N.Y. Banking Law § 495: Revocation, suspension or surrender of licenses

§ 495. Revocation, suspension or surrender of licenses. 1. The

superintendent may suspend or revoke any license issued under this

article, if he shall find that:

(a) the licensee, knowingly or without the exercise of due care to

prevent such violation, has violated any provision of this article, 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, or of any other law regulating instalment sales agreements, or

has failed to comply with any demand, or requirement, lawfully made by

the superintendent under and within the authority of this article; or

(b) there has been any material misstatement or failure to give a true

reply to a question in the application for the license; or

(c) the licensee has defrauded any retail buyer to the buyer's damage;

or wilfully failed to perform any written agreement with any retail

buyer; or

(d) Any fact or condition exists which, if it had existed at the time

of the original application for such license, clearly would have

warranted the superintendent of financial services in refusing to issue

such license originally.

(e) in the case of a licensee other than a natural person.

(1) any officer, director, trustee, or partner of such licensee has

been guilty of any act or omission which would be cause for revoking or

suspending a license of such party as an individual; or

(2) any other agent or employee of such licensee has been guilty of

such act or omission and the licensee has approved or had knowledge

thereof or of acts or omission of like character and after such approval

or knowledge has retained the benefit, proceeds, profit, or advantage of

such act or omission or otherwise ratified it.

2. No license shall be suspended or revoked except after a hearing

thereon. The superintendent shall give the licensee at least ten days'

written notice of the time and place of such hearing by registered mail

addressed to the principal place of business in this state of such

licensee. Any order suspending or revoking such license shall recite the

grounds upon which it is based and shall not be effective until ten days

after written notice thereof has been sent by registered mail to the

licensee at such principal place of business.

3. The superintendent in his discretion may revoke or suspend only the

particular license with respect to which grounds for revocation or

suspension may occur or exist; but if he finds that grounds for

revocation or suspension are of general application to all places of

business, or to more than one place of business, operated by such

licensee, he shall revoke or suspend all of the licenses issued to said

licensee or those licenses to which the grounds for revocation or

suspension apply, as the case may be.

4. Any licensee may surrender any license by delivering to the

superintendent written notice that such license is thereby surrendered,

but such surrender shall not affect the licensee's civil or criminal

liability for acts committed prior thereto.

5. No suspension, revocation or surrender of any license shall impair

or affect the obligation of any instalment contract, obligation or

credit agreement lawfully acquired previously thereto by the licensee.

6. The superintendent shall establish rules as to the form of

hearings, findings, and orders which shall be reasonable and in the

public interest.

7. The superintendent may, on good cause shown, or where there is a

substantial risk of public harm, suspend any license issued pursuant to

this article for a period not exceeding thirty days, pending

investigation. "Good cause", as used in this subdivision, shall exist

only when the licensee has defaulted or is likely to default in

performing its financial engagements or engages in dishonest or

inequitable practices which may cause substantial harm to the persons

afforded the protection of this article.