N.Y. Banking Law § 373: Acts prohibited; suspension or revocation of license; penalties

§ 373. Acts prohibited; suspension or revocation of license;

penalties. 1. No licensee shall engage in the business of making loans

of money, credit, goods or things or discounting of notes, bills of

exchange, checks, or other evidences of debt pursuant to the provisions

of article nine of this chapter, nor shall a loan business or the

negotiation of loans or the discounting of notes, bills of exchange,

checks or other evidences of debt be conducted on the same premises

where the licensee is conducting business pursuant to the provisions of

this article. Except as otherwise provided by regulation of the

superintendent, all checks, drafts and money orders shall be deposited

in the licensee's bank account not later than the first business day

following the day on which they were cashed. No licensee shall at any

time cash or advance any moneys on a post-dated check or draft or engage

in the business of transmitting money or receiving money for

transmission; provided, however, that a licensee may cash a check

payable on the first banking business day following the date of cashing

(a) if such check is drawn by the United States, the state of New York,

or any political subdivision of the state of New York, or by any

department, bureau, agency, authority, instrumentality or officer,

acting in his official capacity, of the United States or of the state of

New York or of any political subdivision of the state of New York, or

(b) if such check is a payroll check drawn by an employer to the order

of its employee in payment for services performed by such employee. No

licensee shall cash any check, draft or money order if the face amount

for which it is drawn is in excess of fifteen thousand dollars;

provided, however, that this restriction shall not apply to the cashing

of checks, drafts or money orders drawn by the United States, any state

thereof or any political subdivision of any such state, or by any

department, bureau, agency, authority, instrumentality or officer,

acting in his official capacity, of the United States, any state thereof

or any political subdivision of any such state, or any banking

institution, or to any check or draft drawn by any insurance company,

any broker or dealer registered with the securities and exchange

commission, or any attorney for the settlement of claims, or to any

check which has been certified by the banking institution on which it

has been drawn; provided further, however, that any such restriction

upon the maximum face amount that may be cashed by a licensee shall not

apply to the cashing of checks, drafts or money orders by licensees for

payees of such checks, drafts or money orders that are other than

natural persons. For purposes of this subdivision, "banking institution"

means any bank, trust company, savings bank, savings and loan

association or credit union which is incorporated, chartered or

organized under the laws of this state or any other state or the United

States.

2. The superintendent may suspend or revoke any license or licenses

issued pursuant to this article if, after notice and a hearing, he shall

find that the licensee (a) has committed any fraud, engaged in any

dishonest activities or made any misrepresentation; or (b) has violated

any provisions of the banking law or any regulation issued pursuant

thereto, or has violated any other law in the course of its or his

dealings as a licensed casher of checks; or (c) has made a false

statement in the application for such license or failed to give a true

reply to a question in such application; or (d) has demonstrated his or

its incompetency or untrustworthiness to act as a licensed casher of

checks; or (e) is not doing sufficient business pursuant to this article

to justify the continuance of the license, or if he shall find that any

ground or grounds exist which would require or warrant the refusal of an

application for the issuance of the license if such an application were

then before him. Such a hearing shall be held in the manner and upon

such notice as may be prescribed by the superintendent. Pending an

investigation or a hearing for the suspension or revocation of any

license or licenses issued pursuant to this article, the superintendent

may temporarily suspend such license or licenses for a period not to

exceed ninety days, provided the superintendent shall find that such a

temporary suspension is in the public interest.

3. Whenever the superintendent shall suspend or revoke a license

issued pursuant to this article, he shall forthwith execute a written

order to that effect. The superintendent shall on the date such order is

executed file one copy thereof in the office of the department and serve

a second copy thereof on the licensee either personally or by mailing

the same to the last known address of such licensee. Such order shall be

subject to review by the supreme court in the manner provided in article

seventy-eight of the civil practice law and rules; provided, however,

that a special proceeding for review of such order must be commenced

within thirty days from the date of such order of suspension or

revocation and, provided further, that no stay shall be granted pending

the determination of the matter except on notice to the superintendent

and for a period not exceeding thirty days.

4. Any person, partnership, association or corporation and the several

members, officers, directors, agents and employees thereof, who shall

violate any of the provisions of this article, shall be guilty of a

misdemeanor, and shall be punishable by imprisonment for not more than

one year or by a fine of not more than five hundred dollars, or by both

such fine and imprisonment.

5. Notwithstanding the provisions of subdivision four of this section,

any person, partnership, association or corporation and the several

members, officers, directors, agents and employees thereof who shall

violate the provisions of subdivision one of section three hundred

sixty-seven of this article shall be guilty of a class A misdemeanor.