N.Y. Comp. Codes R. & Regs. tit. 3 § 400.2

Current through Register Vol. 46, No. 43, October 23, 2024

Section 400.2 - Books, records and microfilm

Every licensee shall maintain the following records and information. All entries therein shall be made in ink, be typed or be available through computer printouts. Records maintained under subdivision (a) of this section may, with the prior written approval of the superintendent, be maintained on microfilm. Approval shall be granted if the superintendent finds that the licensee has the capability of utilizing microfilm in accordance with subdivision (b) of this section. These records must be preserved for at least three years after the date of final entry, and kept readily available for inspection by representatives of the Banking Department.

(a) A "daily record of checks cashed", in which shall be recorded all cash transactions occurring each day. This record shall include the following information with respect to each check, draft or money order cashed in the face amount of $100 or more, and with respect to any number of checks cashed at any one time drawn by any one maker with an aggregate face amount thereof totaling $100 or more:

(1) Date on which the check, draft, or money order is cashed.

(2) Date of the check, draft, or money order.

(3) Number of the check, draft, or money order.

(4) Name and location, or American Bankers Association number, or Clearing House number, of the banking institution on which the check, draft, or money order is drawn.

(5) Name of the drawer of the check, draft, or money order which is cashed.

(6) Name and home or business address of the individual, partnership, or corporation for which such check, draft, or money order is cashed. Where the licensee maintains an index card or computer record showing current home or business addresses of customers, such address need not be repeated for each transaction on individual checks, drafts, or money orders for $1,500 or less. Complete details, including current address, must be recorded individually for each check (other than a payroll check), draft, or money order exceeding $1,500. On payroll checks, the licensee may accept the address of the employer as the address of the employee cashing the check.

(7) Face amount of the check, draft, or money order.

(8) The fee collected for cashing each such check, draft, or money order.

(9) The amount of each bank deposit, recorded in such form as will clearly identify the particular checks, drafts, money orders, or cash included in each such deposit.

Reporting requirements (1) through (8) (paragraphs [1]-[8] of this subdivision) shall not apply to any United States Government, state, or municipal checks or to checks issued by any banking institutions or insurance companies less than $1,500; that is to say all items more than $1,500 are to be individually listed. However, when 10 or more payroll checks, regardless of amount, of any one employer or 10 or more checks, each of which is less than $1,500, of the United States Government or of any state or municipality are cashed during any one day, it will be sufficient for the licensee to retain a duplicate adding machine listing or other record of each group of such items, showing the individual checks and fees charged as well as the total number of such checks cashed, the name of the drawer, the bank on which they are drawn, the total amount of the checks, and the total fees charged. This information need be shown only once in the daily record of checks cashed for each group of such checks cashed. Except for checks cashed at any one time drawn by any one maker with the aggregate amount thereof totaling $100 or more, the licensee shall retain a duplicate adding machine listing or other record of all checks, drafts, or money orders where the face amount thereof is less than $100, showing the face amounts of individual checks, drafts, or money orders, the total amount thereof, and the total fees charged therefor listed on such tape. The information need be shown only once in the daily record of such checks, drafts, or money orders cashed, covered by a separate adding machine listing or other equivalent record. Additionally, when the licensee receives checks, drafts, or money orders in connection with any other business conducted on the premises, a separate record shall be made of such checks, drafts, or money orders, and the nature of the transaction must also be shown.

(b) Microfilm. Microfilm equipment may be used to record all the checks, drafts and money orders cashed in the business, under the following conditions:

(1) Each roll of film must be processed promptly after it is exposed.

(2) The date items are microfilmed shall be identified by means of a date card inserted into the machine before the items are microfilmed. This shall be done at the beginning of each business day and whenever a new roll of film is put into use. The date indicated shall be the date on which these items were cashed.

(3) The microfilm equipment must simultaneously record together or in sequence the front and back of each check, draft or money order that the licensee cashes.

(4) Each check, draft or money order cashed shall be microfilmed together with the deposit ticket indicating the date and total amount of the deposit. The adding machine tape listing all items included in such deposit will be attached to the "Daily Record of Checks Cashed". Items shall be microfilmed in such a manner as to avoid overlapping of the checks, drafts or money orders or otherwise obscuring such items.

(5) The name and home or business address of the individual, partnership or corporation for which the check, draft or money order is cashed shall be indicated on the item before it is microfilmed. Where the licensee maintains an index card or computer record with the current home or business address of customers, such address need not be microfilmed for each transaction on individual checks, drafts or money orders for $1,500 or less. However, the complete details as required by subdivision (a) of this section including the current address shall be maintained in written or typed form for each check, draft or money order exceeding $1,500. On payroll checks, the licensee may accept the address of the employer as the address of the employee cashing the check.

