§ 39 — Orders of superintendent

New York § 39

• Jurisdiction: New York
• Law BNK: Banking
• Art. 2: Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers

Text

* § 39. Orders of superintendent. 1. To appear and explain an apparent\nviolation. Whenever it shall appear to the superintendent that any\nbanking organization, bank holding company, registered mortgage broker,\nlicensed mortgage banker, licensed student loan servicer, registered\nmortgage loan servicer, licensed mortgage loan originator, licensed\nlender, licensed casher of checks, licensed sales finance company,\nlicensed insurance premium finance agency, licensed transmitter of\nmoney, licensed budget planner, out-of-state state bank that maintains a\nbranch or branches or representative or other offices in this state, or\nforeign banking corporation licensed by the superintendent to do\nbusiness or maintain a representative office in this state has violated\nany law or regulation, he or she may, in his or her discretion, issue an\norder describing such apparent violation and requiring such banking\norganization, bank holding company, registered mortgage broker, licensed\nmortgage banker, licensed student loan servicer, licensed mortgage loan\noriginator, licensed lender, licensed casher of checks, licensed sales\nfinance company, licensed insurance premium finance agency, licensed\ntransmitter of money, licensed budget planner, out-of-state state bank\nthat maintains a branch or branches or representative or other offices\nin this state, or foreign banking corporation to appear before him or\nher, at a time and place fixed in said order, to present an explanation\nof such apparent violation.\n 2. To discontinue unauthorized or unsafe and unsound practices.\nWhenever it shall appear to the superintendent that any banking\norganization, bank holding company, registered mortgage broker, licensed\nmortgage banker, licensed student loan servicer, registered mortgage\nloan servicer, licensed mortgage loan originator, licensed lender,\nlicensed casher of checks, licensed sales finance company, licensed\ninsurance premium finance agency, licensed transmitter of money,\nlicensed budget planner, out-of-state state bank that maintains a branch\nor branches or representative or other offices in this state, or foreign\nbanking corporation licensed by the superintendent to do business in\nthis state is conducting business in an unauthorized or unsafe and\nunsound manner, he or she may, in his or her discretion, issue an order\ndirecting the discontinuance of such unauthorized or unsafe and unsound\npractices, and fixing a time and place at which such banking\norganization, bank holding company, registered mortgage broker, licensed\nmortgage banker, licensed student loan servicer, registered mortgage\nloan servicer, licensed mortgage loan originator, licensed lender,\nlicensed casher of checks, licensed sales finance company, licensed\ninsurance premium finance agency, licensed transmitter of money,\nlicensed budget planner, out-of-state state bank that maintains a branch\nor branches or representative or other offices in this state, or foreign\nbanking corporation may voluntarily appear before him or her to present\nany explanation in defense of the practices directed in said order to be\ndiscontinued.\n 3. To make good impairment of capital or to ensure compliance with\nfinancial requirements. Whenever it shall appear to the superintendent\nthat the capital or capital stock of any banking organization, bank\nholding company or any subsidiary thereof which is organized, licensed\nor registered pursuant to this chapter, is impaired, or the financial\nrequirements imposed by subdivision one of section two hundred two-b of\nthis chapter or any regulation of the superintendent on any branch or\nagency of a foreign banking corporation or the financial requirements\nimposed by this chapter or any regulation of the superintendent on any\nlicensed lender, registered mortgage broker, licensed mortgage banker,\nlicensed student loan servicer, licensed casher of checks, licensed\nsales finance company, licensed insurance premium finance agency,\nlicensed transmitter of money, licensed budget planner or private banker\nare not satisfied, the superintendent may, in the superintendent's\ndiscretion, issue an order directing that such banking organization,\nbank holding company, branch or agency of a foreign banking corporation,\nregistered mortgage broker, licensed mortgage banker, licensed student\nloan servicer, licensed lender, licensed casher of checks, licensed\nsales finance company, licensed insurance premium finance agency,\nlicensed transmitter of money, licensed budget planner, or private\nbanker make good such deficiency forthwith or within a time specified in\nsuch order.