New York Assembly Bill A01153 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 1153--A 2023-2024 Regular Sessions  IN ASSEMBLY January 13, 2023 ___________ Introduced by M. of A. VANEL -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the banking law, in relation to unregistered and unli- censed mortgage brokers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (e) of subdivision 5 of section 590 of the bank- 2 ing law is relettered paragraph (f) and a new paragraph (e) is added to 3 read as follows: 4 (e) No mortgage banker, mortgage broker or exempt organization shall 5 conduct business with any person, partnership, association, corporation 6 or other entity which it knows or should have known is acting as a mort- 7 gage banker or a mortgage broker without being licensed or registered as 8 required by this article. A person, partnership, association, corpo- 9 ration or other entity who provides non-residential subordinate loans 10 shall be exempt from this paragraph. A mortgage banker, mortgage broker 11 or exempt organization shall promptly notify the department of any such 12 unlicensed or unregistered operations. 13 § 2. Subdivision 5 of section 598 of the banking law, as added by 14 chapter 571 of the laws of 1986, is amended to read as follows: 15 5. Civil penalties assessable against unlicensed or unregistered 16 persons or entities. If any non-exempt unlicensed or unregistered person 17 or entity engages in activities encompassed by this article, he shall be 18 liable to any person or entity affected by such activities for a sum of 19 money of not less than the amount of money paid to an affected person or 20 entity in connection with such activities, nor more than four times such 21 sum; provided however that where a non-exempt unlicensed or unregistered 22 person has continued to engage in such unauthorized activities after 23 receiving a cease and desist notice from the superintendent, the maximum 24 amount of liability shall be up to the amount of actual damages. Such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03777-02-3 
 A. 1153--A 2 1 sum may be sued for and recovered by any person or entity for his use 2 and benefit in any court of competent jurisdiction. 3 § 3. This act shall take effect on the thirtieth day after it shall 4 have become a law.