NY State Senate Bill 2011-S5731

Archive: Last Bill Status - In Senate Committee Judiciary 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to judiciary
Jun 14, 2011	referred to rules

2011-S5731 (ACTIVE) - Details

See Assembly Version of this Bill:: A2818
Current Committee:: Senate Judiciary
Law Section:: Personal Property Law
Laws Affected:: Add Art 13 §§555 - 564, Pers Prop L; amd §357, Bank L
Versions Introduced in 2009-2010 Legislative Session:: A11263

2011-S5731 (ACTIVE) - Summary

Relates to guaranteed asset protection waivers; authorizes contractual agreement wherein a creditor agrees, for a separate charge, to cancel or waive the gap amount due on a borrower's finance agreement in the event of a total physical damage or loss.

2011-S5731 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5731

TITLE OF BILL:
An act
to amend the personal property law and the banking law, in
relation to guaranteed asset
protection waivers

PURPOSE OF THE BILL:
To provide for a waiver of debt for those who suffer unrecovered theft
or total loss of personal property.

SUMMARY OF PROVISIONS:
Section one creates a new article in the personal property law.

New section 555 provides for the scope of the article.

Section 556 provides the definitions to be used in the article.

Section 557 provides the requirements part and parcel of the offering
of a gap waiver including compliance with the Truth in Lending Act,
the purchase of insurance of the offeror's obligations, the
prohibition of conditioning the extension of credit on the purchase
of the gap waiver, and the requirement to disclosure of the consumer's
options and prices upon the offer of a gap waiver.

Section 558 provides requirements for the contractual liability of the
offeror.

Section 559 requires disclosures to be provided to the consumer upon
the offer for sale of a gap waiver, including information on the
product, the initial creditor and any administrator, as well as how
consumer would obtain benefits. The disclosures also inform consumers
regarding their right to cancel the benefits after a Free Look
Period, and the right to and methodology for calculation of any refund.

Section 560 provides for the cancellation of the gap waiver with refund.

Section 561 provides for exemption of commercial contracts.

Section 562 provides for enforcement of the requirements.

Section 563 provides the intent of the legislation.

Section two of the bill provides that certain entities licensed by the
Banking Law may offer gap waiver under the requirements of this
article.

Section three of the bill provides the effective date.

JUSTIFICATION:
Currently, New Yorkers are restricted to a limited selection of asset
protection providers. As a result, New York consumers have few
choices in the types of protection they can access. This is due, in
part, to the arbitrary cap placed on the amount for which such
products may be sold, creating a disincentive for new underwriters


and carriers to enter the market and compete for business. Removing
the cap will facilitate competition among asset protection providers
enabling them to be more flexible with the products they offer. More
flexibility will result in a greater selection of higher quality
products better suited to meet a consumer's particular needs.
Furthermore, as competition increases the price affixed to asset
protection products will decrease, potentially lowering the fee below
the current statutory cap for a better product than what is now
available.

The addition of this competition could have a downward effect on
insurance premiums as another avenue is established by this bill by
which consumers can be covered for loss. The competition with
insurance products will facilitate this reduction in premiums and
further encourage the enhancement the quality of the insurance
policies.
Further, these products will include the highest amount of
transparency and disclosure. Under this legislation, consumers are
informed of their rights and benefits in regard to the guaranteed
asset protection waiver. Consumers are provided with information on
who is behind the waiver and anyone who administers it. Consumers are
even notified that their current insurance may include this benefit
and that the price is not regulated by the Department of Insurance.

The disclosures provided fully inform the consumer, allowing consumers
to choose freely the protections they want from whomever they want,
whereas, currently in this state, they have 110 choice.

LEGISLATIVE HISTORY:
New bill.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall become a law.

