Bill Text: NY S05506 | 2015-2016 | General Assembly | Amended

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2016-05-24 - referred to codes [S05506 Detail]

Download: New_York-2015-S05506-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5506--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 14, 2015
                                      ___________
       Introduced by Sens. SAVINO, KLEIN -- read twice and ordered printed, and
         when  printed  to be committed to the Committee on Consumer Protection
         -- committee discharged, bill amended, ordered  reprinted  as  amended
         and recommitted to said committee
       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    S 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.
                                                                  LBD10906-04-5