Assembly Actions -
Senate Actions - UPPERCASE
|Jan 05, 2022||
referred to banks
|Mar 18, 2021||
referred to banks
Senate Bill S5774
2021-2022 Legislative Session
Archive: Last Bill Status - In Senate Committee Banks Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2021-S5774 (ACTIVE) - Details
2021-S5774 (ACTIVE) - Summary
Prohibits foreign banking corporations from issuing payday loans; defines payday loans as any transaction in which a short-term cash advance is made to a consumer in exchange for: a consumer's personal check or share draft, in the amount of an advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or a consumer's authorization to debit the consumer's transaction account, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.
2021-S5774 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5774 SPONSOR: COMRIE TITLE OF BILL: An act to amend the banking law and the general obligations law, in relation to prohibiting foreign banking corporations from engaging in high-cost payday loans PURPOSE: To prohibit foreign banking corporations from issuing payday loans. SUMMARY OF PROVISIONS: Amends § 202 of the Banking Law and § 5 of the general obligations law to accomplish the above stated purpose. EXISTING LAW:
2021-S5774 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5774 2021-2022 Regular Sessions I N S E N A T E March 18, 2021 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law and the general obligations law, in relation to prohibiting foreign banking corporations from engaging in high-cost payday loans THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 202-k to read as follows: § 202-K. PROHIBITION OF PAYDAY LOANS. 1. NO FOREIGN BANKING CORPO- RATION SHALL MAKE ANY PAYDAY LOAN, EITHER DIRECTLY OR INDIRECTLY, OR MAKE ANY LOAN TO ANY OTHER LENDER FOR PURPOSES OF FINANCING A PAYDAY LOAN OR REFINANCING OR EXTENDING ANY PAYDAY LOAN. 2. FOR PURPOSES OF THIS SECTION "PAYDAY LOAN" MEANS ANY TRANSACTION IN WHICH A SHORT-TERM CASH ADVANCE IS MADE TO A CONSUMER IN EXCHANGE FOR (I) A CONSUMER'S PERSONAL CHECK OR SHARE DRAFT, IN THE AMOUNT OF AN ADVANCE PLUS A FEE, WHERE PRESENTMENT OR NEGOTIATION OF SUCH CHECK OR SHARE DRAFT IS DEFERRED BY AGREEMENT OF THE PARTIES UNTIL A DESIGNATED FUTURE DATE; OR (II) A CONSUMER'S AUTHORIZATION TO DEBIT THE CONSUMER'S TRANSACTION ACCOUNT, IN THE AMOUNT OF THE ADVANCE PLUS A FEE, WHERE SUCH ACCOUNT WILL BE DEBITED ON OR AFTER A DESIGNATED FUTURE DATE. § 2. The general obligations law is amended by adding a new section 5-532 to read as follows: § 5-532. PROHIBITION ON PAYDAY LOANS. 1. A CREDITOR MAY NOT MAKE A PAYDAY LOAN TO ANY PERSON IF THE CREDITOR KNOWS OR HAS REASONABLE CAUSE TO BELIEVE THAT: A. THE PERSONAL CHECK OR SHARE DRAFT THE CREDITOR RECEIVES FROM THE PERSON, IN EXCHANGE FOR THE LOAN, IS DRAWN ON AN INSURED DEPOSITORY INSTITUTION OR INSURED CREDIT UNION; OR EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10069-01-1
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