2011-S5731 (ACTIVE) - Bill Text download pdf

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

                                  5731

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 14, 2011
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the personal  property  law  and  the  banking  law,  in
  relation to guaranteed asset protection waivers

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

  Section 1. The personal property law is amended by adding a new  arti-
cle 13 to read as follows:
                               ARTICLE 13
                   GUARANTEED ASSET PROTECTION WAIVERS
SECTION 555. SCOPE.
        556. DEFINITIONS.
        557. REQUIREMENTS FOR OFFERING GUARANTEED ASSET PROTECTION WAIV-
               ERS.
        558. CONTRACTUAL LIABILITY OR OTHER INSURANCE POLICIES.
        559. DISCLOSURES.
        560. CANCELLATION.
        561. COMMERCIAL TRANSACTIONS EXEMPTED.
        562. ENFORCEMENT.
        563. INTENT.
        564. SEVERABILITY.
  S 555. SCOPE. 1. THE PURPOSE OF THIS ARTICLE IS TO PROVIDE A FRAMEWORK
WITHIN  WHICH GUARANTEED ASSET PROTECTION WAIVERS ARE DEFINED AND MAY BE
OFFERED WITHIN THIS STATE.
  2. THIS ARTICLE DOES NOT APPLY TO:
  (A) AN INSURANCE POLICY OFFERED BY AN  AUTHORIZED  INSURER  UNDER  THE
INSURANCE LAWS OF THIS STATE; OR
  (B)  A  DEBT CANCELLATION OR DEBT SUSPENSION CONTRACT BEING OFFERED IN
COMPLIANCE WITH 12 CFR PART 37 OR 12 CFR PART 721 OR OTHER FEDERAL LAW.
  3. NOTWITHSTANDING ANY CONTRARY PROVISION  OF  LAW,  GUARANTEED  ASSET
PROTECTION  WAIVERS GOVERNED UNDER THIS ARTICLE DO NOT CONSTITUTE INSUR-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13042-01-1

