Current through Register Vol. 46, No. 12, March 20, 2024
(a)
Every licensee shall:
(1) Post and display at
all times in a conspicuous place on the premises the license. Every licensee
that cashes one or more checks, drafts or money orders for any payees that are
natural persons must post the schedule of rates to be charged with respect to
such transactions involving payees that are natural persons. The schedule shall
be made of durable material, be no less than 30 inches wide and 36 inches high
with letters at least 3/4 inch in size and indicate the fee applicable to the
full amount of the check to be cashed. The schedule shall indicate the fee that
corresponds to the amount of the check. The amount of the check shall be set
forth on the schedule in increments of $25 ranging from $25 to $2,000. The
schedule shall also indicate the percentage charge imposed on all checks and
the minimum charge of $1 per check. The schedule shall be in English and in
Spanish and posted in the customer's area.
(2) Pay to every customer tendering any
check, draft or money order to be cashed, the entire face amount of such
instrument in cash less any charges permitted by this Part, on the same date
upon which such instrument is presented. In no event shall the licensee make a
partial payment on account, on any such instrument.
(3) Indicate on every check, draft or money
order cashed at the time of cashing, the date on which such item was
cashed.
(4) Maintain continuously
for each licensed premises net liquid assets of at least $10,000. In order to
determine whether the said sum is continuously available for each licensed
premises, each licensee shall compute and include the following: add the amount
of cash in bank, cash on hand, checks on hand not previously dishonored and
marketable securities owned, and deduct the amount of any loans due in one year
or less, including loans payable on demand, and all accounts payable.
(5) Be held responsible for any violation of
the Banking Law or regulations promulgated thereunder by any employee or by
anyone directly or indirectly connected with the licensee's check cashing
business.
(6) Reconcile its bank
statements at least monthly.
(7)
Keep a true copy of each and every report which it shall be called upon to
furnish to any agency or department of the U.S. government, this State or any
municipality in this State. Such copies, together with any work sheets used to
assemble the figures and/or facts shown in such report, are to be retained as
part of the records of each licensee for a period of three years.
(b) No licensee shall:
(1) Cash any check, draft or money order, nor
act as intermediary, agent or in any way assist in the negotiation of any such
instrument, at any place other than the premises licensed.
(2) Act as an agent for the collection of
checks, drafts, money orders or other negotiable paper.
(3) Cash any check or draft of any drawer if
the licensee has any reason to believe that such a check or draft is likely to
be dishonored.
(4) Cash any check,
draft or money order if the licensee has reason to believe or know, that the
maker, the payee or any of the endorsers of such instruments, or the persons
presenting it for cashing, are known by any name other than that appearing on
such instruments, without recording on its books and records the true name or
names, as well as the assumed name or names of such person or persons, together
with the true addresses.
(5) Cash
any check on which the date line is blank.
(6) Alter or change the date of any check
presented for cashing.
(7) Charge,
take or receive any money, goods or things in action, for or in connection with
the cashing of a check, draft or money order in excess of the fees and charges
prescribed in section
400.12
of this Part.
(c) Each
check casher shall provide receipts to customers for every check cashed. The
receipt shall indicate the face amount of each check which has been cashed,
followed by the fee charged for cashing the check, the face amount of each
money order sold to the customer and the cost thereof, amounts taken in payment
of utility bills and the fees charged for such service less deductions for any
other services provided and the balance thereof which is paid to the customer.
The receipt shall be dated and have the name and address of the check casher on
it.
(d) Every licensee shall
display on its premises a sign made of either plastic or metal which shall be
no less than 18 inches wide and 12 inches high with letters one inch in size
indicating that:
(1) the check casher is
licensed by the Banking Department; and
(2) inquiries may be made by calling the
Banking Department's toll-free number or if the customer has a complaint
against the check casher by writing to the New York State Banking Department,
c/o Consumer Services Division, in both cases as set forth in section
1.1 of
Supervisory Policy G 1 of this Title. This sign shall be located at or near the
tellers' window and be in English and Spanish.