Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 3 - BANKINGChapter III - SUPERINTENDENT'S REGULATIONSSubchapter B - NON-BANKING ORGANIZATIONS
Part 400 - Licensed Cashers Of Checks
Section 400.4 - Depositing of checks, etc

N.Y. Comp. Codes R. & Regs. tit. 3 § 400.4

Download
PDF
Current through Register Vol. 46, No. 43, October 23, 2024
Section 400.4 - Depositing of checks, etc
(a)
(1) Except as hereinafter stated all checks, drafts and money orders must be deposited in the licensee's bank account in a branch or principal office of a bank, savings bank, savings and loan association, trust company, national bank, Federal savings bank, or Federal savings and loan association or any other duly chartered depository institution that is insured by the Federal Deposit Insurance Corporation, regardless of whether the branch and/or principal office of the foregoing banking institution is located within or without this State (collectively, "banking institution"), not later than the first business day following the day on which they were cashed. Such items must be deposited during the regular business hours of such banking institution so as to enable it to credit the deposits to the licensee's account on that business day.
(2) Any account maintained by a licensee for the deposit of checks, drafts or money orders in a banking institution shall be subject to a written account agreement between the licensee and the banking institution that expressly provides for the personal and in rem jurisdiction over the parties and the account, respectively, of State and Federal courts located in the State of New York and the agreement shall be governed by the laws of the State of New York, except that this requirement shall not apply:
(i) with respect to an account maintained in New York or in a State of New York- chartered bank prior to November 1, 2005, unless or until such existing account agreement is amended subsequent to November 1, 2005; or
(ii) if this requirement is waived in the superintendent's discretion.

Every licensee or applicant for a license shall provide to the superintendent a copy of any such account agreement within 15 days of establishing any such account or any amendment thereto relating to the items required by this subdivision. Every licensee shall maintain a copy of such account agreement as part of its records available for examination by the superintendent.

(3) Prior to depositing any checks, drafts or money orders in an account at a banking institution, the licensee shall cause such banking institution to give the superintendent written authorization to conduct any such examination of all books, records, documents and materials, including those in electronic form, as they relate to such account and any checks, drafts, or money orders placed on deposit in such account, as the superintendent in his/her discretion deems necessary, except that this written authorization requirement shall not apply:
(i) with respect to an account maintained in New York or in a State of New York- chartered bank prior to November 1, 2005, unless or until such existing account agreement is amended subsequent to November 1, 2005; or
(ii) if this requirement is waived in the superintendent's discretion. The licensee shall pay the cost of any such examination.
(4) When the number of payroll checks cashed at a limited station amount to 50 or more, the licensee may present those checks to the drawee bank or the maker of the checks and receive in exchange a single draft, provided full details of the transaction are recorded in a manner satisfactory to the superintendent.
(b) All checks, drafts and money orders, cashed on any one day and deposited on the same day or the next business day must be deposited under a separate deposit total and not commingled with any other day's business.
(c) This section shall be deemed to be violated if a licensee, instead of depositing all checks, drafts and money orders as required herein, cashes all or any of them at another check casher, exchanges all or any of them for another check or checks or negotiates all or any of them in any manner or for any purpose other than that provided in this section.
(d) The checks, drafts, money orders or cash of any other business in which the licensee is engaged must not be commingled with other funds in the licensee's bank account or with the cash or checks on hand. Separate records must be kept for a check cashing business conducted on the same premises where another business is also being operated. In such case the licensee should apportion to the check cashing business its share of expense. Reasonable estimates may be used.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 400.4