S T A T E O F N E W Y O R K
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2932
2013-2014 Regular Sessions
I N S E N A T E
January 25, 2013
___________
Introduced by Sen. FARLEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to retail instalment
contracts and transmitters of money
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 6-a, 6-b and 7 of section 491 of the banking
law, subdivision 6-a as amended by chapter 289 of the laws of 1962,
subdivision 6-b as added by chapter 358 of the laws of 1958 and subdivi-
sion 7 as amended by chapter 837 of the laws of 1966, are amended to
read as follows:
6-a. "Retail instalment obligation" or "obligation" means an agree-
ment, 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 does not include [(a)] a retail
instalment contract[, (b)] OR a retail instalment credit agreement [or
(c) an obligation which is intended to be and is ultimately insured or
guaranteed under title three of the act of Congress entitled "Service-
men's Readjustment Act of 1944"]. THE TERM INCLUDES SUCH AN AGREEMENT
WHEREVER ENTERED INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF
SOLICITED IN PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR
HER OWN BEHALF OR THAT OF THE SELLER.
6-b. "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 OR HER outstanding indebtedness
from time to time to a retail seller, not evidenced by a retail instal-
ment contract or obligation, for one or more items of goods or services,
whenever purchased or obtained, which provides for a service charge and
under which instalment payments apply to his OR HER outstanding indebt-
edness 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08148-01-3
S. 2932 2
PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR HER OWN BEHALF
OR THAT OF THE SELLER.
7. "Sales finance company" means a person engaged, in whole or in
part, directly or indirectly, in the business of purchasing or otherwise
acquiring retail instalment contracts, obligations or credit agreements
made by and between other parties, or any interest therein. The term
includes a retail seller of motor vehicles engaged, in whole or in part,
in the business of holding retail instalment contracts acquired from
retail buyers, [which have] IF THE NUMBER OF RETAIL INSTALMENT CONTRACTS
ACQUIRED IN ANY ONE YEAR EXCEEDS FIVE SUCH CONTRACTS, OR IF THE aggre-
gate unpaid time balances [of twenty-five] ON SUCH CONTRACTS EXCEED ONE
HUNDRED thousand dollars or more at any one time, exclusive of contracts
repurchased from a sales finance company or financing agency, under an
agreement to repurchase in case of default entered into as an incident
to the bona fide sale thereof to a sales finance company or financing
agency. The term does not include the pledgee of an aggregate number of
contracts to secure a bona fide loan thereon, OR A SECONDARY HOLDER OF
SUCH CONTRACTS. The term includes a person engaged, in whole or in
part, directly or indirectly, in the business of entering into retail
instalment credit agreements with retail buyers pursuant to subdivision
eleven of section four hundred thirteen of the personal property law.
FOR PURPOSES OF THIS ARTICLE, THE TERM "SECONDARY HOLDER" MEANS A PERSON
THAT (I) PURCHASES OR OTHERWISE ACQUIRES A SALES FINANCE CONTRACT, OR AN
INTEREST THEREIN, THAT WAS ORIGINATED BY A PERSON LICENSED OR EXEMPT
FROM LICENSING UNDER THIS ARTICLE AND THAT IS SERVICED BY A PERSON
LICENSED OR EXEMPT FROM LICENSING UNDER THIS ARTICLE, AND (II) HAS NO
CONTACT WITH THE OBLIGOR UNDER SUCH CONTRACT.
S 2. Subdivision 1 of section 641 of the banking law, as amended by
chapter 677 of the laws of 2004, is amended to read as follows:
1. No person shall engage IN THIS STATE in the business of selling or
issuing checks, or engage in the business of receiving money for trans-
mission or transmitting the same, without a license therefor obtained
from the superintendent as provided in this article, nor shall any
person engage in such business as an agent, except as an agent of a
licensee or as agent of a payee; provided, however, that nothing in this
article shall apply to a bank, trust company, private banker, foreign
banking corporation licensed pursuant to article two of this chapter or
foreign banking company authorized to operate pursuant to the Interna-
tional Banking Act of 1978 (12 USC 3101 et seq.), as amended, savings
bank, savings and loan association, an investment company, a national
banking association, federal reserve bank, corporation organized under
the provisions of section twenty-five-a of an act of congress entitled
the "Federal Reserve Act", federal savings bank, federal savings and
loan association or state or federal credit union OR OUT-OF-STATE STATE
BANK. A PERSON ENGAGES IN THIS STATE IN THE BUSINESS OF SELLING OR
ISSUING CHECKS OR RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING THE
SAME IF SUCH PERSON INDUCES ANOTHER PERSON WHO IS A RESIDENT OF, OR
LOCATED IN, THIS STATE TO ENTER INTO A TRANSACTION BY SOLICITATION IN OR
INTO THIS STATE BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELEC-
TRONIC MAIL, TELEPHONE, RADIO, TELEVISION, THE INTERNET OR ANY OTHER
ELECTRONIC MEANS.
S 3. This act shall take effect immediately.
