N.Y. Banking Law § 39: Orders of superintendent

* § 39. Orders of superintendent. 1. To appear and explain an apparent

violation. Whenever it shall appear to the superintendent that any

banking organization, bank holding company, registered mortgage broker,

licensed mortgage banker, licensed student loan servicer, registered

mortgage loan servicer, licensed mortgage loan originator, licensed

lender, licensed casher of checks, licensed sales finance company,

licensed insurance premium finance agency, licensed transmitter of

money, licensed budget planner, out-of-state state bank that maintains a

branch or branches or representative or other offices in this state, or

foreign banking corporation licensed by the superintendent to do

business or maintain a representative office in this state has violated

any law or regulation, he or she may, in his or her discretion, issue an

order describing such apparent violation and requiring such banking

organization, bank holding company, registered mortgage broker, licensed

mortgage banker, licensed student loan servicer, licensed mortgage loan

originator, licensed lender, licensed casher of checks, licensed sales

finance company, licensed insurance premium finance agency, licensed

transmitter of money, licensed budget planner, out-of-state state bank

that maintains a branch or branches or representative or other offices

in this state, or foreign banking corporation to appear before him or

her, at a time and place fixed in said order, to present an explanation

of such apparent violation.

2. To discontinue unauthorized or unsafe and unsound practices.

Whenever it shall appear to the superintendent that any banking

organization, bank holding company, registered mortgage broker, licensed

mortgage banker, licensed student loan servicer, registered mortgage

loan servicer, licensed mortgage loan originator, licensed lender,

licensed casher of checks, licensed sales finance company, licensed

insurance premium finance agency, licensed transmitter of money,

licensed budget planner, out-of-state state bank that maintains a branch

or branches or representative or other offices in this state, or foreign

banking corporation licensed by the superintendent to do business in

this state is conducting business in an unauthorized or unsafe and

unsound manner, he or she may, in his or her discretion, issue an order

directing the discontinuance of such unauthorized or unsafe and unsound

practices, and fixing a time and place at which such banking

organization, bank holding company, registered mortgage broker, licensed

mortgage banker, licensed student loan servicer, registered mortgage

loan servicer, licensed mortgage loan originator, licensed lender,

licensed casher of checks, licensed sales finance company, licensed

insurance premium finance agency, licensed transmitter of money,

licensed budget planner, out-of-state state bank that maintains a branch

or branches or representative or other offices in this state, or foreign

banking corporation may voluntarily appear before him or her to present

any explanation in defense of the practices directed in said order to be

discontinued.

3. To make good impairment of capital or to ensure compliance with

financial requirements. Whenever it shall appear to the superintendent

that the capital or capital stock of any banking organization, bank

holding company or any subsidiary thereof which is organized, licensed

or registered pursuant to this chapter, is impaired, or the financial

requirements imposed by subdivision one of section two hundred two-b of

this chapter or any regulation of the superintendent on any branch or

agency of a foreign banking corporation or the financial requirements

imposed by this chapter or any regulation of the superintendent on any

licensed lender, registered mortgage broker, licensed mortgage banker,

licensed student loan servicer, licensed casher of checks, licensed

sales finance company, licensed insurance premium finance agency,

licensed transmitter of money, licensed budget planner or private banker

are not satisfied, the superintendent may, in the superintendent's

discretion, issue an order directing that such banking organization,

bank holding company, branch or agency of a foreign banking corporation,

registered mortgage broker, licensed mortgage banker, licensed student

loan servicer, licensed lender, licensed casher of checks, licensed

sales finance company, licensed insurance premium finance agency,

licensed transmitter of money, licensed budget planner, or private

banker make good such deficiency forthwith or within a time specified in

such order.

