. “Payment instrument” means any check, draft, money order, or other
instrument or order for the transmission or payment of money, whether or
not such instrument or order is negotiable, and sold to one or more
persons. “Payment instrument” does not include a traveler’s check, any
instrument which is redeemable by the issuer in merchandise or services,
a letter of credit or a permissible investment as defined in this
section.
6. “Outstanding payment instruments” means unpaid payment instruments
sold anywhere in the United States and whose sale has been reported to a
licensee.
7. “Traveler’s check” means an instrument, regardless of its form,
specifically identified on the instrument as a traveler’s check and
issued in either written form, with a provision for a specimen signature
of the purchaser to be completed at the time of purchase and a
counter-signature of the purchaser to be completed at the time of its
negotiation, or in electronic form with a provision for the electronic
equivalent of the specimen signature and counter signature. An
instrument shall not be identified as a traveler’s check if it fails to
comply, as the case may be, with either the written or electronic
signature requirements of this subdivision.
8. “Outstanding traveler’s checks” means unpaid traveler’s checks sold
anywhere in the United States and whose sale has been reported to a
licensee.
9. “Permissible investments” means:
(i) cash;
(ii) certificates of deposit or other debt instruments of a commercial
bank;
(iii) bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances, which are
eligible for purchase by member banks of the federal reserve system;
(iv) commercial paper of prime quality as defined by a nationally
recognized organization which rates such securities;
* (v) interest-bearing bills, notes, bonds, debentures or other
obligations issued or guaranteed by the United States or any state or
other local governmental entity or any agent or instrumentality thereof,
bearing a rating of one of the three highest grades by a nationally
recognized investment service organization that has been engaged
regularly in rating state and municipal issues for a period of not less
than five years;
* NB Effective until notification of the superintendent of financial
services
* (v) interest-bearing bills, notes, bonds, debentures or other
obligations issued or guaranteed by the United States or any state or
other local governmental entity or any agent or instrumentality thereof,
which meet the standards of creditworthiness established by regulation
by the superintendent;
* NB Effective upon notification of the superintendent of financial
services
* (vi) interest-bearing bills, notes, bonds, debentures or preferred
stock traded on any national securities exchange or on a national
over-the-counter market or bearing a rating of one of the three highest
grades by a nationally recognized investment service organization that
has been engaged regularly in rating corporate debt or equity issues for
a period of not less than five years; and
* NB Effective until notification of the superintendent of financial
services
* (vi) interest-bearing bills, notes, bonds, debentures or preferred
stock traded on any national securities exchange or on a national
over-the-counter market or which meet the standards of creditworthiness
established by regulation by the superintendent; and
* NB Effective upon notification of the superintendent of financial
services
(vii) such other investments or assets if and as approved by the
superintendent.
Except for cash and certificates of deposit of a commercial bank, any
particular investment within the classes of investments authorized by
this section is subject to disqualification for one or more licensees
for the purpose of this article, if unsatisfactory for any reason in the
opinion of the superintendent. Notwithstanding the foregoing provisions
of this section, the superintendent shall have the power to limit, with
respect to any particular licensee or all licensees, the extent to which
any class of investments authorized by this section, except for cash and
certificates of deposit of a commercial bank, may be considered a
permissible investment.
10. “Agent” means any person designated or appointed by the licensee
pursuant to a written agency contract to engage in money transmission
activities at locations other than a duly authorized office of the
licensee as provided in section six hundred forty-eight of this article.
Except for a licensee, any person acting as agent engaging in money
transmission activities absent such a written agency contract shall be
deemed to be in violation of section six hundred forty-one of this
article and may be subject to criminal prosecution pursuant to section
six hundred fifty of this article. Such term shall not be deemed to
include any banking corporation incorporated or licensed under this
chapter or under the laws of the United States or any other state or any
casher of checks licensed under this chapter.
