Bill Text: NY A10646 | 2021-2022 | General Assembly | Introduced

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Bill Title: Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-08-12 - referred to housing [A10646 Detail]

Download: New_York-2021-A10646-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10646

                   IN ASSEMBLY

                                     August 12, 2022
                                       ___________

        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
          read once and referred to the Committee on Housing

        AN ACT to amend the real property law and the general  obligations  law,
          in relation to prohibiting residential landlords from charging tenants
          a  fee  for  a  dishonored rent check in excess of the actual costs or
          fees incurred by such landlord as a result thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 238-a of real property law is amended by adding a
     2  new subdivision 2-a to read as follows:
     3    2-a. (a) No landlord, lessor, sub-lessor or grantor shall  demand  any
     4  payment, fee, or charge from a tenant for the delivery of a check, draft
     5  or  like  instrument that was given in payment for rent and subsequently
     6  dishonored by the tenant's financial institution for insufficient  funds
     7  except as provided in paragraph (b) of this subdivision.
     8    (b) Notwithstanding any contrary provision herein, a landlord, lessor,
     9  sub-lessor  or  grantor  may  demand  any payment, fee, or charge from a
    10  tenant for the delivery of a dishonored check only if such payment, fee,
    11  or charge was provided for in the  initial  lease  or  contract  between
    12  landlord, lessor, sub-lessor or grantor and the tenant; provided, howev-
    13  er, that such payment, fee, or charge shall not exceed the actual costs,
    14  charges  or fees incurred by landlord, lessor, sub-lessor or grantor for
    15  the return of such dishonored check or the amount set forth in  subdivi-
    16  sion three of section 5-328 of the general obligations law, whichever is
    17  less.
    18    (c)  As  used  in  this subdivision, "dishonored check" shall have the
    19  same meaning as such term is defined in section  5-328  of  the  general
    20  obligations law.
    21    § 2. Subdivision 3 of section 5-328 of the general obligations law, as
    22  added by chapter 529 of the laws of 1995, is amended to read as follows:
    23    3.  (a) Notwithstanding any other provision of law, any person to whom
    24  a check, draft or like instrument, other than a money order, bank  cash-
    25  ier's  check  or certified check, is tendered for any transaction, other
    26  than a consumer transaction,  may,  if  such  instrument  is  dishonored

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16178-01-2
        A. 10646                            2

     1  charge  or collect from the maker or drawer the amount of twenty dollars
     2  for the return of such unpaid or dishonored instrument.
     3    (b)  Notwithstanding  any other provision of this subdivision, a land-
     4  lord, lessor, sub-lessor or grantor to  whom  a  check,  draft  or  like
     5  instrument,  other than a money order, bank cashier's check or certified
     6  check, is tendered for payment  of  rent,  may  if  such  instrument  is
     7  dishonored  charge  or  collect  from  the maker or drawer the amount of
     8  actual costs, charges or fees incurred by such  landlord,  lessor,  sub-
     9  lessor  or grantor for the return of such dishonored check or the amount
    10  set forth in paragraph (a)  of  this  subdivision,  whichever  is  less,
    11  provided  that  such  dishonored  check charge was contracted for in the
    12  initial lease agreement between the tenant and  landlord,  lessor,  sub-
    13  lessor  or  grantor  in  accordance with the requirements of subdivision
    14  two-a of section two hundred thirty-eight-a of the real property law.
    15    § 3. This act shall take effect immediately and shall apply to actions
    16  and proceedings commenced on and after such effective date.