Assembly Bill A9317

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9317
 
                           I N  A S S E M B L Y
 
                             February 23, 2022
                                ___________
 
 Introduced  by  M. of A. GONZALEZ-ROJAS -- read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the judiciary law, in relation to claims against certain
   obligators
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 489 of the judiciary law, as added
 by  chapter  394 of the laws of 2004, is amended and a new subdivision 4
 is added to read as follows:
   2. Except as set forth in  subdivision  three  of  this  section,  the
 provisions  of  subdivision  one  of this section shall not apply to any
 assignment, purchase or transfer hereafter made of one  or  more  bonds,
 promissory  notes,  bills  of  exchange,  book debts, or other things in
 action, or any claims or demands, if such assignment, purchase or trans-
 fer included bonds, promissory notes,  bills  of  exchange  and/or  book
 debts,  issued  by  or  enforceable  against  the  same ELIGIBLE obligor
 (whether or not also issued by or enforceable against any other ELIGIBLE
 obligors), having an aggregate purchase price of at least  five  hundred
 thousand dollars, in which event the exemption provided by this subdivi-
 sion  shall  apply as well to all other items, including other things in
 action, claims and demands, included in  such  assignment,  purchase  or
 transfer  (but  only  if  such  other items are issued by or enforceable
 against the same ELIGIBLE obligor, or relate to or arise  in  connection
 with  such  bonds, promissory notes, bills of exchange and/or book debts
 or the issuance thereof).  FOR PURPOSES OF THIS  SUBDIVISION,  THE  TERM
 "ELIGIBLE  OBLIGOR" MEANS AN OBLIGOR THAT QUALIFIES AS A "DEBTOR" WITHIN
 THE MEANING OF TITLE 11 OF THE UNITED STATES CODE.
   4. FOR PURPOSES OF SUBDIVISION ONE  OF  THIS  SECTION,  AN  ASSIGNEE'S
 INTENT AND PURPOSE IN TAKING AN ASSIGNMENT OF A CLAIM AGAINST AN OBLIGOR
 THAT  IS NOT AN ELIGIBLE OBLIGOR MAY BE INFERRED FROM (A) THE ASSIGNEE'S
 (OR  ITS  AFFILIATES')  HISTORY  OF  ACQUIRING  CLAIMS  AT   SIGNIFICANT
 DISCOUNTS  FROM A BOND, PROMISSORY NOTE, BILL OF EXCHANGE, BOOK DEBT, OR
 OTHER THING IN ACTION'S FACE VALUE AND BRINGING LEGAL ACTIONS TO ENFORCE
 SUCH CLAIMS; (B) THE ASSIGNEE OR ANY PREDECESSOR IN TITLE TO  THE  CLAIM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14673-01-2
 A. 9317                             2
 
 HAVING REFUSED TO PARTICIPATE IN A CONSENSUAL SETTLEMENT OF THE CLAIM IF
 HOLDERS  OF  NOTES NOT LESS THAN SIXTY-SIX AND TWO-THIRDS PERCENT OF THE
 OUTSTANDING AMOUNT OF THE NOTES OF SIMILAR CLAIMS  AGAINST  THE  OBLIGOR
 HAD  AGREED  TO  ACCEPT THE TERMS OF THAT SETTLEMENT; AND (C) SUCH OTHER
 FACTS OR CIRCUMSTANCES AS A COURT MAY FIND  RELEVANT  IN  ASSESSING  THE
 ASSIGNEE'S INTENT AND PURPOSE IN TAKING THE ASSIGNMENT.
   §  2.   This act shall take effect on the thirtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.