SECTION 641
License
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 641. License. 1. No person shall engage in the business of selling
or issuing checks, or engage in the business of receiving money for
transmission or transmitting the same, without a license therefor
obtained from the superintendent as provided in this article, nor shall
any person engage in such business as an agent, except as an agent of a
licensee or as agent of a payee; provided, however, that nothing in this
article shall apply to a bank, trust company, private banker, foreign
banking corporation licensed pursuant to article two of this chapter or
foreign banking company authorized to operate pursuant to the
International Banking Act of 1978 (12 USC 3101 et seq.), as amended,
savings bank, savings and loan association, an investment company, a
national banking association, federal reserve bank, corporation
organized under the provisions of section twenty-five-a of an act of
congress entitled the “Federal Reserve Act”, federal savings bank,
federal savings and loan association or state or federal credit union.
2. Application for a license required under this article shall be in
writing, under oath, and in the form prescribed by the superintendent,
and shall contain the following:
(a) The exact name of the applicant and, if incorporated, the date of
incorporation and the state where incorporated.
(b) The complete address of the principal office from which the
business is to be conducted, and where the books and records of the
applicant are maintained and to be maintained, showing the street and
number, if any, and the municipality and county;
(c) If the applicant has one or more branches, subsidiaries or
affiliates engaging in this state in the business of selling or issuing
checks, or of receiving money for transmission or transmitting the same,
the complete name and address of each;
(d) The name and residence address of the applicant, if an individual
or, if a partnership, of its partners or, if a corporation or
association, of the directors, trustees and principal officers thereof,
and of any stockholder owning twenty per centum or more of any class of
its stock; and
(e) Such other pertinent information as the superintendent may
require.
3. Application for a license shall be accompanied by an investigation
fee as prescribed pursuant to section eighteen-a of this chapter, which
shall not be refunded.
SECTION 642
Action by superintendent
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 642. Action by superintendent. 1. Upon the filing of an application,
and the payment of the fees for investigation and license, the
superintendent shall investigate the financial condition and
responsibility, financial and business experience, character and general
fitness of the applicant and, if the superintendent finds these
qualities are such as to warrant the belief that the applicant’s
business will be conducted honestly, fairly, equitably, carefully and
efficiently within the purposes and intent of this article, and in a
manner commanding the confidence and trust of the community, the
superintendent shall advise the applicant in writing of his conditional
approval of the application, and thereafter upon compliance by the
applicant with the provisions of section six hundred forty-three of this
article, shall issue to the applicant a license to engage in the
business of selling and issuing checks, and of receiving money for
transmission and transmitting the same, subject to the provisions of
this article; or the superintendent may deny the application and return
the license fee to the applicant.
2. The superintendent shall approve conditionally or deny every
application for a license hereunder within ninety days from the filing
thereof. Such period of ninety days may be extended, by the written
consent of the applicant, for such additional reasonable period of time
as may be required to enable compliance with such requirements and
conditions as may be provided by this article and the rules or
regulations of the superintendent issued thereunder.
3. A license issued pursuant to this article shall remain in full
force and effect until it is surrendered by the licensee or revoked or
suspended as provided in this article.
4. The superintendent may suspend or revoke a license on any ground on
which he might refuse to issue an original license, or for a violation
of any provision of this chapter or any regulation issued under this
article, or for failure of the licensee to pay a judgment, recovered in
any court, within or without this state, by a claimant or creditor in an
action arising out of the licensee’s business in this state of selling
or issuing checks or of receiving money for transmission or transmitting
the same, within thirty days after the judgment becomes final or within
thirty days after expiration or termination of a stay of execution
thereon; provided, however, that if execution on the judgment be stayed,
by court order or operation of law or otherwise, then proceedings to
suspend or revoke the license (for failure of the licensee to pay such
judgment) may not be commenced by the superintendent during the time of
such stay, and for thirty days thereafter.
5. No license shall be suspended or revoked except after a hearing
thereon. The superintendent shall give the licensee at least ten days’
written notice of the time and place of such hearing by registered or
certified mail addressed to the principal place of business of such
licensee. Any order of the superintendent suspending or revoking such
license shall state the grounds upon which it is based and shall not be
effective until ten days after written notice thereof has been sent by
registered or certified mail to the licensee at such principal place of
business, except that revocation by reason of the licensee’s bond not
being kept in full force and effect as required by this article, or by
reason of failure to keep on deposit sufficient securities or funds as
required by this article, may take effect immediately if the
superintendent so orders.
