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

                                  8007

                            I N  S E N A T E

                              June 3, 2016
                               ___________

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

AN ACT to amend the uniform commercial code, the civil practice law  and
  rules, the lien law, the general obligations law, the banking law, the
  general  business  law,  the  arts  and  cultural  affairs law and the
  personal property law, in relation to making technical corrections  to
  conform with revisions to the uniform commercial code

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

  Section 1. Paragraph (g) of subsection 1 of  section  4-A-105  of  the
uniform commercial code, as added by chapter 208 of the laws of 1990, is
amended to read as follows:
(g) "Prove"  with  respect  to a fact means to meet the burden of estab-
       lishing the fact (subsection (B)(8) of section [1-201] 1--201).
  S 2. Subsection 1 of section 4-A-106 of the uniform  commercial  code,
as  added  by  chapter  208  of  the laws of 1990, is amended to read as
follows:
  (1) The time of receipt of a payment order or communication cancelling
or amending a payment order is determined by  the  rules  applicable  to
receipt  of  a  notice  stated  in  [subsection (27) of] Section [1-201]
1--202.  A receiving bank may fix a cut-off time or times  on  a  funds-
transfer  business  day for the receipt and processing of payment orders
and communications cancelling  or  amending  payment  orders.  Different
cut-off times may apply to payment orders, cancellations, or amendments,
or  to  different categories of payment orders, cancellations, or amend-
ments. A cut-off time may apply to senders generally or  different  cut-
off  times  may  apply  to  different  senders  or categories of payment
orders. If a payment order or communication  cancelling  or  amending  a
payment  order  is received after the close of a funds-transfer business
day or after the appropriate cut-off time on a  funds-transfer  business
day,  the receiving bank may treat the payment order or communication as
received at the opening of the next funds-transfer business day.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15761-01-6

              

S. 8007                             2

  S 3. Subsection 2 of section 4-A-204 of the uniform  commercial  code,
as  added  by  chapter  208  of  the laws of 1990, is amended to read as
follows:
  (2)  Reasonable time under subsection (1) may be fixed by agreement as
stated in subsection [(1)] (B) of Section [1-204] 1--302, but the  obli-
gation  of  a  receiving  bank to refund payment as stated in subsection
[(1)] (B) may not otherwise be varied by agreement.
  S 4. Subsection (c) of section 5--103 of the uniform commercial  code,
as  added  by  chapter  471  of  the laws of 2000, is amended to read as
follows:
  (c) With the exception of this subsection, subsections (a) and (d)  of
this  section,  paragraphs  (9)  and  (10)  of subsection (a) of section
5--102, subsection (d) of section 5--106, and subsection (d) of  section
5--114,  and  except  to  the  extent  prohibited in [subsection (3) of]
section [1--102] 1--302 and subsection (d) of section 5--117, the effect
of this article may be varied by agreement or by a provision  stated  or
incorporated  by  reference in an undertaking. A term in an agreement or
undertaking generally excusing liability or generally limiting  remedies
for failure to perform obligations is not sufficient to vary obligations
prescribed by this article.
  S 5. Subdivision (c) of rule 4518 of the civil practice law and rules,
as  amended  by  chapter  170 of the laws of 1994, is amended to read as
follows:
  (c) Other records. All records, writings and other things referred  to
in sections 2306 and 2307 are admissible in evidence under this rule and
are  prima  facie  evidence of the facts contained, provided they bear a
certification or authentication by the head of the hospital, laboratory,
department or bureau of a municipal corporation or of the state,  or  by
an  employee  delegated  for  that  purpose or by a qualified physician.
Where a hospital record is in the custody of  a  warehouse[,  or  "ware-
houseman"] as that term is defined by paragraph [(h) of subdivision one]
THIRTEEN  OF  SUBSECTION  (A)  of  section [7-102] 7--102 of the uniform
commercial code, pursuant to a plan approved in  writing  by  the  state
commissioner  of  health,  admissibility  under  this subdivision may be
established by a certification made by the manager of the warehouse that
sets forth (i) the authority by which the record is held, including  but
not  limited  to  a  court order, order of the commissioner, or order or
resolution of the governing body or official of the hospital,  and  (ii)
that  the record has been in the exclusive custody of such warehouse [or
warehousemen] since its receipt from the hospital or, if another has had
access to it, the name and address of such person and the date on  which
and  the  circumstances under which such access was had. Any [warehouse-
man] WAREHOUSE providing a certification as required by this subdivision
shall have no liability for acts or omissions relating  thereto,  except
for  intentional misconduct, and the [warehouseman] WAREHOUSE is author-
ized to assess and collect a reasonable charge for providing the certif-
ication described by this subdivision.
  S 6. Section 200 of the lien law, as amended by chapter 30 of the laws
of 1968, is amended to read as follows:
  S 200. Sale of personal property to satisfy a  lien.  A  lien  against
personal  property,  other  than  the lien of a [warehouseman] WAREHOUSE
pursuant to section 7--209 of the uniform commercial code, the lien of a
carrier pursuant to section 7--307 of the  uniform  commercial  code,  a
security  interest  in goods and the lien of a keeper of a hotel, apart-
ment hotel, inn, boarding-house or lodging-house,  except  an  immigrant
lodging-house,  if  in the legal possession of the lienor, may be satis-

