The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2443
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by  M. of A. NIOU, PEOPLES-STOKES, BARRON, KIM, ENGLEBRIGHT,
   EPSTEIN, FRONTUS, RICHARDSON, FALL, SAYEGH, ABINANTI, REYES,  PRETLOW,
   ZEBROWSKI,  L. ROSENTHAL, QUART, DINOWITZ -- 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
 394-bb to read as follows:
   §  394-BB.  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)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04869-01-1

 A. 2443                             2
 
 ANY  PRODUCT  OR SERVICE AS TO WHICH PROVISIONS FOR CONSUMER OR INVESTOR
 PROTECTION ARE SPECIFICALLY SET FORTH FOR SUCH  PRODUCT  OR  SERVICE  BY
 STATE  STATUTE  OR  REGULATION  AND (C) SECURITIES, COMMODITIES AND REAL
 PROPERTY  SUBJECT  TO  THE  PROVISIONS OF ARTICLE TWENTY-THREE-A OF THIS
 CHAPTER, 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.