6. The superintendent may, on good cause shown, or where there is a
substantial risk of public harm, suspend any license issued pursuant to
this article for a period not exceeding thirty days, pending
investigation. “Good cause”, as used in this subdivision, shall exist
only when the licensee 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.
SECTION 643
Bond or securities
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 643. Bond or securities. 1. As a condition for the issuance and
retention of the license, applicants for a license and other licensees
shall, within thirty days after notice by the superintendent, or such
longer or shorter period as he or she shall prescribe, file with the
superintendent one or more corporate surety bond or bonds, as required
below, in form satisfactory to him or her and issued by a bonding
company or insurance company authorized to do business in this state.
One bond shall be in favor of the superintendent and in such principal
amount as he or she shall determine is necessary or desirable for the
protection of the purchasers and holders of New York instruments sold or
to be sold by the applicant or licensee, provided, however, that until
June first, nineteen hundred seventy-seven, the principal amount of such
bond shall be no less than two hundred ten thousand dollars and on and
after June first, nineteen hundred seventy-seven, the principal amount
of such bond shall be no less than five hundred thousand dollars. If the
applicant or licensee intends to engage or engages in the sale of New
York traveler’s checks, such applicant or licensee shall file with the
superintendent a separate bond. Said bond shall be in favor of the
superintendent and in such principal amount as he or she shall determine
is necessary or desirable for the protection of the purchasers and
holders of the New York traveler’s checks sold or to be sold by the
applicant or licensee; provided, however, that the principal amount of
such bond shall not be less than seven hundred fifty thousand dollars,
unless the superintendent, for good cause shown, shall have determined
that a lesser amount will adequately protect the purchasers and holders
of the New York traveler’s checks sold or to be sold by such applicant
or licensee.
In making any determination under this subdivision, the superintendent
may take into account the financial condition of the licensee, the
number of locations in this state at which the licensee, either directly
or through agents, transacts the business of selling New York
instruments or New York traveler’s checks, the controls imposed on such
agents or, and the possible exposure of purchasers and holders of New
York instruments and New York traveler’s checks to loss in the event of
the insolvency, bankruptcy or other financial impairment of the
licensee. The proceeds of each bond shall constitute a trust fund for
the exclusive benefit of the purchasers and holders of the New York
instruments and New York traveler’s checks, as the case may be. Except
as otherwise provided in the following sentence, in the event of the
insolvency or bankruptcy of any licensee, the proceeds of the bond or
bonds held for the exclusive benefit of the purchasers and holders of
New York instruments and the proceeds of the bond or bonds held for the
exclusive benefit of the purchasers and holders of New York traveler’s
checks shall be paid to the superintendent forthwith for disposition in
accordance with the provisions of this article. If any New York
instruments have been assigned to the fund, the proceeds of the bond
held for the exclusive benefit of the purchasers and holders of New York
instruments shall constitute a trust fund for the benefit of, and shall
be payable to, the fund to the extent of such assignment. From time to
time, the superintendent may require, upon thirty days notice or such
longer or shorter period as he or she shall prescribe, that such bond or
bonds be increased if he or she shall determine that such increase is
necessary or desirable for the protection of the purchasers and holders
of New York instruments and New York traveler’s checks.
