Assembly Bill A3638

2019-2020 Legislative Session

Relates to providing financial consumer protections for small businesses

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly 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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2019-A3638 (ACTIVE) - Details

See Senate Version of this Bill:
S4525
Current Committee:
Assembly Banks
Law Section:
General Obligations Law
Laws Affected:
Add §5-522, Gen Ob L; amd §§173 & 380-e, Bank L
Versions Introduced in Other Legislative Sessions:
2021-2022: A1978, S3105
2023-2024: A7773

2019-A3638 (ACTIVE) - Summary

Expands consumer protections for usury and interest to small businesses.

2019-A3638 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3638
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2019
                                ___________
 
 Introduced by M. of A. NIOU, PEOPLES-STOKES -- read once and referred to
   the Committee on Banks
 
 AN  ACT  to  amend  the  general obligations law and the banking law, in
   relation to providing financial consumer protections for  small  busi-
   nesses
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general obligations law is  amended  by  adding  a  new
 section 5-522 to read as follows:
   §  5-522.  APPLICATION  TO SMALL BUSINESSES. ALL RIGHTS AND PRIVILEGES
 GRANTED UNDER THIS TITLE TO PERSONS SHALL  ALSO  APPLY  TO  SMALL  BUSI-
 NESSES.  FOR  PURPOSES OF THIS SECTION, A SMALL BUSINESS SHALL BE DEEMED
 TO BE ONE WHICH IS RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPER-
 ATED, NOT DOMINANT IN ITS FIELD AND EMPLOYS ONE HUNDRED OR LESS PERSONS.
   § 2. Section 173 of the banking law is amended by adding a new  subdi-
 vision 4 to read as follows:
   4.  ALL  RIGHTS  AND  PRIVILEGES GRANTED UNDER THIS SECTION TO PERSONS
 SHALL ALSO APPLY TO SMALL BUSINESSES. FOR PURPOSES OF THIS  SUBDIVISION,
 A  SMALL  BUSINESS  SHALL  BE DEEMED TO BE ONE WHICH IS RESIDENT IN THIS
 STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS  FIELD  AND
 EMPLOYS ONE HUNDRED OR LESS PERSONS.
   §  3. Section 380-e of the banking law, as separately amended by chap-
 ters 349 and 1072 of the laws of 1968, is amended to read as follows:
   § 380-e. Effect of usury. The knowingly taking, receiving,  reserving,
 or  charging  by a savings and loan association of interest, as computed
 pursuant to this article, at a rate greater than such rate  of  interest
 as  may  be authorized by law shall be held and adjudged a forfeiture of
 the entire interest which the note or other  evidence  of  debt  carries
 with  it,  or  which has been agreed to be paid thereon. If such greater
 rate of interest has been paid, the person paying the same or his  legal
 representatives  may recover from the savings and loan association twice
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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