Senate Bill S1494

2011-2012 Legislative Session

Requires lending institutions that send unsolicited mail-loan checks to clearly state the interest rate and the total cost of loan in a dollar amount

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2011-S1494 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd ยง9-t, Bank L
Versions Introduced in Other Legislative Sessions:
2009-2010: S2285
2013-2014: S2910
2015-2016: S1723
2017-2018: S3076
2019-2020: S4371
2021-2022: S4426
2023-2024: S5283

2011-S1494 (ACTIVE) - Summary

Requires lending institutions that send unsolicited mail-loan checks to clearly state in solicitation letter the interest rate to be applied to such loan and to demonstrate the total cost of loan in a dollar amounts, at interest rate, over periods of six months, one year, and three years.

2011-S1494 (ACTIVE) - Sponsor Memo

2011-S1494 (ACTIVE) - Bill Text download pdf

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

                                  1494

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 7, 2011
                               ___________

Introduced  by  Sens.  PARKER, DUANE, KRUEGER, PERKINS -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Banks

AN  ACT  to  amend  the  banking  law, in relation to full disclosure of
  interest rate on unsolicited mail-loan checks

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

  Section  1.  Subdivision 2 of section 9-t of the banking law, as added
by chapter 309 of the laws of 2002, is amended to read as follows:
  2. Any lending institution which issues mail-loan checks shall:
  (a) include on the face of each check issued to a non-customer a writ-
ten statement, in legible type reading "ONE FORM OF  VALID  PHOTOGRAPHIC
ID  NEEDED TO CASH OR DEPOSIT"; provided, however, that any entity cash-
ing or accepting a mail-loan check for deposit may require more than one
form of identification;
  (b) make no reference on the outside  of  the  envelope  containing  a
mail-loan  check  that  indicates  that  a check is enclosed within such
envelope;
  (c) provide that all mail-loan checks shall be non-transferable; [and]
  (d) include an expiration date of not more  than  six  months  on  the
mail-loan check; AND
  (E)  PROVIDE  IN  LEGIBLE  TYPE  ON THE FRONT PAGE OF THE SOLICITATION
LETTER, THE INTEREST RATE OR RATES TO  BE  APPLIED  TO  SUCH  LOAN,  AND
PROVIDE A TABLE DEMONSTRATING THE TOTAL COST OF SUCH LOAN AT INCREMENTAL
DOLLAR  AMOUNTS,  AT THE OFFERED INTEREST RATE, OVER INCREMENTAL PERIODS
OF TIME OF SIX MONTHS, ONE YEAR, AND THREE YEARS.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01443-01-1


              

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