2. The licensee shall give notice to the superintendent by registered
or certified mail of any action which shall be brought against him and
of any judgment which shall be entered against him by such purchaser or
holder of a New York instrument or a New York traveler’s check, with
details sufficient to identify the action or judgment, within ten days
after the commencement of any such action or notice to the licensee of
entry of any such judgment. The corporate surety shall within ten days
after it pays any claim or judgment to any such purchaser or holder of a
New York instrument or a New York traveler’s check give notice to the
superintendent by registered mail of such payment, with details
sufficient to identify the purchaser or holder and the claim or judgment
so paid. Whenever the principal sum of such bond or bonds is reduced by
one or more recoveries or payments thereon the licensee shall furnish a
new or additional bond or bonds under the provisions of this section, so
that the total or aggregate principal sum of such bond or bonds shall
equal the sum required pursuant to the provisions of this section, or
shall furnish an endorsement duly executed by the corporate surety
reinstating the bond or bonds to the required principal sum thereof. The
liability of the surety on such bond or bonds to the superintendent and
to the said purchasers and holders of New York instruments and New York
traveler’s checks shall not be affected in any way by any
misrepresentation, breach of warranty or failure to pay the premium or
by any act or omission upon the part of the licensee nor by the
insolvency or bankruptcy of the licensee or the insolvency of the
licensee’s estate, and in the event of the death or dissolution or
liquidation of the licensee, shall continue upon all transactions
entered into by the agents of such deceased, dissolved or liquidated
licensee within a period of thirty days after the death, dissolution or
liquidation of the licensee or termination of the bond or bonds,
whichever date shall first occur, provided, however, that such
transactions were entered into in good faith by such purchasers and
holders of New York instruments and New York traveler’s checks. Every
such corporate surety bond shall provide that in the event that a
judgment recovered against the licensee or its legal representative or
successor by any such purchaser or holder on a claim arising or a
transaction entered into during the life of the bond shall remain
unsatisfied after the expiration of thirty days from the service of
notice of entry of judgment upon the licensee or upon his legal
representative or successor or upon the attorney for the licensee, and
upon the corporate surety, or in the event that the fund has become an
assignee of any claim arising or a transaction entered into during the
life of the bond, then an action may be maintained against the corporate
surety under the terms of the bond (1) by such purchaser or holder for
the amount of such judgment not exceeding the amount of the bond, except
during a stay of execution of such judgment against the licensee or his
legal representatives or successors, or (2) by the superintendent, on
behalf of the fund, for the amount of such claim, not exceeding the
amount of the bond. The bond may not be cancelled either by the licensee
or the surety except upon notice to the superintendent by registered or
certified mail with return receipt requested, the cancellation to be
effective not less than ten days after receipt by the superintendent of
such notice.
3. In lieu of such corporate surety bond or bonds, or of any portion
of the principal sum thereof as required by this section, applicants for
a license and other licensees may keep on deposit, or may be required to
keep on deposit by the superintendent, with such banks, trust companies,
national banks, savings bank, savings and loan associations, federal
savings associations, credit unions, or federal credit unions in the
state of New York as such applicants or licensees may designate and the
superintendent may approve, and in accordance with such rules and
regulations as the superintendent shall from time to time promulgate,
interest-bearing stocks and bonds, notes, debentures or other
obligations of the United States or any agency or instrumentality
thereof, or guaranteed by the United States, or of this state, or of a
city, county, town, village, school district or instrumentality of this
state, or guaranteed by this state, or dollar deposits, to an aggregate
amount, based upon principal amount or market value, whichever is lower,
in the case of the above-described securities, of not less than the
amount of the required corporate surety bond or bonds or portion or
portions thereof. Such securities or funds shall be deposited to secure
the same obligation or obligations as would the corporate surety bond or
bonds filed under this section. So long as it shall continue business in
the ordinary course, such licensee shall be permitted to collect
interest on the securities so deposited and from time to time to
exchange, examine and compare such securities. In the event of the
failure or insolvency of such licensee, the securities, any proceeds
therefrom and the funds deposited pursuant to this section shall
constitute a trust fund for the exclusive benefit of the purchasers and
holders of New York instruments or New York traveler’s checks, as the
case may be, or, in the event such New York instruments are assigned to
the fund, the securities, any proceeds therefrom and the funds deposited
pursuant to this section for the benefit of the purchasers and holders
of New York instruments shall constitute a trust fund, for the benefit
of the fund.
4. Notwithstanding the foregoing provisions of this section, if the
superintendent shall find that a licensee has transacted the business of
money transmission in this state for a period of five consecutive years
and that such business has been conducted honestly, efficiently and
safely and that the licensee’s financial condition is sound and that its
New York instruments are insured, the superintendent may dispense with,
modify or eliminate any of the foregoing requirements of this section
with respect to New York instruments; provided, however, that if at any
time subsequent thereto, the superintendent shall deem it necessary or
desirable for the protection of the purchasers and holders of New York
instruments, to reinstate any of the requirements of this section, he
may do so.
