S T A T E O F N E W Y O R K
________________________________________________________________________
9784
I N A S S E M B L Y
April 9, 2024
___________
Introduced by M. of A. LAVINE -- read once and referred to the Committee
on Economic Development
AN ACT to amend the general business law, in relation to providing for
electronic notice for collateral loan brokers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 49 of the general business law, as
amended by chapter 594 of the laws of 1997, is amended to read as
follows:
1. [No pledge shall be sold unless written or printed notice of inten-
tion to sell with a statement of the article or articles to be sold has
been first mailed by letter addressed to the pledgor at the address
given at the time of pledging at least thirty days prior to the date of
sale] NOTWITHSTANDING ANY GENERAL OR SPECIAL STATUTES, LOCAL LAW AND
ORDINANCES TO THE CONTRARY, UPON THE TENDERING OF A PLEDGE, THE PLEDGOR
SHALL PROVIDE A COLLATERAL LOAN BROKER AN EMAIL ADDRESS OR PHONE NUMBER
TO BE USED IN THE EVENT A PLEDGE IS NOT TIMELY REDEEMED FOR PURPOSES OF
PROVIDING A NOTICE OF INTENTION TO SELL. NO PLEDGE SHALL BE SOLD UNLESS
A NOTICE OF INTENTION TO SELL, WITH A STATEMENT OF THE ARTICLE OR ARTI-
CLES TO BE SOLD, IS FORWARDED ELECTRONICALLY, BY EMAIL OR TEXT MESSAGE,
AT LEAST THIRTY DAYS PRIOR TO THE DATE OF SALE. A SECOND NOTICE OF
INTENTION TO SELL SHALL BE FORWARDED ELECTRONICALLY, BY EMAIL OR TEXT
MESSAGE, TO THE PLEDGOR AT LEAST FIFTEEN DAYS PRIOR TO THE SALE. ALTER-
NATIVELY, A PLEDGOR MAY AT THE TIME OF TENDERING A PLEDGE ELECT TO
RECEIVE A NOTICE OF INTENTION TO SELL BY UNITED STATES POSTAL SERVICE
MAIL WITH A STATEMENT OF THE ARTICLES TO BE SOLD BY LETTER ADDRESSED TO
THE PLEDGOR AT THE ADDRESS GIVEN AT THE TIME OF PLEDGING AT LEAST THIRTY
DAYS PRIOR TO THE DATE OF THE SALE. A PLEDGOR MAY AT ANY TIME PRIOR TO
THE TRANSMISSION OF THE SECOND NOTICE REFERENCED ABOVE, OR MAILING OF A
LETTER ADDRESSED TO THE PLEDGOR, PROVIDE ONE OR MORE UPDATED ADDRESSES
OR PHONE NUMBERS TO BE USED FOR PURPOSES OF TRANSMISSION OF A NOTICE OF
INTENTION TO SELL AND THE COLLATERAL LOAN BROKER SHALL ACCORDINGLY
EMPLOY A SUBSTITUTE NEW ADDRESS OR PHONE NUMBER. COPIES OF NOTICES OF
INTENTION TO SELL SENT PURSUANT TO THIS SUBDIVISION SHALL BE RETAINED BY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13655-01-3
A. 9784 2
A COLLATERAL LOAN BROKER FOR NOT LESS THAN SIX YEARS. If the sale shall
be by public auction, then notice of every such sale shall be published
for at least six days previous thereto, in at least two of the daily
newspapers printed in the city where the business shall be carried on,
and also in two daily newspapers of the city where the sale is to take
place and to be designated by said mayor, and such notice shall specify
the time and place at which such sale is to take place and the name of
the auctioneers by whom the same is to be conducted together with a
statement of the class of pledges to be sold and the inclusive dates and
numbers of the pawn tickets of the pledges to be sold. If the pledge, at
such sale, shall be purchased back by the collateral loan broker, the
pledgor shall be entitled to redeem same within ten days thereafter by
tendering to the collateral loan broker the amount of the loan with the
interest due thereon, the amount of the auctioneer's lawful commission,
lawful extra care charges, and the expense of the advertisement of the
sale.
§ 2. Subdivision 2 of section 50 of the general business law, as
amended by chapter 321 of the laws of 1983, is amended to read as
follows:
2. In the event there is any surplus money due to a pledgor after such
sale, the collateral loan broker shall give the pledgor written notice
thereof, by mailing to such pledgor, directed to him at the address
given at the time of pledging or in the event such pledgor has notified
the collateral loan broker, in writing, of a change of address, to such
new address, within thirty days after such sale, a notice which shall
state the name and address of the collateral loan broker, the number of
the pledge, the date of sale and the amount of any surplus, PROVIDED
HOWEVER THAT IN THE EVENT THAT THE COLLATERAL LOAN BROKER HAS TRANSMIT-
TED A NOTICE OF SALE VIA ELECTRONIC MEANS PURSUANT TO SECTION FORTY-NINE
OF THIS ARTICLE, THE NOTICE OF SURPLUS HEREIN SHALL BE TRANSMITTED IN A
MANNER IDENTICAL TO THE MEANS EMPLOYED WITH REGARD TO THE NOTICE OF
SALE, PROVIDED FURTHER THAT SUCH ELECTRONIC NOTICE SHALL BE REQUIRED TO
BE TRANSMITTED ONE TIME TO THE ELECTRONIC ADDRESS PROVIDED BY THE PLED-
GOR AT THE TIME THE ARTICLE WAS PLEDGED OR TO AT LEAST ONE OR MORE
ALTERNATIVE ELECTRONIC ADDRESSES IF PROVIDED, IN WRITING, HARD COPY OR
ELECTRONIC, TO THE COLLATERAL LOAN BROKER BY THE PLEDGOR PRIOR TO THE
TRANSMITTAL OF THE NOTICE OF SURPLUS AS PRESCRIBED HEREIN. In the event
any person entitled to such surplus fails to make claim for the same
within one year from the date of such sale, such surplus shall be paid
over, by the collateral loan broker, to the state comptroller in accord-
ance with the provisions of section one thousand three hundred one of
the abandoned property law.
§ 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.