N.Y. Banking Law § 352: Acts required of licensees; acts prohibited

§ 352. Acts required of licensees; acts prohibited. Every licensee

shall:

Deliver to the borrower at the time any loan is made or prior to the

first advance under an open-end loan agreement a statement, in the

English language showing in clear and distinct terms the name and

address of the borrower and of the licensee and all items required to be

disclosed by the act of congress entitled "Truth in Lending Act" and the

regulations thereunder, as such act and regulations may from time to

time be amended.

For each cash payment made on account of any closed-end loan, give to

the person making it at the time the payment is made, a plain and

complete receipt containing the information required by regulations of

the superintendent.

Permit payment to be made in advance in any amount on any loan

agreement at any time, but the licensee may initially apply such payment

to all interest and other charges due to the date of such payment.

Upon repayment of the loan in full, mark indelibly every obligation

signed by the borrower or a copy thereof with the word "paid" or

"cancelled", and release any mortgage or security agreement no longer

securing an obligation of the borrower, restore any pledge, cancel and

return any note or a copy thereof, and cancel and return any assignment

or a copy thereof given to the licensee by the borrower. An open-end

loan shall not be deemed to be repaid in full for this purpose unless

any balance is paid in full and the borrower relinquishes all power to

receive further advances under the contract and makes a written request

for the release of all collateral for the loan. Every licensee which

holds collateral of a borrower shall be fully liable for the return of

the collateral upon payment of the indebtedness in full.

No licensee shall collect, evaluate, report or maintain in the file on

a borrower the credit worthiness, credit standing or credit capacity of

members of the borrower's social network for purposes of determining the

credit worthiness of the borrower; the average credit worthiness, credit

standing or credit capacity of members of the borrower's social network;

or any group score that is not the borrower's own credit worthiness,

credit standing or credit capacity. The provisions of this paragraph

shall be enforced concurrently by the superintendent and the director of

the division of consumer protection and each shall utilize their

consumer complaint and assistance hotlines to document complaints by

borrowers who believe that group credit ratings of their social media

network are being used to deny them credit. The superintendent shall

ensure that the credit scoring formulas filed with the department do not

contain variables which account for internet viewing history as part of

that formula by asking the licensee to certify to that fact.

No licensee shall take any confession of judgment or any power of

attorney running to himself or to any third person to confess judgment

or to appear for the borrower in a judicial proceeding.

No licensee shall take any instrument in which blanks are left to be

filled in after execution.