\n 4. To make good encroachments on reserves. Whenever it shall appear to\nthe superintendent that either the total reserves or reserves on hand of\nany banking organization, branch or agency of a foreign banking\ncorporation are below the amount required by or pursuant to this chapter\nor any other applicable provision of law or regulation to be maintained,\nor that such banking organization, branch or agency of a foreign banking\ncorporation is not keeping its reserves on hand as required by this\nchapter or any other applicable provision of law or regulation, he or\nshe may, in his or her discretion, issue an order directing that such\nbanking organization, branch or agency of a foreign banking corporation\nmake good such reserves forthwith or within a time specified in such\norder, or that it keep its reserves on hand as required by this chapter.\n 5. To keep books and accounts as prescribed. Whenever it shall appear\nto the superintendent that any banking organization, bank holding\ncompany, registered mortgage broker, licensed mortgage banker, licensed\nstudent loan servicer, registered mortgage loan servicer, licensed\nmortgage loan originator, licensed lender, licensed casher of checks,\nlicensed sales finance company, licensed insurance premium finance\nagency, licensed transmitter of money, licensed budget planner, agency\nor branch of a foreign banking corporation licensed by the\nsuperintendent to do business in this state, does not keep its books and\naccounts in such manner as to enable him or her to readily ascertain its\ntrue condition, he or she may, in his or her discretion, issue an order\nrequiring such banking organization, bank holding company, registered\nmortgage broker, licensed mortgage banker, licensed student loan\nservicer, registered mortgage loan servicer, licensed mortgage loan\noriginator, licensed lender, licensed casher of checks, licensed sales\nfinance company, licensed insurance premium finance agency, licensed\ntransmitter of money, licensed budget planner, or foreign banking\ncorporation, or the officers or agents thereof, or any of them, to open\nand keep such books or accounts as he or she may, in his or her\ndiscretion, determine and prescribe for the purpose of keeping accurate\nand convenient records of its transactions and accounts.\n 6. As used in this section, "bank holding company" shall have the same\nmeaning as that term is defined in section one hundred forty-one of this\nchapter.\n * NB Effective until certain provisions are met (see Ch. 58 of 2025,\nPart Y, § 13)\n * § 39. Orders of superintendent. 1. To appear and explain an apparent\nviolation. Whenever it shall appear to the superintendent that any\nbanking organization, bank holding company, registered mortgage broker,\nlicensed mortgage banker, licensed student loan servicer, registered\nmortgage loan servicer, licensed mortgage loan originator, licensed\nlender, licensed buy-now-pay-later lender, licensed casher of checks,\nlicensed sales finance company, licensed insurance premium finance\nagency, licensed transmitter of money, licensed budget planner,\nout-of-state state bank that maintains a branch or branches or\nrepresentative or other offices in this state, or foreign banking\ncorporation licensed by the superintendent to do business or maintain a\nrepresentative office in this state has violated any law or regulation,\nthe superintendent may, in the superintendent's discretion, issue an\norder describing such apparent violation and requiring such banking\norganization, bank holding company, registered mortgage broker, licensed\nmortgage banker, licensed student loan servicer, licensed mortgage loan\noriginator, licensed lender, licensed buy-now-pay-later lender, licensed\ncasher of checks, licensed sales finance company, licensed insurance\npremium finance agency, licensed transmitter of money, licensed budget\nplanner, out-of-state state bank that maintains a branch or branches or\nrepresentative or other offices in this state, or foreign banking\ncorporation to appear before the superintendent, at a time and place\nfixed in said order, to present an explanation of such apparent\nviolation.\n 2. To discontinue unauthorized or unsafe and unsound practices.\nWhenever it shall appear to the superintendent that any banking\norganization, bank holding company, registered mortgage broker, licensed\nmortgage banker, licensed student loan servicer, registered mortgage\nloan servicer, licensed mortgage loan originator, licensed lender,\nlicensed buy-now-pay-later lender, licensed casher of checks, licensed\nsales finance company, licensed insurance premium finance agency,\nlicensed transmitter of money, licensed budget planner, out-of-state\nstate bank that maintains a branch or branches or representative or\nother offices in this state, or foreign banking corporation licensed by\nthe superintendent to do business in this state is conducting business\nin an unauthorized or unsafe and unsound manner, the superintendent may,\nin the superintendent's discretion, issue an order directing the\ndiscontinuance of such unauthorized or unsafe and unsound practices, and\nfixing a time and place at which such banking organization, bank holding\ncompany, registered mortgage broker, licensed mortgage banker, licensed\nstudent loan servicer, registered mortgage loan servicer, licensed\nmortgage loan originator, licensed lender, licensed buy-now-pay-later\nlender, licensed casher of checks, licensed sales finance company,\nlicensed insurance premium finance agency, licensed transmitter of\nmoney, licensed budget planner, out-of-state state bank that maintains a\nbranch or branches or representative or other offices in this state, or\nforeign banking corporation may voluntarily appear before the\nsuperintendent to present any explanation in defense of the practices\ndirected in said order to be discontinued.