N.Y. Banking Law § 559: Grounds for revocation of license; procedure

§ 559. Grounds for revocation of license; procedure. 1. The

superintendent may forthwith revoke or suspend any license issued

hereunder if he shall find that:

(a) The licensee has failed to pay the annual license fee or any sum

of money lawfully demanded, or to comply with any demand, ruling, or

requirement of the superintendent lawfully made pursuant to and within

the authority of this article;

(b) The licensee 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 any rule or regulation lawfully made by the superintendent under and

within the authority of this article;

(c) 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 in refusing originally to issue such

license.

2. The superintendent may revoke or suspend only the particular

license with respect to which grounds for revocation or suspension may

occur or exist, or, if he shall find that such grounds for revocation or

suspension are of general application to all offices, or to more than

one office, operated by such licensee, he shall revoke or suspend all of

the licenses issued to such licensee or such number of licenses as such

grounds apply to, as the case may be.

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

superintendent written notice that he thereby surrenders such license,

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

liability for acts committed prior to such surrender.

4. No revocation or suspension or surrender of any license shall

impair or affect the obligation of an insured under any lawful premium

finance agreement previously acquired or held by the licensee.

5. Every license issued hereunder shall remain in force and effect

until the same shall have been surrendered, revoked, or suspended in

accordance with the provisions of this article, but the superintendent

shall have authority to reinstate suspended licenses or to issue new

licenses to a licensee whose license or licenses shall have been revoked

if no fact or condition then exists which clearly would have warranted

the superintendent in refusing originally to issue such license under

this article.

6. Whenever the superintendent shall revoke or suspend a license

issued pursuant to this article, he shall forthwith execute in

triplicate a written order to that effect. The superintendent shall file

one copy of such order in the office of the department, file another in

the office of the clerk of the county in which is located the place

designated in such license and forthwith serve the third copy upon the

licensee, which 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 date of such order of suspension or

revocation.

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.