 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7907
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 18, 2017
                                       ___________
 
        Introduced by M. of A. CRESPO -- read once and referred to the Committee
          on Banks
 
        AN ACT to amend the banking law, in relation to conduit services
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 2 of section 366 of the banking law, as amended
     2  by chapter 49 of the laws of 1961 and as renumbered by  chapter  132  of
     3  the laws of 1969, is amended and a new subdivision 4 is added to read as
     4  follows:
     5    2.  The  term  "licensee"  means  a  licensed casher of checks, drafts
     6  and/or money orders, and conduit services.
     7    4. The term "conduit services" means  account  access  services,  bill
     8  payment  services  and assistance in preparation and submission of forms
     9  to be processed by the collaborating financial institution permitted  to
    10  be  offered by a licensee under this article to its customers in collab-
    11  oration with a state or federally chartered bank, trust company, savings
    12  bank, savings and loan association or credit union provided there  is  a
    13  written  agreement  between  the  parties approved by the superintendent
    14  setting forth the exact nature of the services to be  rendered  and  the
    15  compensation  for  same  including  the person or entity responsible for
    16  such compensation subject to the oversight and approval  of  the  super-
    17  intendent.  The  term  "conduit  services" does not include any services
    18  which exceed prevailing usury provisions under any New York state law.
    19    § 2. This act shall take effect on the thirtieth day  after  it  shall
    20  have become a law.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11690-01-7
Relates to conduit services

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