NY State Assembly Bill 2025-A10133A

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 25, 2026	reported referred to codes
Feb 04, 2026	print number 10133a
Feb 04, 2026	amend (t) and recommit to banks
Feb 03, 2026	referred to banks

Bill Amendments

Original

A (Active)

2025-A10133 - Details

Current Committee:: Assembly Codes
Law Section:: Banking Law
Laws Affected:: Add §3, Bank L

2025-A10133 - Summary

Regulates personal loans made by a lender to a resident of or person physically located in the state of New York; exempts certain lenders.

2025-A10133 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10133
 
                           I N  A S S E M B L Y
 
                             February 3, 2026
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Banks
 
 AN ACT to amend the banking law, in relation  to  prohibiting  predatory
   loan evasion practices
 
   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 9-zz  to
 read as follows:
   § 9-ZZ. PROHIBITION ON PREDATORY LOAN EVASION PRACTICES. 1. AS USED IN
 THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "LOAN"  SHALL  MEAN  ANY EXTENSION OF CREDIT, WHETHER OPEN-END OR
 CLOSED-END, TO A RESIDENT OF THIS STATE OR  TO  A  RESIDENT  OF  ANOTHER
 STATE  BY AN ENTITY INCORPORATED IN OR WITH ITS PRINCIPAL PLACE OF BUSI-
 NESS WITHIN THIS STATE, REGARDLESS OF WHETHER SUCH LOANS  ARE  USED  FOR
 COMMERCIAL OR HOUSEHOLD PURPOSES.
   (B)  "PERSON" OR "ENTITY" SHALL MEAN AN INDIVIDUAL, CORPORATION, PART-
 NERSHIP, LIMITED LIABILITY COMPANY, JOINT  VENTURE,  ASSOCIATION,  JOINT
 STOCK  COMPANY,  TRUST,  SOLE  PROPRIETORSHIP,  OR  OTHER UNINCORPORATED
 ORGANIZATION, OR OTHER SIMILAR ENTITY THAT, IN THE  ORDINARY  COURSE  OF
 BUSINESS, EXTENDS LOANS.
   (C)  "EXEMPT  PERSON" SHALL MEAN ANY PERSON OR ENTITY NOT DESCRIBED IN
 SUBDIVISION THREE OF THIS SECTION.
   (D) "TRUE LENDER" MEANS THE PERSON WHO, AS A MATTER OF  FACT  AND  NOT
 SOLELY BY FORM, IS THE ACTUAL LENDER OF A LOAN. SUCH PERSON SHALL BE THE
 ACTUAL LENDER OF A LOAN WHERE ONE OF THE FOLLOWING APPLY:
   (I)  THE  PERSON  HOLDS THE PREDOMINANT ECONOMIC INTEREST IN THE LOAN,
 WHICH MAY INCLUDE, BUT SHALL NOT BE LIMITED TO RECEIVING THE MAJORITY OF
 REVENUES, INTEREST, OR FEES FROM THE LOAN;
   (II) THE PERSON MARKETS, ARRANGES, BROKERS, OR  FACILITATES  THE  LOAN
 AND  HAS THE RIGHT TO PURCHASE OR RECEIVE ASSIGNMENT OF THE LOAN, OR THE
 RECEIVABLES, AFTER ORIGINATION; OR
   (III) THE PERSON,  BY  CONTRACT  OR  PRACTICE,  EXERCISES  SUBSTANTIAL
 CONTROL  OVER KEY TERMS OF THE LOAN, INCLUDING INTEREST RATES, REPAYMENT
 SCHEDULES, OR COLLECTION PRACTICES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13842-02-5
 A. 10133                            2
 
