N.Y. Banking Law § 738: Conditions precedent to issuing a license; procedure where application is denied

* § 738. Conditions precedent to issuing a license; procedure where

application is denied. 1. After the filing of an application for a

license accompanied by payment of the fee pursuant to paragraph b of

subdivision one of section seven hundred thirty-seven of this article,

it shall be substantively reviewed. After the application is deemed

sufficient and complete, if the superintendent finds that the financial

responsibility, including meeting any capital requirements as

established pursuant to subdivision three of this section, experience,

character and general fitness of the applicant or any person associated

with the applicant are such as to command the confidence of the

community and to warrant the belief that the business will be conducted

honestly, fairly and efficiently within the purposes and intent of this

article, the superintendent shall issue the license. For the purpose of

this subdivision, the applicant shall be deemed to include all the

members of the applicant if it is a partnership or unincorporated

association or organization, and all the stockholders, officers and

directors of the applicant if it is a corporation.

2. If the superintendent refuses to issue a license, the

superintendent shall notify the applicant of the denial and retain the

fee paid pursuant to paragraph b of subdivision one of section seven

hundred thirty-seven of this article.

3. The superintendent shall promulgate rules and regulations setting

capital requirements to ensure the solvency and financial integrity of

licensees and their ongoing operations, taking into account the risks,

volume of business, complexity, and other relevant factors regarding

such licensees. Further, the superintendent may promulgate rules and

regulations prescribing a methodology to calculate capital requirements

with respect to licensees or categories thereof.

* 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)