S. 5731                             2

ANCE AS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED ONE OF THE INSURANCE
LAW. PERSONS MARKETING, SELLING OR OFFERING  TO  SELL  GUARANTEED  ASSET
PROTECTION  WAIVERS  TO  BORROWERS THAT COMPLY WITH THIS ARTICLE ARE NOT
AGENTS,  BROKERS,  OR  INTERMEDIARIES AS DEFINED IN SECTION TWO THOUSAND
ONE HUNDRED ONE OF THE INSURANCE LAW AND  ARE  NOT  DOING  AN  INSURANCE
BUSINESS  AS  PROVIDED UNDER SECTION ONE THOUSAND ONE HUNDRED ONE OF THE
INSURANCE LAW.
  S 556. DEFINITIONS. THE FOLLOWING TERMS ARE DEFINED  FOR  PURPOSES  OF
THIS  ARTICLE  AND  ARE NOT INTENDED TO PROVIDE ACTUAL TERMS REQUIRED IN
GUARANTEED ASSET PROTECTION WAIVERS.
  1. "ADMINISTRATOR" MEANS A PERSON, OTHER THAN AN AUTHORIZED INSURER OR
CREDITOR THAT PERFORMS ADMINISTRATIVE OR OPERATIONAL FUNCTIONS  PURSUANT
TO GUARANTEED ASSET PROTECTION WAIVER PROGRAMS.
  2.  "AUTHORIZED  INSURER"  MEANS AN INSURANCE COMPANY LICENSED, REGIS-
TERED, OR OTHERWISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AS  DEFINED
IN SECTION THREE HUNDRED ONE OF THIS CHAPTER.
  3.  "BORROWER" MEANS A DEBTOR, RETAIL BUYER OR LESSEE, UNDER A FINANCE
AGREEMENT.
  4. "CREDITOR" MEANS:
  (A) THE LENDER IN A LOAN OR CREDIT TRANSACTION;
  (B) THE LESSOR IN A LEASE TRANSACTION;
  (C) ANY "RETAIL SELLER", AS DEFINED IN SECTION THREE  HUNDRED  ONE  OF
THIS  CHAPTER  OR  "RETAIL  LESSOR"  AS DEFINED IN SECTION THREE HUNDRED
THIRTY-ONE OF THIS CHAPTER, OF MOTOR VEHICLES THAT  PROVIDES  CREDIT  TO
"RETAIL BUYERS", AS DEFINED IN SECTION THREE HUNDRED ONE OF THIS CHAPTER
OR  "RETAIL  LESSEE"  AS  DEFINED IN SECTION THREE HUNDRED THIRTY-ONE OF
THIS CHAPTER, OF SUCH MOTOR VEHICLES PROVIDED THAT SUCH ENTITIES  COMPLY
WITH THE PROVISIONS OF THIS SECTION;
  (D) THE SELLER IN COMMERCIAL RETAIL INSTALLMENT TRANSACTIONS; OR
  (E)  THE  ASSIGNEES  OF  ANY OF THE FOREGOING TO WHOM THE CREDIT OBLI-
GATION IS PAYABLE.
  5. "FINANCE AGREEMENT" MEANS A LOAN, LEASE OR RETAIL INSTALLMENT SALES
CONTRACT FOR THE PURCHASE OR LEASE OF A MOTOR VEHICLE.
  6. "FREE LOOK PERIOD" MEANS THE PERIOD OF TIME FROM THE EFFECTIVE DATE
OF THE GAP WAIVER UNTIL THE DATE THE BORROWER MAY  CANCEL  THE  CONTRACT
WITHOUT PENALTY, FEES OR COSTS TO THE BORROWER. THIS PERIOD OF TIME MUST
NOT BE SHORTER THAN THIRTY DAYS.
  7.  "GUARANTEED  ASSET  PROTECTION  WAIVER"  OR  "GAP  WAIVER" MEANS A
CONTRACTUAL AGREEMENT WHEREIN A CREDITOR AGREES, FOR A SEPARATE  CHARGE,
TO  CANCEL  OR WAIVE THE GAP AMOUNT AS DEFINED IN SUBDIVISION FIFTEEN OF
SECTION THREE HUNDRED THIRTY-ONE OF THIS CHAPTER  DUE  ON  A  BORROWER'S
FINANCE  AGREEMENT IN THE EVENT OF A TOTAL PHYSICAL DAMAGE LOSS OR UNRE-
COVERED THEFT OF THE MOTOR VEHICLE, WHICH AGREEMENT MUST BE PART OF,  OR
A SEPARATE ADDENDUM TO, THE FINANCE AGREEMENT. GAP AMOUNT SHALL HAVE THE
SAME  MEANING  AS  SET  FORTH  IN  SUBDIVISION  FIFTEEN OF SECTION THREE
HUNDRED THIRTY-ONE OF THIS CHAPTER, BUT SHALL NOT BE DEEMED  TO  INCLUDE
ANY AMOUNTS ACTUALLY REFUNDED FROM OTHER SOURCES.
  8. "MOTOR VEHICLE" MEANS SELF PROPELLED OR TOWED VEHICLES DESIGNED FOR
PERSONAL  OR  COMMERCIAL  USE, INCLUDING BUT NOT LIMITED TO AUTOMOBILES,
TRUCKS, MOTORCYCLES, RECREATIONAL VEHICLES, ALL TERRAIN VEHICLES,  SNOW-
MOBILES,  CAMPERS,  BOATS,  PERSONAL  WATERCRAFT,  AND MOTORCYCLE, BOAT,
CAMPER AND PERSONAL WATERCRAFT TRAILERS.
  9. "PERSON" INCLUDES AN INDIVIDUAL,  COMPANY,  ASSOCIATION,  ORGANIZA-
TION,  PARTNERSHIP, BUSINESS TRUST, CORPORATION, AND EVERY FORM OF LEGAL
ENTITY.

