NY State Senate Bill 2017-S6431A

Archive: Last Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 17, 2018	referred to governmental employees delivered to assembly passed senate
Mar 21, 2018	advanced to third reading
Mar 20, 2018	2nd report cal.
Mar 19, 2018	1st report cal.657
Jan 03, 2018	referred to civil service and pensions returned to senate died in assembly
Jun 13, 2017	referred to governmental employees delivered to assembly passed senate
Jun 12, 2017	ordered to third reading cal.1571 committee discharged and committed to rules
Jun 02, 2017	print number 6431a
Jun 02, 2017	amend and recommit to civil service and pensions
May 18, 2017	referred to civil service and pensions

Votes

- Apr 17, 2018 - Floor Vote
  S6431A
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Apr 17, 2018
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (1)
      
      Croci
  Jun 13, 2017 - Floor Vote
  S6431A
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 13, 2017
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
  Jun 12, 2017 - Rules Committee Vote
  S6431A
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 12, 2017
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Squadron
  Mar 19, 2018 - Civil Service And Pensions Committee Vote
  S6431A
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Civil Service And Pensions Committee Vote: Mar 19, 2018
      
      aye (11)
      
      Addabbo Jr.
      
      Benjamin
      
      Croci
      
      Golden
      
      Lanza
      
      Ortt
      
      Persaud
      
      Phillips
      
      Ritchie
      
      Sanders Jr.
      
      Savino

Bill Amendments

Original

A (Active)

2017-S6431 - Details

See Assembly Version of this Bill:: A8385
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§110 & 410, R & SS L; amd §340, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S1240
2021-2022: S2945

2017-S6431 - Summary

Restricts use of pension assignments and which persons can engage in the business of offering consideration for pensions.

2017-S6431 - Sponsor Memo

                                 BILL NUMBER:  S6431

 TITLE OF BILL :  An act to amend the retirement and social security
law and the banking law, in relation to pension assignments

 PURPOSE OR GENERAL IDEA OF BILL :

Amends the retirement and social security law and the banking law, in
relation to pension assignments

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends the retirement and social security law by
adding a new section 110-e to prohibit pension assignees, as defined,
from trying to evade provisions of the law that prohibit the
execution, garnishment, attachment, or assignment of pension monies.

Section 2 of the bill amends section 340 of the banking law to clarify
that pension advances or agreements of their kind, are deemed to be in
the business of making loans and therefore subject to the licensing
and oversight of the Department of Financial Services.

Section 3 of the bill provides for the effective date.

 JUSTIFICATION :

Pension advances, or financial transactions by which a company gives a
retiree payment in return for some or all of the retiree's future
pension payments have been shown to be increasingly risky and
predatory in nature across the country. Consumer fraud alerts have
been issued from the Financial Industry Regulatory Authority/the
Securities Exchange Commission (May 2013), Federal Trade Commission,
the Consumer Financial Protection Bureau, and states including
Arkansas, California, Indiana, Michigan, and others. In 2014, Missouri
and Vermont became the first states to address these types of
instruments with legislation that prohibited the assignment of pension
benefits payable to public employees and regulated the sales and
oversight of these securities, respectively.

The concern regarding these types of arrangements is warranted. A 2013
review by the New York Times showed that of the two dozen contracts
for pension advances examined, the interest rates ranged from 27 to
106 percent, and were not disclosed in any of the information given to
applicants. To that end,iii 2014, the Government Accountability Office
issued a report cautioning consumers about the practices of pension
advance companies that were specifically targeting government retirees
and vulnerable seniors. As part of their report, the GAO identified 38
companies that had offered these types of products, and 30 of the 38
were affiliated in some way with each other or a parent company.