   (E) "CONTROL" SHALL MEAN THE POSSESSION, DIRECTLY  OR  INDIRECTLY,  OF
 THE  POWER  TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLI-
 CIES OF A PERSON, WHETHER THROUGH THE OWNERSHIP  OF  VOTING  STOCK,  THE
 OWNERSHIP  OF  VOTING  STOCK  OF  ANY PERSON WHICH POSSESS SUCH POWER OR
 OTHERWISE.    CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY
 OR INDIRECTLY, OWNS, CONTROLS, OR HOLDS THE POWER TO VOTE TEN PER CENTUM
 OR MORE OF THE VOTING STOCK OF ANY PERSON OR OF ANY PERSON  WHICH  OWNS,
 CONTROLS  OR  HOLDS  WITH  POWER  TO  VOTE TEN PER CENTUM OR MORE OF THE
 VOTING STOCK OF ANY LICENSEE, BUT NO PERSON SHALL BE DEEMED TO CONTROL A
 LICENSEE SOLELY BY REASON OF BEING AN OFFICER OR DIRECTOR OF SUCH LICEN-
 SEE OR PERSON.
   2. WHERE A PERSON IS THE TRUE LENDER OF A LOAN MADE TO A  RESIDENT  OF
 THIS  STATE AND THE INTEREST RATE OF SUCH LOAN EXCEEDS THE RATES PERMIT-
 TED IN SECTION 5-501 OF THE GENERAL OBLIGATIONS LAW OR  SECTIONS  190.40
 AND  190.42  OF  THE  PENAL LAW, IT SHALL BE UNLAWFUL FOR SUCH PERSON TO
 ORIGINATE SUCH LOAN THROUGH AN ENTITY OTHER THAN  THEIR  OWN  ENTITY  OR
 THROUGH AN ENTITY THEY DIRECTLY OR SUBSTANTIALLY CONTROL.
   3. IT SHALL BE UNLAWFUL FOR ANY NON-EXEMPT PERSON TO DESIGNATE ANOTHER
 PARTY  AS  THE  LENDER  IN  NAME  OR FORM FOR THE PURPOSE OF EVADING THE
 REQUIREMENTS OF THIS SECTION OR THE INTEREST-RATE, LICENSING, OR CONSUM-
 ER-PROTECTION LAWS OF THIS STATE.
   4. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A NATIONAL  BANK,
 OUT-OF-STATE  BANK,  BANK  HOLDING  COMPANY,  FEDERALLY CHARTERED CREDIT
 UNION, OUT-OF-STATE CREDIT UNION, A TRIBAL ENTITY OR ANY  SUBSIDIARY  OR
 AFFILIATE OF THOSE FINANCIAL INSTITUTIONS.
   5.  A  PERSON  WHO  VIOLATES  THIS SECTION SHALL BE SUBJECT TO A CIVIL
 PENALTY OF THREE TIMES THE TOTAL INTEREST  AND  FEES  COLLECTED  ON  ALL
 LOANS  MADE  IN VIOLATION. EACH UNLAWFUL LOAN MADE TO A PERSON OR ENTITY
 SHALL CONSTITUTE A SEPARATE VIOLATION.
   6. THE DEPARTMENT SHALL PROMULGATE ALL RULES AND REGULATIONS NECESSARY
 TO IMPLEMENT AND ENFORCE THIS SECTION.
   § 2. 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.

2025-A10133A (ACTIVE) - Details

Current Committee:: Assembly Codes
Law Section:: Banking Law
