The New York State Senate

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

                                  3636

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2019
                               ___________

Introduced by M. of A. NIOU, PEOPLES-STOKES -- read once and referred to
  the Committee on Banks

AN ACT to amend the general business law, in relation to prohibiting the
  inclusion of a confession of judgment in a contract or agreement for a
  financial product or service

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

  Section 1. The general business law is amended by adding a new section
396-aaa to read as follows:
  § 396-AAA. CONFESSION OF JUDGMENT REQUIREMENT FOR  CERTAIN  CONTRACTS;
PROHIBITION.  1. NO PERSON SHALL REQUIRE A CONFESSION OF JUDGMENT IN ANY
CONTRACT OR AGREEMENT FOR A FINANCIAL PRODUCT OR SERVICE.
  2. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE  FOLLOW-
ING MEANINGS:
  (A) "FINANCIAL PRODUCT OR SERVICE" SHALL MEAN ANY FINANCIAL PRODUCT OR
FINANCIAL  SERVICE  OFFERED  OR  PROVIDED  BY  ANY  PERSON  REGULATED OR
REQUIRED TO BE REGULATED BY THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES
PURSUANT  TO THE BANKING LAW OR THE INSURANCE LAW OR ANY FINANCIAL PROD-
UCT OR SERVICE OFFERED OR SOLD TO CONSUMERS EXCEPT FINANCIAL PRODUCTS OR
SERVICES: (I) REGULATED UNDER THE EXCLUSIVE JURISDICTION  OF  A  FEDERAL
AGENCY  OR  AUTHORITY,  (II)  REGULATED  FOR  THE PURPOSE OF CONSUMER OR
INVESTOR PROTECTION BY ANY OTHER STATE AGENCY, STATE DEPARTMENT OR STATE
PUBLIC AUTHORITY, OR (III) WHERE RULES OR REGULATIONS PROMULGATED BY THE
SUPERINTENDENT OF  FINANCIAL  SERVICES  ON  SUCH  FINANCIAL  PRODUCT  OR
SERVICE WOULD BE PREEMPTED BY FEDERAL LAW.
  (B) "FINANCIAL PRODUCT OR SERVICE REGULATED FOR THE PURPOSE OF CONSUM-
ER OR INVESTOR PROTECTION": (I) SHALL INCLUDE (A) ANY PRODUCT OR SERVICE
FOR WHICH REGISTRATION OR LICENSING IS REQUIRED OR FOR WHICH THE OFFEROR
OR  PROVIDER  IS REQUIRED TO BE REGISTERED OR LICENSED BY STATE LAW, (B)
ANY PRODUCT OR SERVICE AS TO WHICH PROVISIONS FOR CONSUMER  OR  INVESTOR
PROTECTION  ARE  SPECIFICALLY  SET  FORTH FOR SUCH PRODUCT OR SERVICE BY

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

                                                           LBD03324-01-9

A. 3636                             2

STATE STATUTE OR REGULATION AND (C)  SECURITIES,  COMMODITIES  AND  REAL
PROPERTY  SUBJECT  TO  THE  PROVISIONS  OF ARTICLE TWENTY-THREE-A OF THE
GENERAL BUSINESS LAW, AND (II) SHALL NOT INCLUDE  PRODUCTS  OR  SERVICES
SOLELY  SUBJECT  TO OTHER GENERAL LAWS OR REGULATIONS FOR THE PROTECTION
OF CONSUMERS OR INVESTORS.
  § 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.