N.Y. Comp. Codes R. & Regs. tit. 3 § 400.5

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

Section 400.5 - Conduct of business

(a) Every licensee shall:

(1) Post and display at all times in a conspicuous place on the premises the license. Every licensee that cashes one or more checks, drafts or money orders for any payees that are natural persons must post the schedule of rates to be charged with respect to such transactions involving payees that are natural persons. The schedule shall be made of durable material, be no less than 30 inches wide and 36 inches high with letters at least 3/4 inch in size and indicate the fee applicable to the full amount of the check to be cashed. The schedule shall indicate the fee that corresponds to the amount of the check. The amount of the check shall be set forth on the schedule in increments of $25 ranging from $25 to $2,000. The schedule shall also indicate the percentage charge imposed on all checks and the minimum charge of $1 per check. The schedule shall be in English and in Spanish and posted in the customer's area.

(2) Pay to every customer tendering any check, draft or money order to be cashed, the entire face amount of such instrument in cash less any charges permitted by this Part, on the same date upon which such instrument is presented. In no event shall the licensee make a partial payment on account, on any such instrument.

(3) Indicate on every check, draft or money order cashed at the time of cashing, the date on which such item was cashed.

(4) Maintain continuously for each licensed premises net liquid assets of at least $10,000. In order to determine whether the said sum is continuously available for each licensed premises, each licensee shall compute and include the following: add the amount of cash in bank, cash on hand, checks on hand not previously dishonored and marketable securities owned, and deduct the amount of any loans due in one year or less, including loans payable on demand, and all accounts payable.

(5) Be held responsible for any violation of the Banking Law or regulations promulgated thereunder by any employee or by anyone directly or indirectly connected with the licensee's check cashing business.

(6) Reconcile its bank statements at least monthly.

(7) Keep a true copy of each and every report which it shall be called upon to furnish to any agency or department of the U.S. government, this State or any municipality in this State. Such copies, together with any work sheets used to assemble the figures and/or facts shown in such report, are to be retained as part of the records of each licensee for a period of three years.

(b) No licensee shall:

(1) Cash any check, draft or money order, nor act as intermediary, agent or in any way assist in the negotiation of any such instrument, at any place other than the premises licensed.

(2) Act as an agent for the collection of checks, drafts, money orders or other negotiable paper.

(3) Cash any check or draft of any drawer if the licensee has any reason to believe that such a check or draft is likely to be dishonored.

(4) Cash any check, draft or money order if the licensee has reason to believe or know, that the maker, the payee or any of the endorsers of such instruments, or the persons presenting it for cashing, are known by any name other than that appearing on such instruments, without recording on its books and records the true name or names, as well as the assumed name or names of such person or persons, together with the true addresses.

(5) Cash any check on which the date line is blank.

(6) Alter or change the date of any check presented for cashing.

(7) Charge, take or receive any money, goods or things in action, for or in connection with the cashing of a check, draft or money order in excess of the fees and charges prescribed in section 400.12 of this Part.

(c) Each check casher shall provide receipts to customers for every check cashed. The receipt shall indicate the face amount of each check which has been cashed, followed by the fee charged for cashing the check, the face amount of each money order sold to the customer and the cost thereof, amounts taken in payment of utility bills and the fees charged for such service less deductions for any other services provided and the balance thereof which is paid to the customer. The receipt shall be dated and have the name and address of the check casher on it.

(d) Every licensee shall display on its premises a sign made of either plastic or metal which shall be no less than 18 inches wide and 12 inches high with letters one inch in size indicating that:

(1) the check casher is licensed by the Banking Department; and

(2) inquiries may be made by calling the Banking Department's toll-free number or if the customer has a complaint against the check casher by writing to the New York State Banking Department, c/o Consumer Services Division, in both cases as set forth in section 1.1 of Supervisory Policy G 1 of this Title. This sign shall be located at or near the tellers' window and be in English and Spanish.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 400.5