A licensed New York originator settles a 2026 civil fraud claim brought by a private party. Does settlement of the private civil fraud claim trigger a reporting duty?
Correct Answer
A) Reportable: settlement of a civil action involving fraud is named
The originator shall promptly notify the superintendent of the initiation, settlement or resolution of any other civil action or proceeding involving fraud, misrepresentation, larceny or perjury, alongside the separate item covering governmental and self-regulatory proceedings. Other choices: private actions have their own limb; no dollar threshold appears; and settlement is named alongside resolution. Source: N.Y. Banking Law § 599-m(4)(e)
Why This Is the Correct Answer
The originator shall promptly notify the superintendent of the initiation, settlement or resolution of any other civil action or proceeding involving fraud, misrepresentation, larceny or perjury, alongside the separate item covering governmental and self-regulatory proceedings. Other choices: private actions have their own limb; no dollar threshold appears; and settlement is named alongside resolution. Source: N.Y. Banking Law § 599-m(4)(e)
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