N.Y. Banking Law § 722: Examinations

§ 722. Examinations. 1. The superintendent may at any time, and as

often as he or she may determine, either personally or by a person duly

designated by the superintendent, investigate the business and examine

the books, accounts, records, and files used therein of every student

loan servicer. For that purpose the superintendent and his or her duly

designated representative shall have free access to the offices and

places of business, books, accounts, papers, records, files, safes and

vaults of all such servicers. The superintendent and any person duly

designated by him or her shall have authority to require the attendance

of and to examine under oath all persons whose testimony he or she may

require relative to such business.

2. No person subject to investigation or examination under this

section may knowingly withhold, abstract, remove, mutilate, destroy or

secrete any books, records, computer records or other information.

3. The expenses incurred in making any examination pursuant to this

section shall be assessed against and paid by the student loan servicer

so examined, except that travelling and subsistence expenses so incurred

shall be charged against and paid by servicers in such proportions as

the superintendent shall deem just and reasonable, and such

proportionate charges shall be added to the assessment of the other

expenses incurred upon each examination. Upon written notice by the

superintendent of the total amount of such assessment, the servicer

shall become liable for and shall pay such assessment to the

superintendent.

4. In any hearing in which a department employee acting under

authority of this chapter is available for cross-examination, any

official written report, worksheet, other related papers, or duly

certified copy thereof, compiled, prepared, drafted, or otherwise made

by said department employee, after being duly authenticated by said

employee, may be admitted as competent evidence upon the oath of said

employee that said worksheet, investigative report, or other related

documents were prepared as a result of an examination of the books and

records of a servicer or other person, conducted pursuant to the

authority of this chapter.

5. Unless it is an exempt organization, affiliates of a student loan

servicer are subject to examination by the superintendent on the same

terms as the servicer, but only when reports from, or examination of, a

servicer provides evidence of unlawful activity between a servicer and

affiliate benefitting, affecting, or arising from the activities

regulated by this article.

6. This section shall not apply to exempt organizations. To the extent

the superintendent is authorized by any other law to make an examination

into the affairs of any exempt organization, this subdivision shall not

be construed to limit in any way the superintendent's authority,

regarding the subjects of such an examination, or otherwise.