Bill Text: NY S05152 | 2017-2018 | General Assembly | Introduced

New York Senate Bill 5152 (Prior Session Legislation)

Introduced

Bill Title: Limits loan assignee liability with regard to motor vehicle retail installment contracts.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2017-12-18 - SIGNED CHAP.487 [S05152 Detail]

Download: New_York-2017-S05152-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________
                                          5152
                               2017-2018 Regular Sessions
                    IN SENATE
                                      March 9, 2017
                                       ___________
        Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection
        AN ACT to amend the personal property law, in relation to loan assignees
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Subdivision 9 of section 302 of the personal property law,
     2  as amended by chapter 643 of the laws of 1978, is  amended  to  read  as
     3  follows:
     4    9.  (a)  No  retail instalment contract shall contain any provision by
     5  which the buyer agrees not to assert against  an  assignee  a  claim  or
     6  defense  arising  out  of the sale or require or entail the execution of
     7  any note or series of notes, which when separately negotiated  will  cut
     8  off  as  to third parties any right of action or defense which the buyer
     9  may have against the  seller.  The  assignee  of  a  retail  installment
    10  contract  or  obligation  shall be subject to all claims and defenses of
    11  the buyer against the seller arising from the sale  notwithstanding  any
    12  agreement  to  the  contrary,  but  the  assignee's liability under this
    13  subdivision shall not exceed the amount owing to  the  assignee  at  the
    14  time the claim or defense is asserted against the assignee.
    15    (b)  Limitations on assignee liability referred to in paragraph (a) of
    16  this subdivision shall be exclusive of any reasonable costs  and  attor-
    17  ney's fees the court may award.
    18    §  2. This act shall take effect on the first of January next succeed-
    19  ing the date on which it shall have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03767-01-7