N.Y. Banking Law § 9-t: Unsolicited mail-loan checks

§ 9-t. Unsolicited mail-loan checks. 1. For purposes of this section,

the following terms shall have the following meanings:

(a) "lending institution" shall mean a licensed lender or a state or

federally chartered bank, trust company, savings bank, savings and loan

association or credit union.

(b) "mail-loan check" shall mean a check, made out to and mailed to a

person by a lending institution, which, when cashed or deposited by such

person, obligates such person to repay to such lending institution the

amount of the proceeds of such check according to terms mailed to such

recipient with such check.

2. Any lending institution which issues mail-loan checks shall:

(a) include on the face of each check issued to a non-customer a

written statement, in legible type reading "ONE FORM OF VALID

PHOTOGRAPHIC ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any

entity cashing or accepting a mail-loan check for deposit may require

more than one form of identification;

(b) make no reference on the outside of the envelope containing a

mail-loan check that indicates that a check is enclosed within such

envelope;

(c) provide that all mail-loan checks shall be non-transferable; and

(d) include the transaction fee and interest rate and an expiration

date of not more than six months on the mail-loan check, as well as any

additional information that the superintendent may require.

3. No lending institution shall issue a mail-loan check, except in

response to a request or application therefor.

4. Failure to destroy or return a mail-loan check shall not constitute

acceptance of the check.

5. Any lending institution which mails a mail-loan check in violation

of the provisions of this section shall be liable for a civil penalty

not to exceed five hundred dollars for each such violation.