§ 408. Civil penalty.
(a)In addition to any civil or criminal\nliability provided by law, the superintendent may, after notice and\nhearing, levy a civil penalty:\n (1) not to exceed five thousand dollars per offense, for:\n (A) any intentional fraud or intentional misrepresentation of a\nmaterial fact with respect to a financial product or service or\ninvolving any person offering to provide or providing financial products\nor services; or\n (B) any violation of state or federal fair debt collection practices\nor federal or state fair lending laws; and\n (2) not to exceed one thousand dollars for any other violation of this\nchapter or the regulations issued thereunder, provided that there shall\nbe no civil penalty under this section for violations of article five of\nthis chapter
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§ 408. Civil penalty. (a) In addition to any civil or criminal\nliability provided by law, the superintendent may, after notice and\nhearing, levy a civil penalty:\n (1) not to exceed five thousand dollars per offense, for:\n (A) any intentional fraud or intentional misrepresentation of a\nmaterial fact with respect to a financial product or service or\ninvolving any person offering to provide or providing financial products\nor services; or\n (B) any violation of state or federal fair debt collection practices\nor federal or state fair lending laws; and\n (2) not to exceed one thousand dollars for any other violation of this\nchapter or the regulations issued thereunder, provided that there shall\nbe no civil penalty under this section for violations of article five of\nthis chapter or the regulations issued thereunder; and\n (3) provided, however, that:\n (A) penalties for regulated persons under the banking law shall be as\nprovided for in the banking law and penalties for regulated persons\nunder the insurance law shall be as provided for in the insurance law;\nand\n (B) the superintendent shall not impose or collect any penalty under\nthis section in addition to any penalty or fine for the same act or\nomission that is imposed under the insurance law or banking law; and\n (C) nothing in this section shall affect the construction or\ninterpretation of the term "fraud" as it is used in any other provision\nof the consolidated or unconsolidated law.\n (b) Civil penalties received by the superintendent pursuant to this\nsection shall be applied on an annual basis as follows: funds shall be\napplied first to reduce the assessments charged on persons regulated\nunder the insurance law and the banking law pursuant to section two\nhundred six of this chapter up to the full amount paid by persons\nregulated under the insurance law and banking law for the operating\nexpenses of the financial frauds and consumer protection unit not\nattributable to regulation under the insurance or banking law for the\nfiscal year in which such penalties are received, such amount shall be\napplied to any assessment in the following year, and any remaining funds\nshall be paid to the general fund. The superintendent shall have\ndiscretion to determine how operating expenses which are not solely\nattributable to regulating persons under either the insurance law or the\nbanking law shall be allocated.\n