§ 373 — Acts prohibited; suspension or revocation of license; penalties

§ 373. Acts prohibited; suspension or revocation of license;\npenalties. 1. No licensee shall engage in the business of making loans\nof money, credit, goods or things or discounting of notes, bills of\nexchange, checks, or other evidences of debt pursuant to the provisions\nof article nine of this chapter, nor shall a loan business or the\nnegotiation of loans or the discounting of notes, bills of exchange,\nchecks or other evidences of debt be conducted on the same premises\nwhere the licensee is conducting business pursuant to the provisions of\nthis article. Except as otherwise provided by regulation of the\nsuperintendent, all checks, drafts and money orders shall be deposited\nin the licensee's bank account not later than the first business day\nfollowing the day on which they were cashed. No licensee shall at any\ntime cash or advance any moneys on a post-dated check or draft or engage\nin the business of transmitting money or receiving money for\ntransmission; provided, however, that a licensee may cash a check\npayable on the first banking business day following the date of cashing\n(a) if such check is drawn by the United States, the state of New York,\nor any political subdivision of the state of New York, or by any\ndepartment, bureau, agency, authority, instrumentality or officer,\nacting in his official capacity, of the United States or of the state of\nNew York or of any political subdivision of the state of New York, or\n(b) if such check is a payroll check drawn by an employer to the order\nof its employee in payment for services performed by such employee. No\nlicensee shall cash any check, draft or money order if the face amount\nfor which it is drawn is in excess of fifteen thousand dollars;\nprovided, however, that this restriction shall not apply to the cashing\nof checks, drafts or money orders drawn by the United States, any state\nthereof or any political subdivision of any such state, or by any\ndepartment, bureau, agency, authority, instrumentality or officer,\nacting in his official capacity, of the United States, any state thereof\nor any political subdivision of any such state, or any banking\ninstitution, or to any check or draft drawn by any insurance company,\nany broker or dealer registered with the securities and exchange\ncommission, or any attorney for the settlement of claims, or to any\ncheck which has been certified by the banking institution on which it\nhas been drawn; provided further, however, that any such restriction\nupon the maximum face amount that may be cashed by a licensee shall not\napply to the cashing of checks, drafts or money orders by licensees for\npayees of such checks, drafts or money orders that are other than\nnatural persons. For purposes of this subdivision, "banking institution"\nmeans any bank, trust company, savings bank, savings and loan\nassociation or credit union which is incorporated, chartered or\norganized under the laws of this state or any other state or the United\nStates.\n 2. The superintendent may suspend or revoke any license or licenses\nissued pursuant to this article if, after notice and a hearing, he shall\nfind that the licensee (a) has committed any fraud, engaged in any\ndishonest activities or made any misrepresentation; or (b) has violated\nany provisions of the banking law or any regulation issued pursuant\nthereto, or has violated any other law in the course of its or his\ndealings as a licensed casher of checks; or (c) has made a false\nstatement in the application for such license or failed to give a true\nreply to a question in such application; or (d) has demonstrated his or\nits incompetency or untrustworthiness to act as a licensed casher of\nchecks; or (e) is not doing sufficient business pursuant to this article\nto justify the continuance of the license, or if he shall find that any\nground or grounds exist which would require or warrant the refusal of an\napplication for the issuance of the license if such an application were\nthen before him. Such a hearing shall be held in the manner and upon\nsuch notice as may be prescribed by the superintendent. Pending an\ninvestigation or a hearing for the suspension or revocation of any\nlicense or licenses issued pursuant to this article, the superintendent\nmay temporarily suspend such license or licenses for a period not to\nexceed ninety days, provided the superintendent shall find that such a\ntemporary suspension is in the public interest.\n 3. Whenever the superintendent shall suspend or revoke a license\nissued pursuant to this article, he shall forthwith execute a written\norder to that effect. The superintendent shall on the date such order is\nexecuted file one copy thereof in the office of the department and serve\na second copy thereof on the licensee either personally or by mailing\nthe same to the last known address of such licensee. Such order shall be\nsubject to review by the supreme court in the manner provided in article\nseventy-eight of the civil practice law and rules; provided, however,\nthat a special proceeding for review of such order must be commenced\nwithin thirty days from the date of such order of suspension or\nrevocation and, provided further, that no stay shall be granted pending\nthe determination of the matter except on notice to the superintendent\nand for a period not exceeding thirty days.\n 4. Any person, partnership, association or corporation and the several\nmembers, officers, directors, agents and employees thereof, who shall\nviolate any of the provisions of this article, shall be guilty of a\nmisdemeanor, and shall be punishable by imprisonment for not more than\none year or by a fine of not more than five hundred dollars, or by both\nsuch fine and imprisonment.\n 5. Notwithstanding the provisions of subdivision four of this section,\nany person, partnership, association or corporation and the several\nmembers, officers, directors, agents and employees thereof who shall\nviolate the provisions of subdivision one of section three hundred\nsixty-seven of this article shall be guilty of a class A misdemeanor.\n