Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1) The
place of business designated in the license shall be open each business day
during normal business hours except where otherwise authorized by the
superintendent. If the superintendent authorizes a licensed location to be open
for business only during certain days or hours, the licensee shall post on the
window the days and hours such office is open.
(2) A closed-end loan agreement shall provide
for payments of principal, or principal and interest combined, to be made not
less frequently than one each month beginning not more than one month and 15
days after the date the loan is made.
(b)
(1) A
licensee may enter into an open-end loan agreement with a borrower which shall
provide for a credit in a principal amount not exceeding the maximum amount
permitted by Banking Law, section
340 against which one or more advances to or
for the account of the borrower may be made, either at the time the credit is
established or thereafter from time to time, or both, by means of honoring or
causing to be honored one or more written orders or requests of the borrower,
or one or more checks or drafts negotiated by the borrower. Interest shall be
computed on the unpaid aggregate principal amount of advances determined by
adding the amounts unpaid for each day of the monthly billing cycle and
dividing the sum by the number of days in the billing cycle. The term billing
cycle shall have the same meaning as set forth in section 226.2(a)(4) of
Regulation Z of the Federal Reserve Board.
(2) An open-end loan agreement shall provide
for payments at intervals at least monthly for such term as agreed upon by the
licensee and the borrower and may provide that the payments to be made after an
advance shall be larger than those made before the advance.
(3) At least 14 days before the date each
payment pursuant to an open-end loan agreement is due, the licensee shall
deliver to the borrower, or mail to the borrower at the mailing address last
known to the licensee, a statement of account covering the period for which
payment will be due. Such statement shall contain all disclosures required by
the Act of Congress entitled Truth-in-Lending Act (
15 USC section
1501 et seq.) and the regulations and rules
thereunder.
(4) Nothing in this
Part is intended to authorize financings of the type permitted pursuant to the
New York Retail Instalment Sales Act.
(c) When a cash payment is made pursuant to
any closed-end loan agreement, the lender shall give to the person making it,
at the time the payment is made, a receipt which specifies the amount applied
to the outstanding loan balance and any other charges. In any case of an
open-end loan agreement, the receipt shall specify the amount applied as
finance charge, the amount applied to insurance premiums, if any, the amount
applied to the previous balance and the amount of the new balance. If the
licensee provides the borrower with a periodic billing statement which contains
the information required by this paragraph, a receipt may be issued which
specifies only the amount of the cash payment.
(d)
(1)
Every loan agreement which is sold or otherwise transferred by a licensee shall
contain printed in a size equal to at least 10-point bold type the statement:
If this agreement is sold or otherwise transferred, the
borrower's rights under the law or under this agreement are in no way altered
or impaired.
(2) A licensee
is prohibited from selling or otherwise transferring an open-end loan agreement
which it originates unless at least 15 days before such sale or transfer takes
place the licensee which originated the open-loan agreement mails or delivers
to the borrower at the mailing address last known to the licensee notice of
such sale or transfer. Such notice shall contain a statement to the effect that
the borrower may terminate the open-end loan agreement at any time and repay
the outstanding unpaid balance in accordance with the terms of the loan
agreement.
(3) Every licensee shall
promptly notify the superintendent in writing of the date any licensed office
has discontinued business and shall surrender the license for such office
within fifteen days of such discontinuance.
(4) If the 10th day of a default in the
payment of any scheduled installment of a precomputed interest loan falls on a
Sunday, a legal holiday, or a Saturday (if the office of the licensee at which
payment is to be made is closed on Saturday), the borrower shall have all of
the next business day in which to pay said installment before a default charge
may be imposed.
(5) Except upon
written request of the borrower, no licensee shall impose a deferment charge on
a precomputed interest loan if the amount tendered is sufficient to pay the
full amount in default plus any default charge owing thereon.