Assembly Bill A1978

2021-2022 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

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions

co-Sponsors

multi-Sponsors

2021-A1978 (ACTIVE) - Details

See Senate Version of this Bill:
S3105
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:
2019-2020: A3638, S4525
2023-2024: A7773

2021-A1978 (ACTIVE) - Summary

Expands consumer protections for usury and interest to small businesses.

2021-A1978 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1978
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2021
                                ___________
 
 Introduced  by  M. of A. NIOU, PEOPLES-STOKES, BARRON, KIM, ENGLEBRIGHT,
   FRONTUS, RICHARDSON, FALL, SAYEGH, SOLAGES, PRETLOW -- Multi-Sponsored
   by -- M.  of A. MANKTELOW -- 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.