S. 5731                             3

  S 557. REQUIREMENTS FOR OFFERING GUARANTEED ASSET PROTECTION  WAIVERS.
NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW:
  1.  GAP  WAIVERS MAY BE OFFERED, SOLD OR PROVIDED TO BORROWERS IN THIS
STATE IN COMPLIANCE WITH THIS CHAPTER.
  2. GAP WAIVERS MAY, AT THE OPTION OF  THE  CREDITOR,  BE  SOLD  FOR  A
SINGLE  PAYMENT  OR  MAY  BE  OFFERED WITH A MONTHLY OR PERIODIC PAYMENT
OPTION.
  3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY COST TO THE BORROW-
ER FOR A GUARANTEED ASSET PROTECTION WAIVER ENTERED INTO  IN  COMPLIANCE
WITH  THE TRUTH IN LENDING ACT (15 USC 1601 ET. SEQ.) AND ITS IMPLEMENT-
ING REGULATIONS, AS THEY MAY BE AMENDED FROM TIME TO TIME, MUST BE SEPA-
RATELY STATED AND IS NOT TO BE CONSIDERED A FINANCE CHARGE OR INTEREST.
  4. A RETAIL SELLER MUST INSURE ITS  GAP  WAIVER  OBLIGATIONS  UNDER  A
CONTRACTUAL  LIABILITY OR OTHER INSURANCE POLICY ISSUED BY AN AUTHORIZED
INSURER. A CREDITOR, OTHER THAN A RETAIL  SELLER,  MAY  INSURE  ITS  GAP
WAIVER  OBLIGATIONS  UNDER  A CONTRACTUAL LIABILITY POLICY OR OTHER SUCH
POLICY ISSUED BY AN AUTHORIZED INSURER. ANY SUCH INSURANCE POLICY MAY BE
DIRECTLY OBTAINED BY A CREDITOR, RETAIL SELLER, OR MAY BE PROCURED BY AN
ADMINISTRATOR TO COVER A  CREDITOR'S  OR  RETAIL  SELLER'S  OBLIGATIONS.
HOWEVER  RETAIL  SELLERS  THAT  ARE  LESSORS  ON  MOTOR VEHICLES ARE NOT
REQUIRED TO INSURE OBLIGATIONS RELATED TO GAP  WAIVERS  ON  SUCH  LEASED
VEHICLES.
  5.  THE  GAP  WAIVER  REMAINS A PART OF THE FINANCE AGREEMENT UPON THE
ASSIGNMENT, SALE OR TRANSFER OF SUCH FINANCE AGREEMENT BY THE CREDITOR.
  6. NEITHER THE EXTENSION OF CREDIT, THE TERM OF CREDIT, NOR  THE  TERM
OF  THE  RELATED MOTOR VEHICLE SALE OR LEASE MAY BE CONDITIONED UPON THE
PURCHASE OF A GAP WAIVER.
  7. ANY CREDITOR THAT OFFERS A GAP WAIVER MUST REPORT THE SALE OF,  AND
FORWARD  FUNDS  RECEIVED ON ALL SUCH WAIVERS TO THE DESIGNATED PARTY, IF
ANY, AS PRESCRIBED IN ANY APPLICABLE ADMINISTRATIVE SERVICES  AGREEMENT,
CONTRACTUAL  LIABILITY POLICY, OTHER INSURANCE POLICY OR OTHER SPECIFIED
PROGRAM DOCUMENTS.
  8. FUNDS RECEIVED OR HELD BY A CREDITOR OR ADMINISTRATOR AND BELONGING
TO AN AUTHORIZED INSURER, CREDITOR OR  ADMINISTRATOR,  PURSUANT  TO  THE
TERMS  OF  A WRITTEN AGREEMENT MUST BE HELD BY SUCH CREDITOR OR ADMINIS-
TRATOR IN A FIDUCIARY CAPACITY.
  9. A RETAIL SELLER MUST, AT THE TIME OF OFFERING ANY GAP WAIVER,  ALSO
DISCLOSE  ALTERNATIVE  PRODUCTS INCLUDING PRODUCTS OFFERED UNDER SECTION
THREE THOUSAND FOUR HUNDRED  TWENTY-SEVEN  OF  THE  INSURANCE  LAW.  THE
RETAIL  SELLER  IS NOT REQUIRED TO BE LICENSED UNDER THE INSURANCE LAWS,
RULES, OR REGULATIONS IN ORDER TO DISCLOSE SUCH ALTERNATIVE PRODUCTS.
  S 558. CONTRACTUAL LIABILITY OR OTHER INSURANCE POLICIES.
  1. CONTRACTUAL LIABILITY OR  OTHER  INSURANCE  POLICIES  INSURING  GAP
WAIVERS MUST STATE THE OBLIGATION OF THE AUTHORIZED INSURER TO REIMBURSE
OR  PAY  TO  THE  CREDITOR ANY SUMS THE CREDITOR IS LEGALLY OBLIGATED TO
WAIVE UNDER THE GAP WAIVERS ISSUED BY THE CREDITOR AND PURCHASED OR HELD
BY THE BORROWER.
  2. COVERAGE UNDER A CONTRACTUAL LIABILITY OR  OTHER  INSURANCE  POLICY
INSURING  A  GAP WAIVER MUST ALSO COVER ANY SUBSEQUENT ASSIGNEE UPON THE
ASSIGNMENT, SALE OR TRANSFER OF THE FINANCE AGREEMENT.
  3. COVERAGE UNDER A CONTRACTUAL LIABILITY OR  OTHER  INSURANCE  POLICY
INSURING  A  GAP WAIVER MUST REMAIN IN EFFECT UNLESS CANCELLED OR TERMI-
NATED IN COMPLIANCE WITH APPLICABLE INSURANCE LAWS OF THIS STATE.
  4. THE CANCELLATION OR TERMINATION OF A CONTRACTUAL LIABILITY OR OTHER
INSURANCE POLICY MUST NOT REDUCE THE AUTHORIZED INSURER'S RESPONSIBILITY
FOR GAP WAIVERS ISSUED BY THE CREDITOR PRIOR TO THE DATE OF CANCELLATION

