N.Y. Banking Law § 715: Changes in control

§ 715. Changes in control. 1. It shall be unlawful except with the

prior approval of the superintendent for any action to be taken which

results in a change of control of the business of a student loan

servicer required to be licensed under section seven hundred eleven of

this article. Prior to any change of control, the person desirous of

acquiring control of the business of a student loan servicer shall make

written application to the superintendent and pay an investigation fee

as prescribed pursuant to section eighteen-a of this chapter to the

superintendent. The application shall contain such information as the

superintendent, by rule or regulation, may prescribe as necessary or

appropriate for the purpose of making the determination required by

subdivision two of this section. This information shall include but not

be limited to the information and other material required for a student

loan servicer by subdivision one of section seven hundred twelve of this

article.

2. The superintendent shall approve or disapprove the proposed change

of control of a student loan servicer required to be licensed under

section seven hundred eleven of this article in accordance with the

provisions of section seven hundred thirteen of this article.

3. For a period of six months from the date of qualification thereof

and for such additional period of time as the superintendent may

prescribe, in writing, the provisions of subdivisions one and two of

this section shall not apply to a transfer of control by operation of

law to the legal representative, as hereinafter defined, of one who has

control of a student loan servicer. Thereafter, such legal

representative shall comply with the provisions of subdivisions one and

two of this section. The provisions of subdivisions one and two of this

section shall be applicable to an application made under such section by

a legal representative. The term "legal representative", for the

purposes of this subdivision, shall mean one duly appointed by a court

of competent jurisdiction to act as executor, administrator, trustee,

committee, conservator or receiver, including one who succeeds a legal

representative and one acting in an ancillary capacity thereto in

accordance with the provisions of such court appointment.

4. As used in this section the term "control" means the possession,

directly or indirectly, of the power to direct or cause the direction of

the management and policies of a student loan servicer, whether through

the ownership of voting stock of such student loan servicer, the

ownership of voting stock of any person which possesses such power or

otherwise. Control shall be presumed to exist if any person, directly or

indirectly, owns, controls or holds with power to vote ten per centum or

more of the voting stock of any student loan servicer or of any person

which owns, controls or holds with power to vote ten per centum or more

of the voting stock of any student loan servicer, but no person shall be

deemed to control a student loan servicer solely by reason of being an

officer or director of such student loan servicer. The superintendent

may in his or her discretion, upon the application of a student loan

servicer or any person who, directly or indirectly, owns, controls or

holds with power to vote or seeks to own, control or hold with power to

vote any voting stock of such student loan servicer, determine whether

or not the ownership, control or holding of such voting stock

constitutes or would constitute control of such student loan servicer

for purposes of this section.