Bill Text: NY A07213 | 2013-2014 | General Assembly | Amended
Bill Title: Enhances regulatory efficiency and efficacy in the banking law and general business law.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2013-07-31 - signed chap.227 [A07213 Detail]
Download: New_York-2013-A07213-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7213--A
2013-2014 Regular Sessions
I N A S S E M B L Y
May 7, 2013
___________
Introduced by M. of A. ROBINSON -- Multi-Sponsored by -- M. of A. CLARK,
WEPRIN -- (at request of the Department of Financial Services) -- read
once and referred to the Committee on Banks -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the banking law and the general business law, in
relation to enhancing regulatory efficiency and efficacy; to repeal
certain provisions of the banking law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 24 of the banking law, as amended by chapter 684 of
2 the laws of 1938, subdivision 1 as amended by chapter 453 of the laws of
3 1960, subdivision 2 as amended by chapter 419 of the laws of 1996,
4 subdivision 3 as amended by chapter 52 of the laws of 1944, subdivisions
5 1, 2 and 3 as further amended by section 104 of part A of chapter 62 of
6 the laws of 2011 and subdivision 4 as amended by chapter 608 of the laws
7 of 1996, is amended to read as follows:
8 S 24. Investigation by superintendent; refusal or approval; filing
9 certificate. 1. Within ninety days after the date when any organization
10 certificate or private banker's certificate shall have been filed for
11 examination, the superintendent, if [he] THE SUPERINTENDENT shall find
12 after investigation and examination of what [he] THE SUPERINTENDENT
13 deems to be the best sources of information [at his command] AVAILABLE
14 that the character, responsibility and general fitness of the person or
15 persons named in such certificate are such as to command confidence and
16 warrant belief that the business of the proposed corporation or private
17 banker will be honestly and efficiently conducted in accordance with the
18 intent and purpose of this chapter, and that the public convenience and
19 advantage will be promoted by allowing such proposed corporation or
20 private banker to engage in business, shall [submit] APPROVE such
21 certificate [to the superintendent of financial services together with
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09014-03-3
A. 7213--A 2
1 all papers, correspondence and other information in his possession
2 relating thereto, including the results of his investigation and his
3 recommendation in the matter]. [Such] AN EXTENSION OF SUCH NINETY DAY
4 period [of ninety days] may be [extended] REQUESTED, by a written
5 [consent] REQUEST executed by a majority of the persons from whom the
6 superintendent received such organization certificate or private bank-
7 er's certificate, for such additional reasonable period of time as may
8 be required for applicants to comply with conditions precedent stipu-
9 lated by the superintendent as being a prerequisite to his [recommenda-
10 tion to the superintendent of financial services] OR HER APPROVAL. THE
11 SUPERINTENDENT, IN THE SUPERINTENDENT'S SOLE DISCRETION, SHALL DETERMINE
12 WHETHER TO GRANT SUCH AN EXTENSION.
13 2. [If three-fifths of the members of the board, after consideration
14 of all relevant information available to them, shall vote for approval,
15 the] THE superintendent[, if he is still satisfied, upon the consider-
16 ations set forth in subdivision one of this section, that such proposed
17 corporation or private banker should be permitted to engage in busi-
18 ness,] shall [approve such certificate and] ALSO endorse upon each of
19 the duplicates the date of such approval. [He] THE SUPERINTENDENT shall
20 forthwith cause notice of such approval to be given to the proposed
21 incorporators or private banker and one of the duplicate certificates
22 [to] SHALL be filed in the office of the department and the other in the
23 office of the clerk of the county in which the principal office of such
24 proposed corporation or private banker is to be located. In a case in
25 which a private banker certificate is submitted to the superintendent
26 for the purpose of continuing the business in connection with a change
27 in its partnership, the superintendent shall approve the private banker
28 certificate [without any action by the superintendent of financial
29 services] upon making a determination that the private banker should be
30 permitted to continue its business based upon the considerations set
31 forth in subdivision one of this section.
32 3. If [three-fifths of the members of the superintendent of financial
33 services shall not vote for approval, or if] the superintendent[, either
34 prior or subsequent to the submission of such certificate to the board,]
35 is not satisfied, upon the considerations set forth in subdivision one
36 of this section, that such proposed corporation or private banker should
37 be permitted to engage in business, the superintendent shall refuse such
38 certificate and shall endorse thereon the date of such refusal and
39 return one of the duplicates to the proposed incorporators or private
40 banker from whom such certificate was received.
