S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7616

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 11, 2011
                               ___________

Introduced by M. of A. GIBSON -- read once and referred to the Committee
  on Consumer Affairs and Protection

AN  ACT  to  amend  the  general  business law, in relation to notice of
  delinquency requirements

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  600  of  the  general business law is amended by
adding a new subdivision 4 to read as follows:
  4. "CO-SIGNER" MEANS A NATURAL PERSON WHO (I) IN THE CASE OF A CONSUM-
ER CREDIT TRANSACTION BECOMES OBLIGATED ON THE TRANSACTION AS A  CO-SIG-
NER,  CO-MAKER,  GUARANTOR, ENDORSER OR SURETY, BUT WHO DOES NOT RECEIVE
THE PROPERTY, SERVICES, OR MONEY THAT IS THE SUBJECT OF THE TRANSACTION.
THE TERM DOES NOT INCLUDE A SELLER, HOLDER OR LENDER WHO  BECOMES  OBLI-
GATED  TO  AN  ASSIGNEE OF SUCH PARTY'S RIGHTS; OR (II) IN THE CASE OF A
CONSUMER CREDIT ACCOUNT BECOMES  OBLIGATED  UNDER  THE  AGREEMENT  AS  A
CO-SIGNER,  CO-MAKER,  GUARANTOR, ENDORSER OR SURETY WITH RESPECT EITHER
TO ALL PURCHASES AND LOANS, OR A  SPECIFIED  MAXIMUM  DOLLAR  AMOUNT  OF
PURCHASES  AND LOANS THAT WILL BE OBTAINED FROM TIME TO TIME PURSUANT TO
THE AGREEMENT WHETHER OR NOT IT IS CONTEMPLATED THAT THE  CO-SIGNER  MAY
RECEIVE  ANY OF THE PROPERTY, SERVICES OR MONEY TO BE OBTAINED. THE TERM
DOES NOT INCLUDE A SELLER, HOLDER OR LENDER WHO BECOMES OBLIGATED TO  AN
ASSIGNEE  OF  SUCH PARTY'S RIGHTS OR A JOINT APPLICANT FOR CREDIT WHO IS
INTENDED TO BE PRIMARILY LIABLE UNDER THE AGREEMENT.
  S 2. The general business law is amended by adding a new section 601-a
to read as follows:
  S 601-A. NOTICE OF DELINQUENCY. EVERY PRINCIPAL CREDITOR OR HIS OR HER
AGENT SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR ADVIS-
ING THE DEBTOR OF A DELINQUENCY ON HIS OR HER ACCOUNT. A  COPY  OF  SUCH
NOTICE SHALL ALSO BE SENT TO THE CO-SIGNER OF SUCH ACCOUNT.
  S  3. This act shall take effect on the first of January next succeed-
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.
                                                           LBD01600-01-1