\n 3. To make good impairment of capital or to ensure compliance with\nfinancial requirements. Whenever it shall appear to the superintendent\nthat the capital or capital stock of any banking organization, bank\nholding company or any subsidiary thereof which is organized, licensed\nor registered pursuant to this chapter, is impaired, or the financial\nrequirements imposed by subdivision one of section two hundred two-b of\nthis chapter or any regulation of the superintendent on any branch or\nagency of a foreign banking corporation or the financial requirements\nimposed by this chapter or any regulation of the superintendent on any\nlicensed lender, licensed buy-now-pay-later lender, registered mortgage\nbroker, licensed mortgage banker, licensed student loan servicer,\nlicensed casher of checks, licensed sales finance company, licensed\ninsurance premium finance agency, licensed transmitter of money,\nlicensed budget planner or private banker are not satisfied, the\nsuperintendent may, in the superintendent's discretion, issue an order\ndirecting that such banking organization, bank holding company, branch\nor agency of a foreign banking corporation, registered mortgage broker,\nlicensed mortgage banker, licensed student loan servicer, licensed\nlender, licensed buy-now-pay-later lender, licensed casher of checks,\nlicensed sales finance company, licensed insurance premium finance\nagency, licensed transmitter of money, licensed budget planner, or\nprivate banker make good such deficiency forthwith or within a time\nspecified in such order.\n 4. To make good encroachments on reserves. Whenever it shall appear to\nthe superintendent that either the total reserves or reserves on hand of\nany banking organization, branch or agency of a foreign banking\ncorporation are below the amount required by or pursuant to this chapter\nor any other applicable provision of law or regulation to be maintained,\nor that such banking organization, branch or agency of a foreign banking\ncorporation is not keeping its reserves on hand as required by this\nchapter or any other applicable provision of law or regulation, the\nsuperintendent may, in the superintendent's discretion, issue an order\ndirecting that such banking organization, branch or agency of a foreign\nbanking corporation make good such reserves forthwith or within a time\nspecified in such order, or that it keep its reserves on hand as\nrequired by this chapter.\n 5. To keep books and accounts as prescribed. Whenever it shall appear\nto the superintendent that any banking organization, bank holding\ncompany, registered mortgage broker, licensed mortgage banker, licensed\nstudent loan servicer, registered mortgage loan servicer, licensed\nmortgage loan originator, licensed lender, licensed buy-now-pay-later\nlender, licensed casher of checks, licensed sales finance company,\nlicensed insurance premium finance agency, licensed transmitter of\nmoney, licensed budget planner, agency or branch of a foreign banking\ncorporation licensed by the superintendent to do business in this state,\ndoes not keep its books and accounts in such manner as to enable the\nsuperintendent to readily ascertain its true condition, the\nsuperintendent may, in the superintendent's discretion, issue an order\nrequiring such banking organization, bank holding company, registered\nmortgage broker, licensed mortgage banker, licensed student loan\nservicer, registered mortgage loan servicer, licensed mortgage loan\noriginator, licensed lender, licensed buy-now-pay-later lender, licensed\ncasher of checks, licensed sales finance company, licensed insurance\npremium finance agency, licensed transmitter of money, licensed budget\nplanner, or foreign banking corporation, or the officers or agents\nthereof, or any of them, to open and keep such books or accounts as the\nsuperintendent may, in the superintendent's discretion, determine and\nprescribe for the purpose of keeping accurate and convenient records of\nits transactions and accounts.\n 6. As used in this section, "bank holding company" shall have the same\nmeaning as that term is defined in section one hundred forty-one of this\nchapter.\n * NB Effective upon the one hundred eightieth day after the\npromulgation of rules and/or regulations by the department of financial\nservices to effectuate certain provisions (see Ch. 58 of 2025, Part Y, §\n13)\n