Unfortunately, the deceptive practices of these companies have also
been felt in New York State. In 2015, the Consumer Financial
Protection Bureau and the New York State Department of Financial
Services filed a lawsuit against two California-based companies,
Pension Funding, LLC, and Pension Income, LLC for using deceptive
practices to prey on seniors. Included in the complaint were
allegations that the companies misrepresented their products as a sale
and not a loan, and also that they failed to disclose and/or
misrepresented the interest rates for their products. In May 2017, it
was announced that Future Income Payments would be repaying more than
$500,000 in refunds to New York pensioners and fines for making loans
without a license as well as charging usurious rates of interest.

While this case has been resolved in a way that has protected New York
retirees, it is imperative that statutory amendments be made to
continue to protect pensioners and bolster the State's oversight
authority. Many companies, like those at issue in New York, classify
their products as advances or sales, rather than loans, in order to
circumvent state usury laws that cap interest rates and provide for
oversight by state entities. This legislation will specify that any
type of arrangement where a business offers consideration for an
interest in all or part of pension proceeds is considered to be a
loan. To that end, the legislation will prohibit the schemes and
devices commonly used by these companies, including deposits in joint
accounts or authorizations through a power of attorney, to avoid
assignment provisions regarding public pension benefits.

According to a 2013 New York Times article, the combined debt of
Americans from the ages of 65 to 74 is rising faster than that of any
other age group. Seniors who are on fixed incomes are consistently
facing increased costs regarding their housing, healthcare, and long
term planning. As a result, pension advances seemingly offer quick
relief to some of the most vulnerable and desperate. Nevertheless,
because of the financial vulnerability of many applicants, as well as
the significant long-term implications of these types of loans, it is
more important that the State be equipped with as much oversight and
regulatory authority to combat predatory practices and lending.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6431 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6431
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2017
                                ___________
 
 Introduced  by  Sen.  SERINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law and  the  banking
   law, in relation to pension assignments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 110-e to read as follows:
   § 110-E. PENSION ASSIGNMENT. A. FOR THE PURPOSES OF THIS SECTION,  THE
 TERM "PENSION ASSIGNEE" SHALL MEAN AN INDIVIDUAL OR ENTITY THAT HAS BEEN
 ASSIGNED  A  PLAN  BENEFIT  OR PORTIONS OF A PLAN BENEFIT BY THE BENEFIT
 RECIPIENT OR THAT OTHERWISE CLAIMS AN INTEREST IN, OR  CONTROL  OVER,  A
 PLAN  BENEFIT OR ACCOUNT TO WHICH A PLAN BENEFIT HAS BEEN DEPOSITED. THE
 TERM "PENSION ASSIGNEE" SHALL NOT INCLUDE AN INDIVIDUAL WHO IS A  DESIG-
 NATED PAYEE UNDER A DOMESTIC RELATIONS ORDER.
   B. EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, A PENSION ASSIGNEE
 SHALL  NOT  USE  ANY DEVICE, SCHEME, TRANSFER OR OTHER ARTIFICE TO EVADE
 THE APPLICABILITY AND PROHIBITION  OF  SUBDIVISIONS  TWO  AND  THREE  OF
 SECTION  ONE  HUNDRED  TEN  OF THIS TITLE, INCLUDING THE DEPOSIT OF SUCH
 PLAN BENEFITS INTO A JOINT  ACCOUNT  WITH  A  PENSION  ASSIGNEE  OR  THE
 AUTHORIZATION  TO  A PENSION ASSIGNEE UNDER A POWER OF ATTORNEY OR OTHER
 INSTRUMENT OR DOCUMENT TO ACCESS AN ACCOUNT OR  OTHERWISE  OBTAIN  FUNDS
 FROM AN ACCOUNT TO WHICH PLAN BENEFITS HAVE BEEN DEPOSITED.
   C.  ANY  CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS SECTION SHALL
 BE VOID. ALL SUMS  PAID  TO  OR  COLLECTED  BY  A  PENSION  ASSIGNEE  IN
 VIOLATION  OF  THIS SECTION SHALL BE RETURNED BY THE PENSION ASSIGNEE TO
 THE BENEFIT RECIPIENT OR HIS OR HER HEIRS OR BENEFICIARIES  AS  RESTITU-
 TION.
   D.  ANY BENEFIT RECIPIENT, HIS OR HER GUARDIAN OR CONSERVATOR, OR HEIR
 OR BENEFICIARY MAY BRING AN ACTION TO ENFORCE  THE  RESTITUTION  AUTHOR-
 IZED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11808-01-7

