senate Bill S438A

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
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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:S438A

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 OR GENERAL IDEA OF BILL:
This bill would raise the fine (from $100 to $500) 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 SPECIFIC PROVISIONS:
Section one amends subdivision (c) of
section 5020 of the civil practice law and 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 Civil Practice Law and Rules and
affects every civil judgment. Under current law, an individual who
receives a satisfied judgment 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 thereof) 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 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 fines 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.

PRIOR LEGISLATIVE HISTORY:
A.7922 of 2010

FISCAL IMPLICATIONS:
None.


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

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

                                 438--A

                       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  --  recommitted  to
  the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

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] FIVE hundred 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 eigh-
teen of either the New York City civil court act, uniform district court
act or uniform city court act;  provided,  however,  that  such  penalty
shall  not be recoverable when a city with a population greater than one
million persons is the judgment creditor, unless such judgment  creditor
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.
                                                           LBD01836-03-2

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