Laws Affected:: Add §3, Bank L

2025-A10133A (ACTIVE) - Summary

Regulates personal loans made by a lender to a resident of or person physically located in the state of New York; exempts certain lenders.

2025-A10133A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10133--A
 
                           I N  A S S E M B L Y
 
                             February 3, 2026
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Banks -- committee discharged, bill amended, ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the  banking  law, in relation to personal loans and
   short-term lending conditions
 
   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 3 to
 read as follows:
   § 3. TRUE LENDER; PERSONAL LOANS; SHORT-TERM LENDING CONDITIONS. 1. AS
 USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) (I) "PERSONAL LOAN" SHALL MEAN ANY EXTENSION OF  MONEY  OR  CREDIT
 MADE  TO  A NATURAL PERSON FOR HOUSEHOLD OR PERSONAL USE IN EXCHANGE FOR
 SUCH NATURAL PERSON'S AGREEMENT TO A CERTAIN SET  OF  TERMS,  INCLUDING,
 BUT NOT LIMITED TO, ANY FINANCE CHARGES, FEES, INTEREST, OTHER CONSIDER-
 ATION, OR OTHER CONDITIONS.
   (II)  "PERSONAL  LOAN" INCLUDES CLOSED-END AND OPEN-END CREDIT AND ANY
 TRANSACTION CONDUCTED VIA ANY  MEDIUM,  INCLUDING  PAPER  OR  ELECTRONIC
 MEANS, FACSIMILE, INTERNET, OR TELEPHONE.
   (III) THE TERM "PERSONAL LOAN" SHALL NOT INCLUDE:
   (A)  OPEN-END CREDIT PLANS SUBJECT TO THE FEDERAL TRUTH IN LENDING ACT
 AND REGULATION Z THAT ARE ACCESSED BY THE USE OF A CREDIT CARD OR  SIMI-
 LAR DEVICE AND THAT CONTEMPLATE REPEATED TRANSACTIONS;
   (B)  ANY  EXTENSION OF CREDIT SECURED BY A MORTGAGE, DEED OF TRUST, OR
 OTHER CONSENSUAL SECURITY INTEREST  IN  REAL  PROPERTY,  INCLUDING  HOME
 EQUITY LINES OF CREDIT; OR
   (C)  ANY  OTHER  EXTENSION  OF  CREDIT  THAT  IS SUBJECT TO A CHARTER,
 LICENSE, OR REGULATORY REGIME UNDER THIS CHAPTER OR OTHER PROVISIONS  OF
 NEW  YORK  STATE LAW THAT PROVIDES FOR ONGOING SUPERVISION, EXAMINATION,
 AND ENFORCEMENT AUTHORITY BY THE SUPERINTENDENT, AS  DETERMINED  BY  THE
 SUPERINTENDENT PURSUANT TO RULES ESTABLISHING OBJECTIVE CRITERIA.
   (B) "LENDER" SHALL MEAN:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13842-03-6