S. 5731                             4

OR TERMINATION AND FOR WHICH PREMIUM HAS BEEN RECEIVED BY THE AUTHORIZED
INSURER.
  S 559. DISCLOSURES. GUARANTEED ASSET PROTECTION WAIVERS MUST DISCLOSE,
AS  APPLICABLE, IN WRITING AND IN CLEAR, UNDERSTANDABLE LANGUAGE THAT IS
EASY TO READ, THE FOLLOWING:
  1. THE NAME AND ADDRESS OF THE INITIAL CREDITOR AND  THE  BORROWER  AT
THE  TIME  OF  SALE,  AND THE IDENTITY OF ANY ADMINISTRATOR IF DIFFERENT
FROM THE CREDITOR.
  2. THE PURCHASE PRICE AND THE TERMS OF THE GAP WAIVER, INCLUDING WITH-
OUT LIMITATION, THE REQUIREMENTS FOR PROTECTION, CONDITIONS,  OR  EXCLU-
SIONS ASSOCIATED WITH THE GAP WAIVER.
  3.  THAT  THE  BORROWER  MAY  CANCEL THE GAP WAIVER WITHIN A FREE LOOK
PERIOD AS SPECIFIED IN THE WAIVER, AND WILL BE ENTITLED TO A FULL REFUND
OF THE PURCHASE PRICE, SO LONG AS NO BENEFITS HAVE BEEN PROVIDED; OR  IN
THE  EVENT  BENEFITS HAVE BEEN PROVIDED, THE BORROWER MAY RECEIVE A FULL
OR PARTIAL REFUND PURSUANT TO THE TERMS OF THE WAIVER.
  4. THE PROCEDURE THE BORROWER MUST FOLLOW, IF ANY, TO OBTAIN GAP WAIV-
ER BENEFITS UNDER THE TERMS AND CONDITIONS OF THE  WAIVER,  INCLUDING  A
TELEPHONE  NUMBER  AND  ADDRESS  WHERE THE BORROWER MAY APPLY FOR WAIVER
BENEFITS.
  5. WHETHER OR NOT THE GAP WAIVER IS CANCELLABLE AFTER  THE  FREE  LOOK
PERIOD  AND THE CONDITIONS UNDER WHICH IT MAY BE CANCELLED OR TERMINATED
INCLUDING THE PROCEDURES FOR REQUESTING ANY REFUND DUE.
  6. THAT IN ORDER TO RECEIVE ANY REFUND DUE IN THE EVENT OF  A  BORROW-
ER'S  CANCELLATION  OF  THE GAP WAIVER AGREEMENT OR EARLY TERMINATION OF
THE FINANCE AGREEMENT AFTER THE FREE LOOK PERIOD OF THE GAP WAIVER,  THE
BORROWER, IN ACCORDANCE WITH TERMS OF THE WAIVER, MUST PROVIDE A WRITTEN
REQUEST  TO  CANCEL  TO THE CREDITOR, ADMINISTRATOR OR SUCH OTHER PARTY,
WITHIN NINETY DAYS OF  THE  OCCURRENCE  OF  THE  EVENT  TERMINATING  THE
