1. The Laws of New York
  2. Consolidated Laws
  3. Personal Property
  4. Article 10: Retail Instalment Sales Act


Section 401 Definitions

Personal Property (PEP)

In this article, unless the context or subject matter otherwise requires:

  1. "Goods" means all chattels personal, other than things in action or money, sold for other than a commercial or business use or for purpose of resale. The term includes goods which, at the time of the sale or subsequently, are to be so affixed to realty as to become a part thereof whether or not severable therefrom, but does not include a motor vehicle as defined in article nine or nine-A of this chapter, nor any goods sold or leased with such a vehicle if they are sold under a retail instalment contract governed by article nine of this chapter or leased under a retail lease agreement governed by article nine-A of this chapter.

  In the case of a retail instalment credit agreement, the term also includes all chattels personal, other than things in action or money, sold for a commercial or business use.

  2. "Services" means: (a) In the case of a retail instalment contract, work, labor and services furnished, or agreed to be furnished, for other than a commercial or business use, in the delivery, installation, servicing, repair or improvement of goods or repairs, alterations or improvements upon or in connection with real property, except that such services shall not mean or include any services sold in connection with the sale or lease of a motor vehicle which is evidenced by a retail instalment contract governed by article nine of this chapter or a retail lease agreement governed by article nine-A of this chapter;

  (b) In the case of a retail instalment obligation, services of any kind furnished or rendered or agreed to be furnished or rendered, for other than a commercial or business use, except that such services shall not mean nor include (1) services for which the tariffs or the rates, charges, cost or expense is required by law to be filed with or determined or approved by the state or federal government or any official department, division, commission or agency of the state of New York or of the United States, or (2) services by an institution of the university of the state of New York, an elementary school which provides the education required by the state of New York, a nursery school or a kindergarten; and

  (c) In the case of a retail instalment credit agreement, services of any kind rendered or furnished or agreed to be rendered or furnished by a retail seller; and, in the case of a retail instalment credit agreement entered into under paragraph (b) of subdivision eleven of section four hundred thirteen of this chapter, a contract or contracts of insurance issued to a retail buyer.

  3. "Retail seller" or "seller" means a person who sells goods or furnishes or renders or agrees to furnish or render services to a retail buyer. The term includes the lessor under a lease of a department in a shop, store or other establishment if the lessor is liable to customers in respect to goods sold or services furnished or rendered by the leased department and the other operations thereof.

  4. "Retail buyer" or "buyer" means a person who buys goods or obtains services from a retail seller. When used in subdivision eleven of section four hundred thirteen of this chapter, the term also means any person who is liable for the payment of a fine, tax, civil penalty, rent, rate, fee, charge, revenue, financial obligation or other amount, including a penalty, special assessment or interest, to a municipal corporation or the New York city water board, and any person who is liable for the payment of any fee, rate, rent or other charge of the White Plains parking authority.

  5. "Retail instalment sale" or "sale" means a sale of goods, or the furnishing or rendering of services, or an agreement to furnish or render services, by a retail seller to a retail buyer for a time sale price payable in instalments.

  6. "Retail instalment contract" or "contract" means an agreement entered into in this state, pursuant to which the title to, the property or a security interest in or a lien upon goods, which are the subject matter of a retail instalment sale, is retained or taken by a retail seller from a retail buyer as security, in whole or in part, for the buyer's obligation. The term includes such an agreement wherever entered into if executed by the buyer in this state and if solicited in person by a salesman or other person acting on his own behalf or that of the seller. The term also includes a contract whereby a security interest in favor of the seller is created or retained and a contract for the bailment or leasing of goods by which the bailee or lessee contracts to pay as compensation for their use a sum substantially equivalent to or in excess of their value and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming, the owner of the goods upon full compliance with the terms of the contract. The term does not include a contract which is intended to be and is ultimately insured or guaranteed under title three of the act of Congress entitled "Servicemen's Readjustment Act of 1944".