S. 8007                             3

fied by the sale of such property according to the  provisions  of  this
article.
  S  7.  Subdivision 1 of section 5-1401 of the general obligations law,
as added by chapter 421 of the laws of  1984,  is  amended  to  read  as
follows:
  1.  The  parties to any contract, agreement or undertaking, contingent
or otherwise, in consideration of, or relating to any obligation arising
out of a transaction covering in the aggregate not less than two hundred
fifty thousand dollars, including a  transaction  otherwise  covered  by
subsection [one] (A) of section [1-105] 1--301 of the uniform commercial
code, may agree that the law of this state shall govern their rights and
duties  in  whole or in part, whether or not such contract, agreement or
undertaking bears a reasonable relation  to  this  state.  This  section
shall  not apply to any contract, agreement or undertaking (a) for labor
or personal services, (b) relating  to  any  transaction  for  personal,
family  or  household  services,  or  (c)  to the extent provided to the
contrary in subsection [two]  (C)  of  section  [1-105]  1--301  of  the
uniform commercial code.
  S  8. Subdivision 1-c of section 7-101 of the general obligations law,
as amended by chapter 84 of the laws of 2001,  is  amended  to  read  as
follows:
  1-c.  This  section  shall  apply  to  money  deposited or advanced on
contracts for the use or rental of personal  property  as  security  for
performance  of  the  contract  or  to  be applied to payments upon such
contract when due, only if (a) such contract is governed by the laws  of
this  state as the result of a choice of law provision in such contract,
in accordance with section [1-105] 1--301 of the uniform commercial code
(subject to the limitations on choice of law by the parties to a consum-
er lease under section 2-A-106 of the uniform commercial code), or  such
contract  is  otherwise governed by the laws of this state in accordance
with applicable conflict of laws rules, and (b) the  lessee  under  such
contract is located within this state, within the meaning of the uniform
commercial code (with respect to the location of debtors), except that a
foreign  air carrier under the Federal Aviation Act of 1958, as amended,
shall not be deemed located in this state solely as a result of having a
designated office of an agent upon whom service of process may  be  made
located in this state.
  S  9.  Subdivisions  1  and  2  of  section 138 of the banking law, as
amended by chapter 689 of the laws of  1984,  are  amended  to  read  as
follows:
  1.  Notwithstanding  section  [1-105] 1--301 of the uniform commercial
code, any bank or trust company or national bank located in  this  state
which  in  accordance  with  the provisions of this chapter or otherwise
applicable law shall have opened and occupied a branch office or  branch
offices  in  any  foreign  country  shall  be liable for contracts to be
performed at such branch office or offices and for deposits to be repaid
at such branch office or offices to no greater extent than a bank, bank-
ing  corporation  or  other  organization  or  association  for  banking
purposes  organized  and existing under the laws of such foreign country
would be liable under its laws. The laws of such foreign country for the
purpose of this section shall be deemed to include  all  acts,  decrees,
regulations  and  orders promulgated or enforced by a dominant authority
asserting governmental, military or police power  of  any  kind  at  the
place where any such branch office is located, whether or not such domi-
nant authority be recognized as a de facto or de jure government.

S. 8007                             4

  2.  Notwithstanding  section  [1-105] 1--301 of the uniform commercial
code, if by action of any such dominant authority which  is  not  recog-
nized  by  the  United  States  as the de jure government of the foreign
territory concerned, any property  situated  in  or  any  amount  to  be
received in such foreign territory and carried as an asset of any branch
office  of  such  bank or trust company or national bank in such foreign
territory is seized, destroyed or cancelled, then the liability of  such
bank  or  trust  company  or  national  bank for any deposit theretofore
received and thereafter to be repaid by it, and for any contract  there-
tofore  made  and thereafter to be performed by it, at any branch office
in such foreign territory shall be reduced pro tanto by  the  proportion
that  the  value (as shown by the books or other records of such bank or
trust company or national bank at the time of such seizure,  destruction
or cancellation) of such assets bears to the aggregate of all the depos-
it and contract liabilities of the branch office or offices of such bank
or trust company or national bank in such foreign territory, as shown at
such time by the books or other records of such bank or trust company or
national bank.
  S  10. Paragraphs (a) and (b) of subdivision 3 of section 204-a of the
banking law, as amended by chapter 552 of the laws of 1962, are  amended
to read as follows:
  (a)  Notwithstanding  section [1-105] 1--301 of the uniform commercial
code, any foreign banking corporation doing business in this state under
a license issued by the superintendent in accordance with the provisions
of this chapter shall be liable  in  this  state  for  contracts  to  be
performed  at  its  office  or  offices  in any foreign country, and for
deposits to be repaid at such office or offices, to  no  greater  extent
than  a  bank,  banking corporation or other organization or association
for banking purposes organized and  existing  under  the  laws  of  such
foreign country would be liable under its laws. The laws of such foreign
country  for  the purpose of this subdivision shall be deemed to include
all acts, decrees, regulations and orders promulgated or enforced  by  a
dominant  authority  asserting governmental, military or police power of
any kind at the place where any such office is located, whether  or  not
such  dominant  authority be recognized as a de facto or de jure govern-
ment.
  (b) Notwithstanding section [1-105] 1--301 of the  uniform  commercial
code,  if  by  action of any such dominant authority which is not recog-
nized by the United States as the de  jure  government  of  the  foreign
territory  concerned,  any  property  situated  in  or  any amount to be
received in such foreign territory and carried as an asset of any office
of such foreign banking corporation in such foreign territory is seized,
destroyed or cancelled, then the liability, if any,  in  this  state  of
such  foreign  banking  corporation for any deposit theretofore received
and thereafter to be repaid by it, and for any contract theretofore made
and thereafter to be performed by it, at  any  office  in  such  foreign
territory  shall  be  reduced pro tanto by the proportion that the value
(as shown by the books or other records of such foreign  banking  corpo-
ration,  at  the  time  of such seizure, destruction or cancellation) of
such assets bears to the aggregate  of  all  the  deposit  and  contract
liabilities of the office or offices of such foreign banking corporation
in  such  foreign territory, as shown at such time by the books or other
records of such foreign banking corporations. Nothing contained in  this
paragraph  shall  diminish or otherwise affect the liability of any such
foreign banking corporation to any corporation, firm or individual which