FINANCE AGREEMENT.
  7. THE METHODOLOGY FOR CALCULATING ANY REFUND OF THE UNEARNED PURCHASE
PRICE  OF  THE  GAP  WAIVER DUE, IN THE EVENT OF CANCELLATION OF THE GAP
WAIVER OR EARLY TERMINATION OF THE FINANCE AGREEMENT.
  8. THAT NEITHER THE EXTENSION OF CREDIT, THE TERMS OF THE CREDIT,  NOR
THE TERMS OF THE RELATED MOTOR VEHICLE SALE OR LEASE, MAY BE CONDITIONED
UPON THE PURCHASE OF THE GAP WAIVER.
  S  560. CANCELLATION. 1. GUARANTEED ASSET PROTECTION WAIVER AGREEMENTS
MAY BE CANCELLABLE OR NON-CANCELLABLE AFTER THE FREE  LOOK  PERIOD.  GAP
WAIVERS MUST PROVIDE THAT IF A BORROWER CANCELS A WAIVER WITHIN THE FREE
LOOK  PERIOD,  THE  BORROWER  WILL  BE  ENTITLED TO A FULL REFUND OF THE
PURCHASE PRICE, SO LONG AS NO BENEFITS HAVE BEEN  PROVIDED;  OR  IN  THE
EVENT  BENEFITS  HAVE  BEEN PROVIDED, THE BORROWER MAY RECEIVE A FULL OR
PARTIAL REFUND PURSUANT TO THE TERMS OF THE WAIVER.
  2. IN THE EVENT OF A BORROWER'S CANCELLATION  OF  THE  GAP  WAIVER  OR
EARLY TERMINATION OF THE FINANCE AGREEMENT, AFTER THE AGREEMENT HAS BEEN
IN EFFECT BEYOND THE FREE LOOK PERIOD, THE BORROWER MAY BE ENTITLED TO A
REFUND  OF  ANY  UNEARNED  PORTION  OF  THE PURCHASE PRICE OF THE WAIVER
UNLESS THE WAIVER PROVIDES OTHERWISE. IN ORDER TO RECEIVE A REFUND,  THE
BORROWER,  IN  ACCORDANCE  WITH ANY APPLICABLE TERMS OF THE WAIVER, MUST
PROVIDE A WRITTEN REQUEST TO THE CREDITOR, ADMINISTRATOR OR OTHER PARTY,
WITHIN NINETY DAYS OF THE EVENT TERMINATING THE FINANCE AGREEMENT.
  3. IF THE CANCELLATION OF A GAP WAIVER OCCURS AS A RESULT OF A DEFAULT
UNDER THE FINANCE AGREEMENT OR THE REPOSSESSION  OF  THE  MOTOR  VEHICLE
ASSOCIATED  WITH  THE FINANCE AGREEMENT, OR ANY OTHER TERMINATION OF THE
FINANCE AGREEMENT, ANY REFUND DUE MAY BE PAID DIRECTLY TO  THE  CREDITOR
OR ADMINISTRATOR AND APPLIED AS SET FORTH IN SUBDIVISION FOUR.

