New York Senate Bill S01144 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 1144--A Cal. No. 83 2023-2024 Regular Sessions  IN SENATE January 10, 2023 ___________ Introduced by Sens. SANDERS, MANNION -- read twice and ordered printed, and when printed to be committed to the Committee on Banks -- reported favorably from said committee and committed to the Committee on Rules -- reported favorably from said committee, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote recon- sidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03777-03-3 
 S. 1144--A 2 1 sum; provided however that where a non-exempt unlicensed or unregistered 2 person has continued to engage in such unauthorized activities after 3 receiving a cease and desist notice from the superintendent, the maximum 4 amount of liability shall be up to the amount of actual damages. Such 5 sum may be sued for and recovered by any person or entity for his use 6 and benefit in any court of competent jurisdiction. 7 § 3. This act shall take effect on the thirtieth day after it shall 8 have become a law.