S. 8007                             5

at the time of such seizure, destruction or  cancellation  was  incorpo-
rated or resident in any state of the United States.
  S  11. Subdivision 4 of section 11.01 of the arts and cultural affairs
law, as added by chapter 849 of the laws of 1984, is amended to read  as
follows:
  4.  "Creditors"  means  "creditor"  as defined in [subdivision twelve]
PARAGRAPH THIRTEEN of SUBSECTION (B) OF section [1-201]  1--201  of  the
uniform [commerical] COMMERCIAL code.
  S  12.  Subdivision  5 of section 331 of the personal property law, as
added by chapter 1 of the laws of 1994, is amended to read as follows:
  5. "Retail lease agreement" or "agreement" means an agreement, entered
into in this state, for the lease of a  motor  vehicle,  and  which  may
include  the  purchase  of  goods  or  services incidental thereto, by a
retail lessee for a scheduled term exceeding four months, whether or not
the lessee has the option to purchase or otherwise become the  owner  of
the  vehicle  at the expiration of the agreement. The term includes such
an agreement wherever entered into if executed by  the  lessee  in  this
state and if solicited in person by a person acting on his own behalf or
that  of  the  lessor.  The  term  does  not include a retail instalment
contract or a rental-purchase agreement as defined in articles nine  and
eleven  of  this  chapter. An agreement that substantially complies with
this article does not create a security interest in a motor  vehicle  as
the  term  "security  interest" is defined in [subdivision thirty-seven]
PARAGRAPH THIRTY-FIVE of SUBSECTION (B) OF section [1-201] 1--201 of the
uniform commercial code.
  S 13. Paragraph (e) of subdivision 7 of section 399-w of  the  general
business  law, as amended by chapter 140 of the laws of 1995, is amended
to read as follows:
  (e) "Retail  lease  agreement"  or  "agreement"  means  an  agreement,
entered into in this state, for the lease of goods and which may include
the  purchase  of goods or services incidental thereto by a lessee for a
scheduled term exceeding four months, whether or not the lessee has  the
option  to  purchase  or  otherwise become the owner of the goods at the
expiration of the agreement. The term includes such an agreement wherev-
er entered into if executed by the lessee in this state and if solicited
in person by a person acting on his or her own behalf  or  that  of  the
lessor.  The  term  does  not  include a retail instalment contract or a
rental-purchase agreement as defined in articles ten and eleven  of  the
personal  property  law.  An  agreement that substantially complies with
this article does not create a security interest in  the  goods  as  the
term  "security interest" is defined in [subdivision thirty-seven] PARA-
GRAPH THIRTY-FIVE of SUBSECTION (B) OF section  [1-201]  1--201  of  the
uniform commercial code.
  S  14.  Subdivision  6 of section 500 of the personal property law, as
amended by chapter 309 of the laws  of  2010,  is  amended  to  read  as
follows:
  6.  "Rental-purchase  agreement"  means  an  agreement  for the use of
merchandise by a consumer for primarily personal, family,  or  household
purposes,  for an initial period of four months or less, that is renewa-
ble with each payment after the initial  period  and  that  permits  the
consumer to become the owner of the property. An agreement that complies
with this article is not a retail installment sales contract, agreement,
or  obligation  as  defined  in  this chapter nor a security interest as
defined  in  [subdivision  thirty-seven]    PARAGRAPH   THIRTY-FIVE   of
SUBSECTION (B) OF section [1-201] 1--201 of the uniform commercial code.
  S 15. This act shall take effect immediately.