SECTION 645
Assignment of claims to superintendent
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 645. Assignment of claims to superintendent. At the written request
of any claimant or creditor of the licensee whose claim is based on a
transaction, in this state, for the sale or issuance of a check or the
receipt of money for transmission or transmission of the same, under the
provisions of this article, the superintendent may, in his discretion,
take an assignment of such claim in trust for the benefit of the
assigning claimant or creditor and may bring any legal action necessary
to collect such claim. Two or more such claims against the licensee may
be combined in one such action.
SECTION 646
Investigations, hearings and reports
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 646. Investigations, hearings and reports. 1. The superintendent
shall have the power to make such investigations and conduct such
hearings as he shall deem necessary to determine whether any licensee or
any other person has violated any of the provisions of this article, or
whether any licensee has conducted himself in such manner as would
justify the suspension or revocation of his license.
2. In making any investigation or conducting any hearing pursuant to
the provisions of this article, the superintendent, or any person duly
designated by him, shall have the power at all times to subpoena
witnesses; to take depositions of witnesses residing without the state,
in the manner provided for in civil actions in courts of record; to pay
such witnesses the fees and mileage for their attendance provided for
witnesses in civil actions in courts of record; and to administer oaths.
He shall also have the power to compel by order or subpoena the
production of and to examine all relevant books, records, accounts and
other documents. Any person who fails to obey the command of the
subpoena without reasonable excuse, or refuses without reasonable cause
to be served or to be examined or to answer a question or to produce a
book or paper when ordered so to do, or fails to perform any act
required hereunder to be performed, shall be subject to the compulsions
in such cases made and provided by law, and if the person be licensed
hereunder, the superintendent shall have the right to suspend or revoke
the license.
3. The superintendent may require of any licensee such reports, under
oath or otherwise, concerning the licensee’s business in this state, as
he may deem necessary for the enforcement of this article.
4. All reports of investigations and other reports rendered pursuant
to this section, and all correspondence and memoranda concerning or
arising out of such investigations or reports, including any duly
authenticated copy or copies thereof in the possession of any licensee
or the department of financial services, 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 other material referred to
in this subdivision, or any part thereof, in such manner as may be
deemed proper. For purposes of this subdivision, “reports of
investigations, and other reports rendered pursuant to this section and
all correspondence and memoranda concerning or arising out of such
investigations or reports” shall have the same meaning as such terms are
defined pursuant to subdivision ten of section thirty-six of this
chapter.
SECTION 647
Judicial review
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 647. Judicial review. The refusal by the superintendent of an
original license, in the case of an applicant which, prior to January
first, nineteen hundred sixty-three, and upon the date of filing such
application, has lawfully been engaged in this state in the business of
selling or issuing checks or of receiving money for transmission or
transmitting the same, and in all cases the suspension or revocation of
any license by the superintendent, shall be subject to judicial review
in the manner in such cases made and provided by law.
SECTION 648
Agents
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 648. Agents. A licensee may conduct its business at one or more
locations within this state, as follows:
(a) The business may be conducted through or by means of agents as the
licensee may from time to time designate or appoint and, in no event,
shall the business of money transmission be conducted through a
subagent.
(b) No license under this article shall be required of any agent of a
licensee in cases in which such agent is acting on behalf of a licensee
under, and in accordance with, an agency contract except as provided in
subdivision (c) of this section.
(c) An agent, other than a person expressly excepted from the
application of this article, who sells or delivers the licensee’s checks
over-the-counter to the public shall not be exempt from licensing under
this article if such agent in the ordinary conduct of such business
receives or at any time has access to (1) the licensee’s checks which,
having been paid, are returned through banking channels or otherwise for
verification or for reconciliation or accounting with respect thereto or
(2) bank statements relating to checks so returned. No license under
this article shall be required of an agent, including a general or
managing agent, of a licensee who does not directly sell or deliver the
licensee’s checks over-the-counter to the public.
SECTION 649
Rules and regulations
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 649. Rules and regulations. The superintendent is hereby authorized
and empowered to make such rules and regulations as may in his judgment
be necessary or appropriate for the enforcement of this article.
