senate Bill S438

Amended

Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with proper clerk

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 05 / Jan / 2011
    • REFERRED TO CODES
  • 08 / Mar / 2011
    • COMMITTEE DISCHARGED AND COMMITTED TO JUDICIARY
  • 04 / Jan / 2012
    • REFERRED TO JUDICIARY
  • 23 / May / 2012
    • AMEND AND RECOMMIT TO JUDICIARY
  • 23 / May / 2012
    • PRINT NUMBER 438A
  • 05 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 12 / Jun / 2012
    • REPORTED AND COMMITTED TO RULES
  • 12 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1162
  • 12 / Jun / 2012
    • AMENDED ON THIRD READING (T) 438B
  • 21 / Jun / 2012
    • RECOMMITTED TO RULES

Summary

Increases penalties for failure to execute and file satisfied judgments of $5,000 or more with court clerk from $100 to $500.

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Bill Details

Versions:
S438
S438A
S438B
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Civil Practice Law and Rules
Laws Affected:
Amd ยง5020, CPLR
Versions Introduced in 2009-2010 Legislative Cycle:
S5219

Sponsor Memo

BILL NUMBER:S438

TITLE OF BILL:

An act
to amend the civil practice law and rules, in relation to increasing
penalties for failure to execute and file satisfied judgments with the
court clerk

PURPOSE:

This bill would raise the fine (from $100 to $1000) on people who do
not execute and file satisfied judgments with the court clerk. The
goal is to encourage individuals to file so that it will be less
likely that someone will have false strikes on their credit report.

SUMMARY OF PROVISIONS:

Section one amends subdivision (c) of section 5020 of the civil
practice law a rules to raise the fine for failing to execute and
file a satisfied judgment with the proper clerk from one hundred to
one thousand dollars.

Section two sets out the effective date.

JUSTIFICATION:

This bill amends the Civil Practice Law and Rules and affects every
civil judgment.
Under current law, an individual who receives a satisfied judgement
from the court must file a satisfaction of judgment. Most entities
such as credit card companies do this as a matter of standard
business practice because such satisfactions (or lack thereat) are
picked up by credit bureaus. If the entity does not file a
satisfaction (even if they got one) and the credit bureau picks it
up, then the credit rating of the individual involved in the dispute
is affected.

At issue now is the fact that the judgments in housing court and
elsewhere are starting to be picked up by credit rating agencies.
However, many landlords often fail to file a satisfaction of judgment
and so judgments can end up on a tenant's credit report as unpaid,
even if that is not true. This bad credit rating disproportionately
affects low income citizens because it means that they must pay more
for things such as credit cards, car loans and mortgages.

This legislation will most likely affect housing disputes since most
other businesses automatically file a satisfaction of judgment. The
goal is to increase tines and therefore give landlords and other
entities a greater incentive to remember to file satisfactions of
judgment. This will result in a decrease in the number of individuals
whose credit ratings are affected by a claimant's failure to file a
satisfaction of judgment.

LEGISLATIVE HISTORY:a


S.5219 - A.7922 Rosenthal

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall become a law.

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

                                   438

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Codes

AN ACT to amend the  civil  practice  law  and  rules,  in  relation  to
  increasing  penalties  for failure to execute and file satisfied judg-
  ments with the court clerk

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

  Section  1.  Subdivision (c) of section 5020 of the civil practice law
and rules, as amended by chapter 575 of the laws of 1975, is amended  to
read as follows:
  (c)  When  the  judgment is fully satisfied, if the person required to
execute and file with the proper clerk pursuant to subdivisions (a)  and
(d)  [hereof]  OF  THIS  SECTION fails or refuses to do so within twenty
days after receiving full satisfaction, then the judgment creditor shall
be subject to a penalty of one [hundred] THOUSAND dollars recoverable by
the judgment debtor pursuant to [Section 7202 of the civil practice  law
and  rules]  SECTION  SEVENTY-TWO HUNDRED TWO OF THIS CHAPTER or article
eighteen of either the New York City civil court act,  uniform  district
court act or uniform city court act; provided, however, that such penal-
ty  shall  not be recoverable when a city with a population greater than
one million persons is the judgment creditor, unless such judgment cred-
itor shall fail to execute and file a satisfaction-piece with the proper
clerk pursuant to subdivisions (a) and  (d)  [hereof]  OF  THIS  SECTION
within  twenty days after having been served by the judgment debtor with
a written demand therefor by certified mail, return receipt requested.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01836-01-1

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