§ 9-T — Unsolicited mail-loan checks

New York § 9-T

• Jurisdiction: New York
• Law BNK: Banking
• Art. 1: Short Title; Definitions; Miscellaneous Provisions

Text

§ 9-t. Unsolicited mail-loan checks. 1. For purposes of this section,\nthe following terms shall have the following meanings:\n (a) "lending institution" shall mean a licensed lender or a state or\nfederally chartered bank, trust company, savings bank, savings and loan\nassociation or credit union.\n (b) "mail-loan check" shall mean a check, made out to and mailed to a\nperson by a lending institution, which, when cashed or deposited by such\nperson, obligates such person to repay to such lending institution the\namount of the proceeds of such check according to terms mailed to such\nrecipient with such check.\n 2. Any lending institution which issues mail-loan checks shall:\n (a) include on the face of each check issued to a non-customer a\nwritten statement, in legible type reading "ONE FORM OF VALID\nPHOTOGRAPHIC ID NEEDED TO CASH OR DEPOSIT"; provided, however, that any\nentity cashing or accepting a mail-loan check for deposit may require\nmore than one form of identification;\n (b) make no reference on the outside of the envelope containing a\nmail-loan check that indicates that a check is enclosed within such\nenvelope;\n (c) provide that all mail-loan checks shall be non-transferable; and\n (d) include the transaction fee and interest rate and an expiration\ndate of not more than six months on the mail-loan check, as well as any\nadditional information that the superintendent may require.\n 3. No lending institution shall issue a mail-loan check, except in\nresponse to a request or application therefor.\n 4. Failure to destroy or return a mail-loan check shall not constitute\nacceptance of the check.\n 5. Any lending institution which mails a mail-loan check in violation\nof the provisions of this section shall be liable for a civil penalty\nnot to exceed five hundred dollars for each such violation.\n