SECTION 650
Violations and penalties
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 650. Violations and penalties. 1. Any person who violates or
participates in the violation of any provisions of this article, or who
knowingly makes any incorrect statement of a material fact in any
application, report or statement made pursuant to this article, or who
knowingly omits to state any material fact necessary to give the
superintendent any information lawfully required by him or refuses to
permit any lawful investigation by the superintendent 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. a. Any person who either (1) engages in the business of receiving
money for transmission or transmitting the same or (2) sells or issues
New York instruments or New York traveler’s checks as those terms are
defined by section six hundred fifty-three of this chapter, without a
license therefor obtained from the superintendent as provided in this
article, shall be guilty of a Class A misdemeanor.
b. Any person who violates paragraph a of this subdivision and in the
course of that violation:
(1) knowingly receives or agrees to receive for transmission from one
or more individuals a total of ten thousand dollars or more in a single
transaction, a total of twenty-five thousand dollars or more during a
period of thirty days or less, or a total of two hundred fifty thousand
dollars or more during a period of one year or less; or
(2) knowingly sells or issues New York instruments or New York
traveler’s checks to one or more individuals totaling ten thousand
dollars or more in a single transaction, a total of twenty-five thousand
dollars or more during a period of thirty days or less, or a total of
two hundred fifty thousand dollars or more during a period of one year
or less; or
(3) knowingly engages in the business of receiving money for
transmitting or transmitting the same, knowing such money to be the
proceeds of any criminal conduct; or
(4) knowingly sells or issues New York instruments or New York
traveler’s checks as those terms are defined by section six hundred
fifty-three of this chapter, knowing such instruments or checks to be
purchased with the proceeds of or derived from any criminal conduct;
shall be guilty of a class E felony.
3. Any licensee who fails to make any report required by the
superintendent pursuant to this article, on or before the day designated
for the making thereof, or fails to include therein any prescribed
matter, shall forfeit to the people of the state an amount as determined
pursuant to section forty-four-a of this chapter for every day that such
report shall be delayed or withheld, and for every day that it shall
fail to report any such omitted matter, unless the superintendent shall,
in his or her sole discretion, for good cause shown, reduce the amount
to be forfeited, or unless the time therefor shall have been extended by
the superintendent, as provided in subdivision four of this section.
4. The superintendent may extend, for a period not exceeding ninety
days, the time within which a licensee is required to make any report
required by the superintendent pursuant to this article.
SECTION 651
Investments
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 651. Investments. Every licensee shall at all times maintain
permissible investments having (i) a market value, computed in
accordance with generally accepted accounting principles, at least equal
to the aggregate of the amount of all its outstanding payment
instruments and all its outstanding traveler’s checks or (ii) a net
carrying value, computed in accordance with generally accepted
accounting principles, at least equal to the aggregate of the amount of
all its outstanding payment instruments and all its outstanding
traveler’s checks so long as the market value of such permissible
investments is at least eighty per centum of the net carrying value.
Notwithstanding the foregoing provisions of this section, the
superintendent shall have the authority, for good cause shown, to exempt
from the requirements of this section any licensee.
SECTION 651-A
Remittances
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 651-a. Remittances. 1. Each agent of a licensee which sells any New
York instruments or New York traveler’s checks issued by such licensee
shall, and each licensee shall so require each of its agents which sells
any New York instruments or New York traveler’s checks issued by such
licensee to report such sale and remit the face amount of New York
instruments and New York traveler’s checks to such licensee within such
period of time as the licensee requires within the normal course of its
business or as the superintendent, by rule or regulation, may prescribe.
For purposes of this section, remittance shall include either direct
payment of such funds to the licensee or the deposit of such funds in a
banking organization, national bank, federal savings bank, federal
savings and loan association, federal credit union, or a banking
institution chartered under the laws of another state or country, in an
account in the name of such licensee specifically established for the
purpose of receiving such funds. Remittance by such agent to such
licensee or deposit by such agent in such account or its equivalent of
funds in advance of the sale of such New York instruments and New York
traveler’s checks, in an amount not less than the amount said agent
would normally receive from such sales of New York instruments and New
York traveler’s checks, shall be deemed compliance with the provisions
of this section.
