S T A T E O F N E W Y O R K
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4419
2009-2010 Regular Sessions
I N A S S E M B L Y
February 4, 2009
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Introduced by M. of A. TOWNS -- read once and referred to the Committee
on Banks
AN ACT to amend the banking law, in relation to the maximum rate of
interest on credit cards
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The banking law is amended by adding a new section 14-g to
read as follows:
S 14-G. POWER OF THE BANKING BOARD TO PRESCRIBE MAXIMUM RATE OF
INTEREST ON CREDIT CARDS. 1. AS USED IN THIS SECTION, THE TERM "CREDIT
CARD" SHALL MEAN ANY CREDIT PLATE, CHARGE PLATE OR OTHER IDENTIFICATION
CARD OR DEVICE WHICH IS ISSUED TO ANY LEGAL ENTITY AS THE HOLDER THERE-
OF, AND MAY BE USED BY SUCH HOLDER TO OBTAIN A CASH ADVANCE OR A LOAN OR
CREDIT, OR TO PURCHASE OR RENT PROPERTY OR SERVICES ON THE CREDIT OF THE
ISSUER OR OF THE HOLDER.
2. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE BANKING BOARD SHALL SET THE MAXIMUM RATE OF
INTEREST FOR CREDIT CARDS, NOT TO EXCEED EIGHTEEN PERCENT ANNUALLY.
SUCH RATE MAY ONLY EXCEED EIGHTEEN PERCENT IF THE PRIME RATE EXCEEDS
EIGHTEEN PERCENT FOR SIXTY CONSECUTIVE DAYS, BUT IN NO EVENT SHALL SUCH
NEW RATE ESTABLISHED BY THE BANKING BOARD BE MORE THAN ONE AND ONE-QUAR-
TER PERCENT ABOVE THE PRIME RATE IN EFFECT AT THE TIME SUCH RATE IS SET.
3. NO PERSON, FIRM OR CORPORATION SHALL, DIRECTLY OR INDIRECTLY,
CHARGE, TAKE OR RECEIVE ANY MONEY, GOODS OR SERVICES AS INTEREST ON THE
EXTENSION OF CREDIT AT A RATE EXCEEDING THE RATE PRESCRIBED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION.
S 2. This act shall take effect on the thirtieth day after it shall
have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01938-01-9