N.Y. Banking Law § 44-a: Violations and penalties; failure to make reports

§ 44-a. Violations and penalties; failure to make reports. 1.

Notwithstanding any other provision of this chapter to the contrary:

a. any person or entity licensed, registered, or incorporated or

otherwise formed pursuant to this chapter, or an out-of-state state

bank, that inadvertently or unintentionally: (i) fails to make any

report required by the superintendent pursuant to this chapter, on or

before the day designated for the making thereof; (ii) fails to include

within such report any prescribed matter; or (iii) submits false or

misleading information therein, shall, after notice and hearing, forfeit

to the people of the state not more than two thousand dollars for each

day during which such report or omitted matter is delayed or withheld or

such false or misleading information is not corrected, unless the time

therefor shall have been extended by the superintendent, for good cause

shown, in his or her sole discretion;

b. notwithstanding the provisions of paragraph a of this subdivision

any person or entity licensed, registered, or incorporated or otherwise

formed pursuant to this chapter, or an out-of-state state bank, that

demonstrates by any pattern of behavior or other action that any of its

failures as described in paragraph a of this subdivision were not

inadvertent or unintentional shall, after notice and hearing, forfeit to

the people of the state not more than twenty thousand dollars for each

day during which such failures continue;

c. notwithstanding the provisions of paragraph a or b of this

subdivision, any person or entity licensed, registered, or incorporated

or otherwise formed pursuant to this chapter that demonstrates that any

of its failures as described in paragraph a of this subdivision

constitutes a pattern of behavior or other action performed knowingly

and with reckless disregard shall, after notice and hearing, forfeit to

the people of the state not more than two hundred fifty thousand dollars

or in the case of a banking organization, foreign bank licensee or an

out-of-state state bank, the lesser of two hundred fifty thousand

dollars or one percent of the total assets of such banking organization

or one percent of the total assets in this state of such foreign bank

licensee, as applicable for each day that its failures continue.

With respect to any amount assessed pursuant to this section against

any person or entity licensed or registered pursuant to this chapter,

but not with respect to a banking organization, foreign bank licensee or

out-of-state state bank, the superintendent in determining such amount,

shall take into consideration the net worth and annual business volume

of such licensed or registered person or entity.

2. In assessing any penalty pursuant to this section, the

superintendent shall take into account, without limitation, factors

including:

a. the extent, if any, to which senior management or board directors

or trustees participated therein,

b. the extent to which the entity has cooperated with the

superintendent in the investigation of such conduct,

c. any sanction imposed by any other regulatory agency,

d. the financial resources and good faith of the entity,

e. the gravity of the violation,

f. any history of prior violations, and

g. such other matters as justice and the public interest may require.

3. Whenever the superintendent shall require the payment of such

penalty by any such entity, he or she shall forthwith execute in

duplicate a written order to that effect. On the date such order is

executed, the superintendent shall file one copy of such order in the

office of the department and serve the second copy upon such entity

either personally or by registered or certified mail, return receipt

requested, directed to the entity's principal place of business or, in

the case of a licensee or registrant, its last known address of record.

Such order may be reviewed in the manner provided by article

seventy-eight of the civil practice law and rules. Such special

proceeding for review as authorized by this section must be commenced

within thirty days from the service of such order.

4. The superintendent may compromise, modify, or remit any penalty

which he or she may assess or had already assessed under this section.

5. The superintendent may prescribe regulations to carry out the

provisions and purposes of this section.