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. LBD03324-04-9S. 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.