 A. 10133--A                         2
 
   (I)  ANY PERSON, INCLUDING ANY AFFILIATE OR SUBSIDIARY OF SUCH PERSON,
 THAT:
   (A) OFFERS OR MAKES A PERSONAL LOAN;
   (B)  PURCHASES  OR  ACQUIRES A WHOLE OR PARTIAL INTEREST IN A PERSONAL
 LOAN OR ANY RECEIVABLE ARISING FROM A PERSONAL LOAN;
   (C) ARRANGES, BROKERS, OR FACILITATES A  PERSONAL  LOAN  FOR  A  THIRD
 PARTY; OR
   (D)  ACTS  AS  AN  AGENT  FOR A THIRD PARTY IN MAKING A PERSONAL LOAN,
 REGARDLESS OF WHETHER APPROVAL, ACCEPTANCE, OR RATIFICATION BY THE THIRD
 PARTY IS NECESSARY TO CREATE A LEGAL OBLIGATION FOR THE THIRD PARTY.
   (II) A PERSON IS A LENDER NOTWITHSTANDING THAT SUCH PERSON PURPORTS TO
 ACT AS AN AGENT, SERVICE PROVIDER, OR IN ANOTHER  CAPACITY  FOR  ANOTHER
 PERSON THAT IS EXEMPT FROM THIS SECTION OR THE LAWS OF THIS STATE IF ANY
 OF THE FOLLOWING APPLY:
   (A) SUCH PERSON HOLDS, ACQUIRES, OR MAINTAINS, DIRECTLY OR INDIRECTLY,
 THE PREDOMINANT ECONOMIC INTEREST IN A PERSONAL LOAN;
   (B)  SUCH PERSON MARKETS, BROKERS, ARRANGES, OR FACILITATES A PERSONAL
 LOAN AND HOLDS THE RIGHT, REQUIREMENT, OR  FIRST  RIGHT  OF  REFUSAL  TO
 PURCHASE  OR  ACQUIRE A PERSONAL LOAN OR ANY RECEIVABLE OR INTEREST IN A
 PERSONAL LOAN; OR
   (C) THE TOTALITY OF THE CIRCUMSTANCES INDICATE THAT SUCH PERSON  IS  A
 LENDER, AND THE PERSONAL LOAN IS STRUCTURED TO EVADE THE REQUIREMENTS OF
 THIS  SECTION.  CIRCUMSTANCES  THAT  WEIGH  IN  FAVOR  OF SUCH A FINDING
 INCLUDE, WITHOUT LIMITATION, WHERE SUCH PERSON:
   (1) INDEMNIFIES, INSURES, OR PROTECTS A PERSON THAT IS NOT SUBJECT  TO
 THIS SECTION FOR ANY COSTS OR RISKS RELATED TO SUCH PERSONAL LOAN;
   (2)  PREDOMINANTLY DESIGNS, CONTROLS, OR OPERATES THE PROGRAM FOR SUCH
 PERSONAL LOAN; OR
   (3) HOLDS THE TRADEMARK OR INTELLECTUAL PROPERTY RIGHTS IN THE  BRAND,
 UNDERWRITING SYSTEM, OR OTHER CORE ASPECTS OF A LENDER.
   (C)  "CONTROL"  SHALL  MEAN THE POSSESSION, DIRECTLY OR INDIRECTLY, OF
 THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT  AND  POLI-
 CIES  OF  A  PERSON,  WHETHER THROUGH THE OWNERSHIP OF VOTING STOCK, THE
 OWNERSHIP OF VOTING STOCK OF ANY PERSON  WHICH  POSSESS  SUCH  POWER  OR
 OTHERWISE.    CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY
 OR INDIRECTLY, OWNS, CONTROLS, OR HOLDS THE POWER TO VOTE TEN PER CENTUM
 OR MORE OF THE VOTING STOCK OF ANOTHER PERSON, BUT NO  PERSON  SHALL  BE
 DEEMED TO CONTROL ANOTHER PERSON SOLELY BY REASON OF BEING AN OFFICER OR
 DIRECTOR OF SUCH OTHER PERSON.
   (D) "EXEMPT ORGANIZATION" SHALL MEAN ANY OF THE FOLLOWING:
   (I) ANY BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, TRUST COMPA-
 NY,  PRIVATE  BANKER,  CREDIT  UNION, INVESTMENT COMPANY ORGANIZED UNDER
 ARTICLE TWELVE OF THIS CHAPTER, NATIONAL BANK, FEDERAL  SAVINGS  ASSOCI-
 ATION,  FEDERAL  SAVINGS  AND  LOAN  ASSOCIATION,  FEDERAL CREDIT UNION,
 FEDERAL TRUST COMPANY, AND FOREIGN BANKING CORPORATION LICENSED  BY  THE
 COMPTROLLER OF THE CURRENCY TO TRANSACT BUSINESS IN THIS STATE OR BY THE
 UNITED STATES.
   (II) ANY PERSON ORGANIZED UNDER AND CONDUCTING TRANSACTIONS SUBJECT TO
 ARTICLE  NINE, NINE-A OR TEN OF THE PERSONAL PROPERTY LAW, UNLESS CREDIT
 IS EXTENDED TO  PURCHASE  MERCHANDISE  CERTIFICATES,  COUPONS,  OPEN  OR
 CLOSED  LOOP  STORED VALUE, OR OTHER SIMILAR ITEMS ISSUED AND REDEEMABLE
 BY A RETAIL SELLER OTHER THAN THE RETAIL SELLER EXTENDING THE CREDIT, OR
 UNDER ARTICLE ELEVEN OF THE PERSONAL PROPERTY LAW.
   (III) ANY PERSON ORGANIZED UNDER AND CONDUCTING  TRANSACTIONS  SUBJECT
 TO  ARTICLES  NINE,  TWELVE-B, TWELVE-D, TWELVE-E AND FOURTEEN-B OF THIS
 CHAPTER.
 A. 10133--A                         3
 
