S T A T E   O F   N E W   Y O R K
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                                  3851--A
     Cal. No. 1684
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2019
                                ___________
 
 Introduced  by  Sens.  SANDERS,  MAYER, PARKER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection -- committee discharged and  said  bill  committed  to  the
   Committee  on Rules -- ordered to a third reading, amended and ordered
   reprinted, retaining its place in the order of third reading
 
 AN ACT to amend the civil practice law and rules, in relation to prohib-
   iting certain judgments by confession; and prohibiting certain  finan-
   cial institutions from using a marshal to execute certain judgments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The opening paragraph of subdivision (a) of section 3218 of
 the civil practice law and rules, as amended by chapter 311 of the  laws
 of  1963,  is  amended  and  a  new  subdivision (e) is added to read as
 follows:
   Except as provided in section thirty-two hundred one OF  THIS  ARTICLE
 AND  SUBDIVISION  (E)  OF  THIS SECTION, a judgment by confession may be
 entered, without an action, either for money due or to become due, or to
 secure the plaintiff against a contingent liability  in  behalf  of  the
 defendant, or both, upon an affidavit executed by the defendant;
   (E)  PROHIBITION  ON  CERTAIN  JUDGMENTS BY CONFESSION. NO JUDGMENT BY
 CONFESSION MAY BE:
   1. ENTERED ON  ANY  AMOUNT  DUE  FROM  ONE  OR  MORE  INDIVIDUALS  FOR
 PERSONAL,  FAMILY,  HOUSEHOLD,  CONSUMER,  INVESTMENT,  OR  NON-BUSINESS
 PURPOSES;
   2. ENTERED ON ANY AMOUNT UNDER TWO HUNDRED FIFTY THOUSAND DOLLARS  DUE
 FROM ANY PERSON FOR ANY PURPOSE;
   3.  REQUIRED  AT  THE  TIME  A LOAN IS ORIGINATED OR AS A CONDITION OF
 RECEIVING A LOAN; OR
   4. ENTERED ON ANY AMOUNT DUE FROM A PERSON THAT:
   (I) IS CURRENTLY A NONRESIDENT OF THE STATE;

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

                                                            LBD03324-04-9

 S. 3851--A                          2
 
   (II) WAS A NONRESIDENT OF THE STATE AT THE TIME THE AFFIDAVIT  AUTHOR-
 IZING ENTRY OF THE JUDGMENT BY CONFESSION WAS EXECUTED; OR
   (III)  IS  NOT  AN INDIVIDUAL, DOES NOT OPERATE A PLACE OF BUSINESS IN
 THE STATE, OR DID NOT OPERATE A PLACE OF BUSINESS IN THE  STATE  AT  THE
 TIME  THE  AFFIDAVIT AUTHORIZING ENTRY OF THE JUDGMENT BY CONFESSION WAS
 EXECUTED.
   § 2. Notwithstanding any provision of law to the  contrary,  financial
 institutions that offer any financial product or service shall not use a
 marshal,  as  allowed  for  pursuant  to paragraph b of subdivision 1 of
 section 1609 of the New York city  civil  court  act,  for  purposes  of
 executing any money judgment relating to a confession of judgment.
   § 3. This act shall take effect immediately.