Title 3 Banking - Chapter III Superintendent's Regulations - Subchapter B. Non-Banking Organizations - Part 401 Licensed Lenders - s 401.1 Application procedure; licenses.


Published: 2021-01-15

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Application for a license to engage in the business of making loans in the principal amount of $25,000 or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of $50,000 or less for business and commercial loans may be obtained from the Department of Financial Services, at the address set forth in section 1.1 of Supervisory Policy G 1 of this Title. If an application is requested in writing, the address should indicate the following: Attn: Licensed Financial Services Division.

Applicants for a license shall demonstrate and maintain:

(1) Liquid assets of at least $50,000 available for the operation of the business at the location specified in the application.

(2) Net worth of at least $100,000.

(3) A confirmed line of credit of at least $100,000 issued by any banking institution incorporated under the laws of the United States or any state or any insurance company.

The applicant shall provide a report from an independent investigatory firm detailing the personal and financial background of the applicant. This report shall contain the information necessary for the superintendent to determine whether the applicant has the financial responsibility, experience, character and general fitness required by article 9 of the Banking Law.

Applicants for a license shall demonstrate to the superintendent's satisfaction that it has five years verifiable experience in the business of making consumer loans or similar lending and credit evaluation experience or that it has engaged or will engage in its employ one or more persons having such experience. The superintendent may permit other relevant educational or business experience to be credited towards satisfaction of the lending and credit evaluation experience requirement.