§ 598 — Additional penalties for violation of this article; civil, criminal; liquidated damages

New York § 598

• Jurisdiction: New York
• Law BNK: Banking
• Art. 12-D: Licensed Mortgage Bankers

Text

§ 598. Additional penalties for violation of this article; civil,\ncriminal; liquidated damages. 1. In addition to such penalties as may\notherwise be applicable by law, the superintendent may, after notice and\nhearing as provided elsewhere in this article, require any entity,\nlicensee, servicer, registrant or exempt organization found violating\nthe provisions of this article or the rules or regulations promulgated\nhereunder to pay to the people of this state an additional penalty for\neach violation of the article or any regulation or policy promulgated\nhereunder a sum not to exceed an amount as determined pursuant to\nsection forty-four of this chapter for each such violation.\n 2. Whoever violates any provision of the licensing requirements of\nsubparagraphs (a) and (b) of subdivision two of section five hundred\nninety of this article by making a mortgage loan without being licensed\nor specifically exempted from licensing, or soliciting, processing,\nplacing or negotiating a mortgage loan without being registered or\nspecifically exempted from registration, shall be guilty of a class A\nmisdemeanor, punishable as provided in articles seventy and eighty of\nthe penal law.\n 3. Liquidated damages. In addition to any other remedy which an\napplicant for a mortgage loan or mortgagor may have against a licensee,\nregistrant or exempt organization for breach of contract or agreement to\nmake a mortgage loan, the court after considering the circumstances may\naward the plaintiff, upon granting a judgment in his favor in an\nindividual action on such claim, liquidated damages an amount equal to\ntwice the amount of any fees or other charges paid by the applicant or\nmortgagor in connection with such contract or agreement exclusive of any\namounts paid or payable after the mortgage or other security instrument\nis executed.\n 4. Statutory or common-law remedies. Nothing in this article shall\nlimit any statutory or common-law right of any person to bring any\naction in any court for any act, or the right of the state to punish any\nperson for any violation of any law.\n 5. Civil penalties assessable against unlicensed or unregistered\npersons or entities. If any non-exempt unlicensed or unregistered person\nor entity engages in activities encompassed by this article, he shall be\nliable to any person or entity affected by such activities for a sum of\nmoney of not less than the amount of money paid to an affected person or\nentity in connection with such activities, nor more than four times such\nsum; provided however that where a non-exempt unlicensed or unregistered\nperson has continued to engage in such unauthorized activities after\nreceiving a cease and desist notice from the superintendent, the maximum\namount of liability shall be up to the amount of actual damages. Such\nsum may be sued for and recovered by any person or entity for his use\nand benefit in any court of competent jurisdiction.\n