Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Feb 03, 2009 |
recommit, enacting clause stricken |
Jan 21, 2009 |
referred to judiciary |
Senate Bill S880
2009-2010 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - Stricken
- 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
Actions
2009-S880 (ACTIVE) - Details
- Law Section:
- Judiciary Law
- Laws Affected:
- Add Art 15-A ยง499-a, Judy L
2009-S880 (ACTIVE) - Sponsor Memo
BILL NUMBER: S880 TITLE OF BILL : An act to amend the judiciary law, in relation to the financing of lawsuits PURPOSE : This bill relates to the financing of lawsuits. SUMMARY OF PROVISIONS : Section 1 amends the judiciary law by adding a new article 15-A, entitled "Financing of a Lawsuit by a Third Party." The financing of a lawsuit by a third party for investment, with the expectation of a return which exceeds the state usury laws, shall be considered champertous and illegal. It further stipulates that any financing of a lawsuit by a third party shall be considered a loan and therefore subject to the provisions of section 5-501 of the general obligations law and to penalties, where applicable, under article 190 of the penal law relating to criminal usury. This bill does not apply to contingency fees. Violations will be considered a misdemeanor, carrying a fine of $2,500 per incident.
2009-S880 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 880 2009-2010 Regular Sessions I N S E N A T E January 21, 2009 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the judiciary law, in relation to the financing of lawsuits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The judiciary law is amended by adding a new article 15-A to read as follows: ARTICLE 15-A FINANCING OF LAWSUIT BY THIRD PARTY SECTION 499-A. FINANCING OF LAWSUIT BY THIRD PARTY. S 499-A. FINANCING OF LAWSUIT BY THIRD PARTY. 1. THE FINANCING OF A LAWSUIT, BEFORE OR AFTER SUCH LAWSUIT HAS BEEN FILED, BY A PERSON, PART- NERSHIP, CORPORATION, FIRM OR OTHER THIRD PARTY FOR INVESTMENT WITH THE EXPECTATION OF A RETURN WHICH EXCEEDS THE USURY LAWS OF THIS STATE IN THE EVENT THE FINANCED PARTY PREVAILS AND WITHOUT THE EXPECTATION OF A RETURN IN THE EVENT THE FINANCED PARTY DOES NOT PREVAIL SHALL BE CONSID- ERED CHAMPERTOUS AND ILLEGAL UNDER THE LAWS OF THIS STATE. 2. ANY FINANCING OF A LAWSUIT BY A THIRD PARTY SHALL BE CONSIDERED A LOAN AND SUBJECT TO SECTION 5-501 OF THE GENERAL OBLIGATIONS LAW AND WHERE APPLICABLE, THE PROVISIONS OF ARTICLE ONE HUNDRED NINETY OF THE PENAL LAW RELATING TO CRIMINAL USURY. 3. THIS SECTION SHALL IN NO WAY APPLY TO CONTINGENCY FEES THAT ARE IN CONFORMANCE WITH THE LAWS OF THIS STATE, INCLUDING BUT NOT LIMITED TO SECTION FOUR HUNDRED EIGHTY-EIGHT OF THIS CHAPTER. 4. ANY VIOLATION OF THIS SECTION SHALL BE A MISDEMEANOR AND SUBJECT TO A FINE OF TWO THOUSAND FIVE HUNDRED DOLLARS PER VIOLATION. S 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06557-01-9
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