41 4. The provisions of this section shall not apply to any organization
42 certificate required to be filed in the office of the superintendent by
43 SECTION ONE HUNDRED THIRTY-SIX, BY section two hundred sixty-b, by
44 section four hundred ten, by section four hundred eleven or by section
45 four hundred eighty-six of this chapter.
46 S 2. Subdivisions 1 and 3 of section 25 of the banking law, subdivi-
47 sion 1 as amended by chapter 512 of the laws of 1977 and subdivision 3
48 as amended by chapter 561 of the laws of 1946, are amended to read as
49 follows:
50 1. If the superintendent shall find that a corporation or private
51 banker, the certificate of which has been approved and filed as provided
52 in section twenty-four of this article, has in good faith complied with
53 all the requirements of law and fulfilled all the conditions precedent
54 to commencing business imposed by this chapter, [he] THE SUPERINTENDENT
55 shall, within ninety days after the date of such approval, [or within
56 such longer period thereafter as he may permit pursuant to the second
A. 7213--A 3
1 sentence of this subdivision, but in no case after the expiration of
2 that period,] issue [under his hand] and EXECUTE UNDER the official seal
3 of the department, in triplicate, an authorization certificate to the
4 person or persons named in such organization certificate or private
5 banker's certificate. [The] NOTWITHSTANDING THE PRECEDING SENTENCE, IF
6 THE SUPERINTENDENT DETERMINES IT IS CONSISTENT WITH THE DECLARATION OF
7 POLICY CONTAINED IN SECTION TEN OF THIS ARTICLE, THE superintendent may
8 extend the period within which [he] THE SUPERINTENDENT may issue the
9 authorization certificate by (I) an additional [sixty] NINETY days,
10 provided, however, that he OR SHE shall have determined that such exten-
11 sion of time is needed for raising capital, for fulfilling any other
12 condition precedent to the commencement of business or for satisfying
13 any other requirement of organization, whether imposed by statute or
14 regulation[, and that such extension is consistent with the declaration
15 of policy contained in section ten of this chapter] OR OTHERWISE, OR
16 (II) SUCH LONGER PERIOD OF TIME AS HE OR SHE SHALL DEEM APPROPRIATE,
17 PROVIDED, HOWEVER, THAT HE OR SHE SHALL HAVE DETERMINED THAT EXTRAOR-
18 DINARY CIRCUMSTANCES EXIST. Such authorization certificate shall state
19 that the corporation or private banker named therein has complied with
20 the provisions of this chapter and that it is authorized to transact the
21 business specified therein. Such authorization certificate shall be
22 conclusive evidence that all conditions precedent have been fulfilled
23 and that the corporation has been formed under this chapter, except in
24 an action or special proceeding brought by the superintendent or the
25 attorney general. The superintendent shall cause one of the triplicate
26 authorization certificates to be transmitted to the corporation or
27 private banker thereby authorized to commence business, another to be
28 filed in the office of the department, and the third to be filed in the
29 county clerk's office in which the organization certificate or the
30 private banker's certificate has been filed. The copies of the authori-
31 zation certificate filed in the offices of the superintendent and the
32 county clerk shall be attached to the copies of the organization certif-
33 icate or private banker's certificate previously filed and such certif-
34 icates shall be recorded in the records of incorporation therein.
35 3. Any corporation which shall not commence business within six months
36 after the date on which its authorization certificate is issued by the
37 superintendent shall forfeit its rights and privileges as a corporation
38 and its corporate powers shall cease and determine unless the time with-
39 in which such business may be commenced has been extended by the super-
40 intendent. Upon satisfactory cause being shown, the superintendent may
41 grant [an extension for a period of not more than one year] ONE OR MORE
42 EXTENSIONS. Such extension shall be granted by order executed, transmit-
43 ted and filed in the manner provided for an authorization certificate in
44 subdivision one of this section.
