senate Bill S4036

2013-2014 Legislative Session

Prohibits foreign banking corporations from issuing payday loans

download bill text pdf

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Archive: Last Bill Status - In Senate Committee


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to banks
Mar 05, 2013 referred to banks

S4036 - Details

See Assembly Version of this Bill:
A2962
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §202-k, Bank L; add §5-532, Gen Ob L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A3288
2009-2010: A1484

S4036 - Summary

Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for (i) a consumer's personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or (ii) a consumer's authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.

S4036 - Sponsor Memo

S4036 - Bill Text download pdf

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

                                  4036

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 5, 2013
                               ___________

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

AN ACT to amend the banking law and  the  general  obligations  law,  in
  relation  to prohibiting foreign banking corporations from engaging in
  high-cost payday loans

  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 202-k to
read as follows:
  S  202-K.  PROHIBITION  OF PAYDAY LOANS.  1. NO FOREIGN BANKING CORPO-
RATION SHALL MAKE ANY PAYDAY LOAN, EITHER  DIRECTLY  OR  INDIRECTLY,  OR
MAKE  ANY  LOAN  TO  ANY OTHER LENDER FOR PURPOSES OF FINANCING A PAYDAY
LOAN OR REFINANCING OR EXTENDING ANY PAYDAY LOAN.
  2. FOR PURPOSES OF THIS SECTION "PAYDAY LOAN" MEANS ANY TRANSACTION IN
WHICH A SHORT-TERM CASH ADVANCE IS MADE TO A CONSUMER  IN  EXCHANGE  FOR
(I)  A  CONSUMER'S  PERSONAL  CHECK  OR SHARE DRAFT, IN THE AMOUNT OF AN
ADVANCE PLUS A FEE, WHERE PRESENTMENT OR NEGOTIATION OF  SUCH  CHECK  OR
SHARE  DRAFT  IS DEFERRED BY AGREEMENT OF THE PARTIES UNTIL A DESIGNATED
FUTURE DATE; OR (II) A CONSUMER'S AUTHORIZATION TO DEBIT THE  CONSUMER'S
TRANSACTION ACCOUNT, IN THE AMOUNT OF THE ADVANCE PLUS A FEE, WHERE SUCH
ACCOUNT WILL BE DEBITED ON OR AFTER A DESIGNATED FUTURE DATE.
  S  2.  The  general obligations law is amended by adding a new section
5-532 to read as follows:
  S 5-532. PROHIBITION ON PAYDAY LOANS.  1. A CREDITOR MAY  NOT  MAKE  A
PAYDAY  LOAN TO ANY PERSON IF THE CREDITOR KNOWS OR HAS REASONABLE CAUSE
TO BELIEVE THAT:
  A. THE PERSONAL CHECK OR SHARE DRAFT THE CREDITOR  RECEIVES  FROM  THE
PERSON,  IN  EXCHANGE  FOR  THE  LOAN, IS DRAWN ON AN INSURED DEPOSITORY
INSTITUTION OR INSURED CREDIT UNION; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00596-01-3

S. 4036                             2

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