§ 62-15 Requirements & Prohibitions – Self-Dealing.
RCNY § 62-15
(a)A Broker must not directly or indirectly buy or otherwise acquire for himself or herself, nor may a Related Party acquire any interest in a Medallion listed with the Broker without first disclosing that fact in writing to the owner and obtaining the owner's written consent to such transaction, in the form and manner prescribed by the Commission. Where the Broker has an interest in such purchase or acquisition, the Broker may not charge a fee for his or her services. 35 RCNY § 62-15(a) Fine: $10,000 and suspension for 30 days; restitution may be orderedAppearance REQUIRED (b) A Broker must not sell a Medallion in which he or she or a Related Party owns an interest without first disclosing that interest in writing to the purchaser and obtaining the purchaser's written consent to such transaction, in the form and manner prescribed by the Commission. Where the Broker has an interest in such sale, the Broker may not charge a fee for his or her services unless the necessary disclosures have been made to the purchasing and selling parties as required by these rules. 35 RCNY § 62-15(b) Fine: $10,000 and suspension for 30 days; restitution may be ordered.Appearance REQUIRED (c) The Broker must disclose any financial interests in writing to the purchaser and seller in any transfer of an interest in a Medallion or any other transaction facilitated by the Broker, including but not limited to financing or refinancing, where the Broker or any Related Party acts as a lender, insurance broker, or automobile dealer or has a financial interest in the lender, insurance brokerage firm, or automobile dealership or any other business entity providing services in relation to such transaction. The Broker must obtain the written consent of such purchaser and seller to any such conflict prior to offering any such products or services in the form and manner prescribed by the Commission. 35 RCNY § 62-15(c) Fine: $10,000 and suspension for 30 days; restitution may be ordered. Appearance REQUIRED (d) If a Broker has failed to disclose any interest held by the Broker or any Related Party in a transaction as required by this section or has failed to obtain the written consent of the other party or parties to such transaction, the Broker may be ordered to pay restitution to the other party for any fees charged or tangible or intangible benefit received by the Broker.
(e)No Broker may represent any party in any transaction in which the Broker or a Related Party has a conflict if the Broker has not filed the disclosure of such conflict with the Commission as required by 35 RCNY § 62-05. 35 RCNY § 62-15(e) Fine: $10,000 and suspension for 30 days or revocation; restitution may be ordered. Appearance REQUIRED (Amended City Record 2/12/2020, eff. 3/13/2020)