 S. 6431                             2
 
   §  2.  Section 340 of the banking law, as amended by chapter 22 of the
 laws of 1990, is amended to read as follows:
   § 340.  Doing  business  without  license prohibited. (A) No person or
 other entity shall engage in the business of making loans in the princi-
 pal amount of twenty-five thousand dollars or less for any  loan  to  an
 individual  for  personal, family, household, or investment purposes and
 in a principal amount of fifty thousand dollars or less for business and
 commercial loans, and charge, contract for, or receive a greater rate of
 interest than the lender would be permitted by law to charge if he  were
 not  a licensee hereunder except as authorized by this article and with-
 out first obtaining a license from the superintendent.
   (B) For the purposes of this section, a  person  or  entity  shall  be
 considered  as engaging in the business of making loans in New York, and
 subject to the licensing and other requirements of this article,  if  it
 solicits  loans  in  the  amounts prescribed by this section within this
 state and, in connection with such solicitation, makes loans to individ-
 uals then resident in this state, except that no person or entity  shall
 be  considered as engaging in the business of making loans in this state
 on the basis of isolated, incidental or  occasional  transactions  which
 otherwise meet the requirements of this section.
   (C)  Nothing  in  this article shall apply to licensed collateral loan
 brokers.
   (D) ANY PERSON WHO ENGAGES IN THE BUSINESS OF  OFFERING  CONSIDERATION
 IN EXCHANGE FOR A SECURED INTEREST IN ALL OR PART OF PENSION PROCEEDS IN
 THE  POSSESSION  OF  A  PARTICIPANT, BENEFICIARY, OR MEMBER OF A PENSION
 PLAN, PROGRAM, OR SYSTEM SHALL BE DEEMED TO BE ENGAGED IN  THE  BUSINESS
 OF MAKING LOANS AND SHALL BE SUBJECT TO THE LICENSING AND OTHER REQUIRE-
 MENTS OF THIS ARTICLE.
   § 3. This act shall take effect immediately.

2017-S6431A (ACTIVE) - Details

See Assembly Version of this Bill:: A8385
Current Committee:: Assembly Governmental Employees
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §§110 & 410, R & SS L; amd §340, Bank L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S1240
2021-2022: S2945

2017-S6431A (ACTIVE) - Summary

Restricts use of pension assignments and which persons can engage in the business of offering consideration for pensions.

2017-S6431A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6431A

 TITLE OF BILL :  An act to amend the retirement and social security
law and the banking law, in relation to pension assignments

 PURPOSE OR GENERAL IDEA OF BILL :

Amends the retirement and social security law and the banking law, in
relation to pension assignments

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends section 110 of the retirement and social
security law to prohibit any person or entity from trying to evade
provisions of the law that prohibit the execution, garnishment,
attachment, or assignment of pension monies, except as specifically
provided in this chapter. Also establishes that any contracts made in
violation of this section shall be void and that any money collected
in violation of this section shall be returned.

Section 2 of the bill amends section 410 of the retirement and social
security law to prohibit any person or entity from trying to evade
provisions of the law that prohibit the execution, garnishment,
attachment, or assignment of pension monies, except as specifically
provided in this chapter. Also establishes that any contracts made in
violation of this section shall be void and that any money collected

in violation of this section shall be returned.

Section 3 of the bill amends section 340 of the banking law to clarify
that pension advances or agreements of their kind, are deemed to be in
the business of making loans and therefore subject to the licensing
and oversight of the Department of Financial Services.

