N.Y. Banking Law § 737: License or authorization

* § 737. License or authorization. 1. No person or other entity,

except an exempt organization or an authorized buy-now-pay-later lender

as defined in this article, shall act as a buy-now-pay-later lender

without first obtaining a license from the superintendent under this

article.

(a) An application for a license shall be in writing, under oath, and

in the form and containing such information as the superintendent may

require.

(b) At the time of filing an application for a license, the applicant

shall pay to the superintendent a fee as prescribed pursuant to section

eighteen-a of this chapter.

(c) A license granted under this article shall be valid unless revoked

or suspended by the superintendent or unless surrendered by the licensee

and accepted by the superintendent.

(d) No licensee or authorized buy-now-pay-later lender shall be

permitted to engage in lending of any category of buy-now-pay-later loan

not captured by subdivision three of section seven hundred thirty-six of

this article without receiving permission from the superintendent to do

so.

(e) The superintendent shall establish a process by which a licensee

or authorized lender may obtain permission to update categories of

buy-now-pay-later loans they are permitted to offer to a license or

authorization under this article, provided that a single license or

authorization may include multiple categories of buy-now-pay-later

loans. A license or authorization granted under this article shall

specify the eligible buy-now-pay-later loans and shall be limited to

categories of lending in which the lender has been licensed or

authorized by the superintendent to engage. Buy-now-pay-later lenders

shall not be required to obtain more than one license or authorization

for multiple categories of lending. A licensed or authorized

buy-now-pay-later lender must clearly and conspicuously disclose to

consumers its license or authorization status in accordance with section

seven hundred thirty-nine of this article.

(f) In connection with an application for a license, the applicant

shall submit an affidavit of financial solvency, including financial

statements, noting such capitalization requirements and access to such

credit or such other affirmation or information as may be prescribed by

the regulations of the superintendent for different categories of

buy-now-pay-later loans. The applicant shall also submit policies and

procedures for underwriting such buy-now-pay-later loans.

2. Any banking organization, foreign banking corporation licensed by

the superintendent to transact business in this state or originating

buy-now-pay-later loans from a branch in this state subject to article

five-C of this chapter, or a licensed lender licensed by the

superintendent under article nine of this chapter, other than an exempt

organization, must obtain the superintendent's prior written

authorization to act as a buy-now-pay-later lender for specific

categories of buy-now-pay-later loans. The superintendent shall

establish a process by which an entity described in this subdivision may

request such authorization to act as a buy-now-pay-later lender, which

process shall include, but not be limited to, requirements that the

entity requesting such authorization submit a written plan describing

the proposed buy-now-pay-later lending, its proposed policies and

procedures for complying with the provisions of this article, and the

impact on the overall business of the entity. The superintendent shall

establish a process for withdrawing an authorization to act as a

buy-now-pay-later lender.

* NB Effective upon the one hundred eightieth day after the

promulgation of rules and/or regulations by the department of financial

services to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §

13)