The New York State Banking Department issued an Order of Suspension to Delavan Check Cashing Services, Inc., a Licensed Casher of Checks, Pursuant to Article IX-A of the New York Banking Law.
In the Matter of
DELAVAN CHECK CASHING SERVICES, INC
A Casher of Checks licensed pursuant
- Respondent -
PURSUANT TO SECTION 373(2) OF THE NEW YORK BANKING LAW
Whereas, DELAVAN CHECK CASHING SERVICES, INC. (“Delavan”) was granted a license on January 11, 1989 to engage in business as a licensed casher of checks pursuant to Article IX-A of the New York Banking Law (the “Banking Law”) and currently operates from 899 East Delavan Avenue, Buffalo, New York, 14215.
Whereas, Part 400.1 (6) (v) of the Superintendent’s Regulations requires licensees to obtain a credit facility approved by the superintendent demonstrating an existing right of access to a line of credit in an amount of $100,000 or more for each licensed location. This line of credit must be available continuously and a licensee must immediately give written notice to the Superintendent if it is not at any time in compliance with this requirement;
Whereas, Part 400.5 (a) (1) of the Superintendent’s Regulations requires that all checks, drafts and money orders must be deposited in the licensee’s bank account in the banking institution in this State not later than the first business day following the day on which they were cashed;
Whereas, Delavan does not presently have a bank account or the required credit facility;
Whereas, Delavan ceased operating as a casher of checks on February 2, 2005 when its banking relationship was terminated;
Whereas, Part 400.4 of the Superintendent’s Regulations requires that each licensee shall file an Annual Report within 75 days of the close of the calendar year for each licensed location on forms provided by the Banking Department. The figures entered on these forms shall be derived from financial statements of the licensee that have been audited by an independent certified public accountant (CPA) and on which the CPA has expressed an opinion;
Whereas, Licensee has not filed the mandated Annual Reports;
Whereas, pursuant to Banking Law Section 373(2), pending an investigation or a hearing for the suspension or revocation of any license issued pursuant to Article IX-A of the Banking Law, the Superintendent of Banks (the “Superintendent”) may temporarily suspend such license for a period not to exceed ninety days, provided the Superintendent shall find that such temporary suspension is in the public interest;
Whereas, the foregoing facts demonstrate that Delavan is not in compliance with the regulations cited, that its financial condition is uncertain, and that it has ceased operating as a check casher;
Whereas, the Superintendent finds that, based on the foregoing, it is in the public interest to temporarily suspend Delavan’s check casher license in the State of New York for a period of ninety days from the date of this Suspension Order, pending an investigation or hearing for the suspension or revocation of said license.
NOW, THEREFORE, IT IS HEREBY ORDERED that, pursuant to the authority granted under the provisions of the New York Banking Law Section 373(2), the Superintendent suspends for a period of ninety days from the date of this Suspension Order the license of DELAVAN CHECK CASHING SERVICES, INC. as a casher of checks in the State of New York.
Witness, my hand and official seal of the Banking Department at the City of New York,
this eighth day of August in the Year Two Thousand Five.
Regina A. Stone
Deputy Superintendent of Banks