STATE OF NEW YORK
________________________________________________________________________
5506--A
2015-2016 Regular Sessions
IN SENATE
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 § 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