Section 4 of the bill provides for the effective date.

 JUSTIFICATION :

Pension advances, or financial transactions by which a company gives a
retiree payment in return for some or all of the retiree's future
pension payments have been shown to be increasingly risky and
predatory in nature across the country. Consumer fraud alerts have
been issued from the Financial Industry Regulatory Authority/the
Securities Exchange Commission (May 2013), Federal Trade Commission,
the Consumer Financial Protection Bureau, and states including
Arkansas, California, Indiana, Michigan, and others. In 2014, Missouri
and Vermont became the first states to address these types of
instruments with legislation that prohibited the assignment of pension
benefits payable to public employees and regulated the sales and
oversight of these securities, respectively.

The concern regarding these types of arrangements is warranted. A 2013
review by the New York Times showed that of the two dozen contracts
for pension advances examined, the interest rates ranged from 27 to
106 percent, and were not disclosed in any of the information given to
applicants. To that end, in 2014, the Government Accountability Office
issued a report cautioning consumers about the practices of pension
advance companies that were specifically targeting government retirees
and vulnerable seniors. As part of their report, the GAO identified 38
companies that had offered these types of products, and 30 of the 38
were affiliated in some way with each other or a parent company.

Unfortunately, the deceptive practices of these companies have also
been felt in New York State. In 2015, the Consumer Financial
Protection Bureau and the New York State Department of Financial
Services filed a lawsuit against two California-based companies,
Pension Funding, LLC, and Pension Income, LLC for using deceptive
practices to prey on seniors. Included in the complaint were
allegations that the companies misrepresented their products as a sale
and not a loan, and also that they failed to disclose and/or
mispresented the interest rates for their products. In May 2017, it
was announced that Future Income Payments would be repaying more than
$500,000 in refunds to New York pensioners and fines for making loans
without a license as well as charging usurious rates of interest.

While this case has been resolved in a way that has protected New York
retirees, it is imperative that statutory amendments be made to
continue to protect pensioners and bolster the State's oversight
authority. Many companies, like those at issue in New York, classify
their products as advances or sales, rather than loans, in order to
circumvent state usury laws that cap interest rates and provide for
oversight by state entities. This legislation will specify that any
type of arrangement where a business offers consideration for an
interest in all or part of pension proceeds is considered to be a
loan. To that end, the legislation will prohibit the schemes and
devices commonly used by these companies, including deposits in joint
accounts or authorizations through a power of attorney, to avoid
assignment provisions regarding public pension benefits.

According to a 2013 New York Times article, the combined debt of
Americans from the ages of 65 to 74 is rising faster than that of any
other age group. Seniors who are on fixed incomes are consistently
facing increased costs regarding their housing, healthcare, and long
term planning. As a result, pension advances seemingly offer quick
relief to some of the most vulnerable and desperate. Nevertheless,
because of the financial vulnerability of many applicants, as well as
the significant long-term implications of these types of loans, it is
more important that the State be equipped with as much oversight and
regulatory authority to combat predatory practices and lending.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6431A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6431--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2017
                                ___________
 
 Introduced  by  Sen.  SERINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT  to amend the retirement and social security law and the banking
   law, in relation to pension assignments
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 110 of the retirement and social security law, as
 amended by chapter 291 of the laws  of  1999,  is  amended  to  read  as
 follows:
   §  110.  Exemption  from  taxes  and  legal process. A. The right of a
 person to a pension, a pension-providing-for-increased-take-home-pay, an
 annuity or a retirement allowance, to the return of  contributions,  the
 pension,  the pension-providing-for-increased-take-home-pay, annuity, or
 retirement allowance itself, any optional benefit, including any benefit
 or monies accruing under an  optional  retirement  program  pursuant  to
 article  eight-B  or one hundred twenty-five-A of the education law, any
 other right accrued or accruing to any person under  the  provisions  of
 this  chapter  and  the monies in the various funds continued under this
 chapter:
   1. Are hereby exempt from any  state  or  municipal  tax,  except  the
 estate tax, and
   2.  Shall not be subject to execution, garnishment, attachment, or any
 other process whatsoever, and
   3. Shall be unassignable,  except  as  in  this  chapter  specifically
 provided.
   B. EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, A PERSON OR ENTITY
 SHALL  NOT  USE  ANY DEVICE, SCHEME, TRANSFER OR OTHER ARTIFICE TO EVADE
 THE APPLICABILITY AND PROHIBITION OR PARAGRAPHS TWO AND THREE OF  SUBDI-
 VISION  A  OF  THIS  SECTION,  INCLUDING THE DEPOSIT OF SUCH BENEFITS OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11808-03-7

