Overview
As stated in Section 492(1) of the Banking Law, “No person, except a bank, savings bank, savings and loan association, trust company, private banker, credit union, investment company organized under article twelve of this chapter and authorized to accept deposits, national bank, federal savings association, federal credit union, or out-of-state state bank, as such term is defined in subdivision two of section two hundred twenty-two of this chapter, or lender licensed pursuant to article nine of this chapter, shall engage in the business of a sales finance company in this state without a license therefor obtained from the superintendent, as provided in this article.”
For Sales Finance Company licensing requirements see Article 11-B of Banking Law, sections 491 to 502 and Superintendent's Regulations parts 403 and 300.
Application and Licensing
The New York State Department of Financial Services (DFS)uses the Nationwide Multistate Licensing System and Registry (NMLS) to manage the Sales Finance Company License.
Access to NMLS
To access NMLS for the first time, you must complete a Company Account Request Form and identify a Primary Account Administrator and a Secondary Account Administrator. This form can be submitted electronically through the NMLS website in the “Getting Started” section. This form needs to be submitted only once per company, regardless of the number of NMLS participating states in which you are licensed.
Within three days of completing and submitting the Company Account Request Form, the Primary Account Administrator will receive NMLS login information. The Primary Account Administrator will have full rights to access the system, submit information to this agency and other participating state regulators, and set up other company users in the system. Instructions and tutorials on how to access and use the system are also available in the NMLS Resource Center.
Note: If your company already has a record in NMLS, you can omit this step.
Managing Your License on NMLS
Each company holding a DFS Sales Finance Company License who wishes to manage their license on NMLS must create a company record in the system. To gain access to NMLS, the applicant must submit a form requesting an NMLS account.
Current New York State Sales Finance Companies may transition their licenses to NMLS. See the DFS Sales Finance Company Transition Checklist and Sales Finance Branch Transition Checklist for more information.
Submitting a Complete Application
To submit an application and ensure your application is received, acknowledged as complete, and processed, please follow the instructions on the DFS Sales Finance Company Checklists. No application shall be deemed to be complete until the Department has received all required information, documents, and fees.
In the process of reviewing and considering the application, DFS may request additional information and supporting documents.
In the application process, an NMLS Identification Number will be assigned to your application. Please maintain a record of this NMLS Identification Number, as it will be used as your application reference number throughout the remainder of the application process. The applicant’s NMLS Identification Number must be included on every hard-copy document submitted to the Department.
Note: If the applicant has already submitted Forms MU1 and MU2 through NMLS for another state, the applicant does not need to re-enter the company record into NMLS. However, the applicant is required to provide jurisdiction-specific information to support its New York State application.
Annual Reports
The Annual Report is due at the Department of Financial Services (DFS) by March 15, 2024.
Reporting Changes in Certain Individuals
Pursuant to the following sections of the New York Banking Law (BL) and Superintendent’s Regulations (SR), licensees of the Department of Financial Services (DFS) are required to notify the Superintendent of changes in certain individuals, within stipulated time frames:
Sales Finance Companies: BL 492 and 492-a; and SR 403.4
These requirements are for changes in certain individuals of licensees whose licenses are not managed on NMLS. For those managed on NMLS, visit the NMLS website section for New York and navigate to Company Licenses and Amendment under the pertinent industry type, and look under Change in Control on the Amendment Checklist.
Included Individuals
Members of the governing board such as directors, trustees, and LLC members
Officers (at a minimum Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer, and Chief Operations Officer, and any other officers deemed necessary by DFS)
Documentary requirements for Each Included Individual Being Added
- Notification on the licensee's letterhead signed by an authorized officer containing the following:
- Name and title of the individual being added
- Effective date of the addition
- Name and title of the person being replaced, and his/her new title/position, if any
- Resolution of the governing board approving the addition
- Personal Questionnaire (PDF)
- Fingerprints
- Background Investigation Report*
- Litigation Affidavit (PDF)
- Authority to Release Information (PDF)
- Resume
Documentary requirements for Each Included Individual Being Removed
Notification on the licensee's letterhead signed by an authorized officer containing the following:
- Name and title of the individual being removed
- Reason of the removal
- Effective date of the removal
- New title/position, if any
Where To Submit?
For matters related to Budget Planners, Check Cashers, Licensed Lenders, Money Transmitters, Premium Finance Agencies, and Sales Finance Companies, submit the documents as directed by the DFS Portfolio Manager assigned to your institution.
For matters related to Virtual Currency, submit the documents via email to [email protected].
*Background Investigation Reports are usually required only for individuals of licensed check cashers and money transmitters. However, Background Investigation Reports may also be required for other officers, directors, stockholders, owners, and control persons of any licensee as determined by the Superintendent in her sole discretion.
Common Forms
The following forms are in PDF format.
Questions?
More information about NMLS can be found in the NMLS Resource Center.
Call DFS at (212) 709-5507 for questions about DFS filings.