Assembly Bill A7545

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7545
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 1, 2025
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the civil practice law and rules, in relation to certain
   judgments by confession
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision (a) of section 3218 of the civil  practice  law
 and rules, as amended by chapter 311 of the laws of 1963, paragraph 1 as
 amended  by  chapter  831  of  the  laws  of 2021, is amended to read as
 follows:
   (a) Affidavit of defendant. Except as provided in  section  thirty-two
 hundred one OF THIS ARTICLE AND SUBDIVISION (E) OF THIS SECTION, a judg-
 ment  by  confession may be entered, without an action, either for money
 due or to become due, or to secure the plaintiff  against  a  contingent
 liability  [in]  ON  behalf of the defendant, or both, upon an affidavit
 executed by the defendant[;]:
   1. stating the sum for which judgment may be entered, authorizing  the
 entry  of  judgment,  AND stating the county where the defendant resides
 [and, if applicable, stating that the interest rate  for  consumer  debt
 pursuant to section five thousand four of this chapter applies];
   2.  if the judgment to be confessed is for money due or to become due,
 stating concisely the facts out of which the debt arose and showing that
 the sum confessed is justly due or to become due; and
   3. if the judgment to be confessed is for the purpose of securing  the
 plaintiff  against  a  contingent liability, stating concisely the facts
 constituting the liability and showing that the sum confessed  does  not
 exceed the amount of the liability.
   §  2.  Section  3218 of the civil practice law and rules is amended by
 adding a new subdivision (e)  to read as follows:
   (E) PROHIBITION ON CERTAIN JUDGMENTS BY CONFESSION.   NO  JUDGMENT  BY
 CONFESSION MAY BE ENTERED ON:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05691-01-5
              

 A. 7545                             2
 
   1.  ANY  AMOUNT DUE FROM ONE OR MORE INDIVIDUALS FOR PERSONAL, FAMILY,
 HOUSEHOLD, CONSUMER, OR OTHER NON-BUSINESS PURPOSES; OR
   2.  ANY AMOUNT DUE ON A DEBT INCURRED BY ANY PERSON FOR ANY PURPOSE IF
 THE PRINCIPAL AMOUNT OF SUCH DEBT WAS LESS THAN FIVE MILLION DOLLARS  AT
 THE TIME THE DEBT WAS INCURRED.
   § 3.  This act shall take effect immediately and apply to judgments by
 confession  entered  upon  affidavits  filed  on or after such effective
 date.