N.Y. Banking Law § 711: Licensing

§ 711. Licensing. 1. Except as provided in subdivisions two, three,

and four of this section, no person shall engage in the business of

servicing student loans owed by one or more borrowers residing in this

state without first being licensed by the superintendent as a student

loan servicer in accordance with this article and such regulations as

may be prescribed by the superintendent.

2. The licensing provisions of this article shall not apply to any

exempt organization that is a student loan servicer; provided that,

unless preempted by federal law, such exempt organization shall notify

the superintendent that it is servicing student loans in this state and

complies with sections seven hundred seventeen, seven hundred nineteen,

seven hundred twenty-one, seven hundred twenty-three and seven hundred

twenty-five of this article and article nine of the financial services

law and any regulation applicable to student loan servicers promulgated

by the superintendent.

3. Any person that services federal student loans owed by one or more

borrowers residing in this state shall be automatically deemed by

operation of law to have been issued a license to service federal

student loans by the superintendent as of April first, two thousand

nineteen. Such person shall notify the superintendent that it is

servicing federal student loans in this state and comply with sections

seven hundred seventeen, seven hundred nineteen, seven hundred

twenty-one, seven hundred twenty-two, seven hundred twenty-three and

seven hundred twenty-five of this article and any regulation applicable

to student loan servicers promulgated by the superintendent. The

provisions of sections thirty-three, thirty-nine, and forty-four of this

chapter shall also apply to such person. The license automatically

issued pursuant to this section shall only authorize the servicing of

federal student loans. A person that services both federal student loans

and non-federal student loans shall be required to be licensed pursuant

to subdivision one of this section and sections seven hundred twelve and

seven hundred thirteen of this article in order to be authorized to

service non-federal student loans unless such person is also an exempt

organization.

4. A person, other than an exempt organization, that services federal

student loans owed by one or more borrowers residing in this state and

that is not otherwise required to be licensed under this section shall

notify the superintendent that it is servicing federal student loans in

this state and shall comply with sections seven hundred seventeen, seven

hundred nineteen, seven hundred twenty-one, seven hundred twenty-two,

seven hundred twenty-three, and seven hundred twenty-five of this

article and any regulations applicable to student loan servicers

promulgated by the superintendent.