senate Bill S4525

2019-2020 Legislative Session

Relates to providing financial consumer protections for small businesses

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (9)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2020 referred to judiciary
returned to senate
died in assembly
Jun 17, 2019 referred to banks
delivered to assembly
passed senate
ordered to third reading cal.1426
committee discharged and committed to rules
Mar 14, 2019 referred to judiciary

Co-Sponsors

S4525 (ACTIVE) - Details

See Assembly Version of this Bill:
A3638
Current Committee:
Senate Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §5-522, Gen Ob L; amd §§173 & 380-e, Bank L

S4525 (ACTIVE) - Summary

Expands consumer protections for usury and interest to small businesses.

S4525 (ACTIVE) - Sponsor Memo

S4525 (ACTIVE) - Bill Text download pdf


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

                                  4525

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             March 14, 2019
                               ___________

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

AN ACT to amend the general obligations law  and  the  banking  law,  in
  relation  to  providing financial consumer protections for small busi-
  nesses

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

  Section  1.  The  general  obligations  law is amended by adding a new
section 5-522 to read as follows:
  § 5-522. APPLICATION TO SMALL BUSINESSES. ALL  RIGHTS  AND  PRIVILEGES
GRANTED  UNDER  THIS  TITLE  TO  PERSONS SHALL ALSO APPLY TO SMALL BUSI-
NESSES. FOR PURPOSES OF THIS SECTION, A SMALL BUSINESS SHALL  BE  DEEMED
TO BE ONE WHICH IS RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPER-
ATED, NOT DOMINANT IN ITS FIELD AND EMPLOYS ONE HUNDRED OR LESS PERSONS.
  §  2. Section 173 of the banking law is amended by adding a new subdi-
vision 4 to read as follows:
  4. ALL RIGHTS AND PRIVILEGES GRANTED UNDER  THIS  SECTION  TO  PERSONS
SHALL  ALSO APPLY TO SMALL BUSINESSES. FOR PURPOSES OF THIS SUBDIVISION,
A SMALL BUSINESS SHALL BE DEEMED TO BE ONE WHICH  IS  RESIDENT  IN  THIS
STATE,  INDEPENDENTLY  OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD AND
EMPLOYS ONE HUNDRED OR LESS PERSONS.
  § 3. Section 380-e of the banking law, as separately amended by  chap-
ters 349 and 1072 of the laws of 1968, is amended to read as follows:
  § 380-e.  Effect of usury. The knowingly taking, receiving, reserving,
or charging by a savings and loan association of interest,  as  computed
pursuant  to  this article, at a rate greater than such rate of interest
as may be authorized by law shall be held and adjudged a  forfeiture  of
the  entire  interest  which  the note or other evidence of debt carries
with it, or which has been agreed to be paid thereon.  If  such  greater
rate  of interest has been paid, the person paying the same or his legal
representatives may recover from the savings and loan association  twice

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

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