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Assembly Bill A7930A

2015-2016 Legislative Session

Limits loan assignee liability with regard to motor vehicle retail installment contracts

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

2015-A7930 - Details

See Senate Version of this Bill:
S5506
Current Committee:
Assembly Codes
Law Section:
Personal Property Law
Laws Affected:
Amd §302, Pers Prop L
Versions Introduced in 2017-2018 Legislative Session:
A5311, A8098, S5152

2015-A7930 - Summary

Limits loan assignee liability with regard to motor vehicle retail installment contracts.

2015-A7930 - Bill Text download pdf 

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

                                  7930

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 1, 2015
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

AN ACT to amend the personal property law, in relation to holders in due
  course and loan assignees; and to amend the financial services law, in
  relation  to  authorizing  the superintendent of financial services to
  promulgate regulations  governing  motor  vehicle  retail  installment
  contracts

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

  Section 1. Subdivision 9 of section 302 of the personal property  law,
as  amended  by  chapter  643 of the laws of 1978, is amended to read as
follows:
  9. (A) No retail instalment contract shall contain  any  provision  by
which  the  buyer  agrees  not  to assert against an assignee a claim or
defense arising out of the sale or require or entail  the  execution  of
any  note  or series of notes, which when separately negotiated will cut
off as to third parties any right of action or defense which  the  buyer
may  have  against  the  seller.  The  assignee  of a retail installment
contract or obligation shall be subject to all claims  and  defenses  of
the  buyer  against the seller arising from the sale notwithstanding any
agreement to the contrary,  but  the  assignee's  liability  under  this
subdivision  shall  not  exceed  the amount owing to the assignee at the
time the claim or defense is asserted against the assignee.
  (B) LIMITATIONS ON ASSIGNEE LIABILITY AND LIABILITY FOR HOLDERS IN DUE
COURSE SHALL BE EXCLUSIVE OF ANY REASONABLE COSTS  AND  ATTORNEY'S  FEES
ALLOWED  UNDER ANY FEDERAL OR STATE CONSUMER PROTECTION STATUTE. A COURT
MAY AWARD REASONABLE ATTORNEY'S FEES TO PREVAILING PLAINTIFFS  IN  CASES
AGAINST LOAN ASSIGNEES AND HOLDERS IN DUE COURSE.
  (C)  IN  CASES  WHERE  LENDERS  ARE  AWARE OF FRAUD IN A MOTOR VEHICLE
FINANCING  TRANSACTION,  AND  DO  NOT  TAKE  ACTION  TO   MITIGATE   THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10906-03-5

2015-A7930A (ACTIVE) - Details

See Senate Version of this Bill:
S5506
Current Committee:
Assembly Codes
Law Section:
Personal Property Law
Laws Affected:
Amd §302, Pers Prop L
Versions Introduced in 2017-2018 Legislative Session:
A5311, A8098, S5152

2015-A7930A (ACTIVE) - Summary

Limits loan assignee liability with regard to motor vehicle retail installment contracts.

2015-A7930A (ACTIVE) - Bill Text download pdf 

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

                                 7930--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 1, 2015
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee  on  Consumer Affairs and Protection -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN ACT to amend the personal property law, in relation to loan assignees

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

  Section 1. Subdivision 9 of section 302 of the personal property  law,
as  amended  by  chapter  643 of the laws of 1978, is amended to read as
follows:
  9. (A) No retail instalment contract shall contain  any  provision  by
which  the  buyer  agrees  not  to assert against an assignee a claim or
defense arising out of the sale or require or entail  the  execution  of
any  note  or series of notes, which when separately negotiated will cut
off as to third parties any right of action or defense which  the  buyer
may  have  against  the  seller.  The  assignee  of a retail installment
contract or obligation shall be subject to all claims  and  defenses  of
the  buyer  against the seller arising from the sale notwithstanding any
agreement to the contrary,  but  the  assignee's  liability  under  this
subdivision  shall  not  exceed  the amount owing to the assignee at the
time the claim or defense is asserted against the assignee.
  (B) LIMITATIONS ON ASSIGNEE LIABILITY REFERRED TO IN PARAGRAPH (A)  OF
THIS  SUBDIVISION  SHALL BE EXCLUSIVE OF ANY REASONABLE COSTS AND ATTOR-
NEY'S FEES THE COURT MAY AWARD.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10906-05-5

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