Bill Text: NY A09317 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to claims against certain obligators; defines the term "eligible obligator" to mean any individual or entity who qualifies as a "debtor" pursuant to Title 11 of the United States Code.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-02-23 - referred to judiciary [A09317 Detail]
Download: New_York-2021-A09317-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9317 IN ASSEMBLY February 23, 2022 ___________ Introduced by M. of A. GONZALEZ-ROJAS -- read once and referred to the Committee on Judiciary AN ACT to amend the judiciary law, in relation to claims against certain obligators The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 2 of section 489 of the judiciary law, as added 2 by chapter 394 of the laws of 2004, is amended and a new subdivision 4 3 is added to read as follows: 4 2. Except as set forth in subdivision three of this section, the 5 provisions of subdivision one of this section shall not apply to any 6 assignment, purchase or transfer hereafter made of one or more bonds, 7 promissory notes, bills of exchange, book debts, or other things in 8 action, or any claims or demands, if such assignment, purchase or trans- 9 fer included bonds, promissory notes, bills of exchange and/or book 10 debts, issued by or enforceable against the same eligible obligor 11 (whether or not also issued by or enforceable against any other eligible 12 obligors), having an aggregate purchase price of at least five hundred 13 thousand dollars, in which event the exemption provided by this subdivi- 14 sion shall apply as well to all other items, including other things in 15 action, claims and demands, included in such assignment, purchase or 16 transfer (but only if such other items are issued by or enforceable 17 against the same eligible obligor, or relate to or arise in connection 18 with such bonds, promissory notes, bills of exchange and/or book debts 19 or the issuance thereof). For purposes of this subdivision, the term 20 "eligible obligor" means an obligor that qualifies as a "debtor" within 21 the meaning of Title 11 of the United States Code. 22 4. For purposes of subdivision one of this section, an assignee's 23 intent and purpose in taking an assignment of a claim against an obligor 24 that is not an eligible obligor may be inferred from (a) the assignee's 25 (or its affiliates') history of acquiring claims at significant 26 discounts from a bond, promissory note, bill of exchange, book debt, or 27 other thing in action's face value and bringing legal actions to enforce 28 such claims; (b) the assignee or any predecessor in title to the claim EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14673-01-2A. 9317 2 1 having refused to participate in a consensual settlement of the claim if 2 holders of notes not less than sixty-six and two-thirds percent of the 3 outstanding amount of the notes of similar claims against the obligor 4 had agreed to accept the terms of that settlement; and (c) such other 5 facts or circumstances as a court may find relevant in assessing the 6 assignee's intent and purpose in taking the assignment. 7 § 2. This act shall take effect on the thirtieth day after it shall 8 have become a law. Effective immediately, the addition, amendment and/or 9 repeal of any rule or regulation necessary for the implementation of 10 this act on its effective date are authorized to be made and completed 11 on or before such effective date.