   (IV) ANY PERSON MAKING LOANS  UNDER  PROGRAMS  OF  THE  UNITED  STATES
 DEPARTMENT  OF AGRICULTURE, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT,
 OR ANY OTHER FEDERAL GOVERNMENT PROGRAM THAT PROVIDES FUNDING OR  ACCESS
 TO  FUNDING  FOR SINGLE-FAMILY HOUSING DEVELOPMENTS OR GRANTS TO LOW-IN-
 COME INDIVIDUALS FOR THE PURCHASE OR REPAIR OF SINGLE-FAMILY HOUSING.
   (V)  NONPROFIT HOUSING ORGANIZATIONS MAKING LOANS, OR LOANS MADE UNDER
 HOUSING PROGRAMS THAT ARE FUNDED IN WHOLE OR IN PART BY FEDERAL OR STATE
 PROGRAMS IF THE PRIMARY PURPOSE OF SUCH PROGRAMS IS TO ASSIST LOW-INCOME
 BORROWERS WITH PURCHASING OR REPAIRING HOUSING  OR  THE  DEVELOPMENT  OF
 HOUSING FOR LOW-INCOME NEW YORK STATE RESIDENTS.
   (VI)  ANY  PERSON  THAT EXTENDS MONEY OR CREDIT TO ANOTHER PERSON ON A
 NONRECOURSE BASIS IN EXCHANGE FOR  A  CONTINGENT  RIGHT  TO  RECEIVE  AN
 AMOUNT  OF  THE  POTENTIAL  PROCEEDS OF ANY AWARD, JUDGMENT, SETTLEMENT,
 VERDICT, OR OTHER RESOLUTION FROM A PENDING LEGAL  ACTION,  UNLESS  SUCH
 PERSON  REQUIRES  REPAYMENT IN THE EVENT THAT SUCH OTHER PERSON DOES NOT
 PREVAIL IN THEIR CIVIL PROCEEDING.
   (E) "SHORT-TERM LOAN" SHALL MEAN:
   (I) A CLOSED-END PERSONAL LOAN;
   (II) IN THE PRINCIPAL AMOUNT OF THREE THOUSAND DOLLARS OR LESS;
   (III) WITH A SCHEDULED TERM OF NOT LESS THAN THREE MONTHS AND NOT MORE
 THAN TWELVE MONTHS;
   (IV) REPAYABLE IN SUBSTANTIALLY EQUAL PERIODIC  INSTALLMENTS  WITH  NO
 PAYMENT  RESULTING IN A MATERIAL INCREASE IN PRINCIPAL BALANCE, DEFERRAL
 OF PRINCIPAL REPAYMENT, OR NEGATIVE AMORTIZATION;
   (V) THAT AMORTIZE THE PRINCIPAL BALANCE OVER THE SCHEDULED TERM; AND
   (VI) THAT IS UNSECURED BY REAL PROPERTY, A MOTOR VEHICLE TITLE, OR ANY
 OTHER COLLATERAL OTHER THAN THE BORROWER'S PERSONAL OBLIGATION TO REPAY.
   2. (A) ANY PERSONAL LOAN MADE BY A LENDER, OTHER THAN AN EXEMPT ORGAN-
 IZATION, TO A RESIDENT OF OR PERSON PHYSICALLY LOCATED IN THE  STATE  OF
 NEW  YORK  IS  SUBJECT TO THE AUTHORITY AND RESTRICTIONS OF THIS CHAPTER
 AND APPLICABLE PROVISIONS OF THE FINANCIAL  SERVICES  LAW,  THE  GENERAL
 OBLIGATIONS LAW, THE PENAL LAW, AND THE LAWS OF THIS STATE.
   (B)  THE PROVISIONS OF THIS SECTION APPLY TO ANY PERSON, OTHER THAN AN
 EXEMPT ORGANIZATION, THAT THE  SUPERINTENDENT  DETERMINES  IS  A  LENDER
 SEEKING  TO  EVADE  ITS  APPLICABILITY  BY  ANY  DEVICE,  SUBTERFUGE, OR
 PRETENSE, INCLUDING BY EXERCISING CONTROL OVER THE  ORIGINATION,  UNDER-
 WRITING,  SERVICING,  OR  COLLECTION  OF A PERSONAL LOAN THROUGH ANOTHER
 PERSON.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO  ANY  LOAN  MADE
 BEFORE THE EFFECTIVE DATE OF THIS SECTION.
   (D)  THE  PROVISIONS  OF THIS SECTION SHALL NOT APPLY TO ANY LOAN MADE
 FOR A COMMERCIAL OR BUSINESS PURPOSE.
   3. IT SHALL BE UNLAWFUL FOR  ANY  LENDER  TO  ENGAGE  IN  ANY  DEVICE,
 SUBTERFUGE,  OR PRETENSE TO EVADE THE REQUIREMENTS OF THIS SECTION OR TO
 DESIGNATE ANOTHER PERSON AS THE LENDER IN NAME OR FORM FOR  THE  PURPOSE
 OF SUCH EVASION.
   4. WHERE A LENDER, OTHER THAN AN EXEMPT ORGANIZATION, MAKES A PERSONAL
 LOAN  TO  A  PERSON  WHO  IS PHYSICALLY LOCATED IN OR A RESIDENT OF THIS
 STATE, THE INTEREST RATE OF SUCH PERSONAL  LOAN  SHALL  NOT  EXCEED  THE
 RATES  PERMITTED  IN  SECTION  5-501  OF  THE GENERAL OBLIGATIONS LAW OR
 SECTIONS 190.40 AND 190.42 OF THE PENAL LAW.
   5. (A) NOTWITHSTANDING SUBDIVISION FOUR OF THIS SECTION, SECTION 5-501
 OF THE GENERAL OBLIGATIONS LAW OR SECTIONS  190.40  AND  190.42  OF  THE
 PENAL LAW, A LENDER MAY EXTEND A SHORT-TERM LOAN PURSUANT TO THE FOLLOW-
 ING REQUIREMENTS:
 A. 10133--A                         4
 