45 S 3. Subdivision 2 of section 28-b of the banking law is REPEALED.
46 S 4. The opening paragraph and subparagraph 12 of paragraph (a) of
47 subdivision 3 of section 28-b of the banking law, as amended by chapter
48 315 of the laws of 2008, and as further amended by section 104 of part A
49 of chapter 62 of the laws of 2011, are amended to read as follows:
50 When taking any action on an application OR NOTICE made by a banking
51 institution under (I) section one hundred five, two hundred twenty-four,
52 two hundred forty, or three hundred ninety-six of this chapter for a
53 branch office [or under], (II) section one hundred ninety-one of this
54 chapter for a public accommodation office [or under], (III) section six
55 hundred one-b of this chapter for approval [or disapproval] of a merger
56 or purchase of assets, or [taking any action on a notice submitted by a
A. 7213--A 4
1 banking institution] (IV) under section one hundred five-a, two hundred
2 forty-a or three hundred ninety-six-a of this chapter for the use or
3 installation of an automated teller machine, point-of-sale terminal or
4 similar electronic facility or on any other application OR NOTICE to
5 which the superintendent of financial services shall by rule or regu-
6 lation make applicable the provisions of this section, the superinten-
7 dent shall take into account, among other factors, an assessment, in
8 writing, of the record of performance of the banking institution in
9 helping to meet the credit needs of its entire community, including low
10 and moderate-income neighborhoods, consistent with safe and sound opera-
11 tion of the banking institution. Such assessment and any written commu-
12 nications from the department of financial services to a banking insti-
13 tution relating to such assessment shall be made available to the public
14 upon request, provided that nothing contained in this subdivision shall
15 be deemed to alter, amend or affect the provisions of subdivision ten of
16 section thirty-six of this chapter. In making such assessment the super-
17 intendent shall review all reports and documents filed pursuant to
18 subdivision one of this section and any signed, written comments
19 received by the superintendent which specifically relate to the banking
20 institution's performance in helping to meet the credit needs of its
21 community. In addition, the superintendent shall consider the following
22 factors in assessing a banking institution's record of performance:
23 (12) Other factors that, in the judgment of the superintendent [and
24 superintendent of financial services], reasonably bear upon the extent
25 to which a banking institution is helping to meet the credit needs of
26 its entire community, including, without limitation, the banking insti-
27 tution's participation in credit counseling services.
28 S 5. Subdivision 5 of section 28-b of the banking law, as added by
29 chapter 361 of the laws of 1984 and as further amended by section 104 of
30 part A of chapter 62 of the laws of 2011, is amended to read as follows:
31 5. The superintendent [of financial services] is hereby authorized and
32 empowered[, by a three-fifths vote of all its members,] to promulgate
33 rules and regulations effectuating the provisions of this section,
34 including any rules and regulations providing that the assessment of
35 banking institutions referred to in subdivision three of this section
36 shall be made on a graduated numerical basis.
37 S 6. Subdivision 1 of section 75-g of the banking law, as added by
38 chapter 9 of the laws of 1996 and as designated by section 4-a of part A
39 of chapter 57 of the laws of 1998, is amended and a new subdivision 2 is
40 added to read as follows:
41 1. [Within one year after the effective date of this article, and each
42 year thereafter,] BY THE FIFTEENTH DAY OF JANUARY AND JULY OF EACH YEAR
43 (OR THE FOLLOWING BUSINESS DAY IF SUCH DAY IS NOT A BUSINESS DAY), every
44 banking institution which [has] HAD an automated teller machine facility
45 which [is] WAS in operation on [such date and such date every year ther-
46 eafter] THE FIFTEENTH DAY OF THE PRECEDING MONTH shall submit a written
47 COMPLIANCE report to the department on a form prescribed by the super-
48 intendent, certifying that such automated teller machine facility is in
49 compliance with the provisions of this article or any variance or
50 exemption that has been granted, or if such facility is not in compli-
51 ance with such provisions, [such report shall state] STATING the manner
52 in which such facility fails to meet such requirements[, the reasons for
53 such non-compliance and a plan to remedy any such non-compliance].
