Banking Interpretations

NYSBL Sec 373

March 14, 2006

[ ]

Re: Prohibited Acts of Licensed Check Cashers

Dear [ ]:

Your inquiry to the Superintendent of Banks, dated February 15, 2006, has been referred to me for response. In your letter, you have requested guidance on Banking Law Section 373(1) regarding acts prohibited by licensed cashers of checks.

Banking Law Section 373(1) provides that…..”No licensee shall cash any check, draft or money order if the face amount for which it is drawn is in excess of fifteen thousand dollars; provided, however, that this restriction shall not apply to….. any broker or dealer registered with the securities and exchange commission…..”.

You ask in your letter if the Banking Department will extend this exception to any broker or dealer of securities registered with the National Association of Securities Dealers (NASD). Banking Law Section 373(1) has clearly provided specific instances when the restriction for cashing checks in excess of fifteen thousand dollars does not apply. Brokers or dealers of securities registered with the NASD are not listed as exceptions and, as such, are subject to the restriction.

I trust that this has been responsive to your inquiry.

Very truly yours,

Megan Prendergast
Associate Attorney