   (I)  THE  TOTAL  COST  OF  CREDIT,  INCLUSIVE OF ALL INTEREST, FINANCE
 CHARGES, FEES,  ADMINISTRATIVE  CHARGES,  AND  ANY  OTHER  CONSIDERATION
 RETAINED BY THE LENDER OR ITS AFFILIATES IN CONNECTION WITH A SHORT-TERM
 LOAN,  WHETHER  CHARGED  UPFRONT,  PERIODICALLY,  OR  AS  A CONDITION OF
 OBTAINING  OR  MAINTAINING  SUCH  SHORT-TERM  LOAN,  SHALL NOT EXCEED AN
 AMOUNT EQUAL TO TWENTY-FIVE PERCENT PER ANNUM OF  THE  PRINCIPAL  AMOUNT
 ADVANCED, CALCULATED BASED ON THE SCHEDULED TERM OF THE LOAN.
   (II)  A  LENDER  MAY  IMPOSE  A ONE-TIME, NON-RECURRING ADMINISTRATIVE
 CHARGE, PROVIDED THAT:
   (A) SUCH ADMINISTRATIVE CHARGE IS FLAT IN AMOUNT  AND  IS  IMPOSED  NO
 MORE THAN ONCE PER SHORT-TERM LOAN;
   (B)  SUCH ADMINISTRATIVE CHARGE IS INCLUDED IN, AND COUNTS TOWARD, THE
 TOTAL COST OF CREDIT PERMITTED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH;
   (C) NO SUCH ADMINISTRATIVE CHARGE MAY BE IMPOSED  IN  CONNECTION  WITH
 ANY  REFINANCING,  RENEWAL,  EXTENSION,  OR MODIFICATION OF A SHORT-TERM
 LOAN, AND SHORT-TERM LOANS MADE IN A PATTERN THAT FUNCTIONALLY REPLICATE
 REFINANCING OR EXTENSION MAY BE TREATED AS A SINGLE LOAN FOR PURPOSES OF
 THIS SECTION; AND
   (D) SUCH ADMINISTRATIVE CHARGE SHALL NOT EXCEED  FIVE  DOLLARS  FOR  A
 SHORT-TERM LOAN WITH A PRINCIPAL AMOUNT OF FIVE HUNDRED DOLLARS OR LESS,
 TEN DOLLARS FOR A SHORT-TERM LOAN WITH A PRINCIPAL AMOUNT EXCEEDING FIVE
 HUNDRED  DOLLARS  BUT  NOT  EXCEEDING  ONE  THOUSAND DOLLARS, OR FIFTEEN
 DOLLARS FOR A SHORT-TERM LOAN WITH  A  PRINCIPAL  AMOUNT  EXCEEDING  ONE
 THOUSAND DOLLARS BUT NOT EXCEEDING THREE THOUSAND DOLLARS.
   (III)  UPON  PREPAYMENT  OF  A  SHORT-TERM LOAN PRIOR TO THE SCHEDULED
 MATURITY DATE, A  LENDER  MAY  RETAIN  AN  ADMINISTRATIVE  FEE  LAWFULLY
 IMPOSED  PURSUANT  TO CLAUSE (D) OF SUBPARAGRAPH (II) OF THIS PARAGRAPH,
 PROVIDED THAT THE TOTAL COST OF CREDIT,  INCLUDING  SUCH  ADMINISTRATIVE
 FEE, RETAINED BY THE LENDER DOES NOT EXCEED THE MAXIMUM AMOUNT PERMITTED
 UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.
   (B) A BORROWER MAY PREPAY A SHORT-TERM LOAN IN WHOLE OR IN PART AT ANY
 TIME WITHOUT PENALTY. NO FEE, CHARGE, OR ADDITIONAL CONSIDERATION MAY BE
 IMPOSED  SOLELY  AS  A  RESULT  OF  SUCH PREPAYMENT, EXCEPT AS EXPRESSLY
 PERMITTED PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF THIS SUBDI-
 VISION.
   (C) WITH REGARD TO A SHORT-TERM LOAN, A LENDER SHALL NOT:
   (I) ACCELERATE THE MATURITY OF A SHORT-TERM LOAN, DECLARE A SHORT-TERM
 LOAN IMMEDIATELY DUE AND PAYABLE, OR OTHERWISE REQUIRE IMMEDIATE PAYMENT
 OF THE ENTIRE UNPAID BALANCE;
   (II) IMPOSE ANY FEE, CHARGE OR ADDITIONAL CONSIDERATION IN  CONNECTION
 WITH  A FORBEARANCE, DEFERMENT OR EXTENSION OF REPAYMENT, OTHER THAN THE
 CONTINUED ACCRUAL OF INTEREST ON THE UNPAID PRINCIPAL BALANCE AT A  RATE
 NOT EXCEEDING THE RATE OTHERWISE PERMITTED UNDER THIS SUBDIVISION;
   (III)  STRUCTURE,  LABEL, OR ADMINISTER A TRANSACTION IN A MANNER THAT
 CIRCUMVENTS OR ATTEMPTS TO CIRCUMVENT THE REQUIREMENTS OF THIS  SUBDIVI-
 SION; OR
   (IV)  MAKE  A  SHORT-TERM  LOAN  PRIOR TO PERFORMING, OR CAUSING TO BE
 PERFORMED, REASONABLE RISK-BASED UNDERWRITING, SUBJECT TO REGULATIONS TO
 BE PROMULGATED BY THE SUPERINTENDENT.
   (D) (I) LATE FEES IMPOSED PURSUANT TO  THIS  PARAGRAPH  SHALL  NOT  BE
 CONSIDERED  PART  OF  THE TOTAL COST OF CREDIT FOR PURPOSES OF PARAGRAPH
 (A) OF THIS SUBDIVISION.
   (II) A LENDER MAY IMPOSE A LATE FEE IN CONNECTION  WITH  A  SHORT-TERM
 LOAN  ONLY IF AN INSTALLMENT PAYMENT IS NOT RECEIVED WITHIN A REASONABLE
 GRACE PERIOD PRESCRIBED BY REGULATION, AND ONLY AS FOLLOWS:
 A. 10133--A                         5
 