54 NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER
55 LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT SUCH REPORTS
56 AND ANY OTHER REPORTS REQUIRED BY THIS SECTION SHALL BE MADE BY ELEC-
A. 7213--A 5
1 TRONIC MEANS, UNLESS THE SUPERINTENDENT, IN HIS OR HER SOLE DISCRETION,
2 GRANTS A WAIVER OF SUCH ELECTRONIC FILING REQUIREMENTS, UPON GOOD CAUSE
3 SHOWN.
4 2. IF ANY COMPLIANCE REPORT REQUIRED BY SUBDIVISION ONE OF THIS
5 SECTION INDICATES ANY FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE,
6 SUCH BANKING INSTITUTION SHALL SUBMIT A WRITTEN REPORT TO THE DEPART-
7 MENT, ON A FORM PRESCRIBED BY THE SUPERINTENDENT, NO LATER THAN THE
8 ELEVENTH BUSINESS DAY FOLLOWING SUCH COMPLIANCE REPORT, INDICATING
9 WHETHER EACH SUCH FAILURE HAS BEEN CORRECTED AND, FOR ANY FAILURE THAT
10 HAS NOT BEEN CORRECTED, THE REASON FOR SUCH FAILURE AND THE EXPECTED
11 CORRECTION DATE. IF ANY SUCH FAILURE SHALL NOT HAVE BEEN CORRECTED WITH-
12 IN TEN BUSINESS DAYS OF THE FILING DATE OF THE APPLICABLE COMPLIANCE
13 REPORT, SUCH BANKING INSTITUTION SHALL, PROMPTLY AFTER CORRECTING SUCH
14 FAILURE, SUBMIT A WRITTEN REPORT TO THE DEPARTMENT WITH THE DATE OR
15 DATES OF EACH SUCH CORRECTION.
16 S 7. Subdivision 1 of section 75-j of the banking law, as amended by
17 section 11 of part O of chapter 59 of the laws of 2006, is amended to
18 read as follows:
19 1. Any banking institution found to be in violation of any provision
20 of section seventy-five-c of this article IN A COMPLIANCE REPORT UNDER
21 SECTION SEVENTY-FIVE-G OF THIS ARTICLE OR OTHERWISE FOUND BY THE DEPART-
22 MENT TO BE IN VIOLATION OF ANY PROVISION OF SECTION SEVENTY-FIVE-C OF
23 THIS ARTICLE shall correct the violation within ten business days after
24 such finding. Where a banking institution fails to correct [said
25 violation within such period of time] ANY VIOLATION OF A PROVISION OF
26 SECTION SEVENTY-FIVE-C OF THIS ARTICLE WITHIN TEN BUSINESS DAYS AFTER
27 THE FILING OF SUCH REPORT OR A FINDING OF VIOLATION BY THE DEPARTMENT,
28 the superintendent may in a proceeding after notice and a hearing,
29 require [any] SUCH banking institution to pay a civil penalty in an
30 amount as determined pursuant to section forty-four of this chapter,
31 provided, however, that the aggregate penalty for all offenses with
32 respect to any one automated teller machine facility in any one proceed-
33 ing shall not exceed an amount as determined pursuant to section forty-
34 four of this chapter. For the purposes of this article, each violation
35 of section seventy-five-c of this article shall be considered a separate
36 and distinct violation.
37 S 8. Paragraphs (a) and (c) of subdivision 1 of section 103 of the
38 banking law, as amended by chapter 1 of the laws of 1983 and as further
39 amended by section 104 of part A of chapter 62 of the laws of 2011, are
40 amended to read as follows:
41 (a) The limitations in this subdivision shall not apply to (1) any
42 loan to the extent that the United States, this state or any city, coun-
43 ty, town, village or school district of this state, [any federal inter-
44 mediate credit bank, Federal National Mortgage Association, any federal
45 land bank, any bank for cooperatives organized under the laws of the
46 United States, any national mortgage association, any federal home loan
47 bank, the Small Business Administration] or any [other] department,
48 agency or instrumentality of the United States or this state designated
49 by the superintendent [of financial services] by general or specific
50 regulation [upon a three-fifths vote of all its members], has agreed to
51 pay the principal and interest thereof, or has guaranteed payment (by
52 guaranty or commitment to purchase or otherwise) of such principal and
53 interest, or is committed to supply, by loan, subsidy or otherwise,
54 funds sufficient to pay such principal and interest, or has otherwise
55 pledged its faith and credit for the payment of such principal and
56 interest; or (2) any loan secured by not less than a like amount (BASED
A. 7213--A 6
1 ON THEIR PRINCIPAL AMOUNT OR MARKET VALUE, WHICHEVER IS LOWER, AT THE
2 TIME THE LOAN IS MADE) of direct obligations [(based on their principal
3 amount or market value, whichever is lower, at the time the loan is
4 made)] of the United States or of this state or of any city, county,
5 town, village or school district of this state or of any such depart-
6 ment, agency or instrumentality of the United States or this state[; or
7 (3) when authorized by the superintendent, any loan to a savings bank of
8 this state or a corporation all of the capital stock of which is owned
9 by not less than twenty savings banks of this state] OR BY OBLIGATIONS
10 OTHERWISE FULLY GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE UNITED
11 STATES.
12 (c) Loans (exclusive of any loan described in paragraph (a) of this
13 subdivision) to any state other than the state of New York, or to any
14 foreign nation, the New York State thruway authority, the Triborough
15 bridge and tunnel authority, The Port of New York Authority, a railroad
16 corporation, a municipal corporation of this state, a corporation
17 subject to the jurisdiction of a public service commission of this
18 state, or any international lending facility or public benefit corpo-
19 ration designated by the superintendent [of financial services] by
20 [general or specific] regulation [upon a three-fifths vote of all its
21 members], may equal but not exceed twenty-five per centum of the capital
22 stock, surplus fund and undivided profits of such bank or trust company.
23 S 9. Subdivision 1 of section 591 of the banking law, as added by
24 chapter 571 of the laws of 1986, paragraph (b) as amended by chapter 164
25 of the laws of 2003, is amended to read as follows:
26 1. The application for a license to be a mortgage banker shall be in
27 writing, under oath, and in the form prescribed by the superintendent.
28 NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER
29 LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION
30 FOR, OR RENEWAL OF, A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR
31 APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE OR EXECUTED BY
32 ELECTRONIC MEANS, INCLUDING THROUGH THE NATIONAL MORTGAGE LICENSING
33 SYSTEM AND REGISTRY OR OTHER ENTITIES DESIGNATED BY THE NATIONAL MORT-
34 GAGE LICENSING SYSTEM AND REGISTRY IF HE OR SHE DEEMS IT NECESSARY TO
35 ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. The
36 application shall contain the name and complete business and residential
37 address or addresses of the applicant. If the applicant is a partner-
38 ship, association, corporation or other form of business organization,
39 the application shall contain the names and complete business and resi-
40 dential addresses of each member, director and principal officer there-
41 of. Such application shall also include a description of the activities
42 of the applicant, in such detail and for such periods, as the super-
43 intendent may require; including:
44 (a) An affirmation of financial solvency noting such capitalization
45 requirements as may be required by the superintendent, and access to
46 such credit as may be required by the superintendent;
47 (b) The fingerprints of the applicant, which may be submitted to the
48 division of criminal justice services and the federal bureau of investi-
49 gation for state and national criminal history record checks;
50 (c) An affirmation that the applicant, or its members, directors or
51 principals as may be appropriate, are at least twenty-one years of age;
52 (d) Information as to the character, fitness, financial and business
53 responsibility, background and experiences of the applicant.
54 S 10. Subdivision 1 of section 591-a of the banking law, as amended by
55 section 53 of part O of chapter 59 of the laws of 2006, is amended to
56 read as follows:
A. 7213--A 7
1 1. An application to become registered as a mortgage broker shall be
2 in writing, under oath, in such form as shall be prescribed by the
3 superintendent, and shall be accompanied by the fingerprints of the
4 applicant. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR
5 ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN
6 APPLICATION FOR, OR RENEWAL OF, A LICENSE OR ANY OTHER SUBMISSION OR
7 APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE, BE MADE OR
8 EXECUTED BY ELECTRONIC MEANS, INCLUDING THROUGH THE NATIONAL MORTGAGE
9 LICENSING SYSTEM AND REGISTRY OR OTHER ENTITIES DESIGNATED BY THE
10 NATIONAL MORTGAGE LICENSING SYSTEM AND REGISTRY IF HE OR SHE DEEMS IT
11 NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS
12 ARTICLE. Such fingerprints shall be submitted to the division of crimi-
13 nal justice services for a state criminal history record check, as
14 defined in subdivision one of section three thousand thirty-five of the
15 education law, and may be submitted to the federal bureau of investi-
16 gation for a national criminal history record check. Such application
17 shall contain the name and complete business and residential address or
18 addresses of the applicant, or if the applicant is a partnership, asso-
19 ciation, corporation or other form of business organization, the names
20 and complete business and residential addresses of each member, director
21 and principal officer thereof. Such application shall also include an
22 affirmation of financial solvency noting such capitalization require-
23 ments as may be required by the superintendent, and such descriptions of
24 the business activities, financial responsibility, educational back-
25 ground and general character and fitness of the applicant as may be
26 required by the superintendent. Such application shall be accompanied by
27 an investigation fee payable to the superintendent as prescribed pursu-
28 ant to section eighteen-a of this chapter.