 S. 6431--A                          2
 
 FUNDS INTO A JOINT ACCOUNT WITH THE PERSON OR  ENTITY  OR  THE  AUTHORI-
 ZATION  TO A PERSON OR ENTITY UNDER A POWER OF ATTORNEY OR OTHER INSTRU-
 MENT OR DOCUMENT TO ACCESS AN ACCOUNT OR OTHERWISE OBTAIN FUNDS FROM  AN
 ACCOUNT TO WHICH BENEFITS OR FUNDS HAVE BEEN DEPOSITED.
   C.  ANY  CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS SECTION SHALL
 BE VOID. ALL SUMS PAID  TO  OR  COLLECTED  BY  A  PERSON  OR  ENTITY  IN
 VIOLATION  OF  THIS SECTION SHALL BE RETURNED BY THE PERSON OR ENTITY TO
 THE BENEFIT RECIPIENT OR HIS OR HER HEIRS OR BENEFICIARIES  AS  RESTITU-
 TION.
   D.  ANY BENEFIT RECIPIENT, HIS OR HER GUARDIAN OR CONSERVATOR, OR HEIR
 OR BENEFICIARY MAY BRING AN ACTION TO ENFORCE  THE  RESTITUTION  AUTHOR-
 IZED.
   § 2. Section 410 of the retirement and social security law, as amended
 by chapter 549 of the laws of 1983, is amended to read as follows:
   §  410.  Exemption  from  taxes  and  legal process. A. The right of a
 person to a pension, a pension-providing-for-increased-take-home-pay, an
 annuity or a retirement allowance, to the return of  contributions,  the
 pensions, the pension-providing-for-increased-take-home-pay, annuity, or
 retirement  allowance  itself,  any  optional  benefit,  any other right
 accrued or accruing to any person under the provisions of  this  chapter
 and the monies in the various funds continued under this chapter:
   1.  Are  hereby  exempt  from  any  state or municipal tax, except the
 estate tax, and
   2. Shall not be subject to execution, garnishment, attachment, or  any
 other process whatsoever, and
   3.  Shall  be  unassignable,  except  as  in this chapter specifically
 provided.
   B. EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, A PERSON OR ENTITY
 SHALL NOT USE ANY DEVICE, SCHEME, TRANSFER OR OTHER  ARTIFICE  TO  EVADE
 THE  APPLICABILITY AND PROHIBITION OR PARAGRAPHS TWO AND THREE OF SUBDI-
 VISION A OF THIS SECTION, INCLUDING THE  DEPOSIT  OF  SUCH  BENEFITS  OR
 FUNDS  INTO  A  JOINT  ACCOUNT WITH THE PERSON OR ENTITY OR THE AUTHORI-
 ZATION TO A PERSON OR ENTITY UNDER A POWER OF ATTORNEY OR OTHER  INSTRU-
 MENT  OR DOCUMENT TO ACCESS AN ACCOUNT OR OTHERWISE OBTAIN FUNDS FROM AN
 ACCOUNT TO WHICH BENEFITS OR FUNDS HAVE BEEN DEPOSITED.
   C. ANY CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS  SECTION  SHALL
 BE  VOID.  ALL  SUMS  PAID  TO  OR  COLLECTED  BY  A PERSON OR ENTITY IN
 VIOLATION OF THIS SECTION SHALL BE RETURNED BY THE PERSON OR  ENTITY  TO
 THE  BENEFIT  RECIPIENT OR HIS OR HER HEIRS OR BENEFICIARIES AS RESTITU-
 TION.
   D. ANY BENEFIT RECIPIENT, HIS OR HER GUARDIAN OR CONSERVATOR, OR  HEIR
 OR  BENEFICIARY  MAY  BRING AN ACTION TO ENFORCE THE RESTITUTION AUTHOR-
 IZED.
   § 3. Section 340 of the banking law, as amended by chapter 22  of  the
 laws of 1990, is amended to read as follows:
   § 340.  Doing  business  without  license prohibited. (A) No person or
 other entity shall engage in the business of making loans in the princi-
 pal amount of twenty-five thousand dollars or less for any  loan  to  an
 individual  for  personal, family, household, or investment purposes and
 in a principal amount of fifty thousand dollars or less for business and
 commercial loans, and charge, contract for, or receive a greater rate of
 interest than the lender would be permitted by law to charge if he  were
 not  a licensee hereunder except as authorized by this article and with-
 out first obtaining a license from the superintendent.
   (B) For the purposes of this section, a  person  or  entity  shall  be
 considered  as engaging in the business of making loans in New York, and