   (A) NO MORE THAN ONE LATE FEE MAY BE IMPOSED FOR ANY  MISSED  OR  LATE
 INSTALLMENT PAYMENT;
   (B)  A  LATE  FEE  SHALL  BE  FLAT IN AMOUNT AND SHALL NOT EXCEED FIVE
 DOLLARS FOR A SHORT-TERM LOAN WITH A PRINCIPAL AMOUNT  OF  FIVE  HUNDRED
 DOLLARS  OR  LESS,  TEN  DOLLARS  FOR A SHORT-TERM LOAN WITH A PRINCIPAL
 AMOUNT EXCEEDING FIVE HUNDRED DOLLARS BUT  NOT  EXCEEDING  ONE  THOUSAND
 DOLLARS,  OR  FIFTEEN  DOLLARS  FOR  A  SHORT-TERM LOAN WITH A PRINCIPAL
 AMOUNT EXCEEDING ONE THOUSAND DOLLARS BUT NOT EXCEEDING  THREE  THOUSAND
 DOLLARS;
   (C)  SUCH LATE FEE SHALL NOT COMPOUND, BE ASSESSED ON A PER-DAY BASIS,
 OR BE IMPOSED MORE THAN  ONCE  WITH  RESPECT  TO  THE  SAME  INSTALLMENT
 PAYMENT.
   (III)  IN  NO  EVENT  SHALL  THE AGGREGATE AMOUNT OF LATE FEES IMPOSED
 PURSUANT TO THIS PARAGRAPH OVER THE LIFE OF  A  SHORT-TERM  LOAN  EXCEED
 FIFTEEN  DOLLARS  FOR  SHORT-TERM LOANS OF FIVE HUNDRED DOLLARS OR LESS,
 THIRTY DOLLARS FOR SHORT-TERM LOANS EXCEEDING FIVE HUNDRED  DOLLARS  BUT
 NOT EXCEEDING ONE THOUSAND DOLLARS, OR FORTY-FIVE DOLLARS FOR SHORT-TERM
 LOANS  EXCEEDING  ONE  THOUSAND DOLLARS BUT NOT EXCEEDING THREE THOUSAND
 DOLLARS.
   (IV) A LENDER SHALL NOT DESIGN OR ADMINISTER A SHORT-TERM  LOAN  IN  A
 MANNER  INTENDED OR REASONABLY EXPECTED TO GENERATE LATE FEES AS A REGU-
 LAR OR ANTICIPATED SOURCE OF REVENUE.
   (E) (I) UPON A BORROWER'S DEFAULT, INTEREST MAY CONTINUE TO ACCRUE  ON
 THE  UNPAID  PRINCIPAL  BALANCE OF A SHORT-TERM LOAN; PROVIDED, HOWEVER,
 THAT SUCH INTEREST SHALL NOT ACCRUE AT A  RATE  GREATER  THAN  THE  RATE
 OTHERWISE  PERMITTED UNDER THIS SUBDIVISION, AND NO INCREASED OR DEFAULT
 RATE OF INTEREST SHALL BE IMPOSED AS A RESULT OF SUCH DEFAULT.
   (II) EXCEPT AS EXPRESSLY PERMITTED  BY  THIS  SUBDIVISION,  NO  LENDER
 SHALL  IMPOSE  OR  COLLECT,  DIRECTLY OR INDIRECTLY, ANY FEE, CHARGE, OR
 CONSIDERATION IN CONNECTION WITH A BORROWER'S DEFAULT, INCLUDING BUT NOT
 LIMITED TO DEFAULT FEES, ACCELERATION FEES, COLLECTION FEES, CONVENIENCE
 FEES, OR ANY FEE CALCULATED AS A PERCENTAGE OF THE UNPAID BALANCE.
   (F) A SHORT-TERM LOAN THAT IS IN COMPLIANCE WITH THIS  SUBDIVISION  AT
 THE  TIME  IT  IS  MADE  SHALL NOT BE DEEMED TO VIOLATE THIS SUBDIVISION
 SOLELY BECAUSE THE ACTUAL TIME REQUIRED  FOR  REPAYMENT  EXCEEDS  TWELVE
 MONTHS  DUE  TO  LATE PAYMENT, DEFAULT, FORBEARANCE, DEFERMENT, OR OTHER
 BORROWER NONCOMPLIANCE, PROVIDED THAT THE LENDER DOES NOT  RENEW,  REFI-
 NANCE, OR MODIFY SUCH SHORT-TERM LOAN IN A MANNER THAT EXTENDS THE SCHE-
 DULED  TERM  BEYOND TWELVE MONTHS OR IMPOSES ANY CHARGE OR CONSIDERATION
 NOT OTHERWISE PERMITTED UNDER THIS SUBDIVISION.
   (G) NOTHING IN THIS SUBDIVISION SHALL BE  CONSTRUED  TO  PROHIBIT  THE
 RECOVERY  OF  COURT-AWARDED  COSTS, STATUTORY INTEREST ON A JUDGMENT, OR
 ATTORNEYS' FEES TO THE EXTENT OTHERWISE PERMITTED BY LAW.
   (H) A SHORT-TERM LOAN THAT COMPLIES WITH THIS SUBDIVISION SHALL NOT BE
 DEEMED CIVILLY OR CRIMINALLY USURIOUS SOLELY BY REASON OF THE ANNUALIZED
 EQUIVALENT RATE OF INTEREST OR FEES. NOTHING IN THIS  SUBDIVISION  SHALL
 BE CONSTRUED TO AUTHORIZE ANY CHARGE OR PRACTICE NOT EXPRESSLY PERMITTED
 HEREIN, OR TO LIMIT THE APPLICABILITY OF THE USURY LAWS OF THIS STATE TO
 ANY  PERSONAL  LOAN THAT DOES NOT MEET THE REQUIREMENTS OF THIS SUBDIVI-
 SION.
   6. (A) NO LENDER SHALL HAVE ANY RIGHT TO COLLECT, ATTEMPT TO  COLLECT,
 RECEIVE, OR RETAIN ANY FEE, INTEREST, CHARGES, OR OTHER CONSIDERATION IN
 EXCESS  OF  THE  PRINCIPAL  RELATED TO A PERSONAL LOAN THAT VIOLATES THE
 PROVISIONS OF THIS SECTION.
 A. 10133--A                         6
 
