N.Y. Comp. Codes R. & Regs. tit. 3 § 402.2

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

Section 402.2 - Application for a license

(a) Application form. Application for a license shall be made upon a form provided by the New York State Banking Department (Banking Department). Each application shall be signed by every individual or entity that will be a control party if a license is granted.

(b) Application procedure. Applications should be delivered to the Banking Department, Attn: Licensed Financial Services Division, and must be accompanied by payment of the fee specified in section 1.2 of Supervisory Policy G 1 of this Title. The application shall include the following information:

(1) the exact name and the address of the applicant and its date of incorporation;

(2) the name and the complete business and residential address and occupation of each director, whether or not a member of the governing board, and any other individual who supervises the daily operations of the applicant;

(3) the complete address where the business of the applicant is to be conducted, showing the street and number, if any, post office and building and room number, if any, the office building and room number, if any, and the municipality, county and state;

(4) if the applicant engages in the business of budget planning, as defined in section 455(1) of the New York General Business Law, in another state(s), identify such state(s) and provide the name and address of the regulatory agency, if any;

(5) a copy of the applicant's filing receipt, certified by the Secretary of State of New York, or, for out-of-state budget planners, a certificate of qualification to do business certified by the Secretary of State of New York;

(6) a copy of the applicant's bylaws;

(7) letter of tax exemption from the Internal Revenue Service indicating 501(c)(3) tax status, if applicable;

(8) charities registration statement from the State of New York Office of the Attorney General, Charities Bureau;

(9) schedule providing the following information with respect to each control party: name, prospective corporate title with licensee, employer's name, occupation and title, business address, and residential address;

(10) the name and residence of each holder of capital certificate whether voting or non- voting and/or subvention certificate;

(11) documentation demonstrating that a director, whether or not a member of the governing board, of such applicant has at least one year of experience in financial services or related fields applicable to budget planning. The superintendent may require that a director have more than one year experience if it is determined that such enhanced experience is in accordance with the purposes of article 12-C of the New York Banking Law;

(12) a set of completed fingerprint cards must be submitted by each individual who signs the application. In the case of an applicant which is not a natural person, each control party shall submit completed fingerprint cards;

(13) a background report prepared by an independent licensed private investigation firm for every applicant. In the case in which an individual is signing an application on behalf of an applicant that is not a natural person, a background report shall be prepared for both such individual and the entity for which he or she is signing the application;

(14) a description of the services that will be provided to the debtor by the applicant citing specifically the topics to be discussed and the related timeframes involved;

(15) a litigation affidavit prepared for each applicant;

(16) a statement of merit describing the proposed operation including but not limited to:

(i) a list of all fees to be charged by the applicant;

(ii) the sources of funding and financing available to the applicant; and

(iii) a business plan which describes in detail the budgeting, educational, and counseling services to be offered; the policies and procedures governing each such service including the curriculum to be utilized to provide the educational services; the person(s) responsible for administering each such service and the training to be provided to employees engaged in the rendering of each such service;

(17) the applicant's financial statements for the past three years or, for new corporations, a pro forma financial statement. Financial statements shall include a balance sheet, a statement of revenues and expenses, and a statement of cash flows;

(18) a copy of the contract to be used with debtors or potential debtors which shall at a minimum include:

(i) a complete list of the debtor's obligations to be adjusted, including the name of each creditor;

(ii) the total fees agreed to for such services, including any adjustments for estimated available rebates from creditors, provided that nothing in this subdivision shall require a licensee to share rebates with its clients;

(iii) the commencement and termination date of the contract;

(iv) a pro forma statement of the total fees to be charged, including expected available rebates from creditors, expressed as a percentage of the total obligations, principal and interest to be adjusted under such contract.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 402.2