4. To make good encroachments on reserves. Whenever it shall appear to

the superintendent that either the total reserves or reserves on hand of

any banking organization, branch or agency of a foreign banking

corporation are below the amount required by or pursuant to this chapter

or any other applicable provision of law or regulation to be maintained,

or that such banking organization, branch or agency of a foreign banking

corporation is not keeping its reserves on hand as required by this

chapter or any other applicable provision of law or regulation, he or

she may, in his or her discretion, issue an order directing that such

banking organization, branch or agency of a foreign banking corporation

make good such reserves forthwith or within a time specified in such

order, or that it keep its reserves on hand as required by this chapter.

5. To keep books and accounts as prescribed. Whenever it shall appear

to the superintendent that any banking organization, bank holding

company, registered mortgage broker, licensed mortgage banker, licensed

student loan servicer, registered mortgage loan servicer, licensed

mortgage loan originator, licensed lender, licensed casher of checks,

licensed sales finance company, licensed insurance premium finance

agency, licensed transmitter of money, licensed budget planner, agency

or branch of a foreign banking corporation licensed by the

superintendent to do business in this state, does not keep its books and

accounts in such manner as to enable him or her to readily ascertain its

true condition, he or she may, in his or her discretion, issue an order

requiring such banking organization, bank holding company, registered

mortgage broker, licensed mortgage banker, licensed student loan

servicer, registered mortgage loan servicer, licensed mortgage loan

originator, licensed lender, licensed casher of checks, licensed sales

finance company, licensed insurance premium finance agency, licensed

transmitter of money, licensed budget planner, or foreign banking

corporation, or the officers or agents thereof, or any of them, to open

and keep such books or accounts as he or she may, in his or her

discretion, determine and prescribe for the purpose of keeping accurate

and convenient records of its transactions and accounts.

6. As used in this section, "bank holding company" shall have the same

meaning as that term is defined in section one hundred forty-one of this

chapter.

* NB Effective until certain provisions are met (see Ch. 58 of 2025,

Part Y, § 13)

* § 39. Orders of superintendent. 1. To appear and explain an apparent

violation. Whenever it shall appear to the superintendent that any

banking organization, bank holding company, registered mortgage broker,

licensed mortgage banker, licensed student loan servicer, registered

mortgage loan servicer, licensed mortgage loan originator, licensed

lender, licensed buy-now-pay-later lender, licensed casher of checks,

licensed sales finance company, licensed insurance premium finance

agency, licensed transmitter of money, licensed budget planner,

out-of-state state bank that maintains a branch or branches or

representative or other offices in this state, or foreign banking

corporation licensed by the superintendent to do business or maintain a

representative office in this state has violated any law or regulation,

the superintendent may, in the superintendent's discretion, issue an

order describing such apparent violation and requiring such banking

organization, bank holding company, registered mortgage broker, licensed

mortgage banker, licensed student loan servicer, licensed mortgage loan

originator, licensed lender, licensed buy-now-pay-later lender, licensed

casher of checks, licensed sales finance company, licensed insurance

premium finance agency, licensed transmitter of money, licensed budget

planner, out-of-state state bank that maintains a branch or branches or

representative or other offices in this state, or foreign banking

corporation to appear before the superintendent, at a time and place

fixed in said order, to present an explanation of such apparent

violation.

2. To discontinue unauthorized or unsafe and unsound practices.

Whenever it shall appear to the superintendent that any banking

organization, bank holding company, registered mortgage broker, licensed

mortgage banker, licensed student loan servicer, registered mortgage

loan servicer, licensed mortgage loan originator, licensed lender,

licensed buy-now-pay-later lender, licensed casher of checks, licensed

sales finance company, licensed insurance premium finance agency,

licensed transmitter of money, licensed budget planner, out-of-state

state bank that maintains a branch or branches or representative or

other offices in this state, or foreign banking corporation licensed by

the superintendent to do business in this state is conducting business

in an unauthorized or unsafe and unsound manner, the superintendent may,

in the superintendent's discretion, issue an order directing the

discontinuance of such unauthorized or unsafe and unsound practices, and

fixing a time and place at which such banking organization, bank holding

company, registered mortgage broker, licensed mortgage banker, licensed

student loan servicer, registered mortgage loan servicer, licensed

mortgage loan originator, licensed lender, licensed buy-now-pay-later

lender, licensed casher of checks, licensed sales finance company,

licensed insurance premium finance agency, licensed transmitter of

money, licensed budget planner, out-of-state state bank that maintains a

branch or branches or representative or other offices in this state, or

foreign banking corporation may voluntarily appear before the

superintendent to present any explanation in defense of the practices

directed in said order to be discontinued.

