Bill Text: NY S04894 | 2021-2022 | General Assembly | Introduced

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Bill Title: Prohibits banking organizations from issuing mail-loan checks without request or application therefor; provides that failure to destroy or return a mail-loan check does not constitute an acceptance thereof; provides that mail-loan checks shall have the transaction fee and interest rate included on the check.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-05-05 - SIGNED CHAP.184 [S04894 Detail]

Download: New_York-2021-S04894-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4894

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 18, 2021
                                       ___________

        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks

        AN ACT to amend the banking law, in relation to mail-loan checks

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Subdivisions 2 and 3 of section 9-t of the banking law, as
     2  added by chapter 309 of the laws of 2002, are amended and a new subdivi-
     3  sion 4 is added to read as follows:
     4    2. Any lending institution which issues mail-loan checks shall:
     5    (a) include on the face of each check issued to a non-customer a writ-
     6  ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
     7  ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
     8  ing or accepting a mail-loan check for deposit may require more than one
     9  form of identification;
    10    (b) make no reference on the outside  of  the  envelope  containing  a
    11  mail-loan  check  that  indicates  that  a check is enclosed within such
    12  envelope;
    13    (c) provide that all mail-loan checks shall be non-transferable; and
    14    (d) include the transaction fee and interest rate  and  an  expiration
    15  date  of not more than six months on the mail-loan check, as well as any
    16  additional information that the superintendent may require.
    17    3. No lending institution shall issue a  mail-loan  check,  except  in
    18  response to a request or application therefor.
    19    4. Failure to destroy or return a mail-loan check shall not constitute
    20  acceptance of the check.
    21    5.  Any lending institution which mails a mail-loan check in violation
    22  of the provisions of this section shall be liable for  a  civil  penalty
    23  not to exceed five hundred dollars for each such violation.
    24    § 2. This act shall take effect on the one hundred twentieth day after
    25  it shall have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00135-01-1