What's happening
This bill requires agents of licensed money transmitters to remit owed funds promptly or face triple damages for late payment.
Why it matters
Creates a strong financial deterrent. by making agents liable for triple damages if they intentionally or negligently delay remitting funds, which could discourage misconduct and protect licensed money transmitters from significant losses.
Empowers the state banking superintendent. to set maximum allowable remittance periods by regulation, allowing for industry-wide standards and flexibility to adjust rules as market practices evolve.
Strengthens contractual enforcement. between money transmitter licensees and their agents, ensuring that agents adhere strictly to the terms regarding payment timing and reducing the risk of disputes or abuse.
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Who cares
Headline styles
Speed Up Money Transfers
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Substituted by S2109A
- Ordered to third reading rules cal.241
- Rules report cal.241
- Reported
- Reported referred to rules
- Reported referred to codes
- Print number 1826a
- Amend and recommit to banks
- Referred to banks
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Speed Up Money Transfers
Signed by Governor · Sponsor James Sanders Jr.
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1826--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 17, 2019
Introduced by M. of A. PICHARDO, TAYLOR, ARROYO, EPSTEIN -- read once and referred to the Committee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the banking law, in relation to remittances of moneys by agents of licensed transmitters of money
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of section 651-a of the banking law is designated subdivision 1 and a new subdivision 2 is added to read as follows:
2. Every agent of a licensee shall remit all moneys owed such licensee in accordance with the terms of the contract between the licensee and such agent. Any intentional or negligent failure of an agent to remit all moneys due and owing the licensee within the time provided in such contract shall result in the agent's civil liability to the licensee for three times the licensee's damages. The superintendent may, by rule, establish the maximum period of time for remittance.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05855-02-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.