New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter B - NON-BANKING ORGANIZATIONS
Part 402 - Budget Planners
Section 402.2 - Application for a license
Universal Citation: 3 NY Comp Codes Rules and Regs ยง 402.2
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Application form. Application for a license shall be made upon a form provided by the New York State Banking Department (Banking Department). Each application shall be signed by every individual or entity that will be a control party if a license is granted.
(b) Application procedure. Applications should be delivered to the Banking Department, Attn: Licensed Financial Services Division, and must be accompanied by payment of the fee specified in section 1.2 of Supervisory Policy G 1 of this Title. The application shall include the following information:
(1) the exact name and
the address of the applicant and its date of incorporation;
(2) the name and the complete business and
residential address and occupation of each director, whether or not a member of
the governing board, and any other individual who supervises the daily
operations of the applicant;
(3)
the complete address where the business of the applicant is to be conducted,
showing the street and number, if any, post office and building and room
number, if any, the office building and room number, if any, and the
municipality, county and state;
(4)
if the applicant engages in the business of budget planning, as defined in
section 455(1) of the New York General Business Law, in another state(s),
identify such state(s) and provide the name and address of the regulatory
agency, if any;
(5) a copy of the
applicant's filing receipt, certified by the Secretary of State of New York,
or, for out-of-state budget planners, a certificate of qualification to do
business certified by the Secretary of State of New York;
(6) a copy of the applicant's
bylaws;
(7) letter of tax exemption
from the Internal Revenue Service indicating 501(c)(3) tax status, if
applicable;
(8) charities
registration statement from the State of New York Office of the Attorney
General, Charities Bureau;
(9)
schedule providing the following information with respect to each control
party: name, prospective corporate title with licensee, employer's name,
occupation and title, business address, and residential address;
(10) the name and residence of each holder of
capital certificate whether voting or non- voting and/or subvention
certificate;
(11) documentation
demonstrating that a director, whether or not a member of the governing board,
of such applicant has at least one year of experience in financial services or
related fields applicable to budget planning. The superintendent may require
that a director have more than one year experience if it is determined that
such enhanced experience is in accordance with the purposes of article 12-C of
the New York Banking Law;
(12) a
set of completed fingerprint cards must be submitted by each individual who
signs the application. In the case of an applicant which is not a natural
person, each control party shall submit completed fingerprint cards;
(13) a background report prepared by an
independent licensed private investigation firm for every applicant. In the
case in which an individual is signing an application on behalf of an applicant
that is not a natural person, a background report shall be prepared for both
such individual and the entity for which he or she is signing the
application;
(14) a description of
the services that will be provided to the debtor by the applicant citing
specifically the topics to be discussed and the related timeframes
involved;
(15) a litigation
affidavit prepared for each applicant;
(16) a statement of merit describing the
proposed operation including but not limited to:
(i) a list of all fees to be charged by the
applicant;
(ii) the sources of
funding and financing available to the applicant; and
(iii) a business plan which describes in
detail the budgeting, educational, and counseling services to be offered; the
policies and procedures governing each such service including the curriculum to
be utilized to provide the educational services; the person(s) responsible for
administering each such service and the training to be provided to employees
engaged in the rendering of each such service;
(17) the applicant's financial statements for
the past three years or, for new corporations, a pro forma financial statement.
Financial statements shall include a balance sheet, a statement of revenues and
expenses, and a statement of cash flows;
(18) a copy of the contract to be used with
debtors or potential debtors which shall at a minimum include:
(i) a complete list of the debtor's
obligations to be adjusted, including the name of each creditor;
(ii) the total fees agreed to for such
services, including any adjustments for estimated available rebates from
creditors, provided that nothing in this subdivision shall require a licensee
to share rebates with its clients;
(iii) the commencement and termination date
of the contract;
(iv) a pro forma
statement of the total fees to be charged, including expected available rebates
from creditors, expressed as a percentage of the total obligations, principal
and interest to be adjusted under such contract.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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