S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4856
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 5, 2019
                                ___________
 
 Introduced  by M. of A. BLAKE -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the financial services law, in relation  to  authorizing
   the superintendent of financial services to oversee and regulate sales
   of motor vehicles to consumers; to amend the personal property law, in
   relation   to   the  contents  of  motor  vehicle  retail  installment
   contracts; and to amend the vehicle and traffic law,  in  relation  to
   requiring  motor  vehicle  dealers to provide credit applicants with a
   copy of all loan application documents,  and  prohibiting  conditional
   deliveries of motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Section 301 of the financial services law  is  amended  by
 adding a new subsection (d) to read as follows:
   (D)  THE  SUPERINTENDENT  SHALL HAVE THE POWER TO OVERSEE AND REGULATE
 THE FINANCING OF BOTH NEW AND USED  MOTOR  VEHICLES  PURCHASED  IN  THIS
 STATE,  INCLUDING  THE  IMPLEMENTATION  OF  ARTICLE NINE OF THE PERSONAL
 PROPERTY LAW, AND MOTOR  VEHICLE  DEALER  TRANSACTIONS  WITH  CONSUMERS,
 INCLUDING  THOSE  SUBJECT  TO  THE  PROVISIONS OF ARTICLE SIXTEEN OF THE
 VEHICLE AND TRAFFIC LAW.
   § 2. Section 302 of the personal property law is amended by adding two
 new subdivisions 5-a and 5-b to read as follows:
   5-A. EVERY RETAIL INSTALLMENT CONTRACT  SHALL  INCLUDE  THE  FOLLOWING
 STATEMENT IN TWELVE POINT TYPE:
   "CONDITIONAL  DELIVERIES  PROHIBITED: IN ACCORDANCE WITH SECTION 417-D
 OF THE NEW YORK STATE VEHICLE AND TRAFFIC LAW,  WHEN  THIS  CONTRACT  IS
 SIGNED  BY THE DEALER AND THE BUYER, AND THE BUYER TAKES THE VEHICLE OFF
 THE DEALER LOT, THE BUYER IS THE OWNER OF THE VEHICLE AND HAS THE  RIGHT
 TO  KEEP THE VEHICLE EXCEPT FOR REASONS OF NON-PAYMENT OF THIS CONTRACT.
 THE DEALER MAY NOT DEMAND THAT THE VEHICLE BE RETURNED FOR  ANY  REASON,
 INCLUDING  ALLEGED DENIAL OF ANY FINANCING. DEALERS AND LENDERS MAY ONLY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05901-01-9

