N.Y. Banking Law § 642: Action by superintendent

§ 642. Action by superintendent. 1. Upon the filing of an application,

and the payment of the fees for investigation and license, the

superintendent shall investigate the financial condition and

responsibility, financial and business experience, character and general

fitness of the applicant and, if the superintendent finds these

qualities are such as to warrant the belief that the applicant's

business will be conducted honestly, fairly, equitably, carefully and

efficiently within the purposes and intent of this article, and in a

manner commanding the confidence and trust of the community, the

superintendent shall advise the applicant in writing of his conditional

approval of the application, and thereafter upon compliance by the

applicant with the provisions of section six hundred forty-three of this

article, shall issue to the applicant a license to engage in the

business of selling and issuing checks, and of receiving money for

transmission and transmitting the same, subject to the provisions of

this article; or the superintendent may deny the application and return

the license fee to the applicant.

2. The superintendent shall approve conditionally or deny every

application for a license hereunder within ninety days from the filing

thereof. Such period of ninety days may be extended, by the written

consent of the applicant, for such additional reasonable period of time

as may be required to enable compliance with such requirements and

conditions as may be provided by this article and the rules or

regulations of the superintendent issued thereunder.

3. A license issued pursuant to this article shall remain in full

force and effect until it is surrendered by the licensee or revoked or

suspended as provided in this article.

4. The superintendent may suspend or revoke a license on any ground on

which he might refuse to issue an original license, or for a violation

of any provision of this chapter or any regulation issued under this

article, or for failure of the licensee to pay a judgment, recovered in

any court, within or without this state, by a claimant or creditor in an

action arising out of the licensee's business in this state of selling

or issuing checks or of receiving money for transmission or transmitting

the same, within thirty days after the judgment becomes final or within

thirty days after expiration or termination of a stay of execution

thereon; provided, however, that if execution on the judgment be stayed,

by court order or operation of law or otherwise, then proceedings to

suspend or revoke the license (for failure of the licensee to pay such

judgment) may not be commenced by the superintendent during the time of

such stay, and for thirty days thereafter.

5. 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 or

certified mail addressed to the principal place of business of such

licensee. Any order of the superintendent suspending or revoking such

license shall state the grounds upon which it is based and shall not be

effective until ten days after written notice thereof has been sent by

registered or certified mail to the licensee at such principal place of

business, except that revocation by reason of the licensee's bond not

being kept in full force and effect as required by this article, or by

reason of failure to keep on deposit sufficient securities or funds as

required by this article, may take effect immediately if the

superintendent so orders.

6. 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.