2010 New York Code
EDN - Education
Title 1 - GENERAL PROVISIONS
Article 13-B - (620 - 632) STUDENT LENDING ACCOUNTABILITY, TRANSPARENCY AND ENFORCEMENT ACT
630 - Penalties.

§  630. Penalties. 1. If after providing notice and an opportunity for
  a hearing the  department  determines  that  a  covered  institution  or
  lending  institution  has  violated  any  terms  or  provisions  of this
  article, then the covered institution  or  lending  institution  may  be
  liable for a civil penalty. Regardless of the department's determination
  that a covered institution or lending institution is liable for a single
  violation  or  a  series  of  violations under this article, the maximum
  penalty shall not  exceed  fifty  thousand  dollars.  In  taking  action
  against  a  covered  institution  or  lending institution, consideration
  shall be given to the nature and severity of violations of this article.
    2. If after providing notice and an  opportunity  for  a  hearing  the
  department  determines  that a covered institution employee has violated
  any terms or provisions of this article, then  the  covered  institution
  employee   may  be  liable  for  a  civil  penalty.  Regardless  of  the
  department's determination that a covered institution employee is liable
  for a single violation or a series of violations under this article, the
  maximum penalty shall not exceed seven thousand five hundred dollars. In
  taking action against  a  covered  institution  employee,  consideration
  shall be given to the nature and severity of violations of this article.
    3.  If  after  providing  notice  and an opportunity for a hearing the
  department determines that a lending institution has violated a term  or
  provision  of this article, such lending institution shall not be placed
  or remain on any covered  institution's  preferred  lender  list  unless
  notice  of  such violation is provided to all potential borrowers of the
  covered institution.
    4. Nothing in this section shall prohibit the department from reaching
  a settlement agreement with a covered institution,  covered  institution
  employee  or  lending institution in order to effectuate the purposes of
  this section. Provided, however, if such settlement agreement is reached
  with a covered institution or lending institution, the department  shall
  provide  notice  of such action to all potential borrowers in a form and
  manner prescribed by the department.
    5. The department shall deposit the funds generated from this  section
  into   the   student  lending  education  account,  created  by  section
  ninety-seven-hhhh of the state finance law. Such funds shall be given to
  covered institutions upon application to the department for the purposes
  of:
    a. Educating borrowers and potential borrowers on the educational loan
  process, including, but  not  limited  to,  available  educational  loan
  options,  understanding rates and terms of student loans, managing costs
  and  credit  responsibilities,   student   loan   repayment   and   loan
  consolidation; and
    b.  Reimbursing borrowers from inflated educational loan prices caused
  by revenue sharing agreements between such  covered  institution  and  a
  lending institution.