 A. 4856                             2
 
 DEMAND THE VEHICLE BE RETURNED FOR REASONS OF NON-PAYMENT BY THE  BUYER.
 DEALERS CANNOT MAKE AN EXCEPTION TO THIS PROVISION WITH ANOTHER CONTRACT
 OR DOCUMENT."
   5-B.  EVERY  RETAIL INSTALLMENT CONTRACT SHALL SEPARATELY ITEMIZE EACH
 OF THE FOLLOWING:
   (A) THE PRICE PAID FOR THE MOTOR VEHICLE;
   (B) THE PRICE OF EACH OPTION, ADD-ON AND ADDITIONAL CHARGE RELATING TO
 THE SALE OF THE MOTOR VEHICLE;
   (C) ALL FEES IMPOSED BY A LENDER UPON THE DEALER OR BUYER  RELATED  TO
 FINANCING THE PURCHASE OF THE MOTOR VEHICLE;
   (D) THE TOTAL PRICE OF THE MOTOR VEHICLE INCLUDING ALL CHARGES IMPOSED
 PURSUANT TO PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION.
   § 3. The vehicle and traffic law is amended by adding two new sections
 417-d and 417-e to read as follows:
   §  417-D. CREDIT APPLICATIONS FOR PURCHASE OF MOTOR VEHICLES. 1. EVERY
 DEALER WHICH APPLIES FOR OR GRANTS  ELIGIBILITY  FOR  THE  PROVISION  OF
 CREDIT FOR THE PURCHASE OF A MOTOR VEHICLE SHALL REVIEW AND CONFIRM WITH
 THE  APPLICANT  FOR SUCH CREDIT ALL INFORMATION INCLUDED IN THE APPLICA-
 TION THEREFOR. SUCH  REVIEW  AND  CONFIRMATION  SHALL  INCLUDE  SPECIFIC
 CONSIDERATION OF EACH ITEM OF INFORMATION AS TO ITS ACCURACY TO THE BEST
 OF  THE  KNOWLEDGE  OF  THE PARTIES. NO SUCH APPLICATION SHALL BE DEEMED
 COMPLETE NOR SHALL IT BE SUBMITTED UNLESS  THE  DEALER  AND  THE  CREDIT
 APPLICANT SHALL HAVE SIGNED THEIR SIGNATURES ATTESTING THAT ALL INFORMA-
 TION  IN THE APPLICATION IS ACCURATE AND TRUE TO THE BEST OF THEIR KNOW-
 LEDGE.
   2. THE FAILURE OF ANY DEALER TO COMPLY WITH  THE  PROVISIONS  OF  THIS
 SECTION, SHALL GRANT ANY CREDIT APPLICANT, WHO TAKES DELIVERY OF A MOTOR
 VEHICLE PURCHASED ON THE BASIS OF CREDIT ACQUIRED FOR HIM OR HER BY SUCH
 DEALER,  THE OPTION TO VOID THE SALE OF SUCH MOTOR VEHICLE WITHIN THIRTY
 DAYS OF THE DELIVERY OF SUCH VEHICLE.  UPON  THE  VOIDING  OF  ANY  SALE
 PURSUANT  TO  THIS SUBDIVISION THE DEALER SHALL IMMEDIATELY REPAY TO THE
 PURCHASER ALL COSTS INCURRED BY SUCH PURCHASER AS A CONSEQUENCE  OF  THE
 VOIDED  SALE, INCLUDING ANY FINANCING CHARGES AND INTEREST, AND THE FAIR
 MARKET PRIVATE SALE VALUE OF ANY MOTOR VEHICLE TRADED-IN IN  THE  COURSE
 OF SUCH SALE. FURTHERMORE, IN THE EVENT A PURCHASER COMMENCES A CAUSE OF
 ACTION  TO  ENFORCE  THE  PROVISIONS  OF  THIS SUBDIVISION, A PREVAILING
 PURCHASER SHALL BE ENTITLED TO COURT  COSTS  AND  REASONABLE  ATTORNEY'S
 FEES.
   3.  THE  PROVISIONS  OF  THIS SECTION SHALL NOT BE DEEMED TO LIMIT ANY
 OTHER RIGHT OR REMEDY OF A PLAINTIFF IN LAW OR EQUITY.
   § 417-E. CONDITIONAL DELIVERIES; PROHIBITED. 1. NO MOTOR VEHICLE  SOLD
 BY  A DEALER SHALL BE DELIVERED TO THE POSSESSION OF A PURCHASER SUBJECT
 TO ANY CONDITION TO BE COMPLIED WITH AFTER DELIVERY OF POSSESSION OF THE
 MOTOR VEHICLE.
   2. ALL TERMS AND CONDITIONS OF THE SALE OF A MOTOR  VEHICLE  SHALL  BE
 FULLY  AND  CLEARLY DISCLOSED, IN WRITING, TO THE PURCHASER PRIOR TO THE
 DELIVERY OF POSSESSION OF SUCH VEHICLE, AND SHALL BE SIGNED BY BOTH  THE
 DEALER AND THE PURCHASER.
   3.  EVERY  DEALER  SHALL  PROVIDE  A  COPY  OF THE WRITTEN DISCLOSURES
 REQUIRED BY SUBDIVISION TWO OF THIS SECTION, AND SHALL ALSO  MAINTAIN  A
 COPY THEREOF FOR A PERIOD OF NOT LESS THAN SEVEN YEARS.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.