§ 62-21 Business Procedures – Handling of Funds.
RCNY § 62-21
(a)A Broker must not pay any part of funds advanced by the transferee to the transferor or any other person without the written approval of the transferee. 35 RCNY § 62-21(a)Fine: $1,000 - $2,500Appearance REQUIRED (b) The Broker must not commingle funds advanced from a transferee with his or her own funds. He or she must deposit advanced funds promptly in a separate, federally insured, special account. 35 RCNY § 62-21(b) Fine: $2,500 - $10,000 and/or suspension or revocation; restitution may be ordered.Appearance REQUIRED (c) The Broker must provide written notification to the person who advanced the funds, giving the name and address of the bank in which the money was deposited and the amount of the deposit. 35 RCNY § 62-21(c)Fine: $100 - $500Appearance REQUIRED (d) The Broker must not retain any of the interest earned from the deposited funds unless he or she has written permission from the principal. 35 RCNY § 62-21(d) Fine: $100 - $500; restitution may be ordered.Appearance REQUIRED (Amended City Record 2/12/2020, eff. 3/13/2020)