29 S 11. Section 520-c of the general business law, as added by chapter 1
30 of the laws of 1994, subdivisions 1, 2, 3 and 5 as further amended by
31 section 104 of part A of chapter 62 of the laws of 2011, is amended to
32 read as follows:
33 S 520-c. Credit information. 1. The department of financial services
34 shall establish A TELEPHONE NUMBER AND AN AREA ON ITS WEBSITE, OR
35 PROVIDE A LINK ON SUCH SITE TO OTHER WEBSITES WITH a toll-free telephone
36 number service at which CUSTOMERS MAY OBTAIN information on annual
37 percentage rates, annual fees, per-transaction charges, late payment
38 fees, overlimit fees and grace periods for credit cards [can be
39 obtained] TO THE EXTENT READILY AVAILABLE TO THE DEPARTMENT. Every
40 issuer of credit cards to natural persons residing in this state shall
41 set forth on each solicitation, application and monthly billing state-
42 ment mailed or otherwise presented to such persons, a notice stating
43 "New York residents may contact the New York state department of finan-
44 cial services [to obtain a] BY TELEPHONE OR VISIT ITS WEBSITE FOR FREE
45 INFORMATION ON comparative [listing of] credit card rates, fees and
46 grace periods." Such notice shall be printed on the same side as the
47 disclosure of rates, fees and charges, in case of the solicitations and
48 applications, and on the same side as the notice of the balance of the
49 account and the amount due are printed, in the case of the monthly bill-
50 ing statement. The superintendent of financial services shall prescribe
51 the WEB address and telephone number to be printed next to the notice.
52 The notice shall be in type no smaller than eight points. THE TELEPHONE
53 NUMBER OF THE CREDIT CARD ISSUER SHALL APPEAR HIGHER UP ON THE PAGE AND
54 IN THE TYPE AT LEAST AS LARGE AS THAT PROVIDED FOR THE TELEPHONE NUMBER
55 OF THE DEPARTMENT OF FINANCIAL SERVICES. Issuers shall include such
A. 7213--A 8
1 notice in materials sent to residents of this state as required under
2 this section commencing October first, nineteen hundred ninety-four.
3 2. [The superintendent of financial services shall develop and
4 distribute to all issuers of credit cards, no more than thirty days
5 after the effective date of this section, a form which shall be used for
6 the purpose of collecting information on annual percentage rates, annual
7 fees, per-transaction charges, late payment fees, overlimit fees and
8 grace periods governed by the terms of each type of credit card offered
9 by such issuer to natural persons residing in this state. Issuers shall
10 return the forms to the department of financial services no later than
11 one hundred fifty days after the effective date of this section, and
12 annually thereafter, but no later than April first of each year,
13 commencing in nineteen hundred ninety-five. The superintendent of finan-
14 cial services shall publish the information obtained from such forms and
15 make it available to New York residents upon request, commencing not
16 later than October first, nineteen hundred ninety-four, and annually
17 thereafter but not later than July first of each year.
18 3.] The superintendent of financial services is authorized to adopt
19 such rules and regulations as consistent with the provisions of this
20 section.
21 [4.] 3. For the purposes of this section:
22 (a) "Credit card" means any card issued pursuant to an agreement which
23 allows the holder of the card to obtain goods and services on the credit
24 of the issuer; and
25 (b) "Issuer" means any bank, trust company, savings bank, savings and
26 loan association, or branch of a foreign banking corporation the depos-
27 its of which are insured by the federal deposit insurance corporation,
28 which is incorporated, chartered, organized or licensed under the laws
29 of this state or any other state or the United States, which issues
30 credit cards to natural persons residing in this state.
31 [5.] 4. The authority of the superintendent of financial services
32 pursuant to sections thirty-nine and forty-four of the banking law shall
33 extend to violations of this section by any issuer.
34 S 12. This act shall take effect immediately; provided, however that
35 section eleven of this act shall take effect on the ninetieth day after
36 it shall have become a law.
