Sec. 105.1. Definitions

For purposes of this Supervisory Procedure:

(a) Employee is:

(1) any individual performing a service for any one of either a mortgage broker, mortgage banker or exempt organization for whom such entity would be liable for withholding taxes pursuant to title 26 of the United States Code; or

(2) any person engaged in regulated activities as an associate or affiliate of any one of either a mortgage broker, mortgage banker or exempt organization which has filed an undertaking of accountability with the superintendent in such form as may be prescribed by the Superintendent of Financial Services (“superintendent”).

(b) Mortgage broker is any person or entity registered pursuant to article 12-D of the Banking Law and any principal stockholder(s) of a corporation or controlling member(s) of a partnership or trustee of a trust registered as a mortgage broker pursuant to article 12-D of the Banking Law.

(c) Inactive mortgage broker is any mortgage broker registered pursuant to section 591-a of the Banking Law that decides not to engage in the business of soliciting, processing, placing, or negotiating mortgage loans for others, but wishes to maintain its registration as a mortgage broker and has filed an application to be placed on inactive status which has been approved by the superintendent.

(d) Controlling member of a partnership is any general partner or any limited partner with 10 percent or more equity interest in the partnership.

(e) Principal stockholder is any person who directly or indirectly owns, controls or holds with power to vote 10 percent or more of any class of outstanding capital stock of a corporation or possesses the power to direct or cause the direction of the management and policies of a mortgage broker.