2. Every agent of a licensee shall remit all moneys owed such licensee
in accordance with the terms of the contract between the licensee and
such agent. Any intentional or negligent failure of an agent to remit
all moneys due and owing the licensee within the time provided in such
contract shall result in the agent’s civil liability to the licensee for
three times the licensee’s damages. The superintendent may, by rule,
establish the maximum period of time for remittance.
SECTION 651-B
Maintenance of books and records by agents
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 651-b. Maintenance of books and records by agents. Each licensee
shall require of each of its agents to make and keep such accounts,
correspondence, memoranda, papers, books and other records as the
superintendent by regulation or order requires. All records so required
shall be preserved for the time specified by the regulation or order of
the superintendent.
SECTION 652
Severability
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 652. Severability. If any provision of this article, or the
application of such provision to any person or circumstance, shall be
held invalid, the remainder of this article, and the application of such
provision to persons or circumstances other than those to which it is
held invalid, shall not be affected thereby.
SECTION 652-A
Changes in control
Banking (BNK) CHAPTER 2, ARTICLE 13-B
- 652-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 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 for the
purpose of making the determination required by subdivision two of this
section.
2. The superintendent shall disapprove the proposed change of control
of a licensee if, after notice to and an opportunity to be heard by the
applicant and such licensee, he finds the acquisition of control therein
contrary to law or determines that disapproval is reasonably necessary
to protect the interest of the people of this state. In making such
determination, the superintendent shall consider (a) whether the
character, responsibility and general fitness of the person which seeks
to control such licensee are such as to command confidence and warrant
belief that the business of such licensee will be honestly and
efficiently conducted in a manner consistent with the public interest,
(b) whether the exercise of control may impair the safe and sound
conduct of the business of such licensee, the conservation of its assets
or public confidence in its business, and (c) primarily, the public
interest and the needs and convenience thereof. Unless the
superintendent shall have denied such application in writing within one
hundred fifty days of the filing thereof, such application shall be
deemed approved. If the superintendent disapproves such application, or,
if no such application has been made, upon consummation of the
acquisition of control, the license of the licensee shall become null
and void and the applicant or licensee, whoever has possession of such
license, shall forthwith surrender to the superintendent the license
theretofore in effect.
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
representative.
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 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 twenty-five per centum or more of the voting
stock of any licensee or of any person which owns, controls or holds
with power to vote twenty-five per centum or more of the voting stock of
such licensee, but no person shall be deemed to control a licensee
solely by reason of his being an officer or director of such licensee or
person. The superintendent may in his 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.
SECTION 652-B
Tying arrangements
Banking (BNK) CHAPTER 2, ARTICLE 13-B
§ 652-b. Tying arrangements. 1. It shall be unlawful for any
transmitter of money or its officers, affiliates or subsidiaries to
enter into an agreement with a check casher, licensed pursuant to the
provisions of article nine-A of this chapter, whereby credit is extended
to the check casher at the same time as, and on the condition that, the
transmitter of money enters into an agreement with the check casher
whereby the check casher will (1) sell only the New York instruments or
New York traveler’s checks of the transmitter of money or (2) agree to
the exclusive use of any of the other services of the transmitter of
money. This section shall not apply to the issuance by a transmitter of
money of a guarantee of any indebtedness of a check casher licensed
pursuant to the provisions of article nine-A of this chapter.
2. For purposes of this section the term “transmitter of money” means
a licensee, as such term is defined in subdivision two of section six
hundred forty of this article, a bank, trust company, private banker,
savings bank, savings and loan association, credit union, foreign
banking corporation licensed pursuant to article five of this chapter,
national banking association, federal savings bank, federal savings and
loan association, federal credit union, foreign banking company
authorized to operate pursuant to the international banking act of 1978
(12 USC 3101 et seq.), as amended, and an investment company, which
either directly or through agents transacts the business in this state
of selling or issuing New York instruments or New York traveler’s
checks.
For purposes of this section the terms “New York instruments” and “New
York traveler’s checks” shall have the meaning ascribed to them by
section six hundred fifty-three of this chapter.