Bill Text: NY S03851 | 2019-2020 | General Assembly | Amended


Bill Title: Prohibits the inclusion of a confession of judgment in a contract or agreement for a financial product or service.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-12-28 - COMMITTED TO RULES [S03851 Detail]

Download: New_York-2019-S03851-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         3851--A
            Cal. No. 1684

                               2019-2020 Regular Sessions

                    IN SENATE

                                    February 20, 2019
                                       ___________

        Introduced  by  Sens.  SANDERS,  MAYER, PARKER -- read twice and ordered
          printed, and when printed to be committed to the Committee on Consumer
          Protection -- committee discharged and  said  bill  committed  to  the
          Committee  on Rules -- ordered to a third reading, amended and ordered
          reprinted, retaining its place in the order of third reading

        AN ACT to amend the civil practice law and rules, in relation to prohib-
          iting certain judgments by confession; and prohibiting certain  finan-
          cial institutions from using a marshal to execute certain judgments

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

     1    Section 1. The opening paragraph of subdivision (a) of section 3218 of
     2  the civil practice law and rules, as amended by chapter 311 of the  laws
     3  of  1963,  is  amended  and  a  new  subdivision (e) is added to read as
     4  follows:
     5    Except as provided in section thirty-two hundred one of  this  article
     6  and  subdivision  (e)  of  this section, a judgment by confession may be
     7  entered, without an action, either for money due or to become due, or to
     8  secure the plaintiff against a contingent liability  in  behalf  of  the
     9  defendant, or both, upon an affidavit executed by the defendant;
    10    (e)  Prohibition  on  certain  judgments by confession. No judgment by
    11  confession may be:
    12    1. entered on  any  amount  due  from  one  or  more  individuals  for
    13  personal,  family,  household,  consumer,  investment,  or  non-business
    14  purposes;
    15    2. entered on any amount under two hundred fifty thousand dollars  due
    16  from any person for any purpose;
    17    3.  required  at  the  time  a loan is originated or as a condition of
    18  receiving a loan; or
    19    4. entered on any amount due from a person that:
    20    (i) is currently a nonresident of the state;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03324-04-9

        S. 3851--A                          2

     1    (ii) was a nonresident of the state at the time the affidavit  author-
     2  izing entry of the judgment by confession was executed; or
     3    (iii)  is  not  an individual, does not operate a place of business in
     4  the state, or did not operate a place of business in the  state  at  the
     5  time  the  affidavit authorizing entry of the judgment by confession was
     6  executed.
     7    § 2. Notwithstanding any provision of law to the  contrary,  financial
     8  institutions that offer any financial product or service shall not use a
     9  marshal,  as  allowed  for  pursuant  to paragraph b of subdivision 1 of
    10  section 1609 of the New York city  civil  court  act,  for  purposes  of
    11  executing any money judgment relating to a confession of judgment.
    12    § 3. This act shall take effect immediately.
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