3. To make good impairment of capital or to ensure compliance with

financial requirements. Whenever it shall appear to the superintendent

that the capital or capital stock of any banking organization, bank

holding company or any subsidiary thereof which is organized, licensed

or registered pursuant to this chapter, is impaired, or the financial

requirements imposed by subdivision one of section two hundred two-b of

this chapter or any regulation of the superintendent on any branch or

agency of a foreign banking corporation or the financial requirements

imposed by this chapter or any regulation of the superintendent on any

licensed lender, licensed buy-now-pay-later lender, registered mortgage

broker, licensed mortgage banker, licensed student loan servicer,

licensed casher of checks, licensed sales finance company, licensed

insurance premium finance agency, licensed transmitter of money,

licensed budget planner or private banker are not satisfied, the

superintendent may, in the superintendent's discretion, issue an order

directing that such banking organization, bank holding company, branch

or agency of a foreign banking corporation, registered mortgage broker,

licensed mortgage banker, licensed student loan servicer, licensed

lender, licensed buy-now-pay-later lender, licensed casher of checks,

licensed sales finance company, licensed insurance premium finance

agency, licensed transmitter of money, licensed budget planner, or

private banker make good such deficiency forthwith or within a time

specified in such order.

4. To make good encroachments on reserves. Whenever it shall appear to

the superintendent that either the total reserves or reserves on hand of

any banking organization, branch or agency of a foreign banking

corporation are below the amount required by or pursuant to this chapter

or any other applicable provision of law or regulation to be maintained,

or that such banking organization, branch or agency of a foreign banking

corporation is not keeping its reserves on hand as required by this

chapter or any other applicable provision of law or regulation, the

superintendent may, in the superintendent's discretion, issue an order

directing that such banking organization, branch or agency of a foreign

banking corporation make good such reserves forthwith or within a time

specified in such order, or that it keep its reserves on hand as

required by this chapter.

5. To keep books and accounts as prescribed. Whenever it shall appear

to the superintendent that any banking organization, bank holding

company, registered mortgage broker, licensed mortgage banker, licensed

student loan servicer, registered mortgage loan servicer, licensed

mortgage loan originator, licensed lender, licensed buy-now-pay-later

lender, licensed casher of checks, licensed sales finance company,

licensed insurance premium finance agency, licensed transmitter of

money, licensed budget planner, agency or branch of a foreign banking

corporation licensed by the superintendent to do business in this state,

does not keep its books and accounts in such manner as to enable the

superintendent to readily ascertain its true condition, the

superintendent may, in the superintendent's discretion, issue an order

requiring such banking organization, bank holding company, registered

mortgage broker, licensed mortgage banker, licensed student loan

servicer, registered mortgage loan servicer, licensed mortgage loan

originator, licensed lender, licensed buy-now-pay-later lender, licensed

casher of checks, licensed sales finance company, licensed insurance

premium finance agency, licensed transmitter of money, licensed budget

planner, or foreign banking corporation, or the officers or agents

thereof, or any of them, to open and keep such books or accounts as the

superintendent may, in the superintendent's discretion, determine and

prescribe for the purpose of keeping accurate and convenient records of

its transactions and accounts.

6. As used in this section, "bank holding company" shall have the same

meaning as that term is defined in section one hundred forty-one of this

chapter.

* NB Effective upon the one hundred eightieth day after the

promulgation of rules and/or regulations by the department of financial

services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §

13)