 S. 6431--A                          3
 
 subject to the licensing and other requirements of this article,  if  it
 solicits  loans  in  the  amounts prescribed by this section within this
 state and, in connection with such solicitation, makes loans to individ-
 uals  then resident in this state, except that no person or entity shall
 be considered as engaging in the business of making loans in this  state
 on  the  basis  of isolated, incidental or occasional transactions which
 otherwise meet the requirements of this section.
   (C) Nothing in this article shall apply to  licensed  collateral  loan
 brokers.
   (D)  ANY  PERSON WHO ENGAGES IN THE BUSINESS OF OFFERING CONSIDERATION
 IN EXCHANGE FOR A SECURED INTEREST IN ALL OR PART OF PENSION PROCEEDS IN
 THE POSSESSION OF A PARTICIPANT, BENEFICIARY, OR  MEMBER  OF  A  PENSION
 PLAN,  PROGRAM,  OR SYSTEM SHALL BE DEEMED TO BE ENGAGED IN THE BUSINESS
 OF MAKING LOANS AND SHALL BE SUBJECT TO THE LICENSING AND OTHER REQUIRE-
 MENTS OF THIS ARTICLE.
   § 4. This act shall take effect immediately.

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Senate Bill S6431A

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Apr 17, 2018 - Floor Vote

Floor Vote: Apr 17, 2018

Jun 13, 2017 - Floor Vote

Floor Vote: Jun 13, 2017

Jun 12, 2017 - Rules Committee Vote

Rules Committee Vote: Jun 12, 2017

Mar 19, 2018 - Civil Service And Pensions Committee Vote

Civil Service And Pensions Committee Vote: Mar 19, 2018

Bill Amendments

2017-S6431 - Details

2017-S6431 - Summary

2017-S6431 - Sponsor Memo

2017-S6431 - Bill Text download pdf

2017-S6431A (ACTIVE) - Details

2017-S6431A (ACTIVE) - Summary

2017-S6431A (ACTIVE) - Sponsor Memo

2017-S6431A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6431A

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Sponsored By

Susan Serino

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2017-S6431 - Details

2017-S6431 - Summary

2017-S6431 - Sponsor Memo

2017-S6431 - Bill Text download pdf

2017-S6431A (ACTIVE) - Details

2017-S6431A (ACTIVE) - Summary

2017-S6431A (ACTIVE) - Sponsor Memo

2017-S6431A (ACTIVE) - Bill Text download pdf

Comments