New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter III - SUPERINTENDENT'S REGULATIONS
Subchapter B - NON-BANKING ORGANIZATIONS
Part 409 - STUDENT LOAN SERVICERS
Section 409.10 - Examinations

Universal Citation: 3 NY Comp Codes Rules and Regs ยง 409.10

Current through Register Vol. 46, No. 12, March 20, 2024

(a) The superintendent may at any time, and as often as she may determine, either personally or by a person duly designated by the superintendent, investigate the business and examine the books, accounts, records, and files used therein of every student loan servicer.

(b) The superintendent and her duly designated representative shall have free access to the offices and places of business, books, accounts, papers, records, files, safes and vaults of all student loan servicers.

(c) The superintendent and any person duly designated by her may require the attendance of and may examine under oath all persons relative to the acts, operations, or business of a student loan servicer. Such attendance may be required at any office of the department or any office of the student loan servicer in the superintendent's sole discretion.

(d) The superintendent and any person duly designated by her shall have authority to require the production of documents, or copies thereof, in hard copy or electronic form. Such production can be required to be made at any office of the department or any office of the student loan servicer in the superintendent's sole discretion. The superintendent may permit such production by means other than personal delivery of the documents, including by electronic mail.

(e) No person subject to investigation or examination under this section may knowingly withhold, abstract, remove, mutilate, destroy or secrete any books, records, computer records or other information.

(f) An examination under this section may be used to determine any matter the determination of which in the judgment of the superintendent is necessary or advisable. Such matters shall include:

(1) the financial condition of the licensee;

(2) the safety and soundness of the conduct of its business;

(3) the policies of its management;

(4) whether the requirements of law have been complied with in the administration of its affairs; and

(5) such other matters, as the Superintendent may determine, including any activities of the licensee outside this State if in the opinion of the Superintendent such activities may affect the licensee's servicing business in this State.

(g) Assessment for the cost of examination. The expenses incurred in making any examination pursuant to this section shall be assessed against and paid by the student loan servicer so examined. Upon written notice by the superintendent of the total amount of such assessment, the student loan servicer shall become liable for and shall pay such assessment to the superintendent.

(h) Without limiting any other power or responsibility of the superintendent, this section shall not apply to an exempt organization.

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