NY State Senate Bill 2009-S2707

Senate Bill S2707

2009-2010 Legislative Session

Requires five days notice after repossession or retaking of motor vehicle or motorcycle pursuant to the provisions of article nine of the uniform commercial code

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Archive: Last Bill Status - In Senate Committee Transportation 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to transportation
Feb 26, 2009	referred to transportation

co-Sponsors

2009-S2707 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Amd §425, V & T L

2009-S2707 (ACTIVE) - Summary

Requires notice after repossession, opportunity to cure default, and notice of any sale of the repossessed motor vehicle or motorcycle.

2009-S2707 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2707

 TITLE OF BILL :
An act to amend the vehicle and traffic law, in relation to requiring
notice prior to and after the repossession or retaking of a motor
vehicle or motorcycle, opportunity to cure default, and notice of sale

 PURPOSE OR GENERAL IDEA OF BILL :
The purpose of the bill is to offer New York State Consumers
protection under the terms of the law pertaining to the repossession
of motor vehicles or motorcycles.

 SUMMARY OF SPECIFIC PROVISIONS :
The law requires that a creditor issue a notice 10 days prior to
repossessing a vehicle. This written notice of intent to repossess
must show the past due amount, scheduled repossession date, towing
cost, daily storage rate and any other cost relating to the
repossession which a consumer maybe required to pay. The notice must
be sent to the consumer and all co-signers on the loan by registered
or certified mail within five days after the repossession.

The notice must disclose:

* The consumer's right to redeem the vehicle and amount payable for
it;
* The rights of the owner as to a resale, and his or her liability for

a deficiency; and the exact location where the motor vehicle or
motorcycle is stored and the address where any payment is to be made
or notice delivered.

The persons repossessing the vehicle shall retain the motor vehicle or
motorcycle for 15 days after the above notice. During that 15 day
period the owner may:

* Redeem and take possession of the motor vehicle or motorcycle;
* Resume the performance of the underlying agreement.

To redeem the goods (vehicles) the owner must:

* Tender the amount, due under the underlying agreement at the time of
redemption, without giving effect to any provision which allows
acceleration of any installment otherwise payable after that time;
* Tender performance of any other promise for the breach of which the
motor vehicle or motorcycle was repossessed; and - Tender the actual
and reasonable expenses of retaking and storing the motor vehicle or
motorcycle consistent with the first notice.

The creditor shall sell the repossessed motor vehicle or motorcycle at
private sale or public auction after notifying the owner of the time
and place of sale. This notice must be sent by certified mail, return
receipt requested, sent to the owner's last known address.

 JUSTIFICATION :
Motor vehicles are one of the most common types of consumer goods
possessed. A creditor may repossess a consumer's vehicle if loan
payments become delinquent, even after one missed payment. The New
York State Law does not require notification to the consumer on the
repossession of a motor vehicle or motorcycle. The law currently
requires notification to a station house or police department. The
state offers little or no consumer protection under the current law
for those in jeopardy of having their vehicle repossessed. with a
weakened economy and bleak economic forecasts the consumer may face
temporary financial loss due to job relocation, layoffs, and in most
cases will need a waiting period to make adjustments. During this
waiting period of five to 10 days, the consumer would be allowed an
opportunity to payoff the amount of the debt and maintain or reclaim
possession of the vehicle. A number of other states are offering
consumer protection under their laws for those in default of the terms
of the financing conditions of the motor vehicle or motorcycles.

 PRIOR LEGISLATIVE HISTORY :
STATUS:
S.2781 ADAMS Same as Uni. A.4965 Greene

02/12/07 REFERRED TO TRANSPORTATION
01/09/08 REFERRED TO TRANSPORTATION
02/12/07 REFERRED TO TRANSPORTATION
01/09/08 REFERRED TO TRANSPORTATION

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
The Act shall take effect on the first of January next succeeding the
date of passage.

2009-S2707 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2707

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 26, 2009
                               ___________

Introduced  by Sens. ADAMS, MONSERRATE, PARKER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Trans-
  portation

AN  ACT  to  amend the vehicle and traffic law, in relation to requiring
  notice prior to and after the repossession  or  retaking  of  a  motor
  vehicle or motorcycle, opportunity to cure default, and notice of sale

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 425 of  the  vehicle  and  traffic
law, as amended by chapter 81 of the laws of 1968, is amended to read as
follows:
  1.  Any  person,  firm or corporation, or agent, employee or represen-
tative thereof, repossessing or retaking a motor vehicle  or  motorcycle
pursuant  to  the  provisions  of article nine of the uniform commercial
code, or other authority of law, or any contract or agreement, shall[,]:
  (A) immediately following such repossession  or  retaking,  personally
appear  at  a station house or other office of the police department, or
agency or officer performing like functions,  in  the  locality  wherein
such  repossession or retaking occurred, give notice to such department,
agency or officer of such repossession or retaking  and  thereafter  and
within  twenty-four hours personally deliver or mail by special delivery
first class mail to the nearest motor vehicle district office, [(a)] (1)
notice of such repossession or retaking in such form as the commissioner
may require and [(b)] (2) the number plates of  such  motor  vehicle  or
motorcycle.  Notice of such repossession or retaking, including the name
and address of the person, firm or corporation repossessing or  retaking
the  same,  shall  also be given within twenty-four hours thereof to the
owner of such motor vehicle  or  motorcycle,  either  personally  or  by
registered  or certified mail directed to such owner at his OR HER last-
known address. Unless the motor vehicle or motorcycle can be repossessed
or retaken without breach of the  peace,  it  shall  be  repossessed  or

