Senate Bill S4525

2019-2020 Legislative Session

Relates to providing financial consumer protections for small businesses

download bill text pdf

Sponsored By

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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2019-S4525 (ACTIVE) - Details

See Assembly Version of this Bill:
A3638
Current Committee:
Senate Judiciary
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: S3105, A1978
2023-2024: A7773

2019-S4525 (ACTIVE) - Summary

Expands consumer protections for usury and interest to small businesses.

2019-S4525 (ACTIVE) - Sponsor Memo

2019-S4525 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4525
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 14, 2019
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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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