N.Y. Banking Law § 580: Application for license

§ 580. Application for license. 1. Application for a license required

under this article shall be in writing, under oath, and in the form

prescribed by the superintendent, and shall contain the following:

(a) The exact name and the address of the applicant and its date of

incorporation; and

(b) The name and complete business and residential address and

occupation of each officer and director of the applicant; and

(c) The complete address where the business of the applicant is to be

conducted, showing the street and number, if any, post office and

building and room number, if any, the office building and room number,

if any, and the municipality and county; and

(d) If the applicant has one or more branches, subsidiaries or

affiliates operating in this state, the complete address of each such

place of business; and

(e) Such other pertinent information as the superintendent may

require, including but not limited to evidence indicating that the

applicant, or officer, director, or manager of such applicant has at

least one year of experience in financial services or related fields

applicable to budget planning.

2. Where an applicant operates several places of business, separate

applications for license shall be made for each such place of business.

3. Upon original application for a license or licenses to operate one

or more places of business, the applicant shall pay an investigation fee

in an aggregate amount as prescribed pursuant to section eighteen-a of

this chapter. No additional investigation fee shall be required for any

subsequent application for a license unless such application is

subsequent to a denial of a license or to a revocation, suspension or

surrender of a license.

4. As a condition for the issuance and retention of a budget planner

license, and subject to such regulations as the superintendent shall

prescribe, applicants for a license shall file with the superintendent a

surety bond in form satisfactory to the superintendent issued by a

bonding company or insurance company authorized to do business in this

state. Except as provided hereunder, the principal amount of such bond

shall be two hundred fifty thousand dollars. The superintendent may

require a larger bond if he or she determines, in his or her sole

discretion, that a licensee has engaged in a pattern of conduct

resulting in bona fide consumer complaints of misconduct and that such

increased bond is necessary for the protection of consumers; or the

superintendent may increase or decrease the amount of such bond or

deposit based upon the applicant's or licensee's financial condition,

business plan, and the actual or estimated aggregate amount of payments

and fees paid by debtors to such licensee. In lieu of such bond, an

applicant may keep on deposit with such banks, savings banks, savings

and loan associations, trust companies, private bankers, national banks,

federal savings banks, or federal savings and loan associations in the

state as such licensee may designate and the superintendent may approve,

interest-bearing bonds, notes, debentures, or other obligations of the

United States or any agency or instrumentality thereof, or guaranteed by

the United States, or of this state, or of a city, county, town,

village, school district, or instrumentality of this state or guaranteed

by this state, or dollar deposits, or such other assets or letters of

credit as the superintendent shall by rule or regulation permit. The

proceeds of each bond or deposit shall constitute a trust fund to be

used exclusively to reimburse payments by debtors that have not been

properly distributed to creditors or to reimburse fees determined by the

superintendent to be improperly charged or collected and, in the event

of the insolvency, liquidation, or bankruptcy of such licensee, to pay

outstanding department of financial services examination costs and

assessments. Within ninety days after the effective date of this

subdivision, each licensee shall comply with the requirements of this

subdivision.