   (B) VIOLATION OF THE PROVISIONS OF THIS  SECTION  MAY  BE  SUBJECT  TO
 CIVIL  PENALTIES,  RESTITUTION,  INJUNCTIVE  RELIEF AND OTHER CORRECTIVE
 ACTION OR ENFORCEMENT MEASURES IMPOSED BY THE SUPERINTENDENT.
   7.  (A) THE SUPERINTENDENT SHALL PROMULGATE, AND MAY FROM TIME TO TIME
 AMEND, RULES AND REGULATIONS AS NECESSARY  TO  IMPLEMENT  THIS  SECTION,
 INCLUDING,  BUT  NOT  LIMITED  TO, RULES AND REGULATIONS RELATING TO THE
 REASONABLE RISK BASED UNDERWRITING OF SHORT-TERM LOANS,  THE  DISCLOSURE
 OF  PERSONAL AND SHORT-TERM LOAN TERMS AND CONDITIONS, GRACE PERIODS FOR
 LATE PAYMENTS, AND THE ESTABLISHMENT OF OBJECTIVE CRITERIA FOR DETERMIN-
 ING WHETHER AN EXTENSION OF CREDIT IS SUBJECT TO A CHARTER, LICENSE,  OR
 REGULATORY  REGIME  PROVIDING  FOR ONGOING SUPERVISION, EXAMINATION, AND
 ENFORCEMENT AUTHORITY FOR PURPOSES OF SUBPARAGRAPH  (III)  OF  PARAGRAPH
 (A) OF SUBDIVISION ONE OF THIS SECTION.
   (B)  THE  SUPERINTENDENT MAY, BY REGULATION, ADJUST THE DOLLAR AMOUNTS
 SPECIFIED IN SUBDIVISION FIVE OF THIS SECTION TO REFLECT CHANGES IN  THE
 CONSUMER  PRICE  INDEX, OR A SUCCESSOR INDEX, AS PUBLISHED BY THE UNITED
 STATES BUREAU OF LABOR STATISTICS, PROVIDED THAT:
   (I) ANY SUCH ADJUSTMENT SHALL APPLY PROSPECTIVELY ONLY  TO  SHORT-TERM
 LOANS MADE ON OR AFTER THE EFFECTIVE DATE OF SUCH ADJUSTMENT;
   (II)  NO  SUCH  ADJUSTMENT SHALL OCCUR MORE FREQUENTLY THAN ONCE EVERY
 THREE YEARS;
   (III) ADJUSTED DOLLAR AMOUNTS SHALL BE ROUNDED TO  THE  NEAREST  WHOLE
 DOLLAR; AND
   (IV)  THE  SUPERINTENDENT  SHALL PUBLISH NOTICE OF ANY ADJUSTMENT MADE
 PURSUANT TO THIS PARAGRAPH IN THE STATE REGISTER AND ON  THE  DEPARTMENT
 OF FINANCIAL SERVICES' WEBSITE.
   8.  (A) IF ANY PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO
 ANY PERSON OR CIRCUMSTANCES IS HELD TO BE INVALID, SUCH INVALIDITY SHALL
 NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS SECTION WHICH CAN BE
 GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION, AND  TO  THIS
 END, THE PROVISIONS OF THIS SECTION ARE SEVERABLE.
   (B) THIS SECTION SHALL NOT APPLY TO THE EXTENT THAT IT IS PREEMPTED BY
 FEDERAL  LAW.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE ANY
 ACT PROHIBITED, OR PROHIBIT ANY ACT REQUIRED, BY FEDERAL LAW.
   § 2. The superintendent of financial services shall  promulgate  rules
 and  regulations necessary to implement the provisions of section one of
 this act no later than one year after this section shall have  become  a
 law.
   § 3. This act shall take effect immediately; provided, however, that:
   (a)  section  one  of  this  act  shall take effect on the one hundred
 eightieth day after the superintendent of financial services has promul-
 gated the rules and regulations required under section two of this  act;
 and
   (b) the superintendent of financial services shall notify the legisla-
 tive bill drafting commission upon the occurrence of the promulgation of
 the  rules  and  regulations  provided for in section two of this act in
 order that the commission may maintain an accurate and timely  effective
 data  base  of the official text of the laws of the state of New York in
 furtherance of effectuating the provisions of section 44 of the legisla-
 tive law and section 70-b of the public officers law.
   Effective immediately, the addition, amendment and/or  repeal  of  any
 rule  or  regulation  necessary for the implementation of section one of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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Assembly Bill A10133A

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