STATE OF NEW YORK
________________________________________________________________________
2632
2021-2022 Regular Sessions
IN SENATE
January 22, 2021
___________
Introduced by Sens. SANDERS, KAPLAN, MAYER, PARKER -- read twice and
ordered printed, and when printed to be committed to the Committee on
Consumer Protection
AN ACT to amend the general business law, in relation to prohibiting the
inclusion of a confession of judgment in a contract or agreement for a
financial product or service
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 394-bb to read as follows:
3 § 394-bb. Confession of judgment requirement for certain contracts;
4 prohibition. 1. No person shall require a confession of judgment in any
5 contract or agreement for a financial product or service.
6 2. As used in this section the following terms shall have the follow-
7 ing meanings:
8 (a) "Financial product or service" shall mean any financial product or
9 financial service offered or provided by any person regulated or
10 required to be regulated by the superintendent of financial services
11 pursuant to the banking law or the insurance law or any financial prod-
12 uct or service offered or sold to consumers except financial products or
13 services: (i) regulated under the exclusive jurisdiction of a federal
14 agency or authority, (ii) regulated for the purpose of consumer or
15 investor protection by any other state agency, state department or state
16 public authority, or (iii) where rules or regulations promulgated by the
17 superintendent of financial services on such financial product or
18 service would be preempted by federal law.
19 (b) "Financial product or service regulated for the purpose of consum-
20 er or investor protection": (i) shall include (A) any product or service
21 for which registration or licensing is required or for which the offeror
22 or provider is required to be registered or licensed by state law, (B)
23 any product or service as to which provisions for consumer or investor
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04869-01-1
S. 2632 2
1 protection are specifically set forth for such product or service by
2 state statute or regulation and (C) securities, commodities and real
3 property subject to the provisions of article twenty-three-A of this
4 chapter, and (ii) shall not include products or services solely subject
5 to other general laws or regulations for the protection of consumers or
6 investors.
7 § 2. This act shall take effect on the ninetieth day after it shall
8 have become a law.
