N.Y. Banking Law § 598: Additional penalties for violation of this article; civil, criminal; liquidated damages

§ 598. Additional penalties for violation of this article; civil,

criminal; liquidated damages. 1. In addition to such penalties as may

otherwise be applicable by law, the superintendent may, after notice and

hearing as provided elsewhere in this article, require any entity,

licensee, servicer, registrant or exempt organization found violating

the provisions of this article or the rules or regulations promulgated

hereunder to pay to the people of this state an additional penalty for

each violation of the article or any regulation or policy promulgated

hereunder a sum not to exceed an amount as determined pursuant to

section forty-four of this chapter for each such violation.

2. Whoever violates any provision of the licensing requirements of

subparagraphs (a) and (b) of subdivision two of section five hundred

ninety of this article by making a mortgage loan without being licensed

or specifically exempted from licensing, or soliciting, processing,

placing or negotiating a mortgage loan without being registered or

specifically exempted from registration, shall be guilty of a class A

misdemeanor, punishable as provided in articles seventy and eighty of

the penal law.

3. Liquidated damages. In addition to any other remedy which an

applicant for a mortgage loan or mortgagor may have against a licensee,

registrant or exempt organization for breach of contract or agreement to

make a mortgage loan, the court after considering the circumstances may

award the plaintiff, upon granting a judgment in his favor in an

individual action on such claim, liquidated damages an amount equal to

twice the amount of any fees or other charges paid by the applicant or

mortgagor in connection with such contract or agreement exclusive of any

amounts paid or payable after the mortgage or other security instrument

is executed.

4. Statutory or common-law remedies. Nothing in this article shall

limit any statutory or common-law right of any person to bring any

action in any court for any act, or the right of the state to punish any

person for any violation of any law.

5. Civil penalties assessable against unlicensed or unregistered

persons or entities. If any non-exempt unlicensed or unregistered person

or entity engages in activities encompassed by this article, he shall be

liable to any person or entity affected by such activities for a sum of

money of not less than the amount of money paid to an affected person or

entity in connection with such activities, nor more than four times such

sum; provided however that where a non-exempt unlicensed or unregistered

person has continued to engage in such unauthorized activities after

receiving a cease and desist notice from the superintendent, the maximum

amount of liability shall be up to the amount of actual damages. Such

sum may be sued for and recovered by any person or entity for his use

and benefit in any court of competent jurisdiction.