§ 711. Licensing.
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§ 711. Licensing. 1. Except as provided in subdivisions two, three,
and four of this section, no person shall engage in the business of
servicing student loans owed by one or more borrowers residing in this
state without first being licensed by the superintendent as a student
loan servicer in accordance with this article and such regulations as
may be prescribed by the superintendent.
2. The licensing provisions of this article shall not apply to any
exempt organization that is a student loan servicer; provided that,
unless preempted by federal law, such exempt organization shall notify
the superintendent that it is servicing student loans in this state and
complies with sections seven hundred seventeen, seven hundred nineteen,
seven hundred twenty-one, seven hundred twenty-three and seven hundred
twenty-five of this article and article nine of the financial services
law and any regulation applicable to student loan servicers promulgated
by the superintendent.
3. Any person that services federal student loans owed by one or more
borrowers residing in this state shall be automatically deemed by
operation of law to have been issued a license to service federal
student loans by the superintendent as of April first, two thousand
nineteen. Such person shall notify the superintendent that it is
servicing federal student loans in this state and comply with sections
seven hundred seventeen, seven hundred nineteen, seven hundred
twenty-one, seven hundred twenty-two, seven hundred twenty-three and
seven hundred twenty-five of this article and any regulation applicable
to student loan servicers promulgated by the superintendent. The
provisions of sections thirty-three, thirty-nine, and forty-four of this
chapter shall also apply to such person. The license automatically
issued pursuant to this section shall only authorize the servicing of
federal student loans. A person that services both federal student loans
and non-federal student loans shall be required to be licensed pursuant
to subdivision one of this section and sections seven hundred twelve and
seven hundred thirteen of this article in order to be authorized to
service non-federal student loans unless such person is also an exempt
organization.
4. A person, other than an exempt organization, that services federal
student loans owed by one or more borrowers residing in this state and
that is not otherwise required to be licensed under this section shall
notify the superintendent that it is servicing federal student loans in
this state and shall comply with sections seven hundred seventeen, seven
hundred nineteen, seven hundred twenty-one, seven hundred twenty-two,
seven hundred twenty-three, and seven hundred twenty-five of this
article and any regulations applicable to student loan servicers
promulgated by the superintendent.