S. 5731                             5

  4.  ANY  CANCELLATION  REFUND  UNDER SUBDIVISIONS ONE, TWO OR THREE OF
THIS SUBDIVISION, MAY BE APPLIED BY THE CREDITOR AS A REDUCTION  OF  THE
AMOUNT  OWED  UNDER  THE FINANCE AGREEMENT, UNLESS THE BORROWER CAN SHOW
THAT THE FINANCE AGREEMENT HAS BEEN PAID IN FULL.
  S  561. COMMERCIAL TRANSACTIONS EXEMPTED. SUBDIVISION THREE OF SECTION
FIVE HUNDRED FIFTY-SEVEN AND SECTIONS FIVE HUNDRED FIFTY-NINE  AND  FIVE
HUNDRED  SIXTY-TWO  OF  THIS  ARTICLE ARE NOT APPLICABLE TO A GUARANTEED
ASSET PROTECTION WAIVER OFFERED IN CONNECTION WITH  A  LEASE  OR  RETAIL
INSTALLMENT SALE ASSOCIATED WITH A COMMERCIAL TRANSACTION.
  S  562. ENFORCEMENT. THE SUPERINTENDENT OF FINANCIAL SERVICES MAY TAKE
ACTION WHICH IS NECESSARY OR APPROPRIATE TO ENFORCE  THE  PROVISIONS  OF
THIS  SECTION  AND TO PROTECT GUARANTEED ASSET PROTECTION WAIVER HOLDERS
IN THIS STATE. AFTER PROPER NOTICE AND  OPPORTUNITY  FOR  HEARING,  SUCH
SUPERINTENDENT MAY:
  1.  ORDER  THE  CREDITOR,  ADMINISTRATOR  OR  ANY  OTHER PERSON NOT IN
COMPLIANCE WITH THIS SECTION TO CEASE AND DESIST FROM FURTHER GUARANTEED
ASSET PROTECTION WAIVER-RELATED OPERATIONS WHICH  ARE  IN  VIOLATION  OF
THIS SECTION.
  2.  IMPOSE  A  PENALTY OF NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00)
PER VIOLATION AND NO MORE THAN TEN THOUSAND  DOLLARS  ($10,000)  IN  THE
AGGREGATE  FOR  ALL  VIOLATIONS  OF SIMILAR NATURE. FOR PURPOSES OF THIS
SECTION, VIOLATIONS MUST  BE  OF  A  SIMILAR  NATURE  IF  THE  VIOLATION
CONSISTS  OF  THE SAME OR SIMILAR COURSE OF CONDUCT, ACTION OR PRACTICE,
IRRESPECTIVE OF THE NUMBER OF TIMES THE  SECTION,  CONDUCT  OR  PRACTICE
WHICH IS DETERMINED TO BE A VIOLATION OF THE SECTION OCCURRED.
  S  563. INTENT. THE LEGISLATURE FINDS THAT GUARANTEED ASSET PROTECTION
WAIVERS ARE NOT  INSURANCE.  ALL  GUARANTEED  ASSET  PROTECTION  WAIVERS
ISSUED  PRIOR  TO  AND AFTER THE DATE OF ENACTMENT OF THIS SECTION SHALL
NOT BE CONSTRUED AS INSURANCE.
  S 564. SEVERABILITY. IF ANY PROVISION OF THIS SECTION, OR THE APPLICA-
TION OF THE PROVISION TO ANY PERSON OR CIRCUMSTANCES, IS  HELD  INVALID,
THE  REMAINDER  OF  THE SECTION, AND THE APPLICATION OF THE PROVISION TO
ANY PERSON OR CIRCUMSTANCES OTHER THAN THOSE AS  TO  WHICH  IT  IS  HELD
INVALID, IS NOT TO BE AFFECTED.
  S  2. Section 357 of the banking law is amended by adding a new subdi-
vision 8 to read as follows:
  8. A LICENSEE MAY OFFER TO A BORROWER A  GUARANTEED  ASSET  PROTECTION
WAIVER AS DEFINED IN ARTICLE THIRTEEN OF THE PERSONAL PROPERTY LAW.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Senate Bill S5731

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2011-S5731 (ACTIVE) - Details

2011-S5731 (ACTIVE) - Summary

2011-S5731 (ACTIVE) - Sponsor Memo

2011-S5731 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5731

Share this bill

Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2011-S5731 (ACTIVE) - Details

2011-S5731 (ACTIVE) - Summary

2011-S5731 (ACTIVE) - Sponsor Memo

2011-S5731 (ACTIVE) - Bill Text download pdf

Comments