N.Y. Comp. Codes R. & Regs. tit. 3 § 407.5

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

Section 407.5 - Provision in lieu of lock box

In lieu of the lock box required to be maintained by section 407.4 of this Part, a licensee may provide in its loan agreements that the licensee shall not impose any fine, penalty or late charge in connection with any loan payment due and payable to the licensee from any borrower located in New York State if such payment is received by the licensee on or before the 10th calendar day following the due date of such payment. Any licensee discontinuing the maintenance of such lock box shall:

(a) include in all loan agreements thereafter written the provision called for by the preceding sentence; and

(b) within 30 days of the discontinuance of such lock box mail to all previous borrowers with loans outstanding in this State, notice of the availability of such "grace period" together with notice of a new address at which payment will be received.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 407.5