2006 New York Code - Brokerage On Loans; Recovery Of Excess; Effect Of Restitution

 
    § 5-531. Brokerage   on   loans;   recovery   of   excess;  effect  of
  restitution. 1. No person shall, directly or indirectly, take or receive
  more than fifty cents for a brokerage, soliciting, driving or  procuring
  the  loan  or forbearance of one hundred dollars, and in that proportion
  for a greater or less sum, except loans on  real  estate  security;  nor
  more than thirty-eight cents for making or renewing any bond, bill, note
  or other security given for such loan or forbearance, or for any counter
  bond, bill, note or other security concerning the same.
    2. For the purposes of this section:
    a. "Consumer" means a natural person.
    b.   "Loan   broker"  means  any  individual,  firm,  corporation,  or
  partnership who agrees for a fee to  obtain  a  loan  or  credit  for  a
  consumer  or  to  assist a consumer in obtaining a loan or credit, other
  than a loan or credit on real estate security.
    c. No loan broker shall solicit, receive or collect  from  a  consumer
  the  fee authorized by subdivision one of this section in advance of the
  disbursement of loan proceeds or the extension of credit to a consumer.
    d. No loan broker shall solicit, receive or collect  from  a  consumer
  any  fee,  advance  payment or compensation of any nature other than the
  fee authorized by subdivision one of this section.
    3. a. Every person who  shall  pay,  deliver  or  deposit  any  money,
  property  or thing in action, over and above the rate aforesaid, and his
  personal representatives may, within three  years  after  such  payment,
  delivery  or  deposit,  sue  for  and  recover the same of the person so
  taking or receiving such money, property or thing in action, or  of  his
  personal representatives. Judgment may be entered in favor of a consumer
  in  an  amount  not  to  exceed  three  times  the  actual  damages plus
  reasonable attorneys' fees.
    b. In case such suit shall  not  be  brought  within  the  time  above
  prescribed,  in  good  faith,  or  in  case it shall be discontinued, or
  willfully delayed, then the public welfare officials of the city or town
  where the offense  was  committed,  may,  within  one  year  after  such
  neglect,  discontinuance  or  delay,  sue  for  and  recover  the money,
  property or thing in action, so received, delivered or  deposited,  from
  the  person receiving the same, or his personal representatives, for the
  use of the poor of the county.
    c. In addition to the other remedies provided, whenever there shall be
  a violation of subdivision two of this section, application may be  made
  by  the  attorney  general in the name of the people of the state of New
  York to a court or justice having jurisdiction by a  special  proceeding
  to  issue  an  injunction,  and upon notice to the defendant of not less
  than  five  days,  to  enjoin  and  restrain  the  continuance  of  such
  violations;  and  if it shall appear to the satisfaction of the court or
  justice that the defendant has,  in  fact,  violated  this  article,  an
  injunction  may  be  issued  by  such  court  or  justice, enjoining and
  restraining any further violation,  without  requiring  proof  that  any
  person  has,  in  fact,  been  injured  or  damaged thereby. In any such
  proceeding, the court may make allowances to  the  attorney  general  as
  provided  in  paragraph  six  of subdivision (a) of section eighty-three
  hundred  three  of  the  civil  practice  law  and  rules,  and   direct
  restitution. Whenever the court shall determine that a violation of this
  article  has  occurred, the court may impose a civil penalty of not more
  than one thousand dollars for each violation.  In  connection  with  any
  such  proposed  application,  the attorney general is authorized to take
  proof and make a determination  of  the  relevant  facts  and  to  issue
  subpoenas in accordance with the civil practice law and rules.