Bill Text: NY S02483 | 2023-2024 | General Assembly | Amended

New York Senate Bill 2483

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) 2024-03-28 - ADVANCED TO THIRD READING [S02483 Detail]

Download: New_York-2023-S02483-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                         2483--A
            Cal. No. 790

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 20, 2023
                                       ___________

        Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
          when printed to be committed to the Committee on Judiciary -- reported
          favorably from said committee, ordered to  first  and  second  report,
          ordered  to  a third reading, amended and ordered reprinted, retaining
          its place in the order of third reading

        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 lease or  contract  between  landlord,
    12  lessor,  sub-lessor  or  grantor and the tenant; provided, however, that
    13  such payment, fee, or charge shall not exceed the actual costs,  charges
    14  or  fees  incurred  by  landlord,  lessor, sub-lessor or grantor for the
    15  return of such dishonored check or the amount set forth  in  subdivision
    16  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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03564-02-3

        S. 2483--A                          2

     1    § 2. Subdivision 3 of section 5-328 of the general obligations law, as
     2  added by chapter 529 of the laws of 1995, is amended to read as follows:
     3    3.  (a) Notwithstanding any other provision of law, any person to whom
     4  a check, draft or like instrument, other than a money order, bank  cash-
     5  ier's  check  or certified check, is tendered for any transaction, other
     6  than a consumer transaction,  may,  if  such  instrument  is  dishonored
     7  charge  or collect from the maker or drawer the amount of twenty dollars
     8  for the return of such unpaid or dishonored instrument.
     9    (b) Notwithstanding any other provision of this subdivision,  a  land-
    10  lord,  lessor,  sub-lessor  or  grantor  to  whom a check, draft or like
    11  instrument, other than a money order, bank cashier's check or  certified
    12  check,  is  tendered  for  payment  of  rent,  may if such instrument is
    13  dishonored charge or collect from the maker  or  drawer  the  amount  of
    14  actual  costs,  charges  or fees incurred by such landlord, lessor, sub-
    15  lessor or grantor for the return of such dishonored check or the  amount
    16  set  forth  in  paragraph  (a)  of  this subdivision, whichever is less,
    17  provided that such dishonored check charge was  contracted  for  in  the
    18  lease  agreement  between the tenant and landlord, lessor, sub-lessor or
    19  grantor in accordance with the  requirements  of  subdivision  two-a  of
    20  section two hundred thirty-eight-a of the real property law.
    21    § 3. This act shall take effect immediately and shall apply to actions
    22  and proceedings commenced on and after such effective date.