Section 20-723.1. Advertising Disclosure Requirements for Lenders Promoting Payday Loan Services

a. Definitions. For purposes of this section:
    (1) "Payday loan", also known as, among other terms, "deferred deposit
  advances,"  "cash  on  demand"  or  "cash  advance,"  shall   mean   any
  transaction in which funds are provided to a consumer for a limited time
  period  in  exchange for (i) a consumer's personal check or share draft,
  in the amount of the funds provided to the consumer plus  a  fee,  where
  presentment  or  negotiation of such check or share draft is deferred by
  agreement of the parties until a  designated  future  date;  or  (ii)  a
  consumer's authorization to debit the consumer's transaction account, in
  the  amount of the funds provided to the consumer plus a fee, where such
  account will be debited on or after a designated future date.
    (2) "Unit of advertising space" shall mean any real  property,  space,
  facility  or  instrumentality, or any portion thereof, owned or operated
  by the city of New York,  or  which  is  located  or  operates  on  real
  property  owned  or  operated  by the city of New York, and which is the
  subject of  the  same  contract,  lease,  rental  agreement,  franchise,
  revocable  consent,  concession  or other similar written agreement with
  the  city  of  New  York  which  allows  the  placement  or  display  of
  advertisements,  but  not including any real property, space or facility
  leased from the city of New York for a term  of  thirty  years  or  more
  during  the  entire  term  of  the  lease or any real property, space or
  facility leased from or to the industrial development agency.
    b. Any lender, bank  or  other  financial  institution  that  provides
  payday  loan  or  grant  services  and which promotes its payday loan or
  grant services, however described or designated, via a unit or units  of
  advertising  space, and which, because of the application of other state
  or federal law, is exempt from the fee limitations of  New  York  state,
  and   charge  interest,  fees  and  other  charges  greater  than  those
  authorized in New York state, shall comply with the following disclosure
  requirements with respect to a unit or units of advertising space:
    Advertisements shall disclose, in clear and prominent letter type,  in
  a  print  color  that  contrasts  with  the  background against which it
  appears, of at least a 20-point type size:
    i. the maximum annual percentage  rates  (APR)  of  the  institution's
  payday  loans,  computed in accordance with regulations adopted pursuant
  to the federal Truth-in-Lending Act; and
    ii. any membership fees, finance  charges,  annual  fees,  transaction
  fees,  rollover  costs, lender's fees or any other possible charges that
  may be incurred by a consumer in relation to  the  institution's  payday
  loans, including any interest, fees and other charges due at the time of
  any loan renewal;
    iii. the state in which the lender/financial institution is chartered;
    iv.  the  fact  that  the consumer will be required to supply personal
  information  to  receive  the  institution's  payday   loan,   including
  information regarding his or her personal financial history;
    v.  the  fact  that  a  fee  schedule  for  all charges related to the
  institution's payday loans will be available upon request;
    vi. a contact number, such as the New York state banking  department's
  Consumer  Hotline,  where  a  consumer/applicant  can  direct complaints
  against the lender/financial institution;
    vii. the name of the lender/financial institution offering the  payday
  loan.
    c.  Any person who is a party to an otherwise valid agreement with the
  city of New York in effect on the date of enactment  of  the  local  law
  that added this section shall not be subject to the requirements of this
  section  for  the  term of such agreement. However, where such agreement

  provides for a right or rights of renewal for one or more  periods  upon
  the  same terms and conditions or terms and conditions set forth in such
  agreement, the holder who is a party to such agreement or any agreements
  entered  into  pursuant  to  such  right  or  rights of renewal shall be
  subject to the requirements of this section at the commencement  of  the
  first renewal period.
    d.  (1)  Notwithstanding  any  other  provision of law, the department
  shall be authorized  upon  due  notice  and  hearing,  to  impose  civil
  penalties  for  the  violation  of  any  provision  of this section. The
  department shall have the power to render decisions and  orders  and  to
  impose  civil  penalties  not to exceed the amounts specified in section
  20-726 of this subchapter  for  each  such  violation.  All  proceedings
  authorized  pursuant  to this paragraph shall be conducted in accordance
  with rules promulgated by the commissioner. The remedies  and  penalties
  provided  for  in  this  paragraph  shall  be  in  addition to any other
  remedies or penalties provided for the enforcement  of  such  provisions
  under  any  other  law  including, but not limited to, civil or criminal
  actions or proceedings.
    (2) All such proceedings shall be commenced by the service of a notice
  of  violation  returnable  to  the  administrative   tribunal   of   the
  department.  The  commissioner  shall  prescribe the form and wording of
  notices of violation. The notice  of  violation  or  copy  thereof  when
  filled  in  and served shall constitute notice of the violation charged,
  and, if sworn to or affirmed, shall be prima facie evidence of the facts
  contained therein.