2006 New York Code - Violations; Penalties.

 
    § 44. Violations; penalties. 1. (a) Without limiting any power granted
  to  the  superintendent  under  any other provision of this chapter, the
  superintendent may, in a proceeding after notice and a hearing,  require
  any  safe  deposit  company, licensed lender, licensed casher of checks,
  licensed sales  finance  company,  licensed  insurance  premium  finance
  agency,  licensed  transmitter  of  money,  foreign  banking corporation
  licensed to maintain a representative office  in  this  state,  licensed
  mortgage  banker, registered mortgage broker, or licensed budget planner
  to pay to the people of this state a penalty for any violation  of  this
  chapter,  any  regulation promulgated thereunder, any final or temporary
  order issued pursuant  to  section  thirty-nine  of  this  article,  any
  condition  imposed  in writing by the superintendent or banking board in
  connection with the grant of any application or request, or any  written
  agreement entered into with the superintendent.
    (b) The penalty for each violation prescribed in paragraph (a) of this
  subdivision  shall  be not more than five thousand dollars for each such
  violation, provided that the aggregate penalty for all offenses  in  any
  one proceeding shall not exceed fifteen thousand dollars.
    2.  (a) Without limiting any power granted to the superintendent under
  any other provision of  this  chapter,  the  superintendent  may,  in  a
  proceeding  after  notice and hearing, require any banking organization,
  bank holding company out-of-state state bank that maintains a branch  or
  branches  in  this state, or foreign banking corporation licensed by the
  superintendent to maintain a branch, agency or representative office  in
  this  state  to  pay  to  the  people  of  this  state a penalty for any
  violation of this chapter, any regulation  promulgated  thereunder,  any
  final  or temporary order issued pursuant to section thirty-nine of this
  article, any condition imposed  in  writing  by  the  superintendent  or
  banking  board  in  connection  with  the  grant  of  any application or
  request, or any written agreement entered into with the  superintendent.
  For  purposes of this section, any reference to a "banking organization"
  shall be deemed to exclude a safe deposit company and any reference to a
  "foreign bank licensee" shall be deemed to include an out-of-state state
  bank that maintains a branch or branches in this  state  and  a  foreign
  banking   corporation   licensed   to   maintain  a  branch,  agency  or
  representative office in this state.
    (b) The penalty for each violation prescribed in paragraph (a) of this
  subdivision shall be not more than five thousand dollars  for  each  day
  during which such violation continues.
    3.  Notwithstanding  paragraph (b) of subdivision two of this section,
  if the superintendent determines:
    (a) that any banking organization, bank holding  company,  or  foreign
  bank  licensee  has committed any violation described in subdivision two
  of this section or has recklessly  engaged  in  any  unsafe  or  unsound
  practice, and
    (b)  that  such  violation  or  practice  is  part  of  a  pattern  of
  misconduct, results or is likely to result in more than minimal loss  to
  the   banking  organization,  bank  holding  company,  or  foreign  bank
  licensee, or results in pecuniary gain or other benefit to  the  banking
  organization,  bank  holding company, or foreign bank licensee, then the
  penalty shall be not more than twenty-five thousand dollars for each day
  during which such violation or practice continues.
    4. Notwithstanding paragraph (b) of subdivision  two  and  subdivision
  three of this section, if the superintendent determines:
    (a)  (i)  that  any  banking  organization,  bank  holding company, or
  foreign  bank  licensee  has  knowingly  and  willfully  committed   any
  violation  described in subdivision two of this section or has knowingly
  and willfully engaged in any unsafe or unsound practice, or
    (ii) that any banking organization, bank holding company,  or  foreign
  bank  licensee  has committed any violation described in subdivision two
  of this section which substantially undermines public confidence in  any
  such  banking  organization,  bank  holding  company,  or  foreign  bank
  licensee or in banking organizations, bank holding companies, or foreign
  bank licensees generally, and, in either case,
    (b)  that  the  banking organization, bank holding company, or foreign
  bank licensee has knowingly or recklessly incurred so substantial a loss
  as a result of such violation or practice as to threaten the safety  and
  soundness of such banking organization, bank holding company, or foreign
  bank licensee, then the penalty shall be not more than the lesser of (i)
  two  hundred  fifty  thousand  dollars  or (ii) one percent of the total
  assets of such  banking  organization,  bank  holding  company,  or  one
  percent of the total assets in this state of such foreign bank licensee,
  as  applicable,  for  each  day  during which such violation or practice
  continues.
    5. In assessing any penalty against any entity listed in paragraph (a)
  of subdivision one or paragraph (a) of subdivision two of this  section,
  the  superintendent shall take into account, without limitation, factors
  including: (a) the extent, if any, to which senior management  or  board
  directors  or trustees participated therein, (b) the extent to which the
  entity has cooperated with the superintendent in  the  investigation  of
  such  conduct,  (c) any sanction imposed by any other regulatory agency,
  (d) the financial resources and  good  faith  of  the  entity,  (e)  the
  gravity  of  the violation, (f) any history of prior violations, and (g)
  such other matters as justice and the public interest may require.
    6. Whenever the superintendent  shall  require  the  payment  of  such
  penalty  by  any  such entity, he shall forthwith execute in duplicate a
  written order to that effect. On the date such order  is  executed,  the
  superintendent  shall  file  one copy of such order in the office of the
  department and serve the second copy upon such entity either  personally
  or  by  registered or certified mail, return receipt requested, directed
  to the entity's principal place  of  business  or,  in  the  case  of  a
  licensee or registrant, its last known address of record. Such order may
  be reviewed in the manner provided by article seventy-eight of the civil
  practice law and rules. Such special proceeding for review as authorized
  by this section must be commenced within thirty days from the service of
  such order.
    7.  The  superintendent  may  compromise, modify, or remit any penalty
  which he or she may assess or had already assessed under this section.
    8. The superintendent may  prescribe  regulations  to  carry  out  the
  provisions and purposes of this section.
    9. As used in this section, "bank holding company" means a company, as
  defined  in  subdivision  two  of  section one hundred forty-one of this
  chapter, which (a) owns or controls directly or indirectly more than ten
  percent of the voting stock  of  or  (b)  controls  in  any  manner  the
  election  of  a  majority  of  the  directors  of,  one  or more banking
  organizations.