(6) The fee collected for cashing each check, draft or money order must be indicated on the face of the item before it is microfilmed. If payroll checks are cashed and no fee is charged, a notation to this effect (such as N/C) must be indicated on the face of the item.

(7) An inventory log of microfilm shall be maintained. This log is to include the following information for every roll of film exposed:

(i) The beginning and ending dates of the period covered.

(ii) The date on which the exposed roll was sent for processing.

(iii) The date on which the developed roll was returned and reviewed.

(iv) The name of the employee reviewing the film.

(8) If the licensee's review of microfilm determines that processed film is not accurate and legible, or if any equipment becomes inoperable, the licensee shall immediately begin to maintain written records as required by subdivision (a) of this section until such time as the microfilm equipment has been repaired or replaced.

(9) Each roll of microfilm shall be clearly labeled showing the beginning and ending dates of the period covered.

(10) An operative microfilm viewer must be maintained on the premises at all times.

(11) The licensee must:

(i) maintain all microfilm equipment so as to ensure continuous proper operation;

(ii) verify that all microfilmed records are maintained in an accurate and legible form; and

(iii) assure that all personnel working at the location are familiar with these terms and requirements.

If it is found that the licensee is not complying with any of the above requirements, authorization to use microfilm equipment may be revoked in the sole discretion of the superintendent and, upon notice thereof, the licensee shall thereafter be required to maintain the record of checks, drafts and money orders cashed in written form in conformity with subdivision (a) of this section.

(c) A "summary of business" in which the number of checks, drafts, or money orders cashed, their total face amount, and the aggregate fees received, shall be shown for each business day and totaled for each calendar month. If this information is included in a horizontal form of daily cash reconcilement, such record will be acceptable in lieu of a separate "summary of business".

(d) A "returned items record", in which the following information shall be clearly recorded with respect to each check, draft or money order, returned unpaid:

(1) Date on which check, draft, or money order, was reported unpaid.

(2) Issue date of check, draft or money order.

(3) Date check, draft, or money order was originally cashed by licensee.

(4) Name of drawer of the check, draft, or money order returned unpaid.

(5) Name of payee or last endorser of check, draft, or money order.

(6) Amount of check, draft, or money order returned unpaid.

(7) Name of bank on which check, draft, or money order is drawn.

(8) Reason for which check, draft, or money order was returned unpaid.

(9) Date on which check, draft, or money order was redeposited.

(10) Date and manner of payment of check, draft or money order, other than by redeposit, with complete details of its disposition. Checks, drafts and money orders returned unpaid and immediately charged off or written off must also be listed in the "returned items record". An item will be considered returned unpaid when the licensee's account has been debited for the amount of the item even though such item has not been physically returned to the licensee by the bank, but instead has been redeposited or entered for collection. Such information shall be recorded in the "returned items record" as soon as it becomes known to the licensee.

(11) A current record of the efforts being made to collect unpaid checks, drafts, or money orders which are not redeposited or redeemed.

(e) A "daily cash reconcilement", which shall contain the following information:

(1) Cash on hand at opening of business.

(2) Checks, drafts, or money orders cashed the previous day, and on hand at opening of business.

(3) Cash received during the day and the source of funds in detail.

(4) Total amount of fees received during the day.

(5) The sum of items (1) through (4) (paragraphs [1]-[4] of this subdivision).

(6) The total deposits made during the day.

(7) Other cash paid out during the day showing in detail the nature of the disbursement.

(8) The sum of items (6) and (7) (paragraphs [6]-[7] of this subdivision).

(9) Item (5) (paragraph [5] of this subdivision) less item (8) (paragraph [8] of this subdivision), representing the cash on hand and the total of undeposited checks, drafts, or money orders, cashed during the day.

(10) The total of cash included in item (9) (paragraph [9] of this subdivision).

The "daily record of checks cashed", "summary of business", "returned items record", and "daily cash reconcilement" may be combined into one or more records, provided the required information is kept in such combined record.

(f) A "general ledger" containing all assets, liabilities, capital, income, and expense accounts. The "general ledger" shall be posted from the "daily record of checks cashed", "summary of business" and any other records of original entry, at least monthly, and shall be so kept as to facilitate the preparation of an accurate trial balance.

(g) A "journal", tickets or other record showing with full explanation, all opening, closing and adjusting entries.

(h) All licensees must maintain separate income and expense statements for each licensed location.

(i) Evidence that a net liquid asset position of not less than $10,000 is being maintained for each licensed location.

(j) A "daily record of money orders sold". Check cashers which sell money orders shall keep the following information with respect to money order sales to the same person aggregating $3,000 or more in one day:

(1) the purchaser's name and address;

(2) form of identification used to identify the purchaser;

(3) the method of payment; and

(4) if payment is made by check, the name of the bank and the American Banking Association number or clearing house number of the banking institution upon which the check is drawn.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 400.2