  7. "Retail instalment obligation" or "obligation" means an agreement, entered into in this state, pursuant to which the buyer promises to pay, in instalments, the time sale price or prices of goods and/or services, or any part thereof. The term includes such an agreement wherever entered into if executed by the buyer in this state and if solicited in person by a salesman or other person acting on his own behalf or that of the seller. The term does not include (a) a retail instalment contract, (b) a retail instalment credit agreement, or (c) an obligation which is intended to be and is ultimately insured or guaranteed until title three of the act of Congress entitled "Servicemen's Readjustment Act of 1944".

  8. "Retail instalment credit agreement" or "credit agreement" means an agreement entered into in this state, pursuant to which the buyer promises to pay, in instalments, his outstanding indebtedness from time to time to a retail seller, not evidenced by a retail instalment contract or obligation, for one or more items of goods or services, or merchandise certificates to be used solely in exchange for goods and services with a cash sale price in the face amount of such certificates and not redeemable in cash, whenever purchased or obtained, which provides for a service charge and under which instalment payments apply to his outstanding indebtedness from time to time. The term includes such an agreement wherever entered into if executed by the buyer in this state and if solicited in person by a salesman or other person acting on his own behalf or that of the seller. The term also includes a retail instalment credit agreement entered into by a financing agency with a retail buyer as provided in subdivision eleven of section four hundred thirteen of this article.

  8-a. "Retail instalment note" or "note" means a promissory note required by the provision of a retail instalment obligation and conforming to the requirements of subdivision two of section four hundred three of this article.

  9. "Cash sale price" means the cash sale price stated in a retail instalment contract or obligation for which the seller would sell or furnish to the buyer and the buyer would buy or obtain from the seller the goods or services which are the subject matter of a retail instalment contract or obligation if the sale were a sale for cash instead of a retail instalment sale. The cash sale price may include any taxes and cash sale prices for accessories and services, if any, included in a retail instalment sale.

  10. "Time sale price" means the total of the cash sale price of the goods or services and the amounts, if any, included for insurance, official fees and credit service charge.

  11. "Credit service charge" means that part of the entire amount agreed to be paid for the goods or services which exceeds the aggregate of the cash sale price thereof and the amounts, if any, included in a retail instalment sale for insurance and official fees.

  12. "Service charge" means all charges incident to investigating and making a retail instalment credit agreement and for the extension of credit thereunder.

  13. "Principal balance" means the cash sale price of the goods or services which are the subject matter of the retail instalment sale, plus the amounts, if any, included in a retail instalment sale for insurance and official fees, minus the amount of the buyer's down-payment in money or goods.

  14. "Time balance" means the total of the principal balance and the amount of the credit service charge, if any.

  15. "Holder" means the retail seller who acquires a retail instalment contract, obligation or credit agreement, or note, executed, incurred or entered into by a retail buyer, or if the contract, obligation, credit agreement or note is purchased by a financing agency or other assignee or endorsee, the financing agency or other assignee or endorsee.

  16. "Official fees" means the fees or taxes required by law and actually to be paid to the appropriate public officer to perfect the lien or other security interest, on or in goods, retained or taken by a seller under a retail instalment contract or to record a mortgage on real property taken by a seller or holder to secure a retail instalment contract or obligation or note.

  17. "Person" means an individual, partnership, corporation, association or other group, however organized.

  18. "Financing agency" means a person engaged in this state, in whole or in part, in the business of purchasing retail instalment contracts, obligations or credit agreements or indebtedness of buyers under credit agreements from one or more retail sellers or entering into credit agreements with retail buyers as provided in subdivision eleven of section four hundred thirteen of this article but shall not include a retail seller. The term includes but is not limited to a bank, trust company, savings bank, savings and loan association, private banker or investment company, if so engaged, but shall not include a retail seller.

  19. Words in the singular include the plural and vice versa.

  20. "Boat" shall mean any vessel or craft designed to transport persons or cargo on the water surface.

  21. "New York city water board" means the public benefit corporation established pursuant to section one thousand forty-six of the public authorities law.

  22. "Municipal corporation" means a local government, as that term is defined in section ten of the general municipal law.

  23. "White Plains parking authority" means the corporation created by section one thousand four hundred twenty-seven of the public authorities law.