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04227-01-9

S. 2707                             2

retaken  by  legal  process,  but  nothing  herein  contained  shall  be
construed to authorize a violation of the criminal law.
  (B)  WITHIN  FIVE  DAYS  AFTER  HE  OR  SHE REPOSSESSES THE GOODS, THE
PERSON, FIRM OR CORPORATION, OR AGENT, EMPLOYEE OR REPRESENTATIVE THERE-
OF, SHALL DELIVER TO THE OWNER PERSONALLY OR SEND TO HIM OR HER  AT  HIS
OR  HER  LAST  KNOWN  ADDRESS BY REGISTERED OR CERTIFIED MAIL, A WRITTEN
NOTICE WHICH BRIEFLY STATES:
  (1) THE RIGHT OF THE OWNER TO REDEEM THE MOTOR VEHICLE OR  MOTORCYCLE,
AND THE AMOUNT PAYABLE FOR IT;
  (2)  THE  RIGHTS OF THE OWNER AS TO A RESALE, AND HIS OR HER LIABILITY
FOR A DEFICIENCY; AND
  (3) THE EXACT LOCATION WHERE THE MOTOR VEHICLE OR MOTORCYCLE IS STORED
AND THE ADDRESS WHERE ANY PAYMENT IS TO BE MADE OR NOTICE DELIVERED.
  (C) FOR FIFTEEN DAYS AFTER THE PERSON, FIRM OR CORPORATION, OR  AGENT,
EMPLOYEE  OR  REPRESENTATIVE THEREOF, GIVES THE NOTICE REQUIRED BY PARA-
GRAPH (B) OF THIS SUBDIVISION,  THE  PERSON,  FIRM  OR  CORPORATION,  OR
AGENT,  EMPLOYEE OR REPRESENTATIVE THEREOF, SHALL RETAIN ANY REPOSSESSED
MOTOR VEHICLE OR MOTORCYCLE.
  (D) DURING THE PERIOD PROVIDED FOR IN PARAGRAPH (C) OF  THIS  SUBDIVI-
SION, THE OWNER MAY:
  (1) REDEEM AND TAKE POSSESSION OF THE MOTOR VEHICLE OR MOTORCYCLE; AND
  (2) RESUME THE PERFORMANCE OF THE UNDERLYING AGREEMENT.
  (E) TO REDEEM THE GOODS, THE OWNER SHALL:
  (1)  TENDER  THE AMOUNT DUE UNDER THE UNDERLYING AGREEMENT AT THE TIME
OF REDEMPTION, WITHOUT GIVING  EFFECT  TO  ANY  PROVISION  WHICH  ALLOWS
ACCELERATION OF ANY INSTALLMENT OTHERWISE PAYABLE AFTER THAT TIME;
  (2)  TENDER  PERFORMANCE  OF ANY OTHER PROMISE FOR THE BREACH OF WHICH
THE MOTOR VEHICLE OR MOTORCYCLE WAS REPOSSESSED; AND
  (3) IF THE NOTICE PROVIDED FOR IN PARAGRAPH (B)  OF  THIS  SUBDIVISION
WAS  GIVEN, PAY THE ACTUAL AND REASONABLE EXPENSES OF RETAKING AND STOR-
ING THE MOTOR VEHICLE OR MOTORCYCLE.
  (F) THE PERSON, FIRM OR CORPORATION, OR AGENT, EMPLOYEE  OR  REPRESEN-
TATIVE  THEREOF,  SHALL SELL THE REPOSSESSED MOTOR VEHICLE OR MOTORCYCLE
AT PRIVATE SALE OR AT PUBLIC AUCTION. AT LEAST TEN DAYS BEFORE THE SALE,
THE PERSON, FIRM OR CORPORATION, OR AGENT,  EMPLOYEE  OR  REPRESENTATIVE
THEREOF,  SHALL  NOTIFY  THE  OWNER  IN  WRITING SENT BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, SENT TO THE OWNER'S LAST KNOWN ADDRESS OF  THE
TIME  AND  PLACE  OF  SALE.  ANY  SALE OF A REPOSSESSED MOTOR VEHICLE OR
MOTORCYCLE MUST BE ACCOMPLISHED IN A COMMERCIALLY REASONABLE MANNER.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

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Senate Bill S2707

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