§ 713 — Application process to receive license to engage in the business of student loan servicing

§ 713. Application process to receive license to engage in the\nbusiness of student loan servicing. 1. Upon the filing of an application\nfor a license, if the superintendent shall find that the financial\nresponsibility, experience, character, and general fitness of the\napplicant and, if applicable, the members, officers, partners, directors\nand principals of the applicant are such as to command the confidence of\nthe community and to warrant belief that the business will be operated\nhonestly, fairly, and efficiently within the purpose of this article,\nthe superintendent shall thereupon issue a license in duplicate to\nengage in the business of servicing student loans described in section\nseven hundred ten of this article in accordance with the provisions of\nthis article. If the superintendent shall not so find, the\nsuperintendent shall not issue a license, and the superintendent shall\nso notify the applicant. The superintendent shall transmit one copy of a\nlicense to the applicant and file another in the office of the\ndepartment of financial services. Upon receipt of such license, a\nstudent loan servicer shall be authorized to engage in the business of\nservicing student loans in accordance with the provisions of this\narticle. Such license shall remain in full force and effect until it is\nsurrendered by the servicer or revoked or suspended as hereinafter\nprovided.\n 2. The superintendent may refuse to issue a license pursuant to this\narticle if he or she shall find that the applicant, or any person who is\na director, officer, partner, agent, employee, member, or substantial\nstockholder of the applicant:\n (a) within the last ten years prior to the date of application, has\ncommitted any act involving dishonesty, fraud, deceit, or has been\nconvicted of, or pleaded nolo contendere to, a crime directly related to\nthe qualifications, functions, or duties related to servicing student\nloans, provided that any criminal conviction be evaluated consistent\nwith article twenty-three-A of the correction law;\n (b) has had a license or registration revoked by the superintendent or\nany other regulator or jurisdiction;\n (c) has been an officer, director, partner, member or substantial\nstockholder of an entity which has had a license or registration revoked\nby the superintendent or any other regulator or jurisdiction; or\n (d) has been an agent, employee, officer, director, partner or member\nof an entity which has had a license or registration revoked by the\nsuperintendent where such person shall have been found by the\nsuperintendent to bear responsibility in connection with the revocation.\n 3. The term "substantial stockholder", as used in this section, shall\nbe deemed to refer to a person owning or controlling directly or\nindirectly ten per centum or more of the total outstanding stock of a\ncorporation.\n