S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6226
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2021
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law and the civil practice law  and
   rules,  in relation to protecting private education loan borrowers and
   cosigners

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42 to read as follows:
                                ARTICLE 42
                    PRIVATE EDUCATION LOAN PROTECTIONS
 SECTION 1100. DEFINITIONS.
         1101. APPLICABILITY.
         1102. EXEMPT ORGANIZATIONS.
         1103. PROVISIONS APPLICABLE TO COSIGNERS.
         1104. PROHIBITION  ON ACCELERATION OF PAYMENTS ON PRIVATE EDUCA-
                 TION LOANS.
         1105. REQUIRED COMMUNICATIONS.
         1106. REQUIRED INFORMATION TO BE PROVIDED BY CREDITORS AND  DEBT
                 COLLECTORS.
         1107. ENFORCEMENT.
         1108. RULES AND REGULATIONS.
         1109. PENALTIES.
   § 1100. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "PRIVATE EDUCATION LOAN" MEANS AN EXTENSION OF CREDIT THAT:
   (A)  IS  NOT MADE, INSURED, OR GUARANTEED UNDER TITLE IV OF THE HIGHER
 EDUCATION ACT OF 1965 (20 U.S.C. 1070 ET SEQ.);
   (B) IS EXTENDED TO A CONSUMER EXPRESSLY, IN  WHOLE  OR  IN  PART,  FOR
 HIGHER EDUCATION EXPENSES, REGARDLESS OF WHETHER THE LOAN IS PROVIDED BY
 THE EDUCATIONAL INSTITUTION THAT THE STUDENT ATTENDS;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09464-03-1
              

 A. 6226                             2
 
   (C)  DOES  NOT  INCLUDE OPEN-END CREDIT OR ANY LOAN THAT IS SECURED BY
 REAL PROPERTY OR A DWELLING; AND
   (D)  DOES  NOT  INCLUDE  AN  EXTENSION  OF CREDIT IN WHICH THE COVERED
 EDUCATIONAL INSTITUTION IS THE CREDITOR IF:
   (I) THE TERM OF THE EXTENSION OF CREDIT IS NINETY DAYS OR LESS; OR
   (II) AN INTEREST RATE OR FINANCE CHARGE WILL NOT  BE  APPLIED  TO  THE
 CREDIT  BALANCE  AND  THE TERM OF THE EXTENSION OF CREDIT IS ONE YEAR OR
 LESS, EVEN IF THE CREDIT IS PAYABLE IN MORE THAN FOUR INSTALLMENTS.
   2. "PRIVATE EDUCATION LENDER", EXCEPT AS EXEMPTED UNDER THIS  ARTICLE,
 MEANS:
   (A)  ANY PERSON OR ENTITY ENGAGED IN THE BUSINESS OF SECURING, MAKING,
 OR EXTENDING PRIVATE EDUCATION LOANS; OR
   (B) ANY HOLDER OF A PRIVATE EDUCATION LOAN.
   3. "BORROWER" OR "PRIVATE EDUCATION LOAN BORROWER" MEANS A PERSON  WHO
 HAS  RECEIVED  OR  AGREED TO PAY A PRIVATE EDUCATION LOAN FOR HIS OR HER
 OWN EDUCATIONAL EXPENSES.
   4. "COSIGNER" (A) MEANS:
   (I) ANY INDIVIDUAL WHO IS LIABLE FOR THE OBLIGATION OF ANOTHER WITHOUT
 COMPENSATION, REGARDLESS OF HOW DESIGNATED IN THE CONTRACT OR INSTRUMENT
 WITH RESPECT TO THAT OBLIGATION, INCLUDING AN OBLIGATION UNDER A PRIVATE
 EDUCATION LOAN EXTENDED TO CONSOLIDATE A BORROWER'S PRE-EXISTING PRIVATE
 EDUCATION LOANS; AND
   (II) INCLUDES ANY PERSON THE SIGNATURE OF WHICH IS REQUESTED AS CONDI-
 TION TO GRANT CREDIT OR TO FORBEAR ON COLLECTION;
   (B) DOES NOT INCLUDE A SPOUSE OF AN INDIVIDUAL DESCRIBED  IN  SUBPARA-
 GRAPH (I) OF PARAGRAPH (A) OF THIS SUBDIVISION, THE SIGNATURE OF WHOM IS
 NEEDED TO PERFECT THE SECURITY INTEREST IN A LOAN.
   5.  "ORIGINAL  CREDITOR" MEANS THE PRIVATE EDUCATION LENDER IDENTIFIED
 IN A PROMISSORY NOTE, LOAN AGREEMENT, OR LOAN CONTRACT ENTERED INTO WITH
 A PRIVATE EDUCATION LOAN BORROWER OR COSIGNER.
   6. "CREDITOR" MEANS:
   (A) THE ORIGINAL CREDITOR, WHERE OWNERSHIP OF A PRIVATE EDUCATION LOAN
 DEBT HAS NOT BEEN SOLD, ASSIGNED, OR TRANSFERRED;
   (B) THE PERSON OR ENTITY THAT OWNED THE PRIVATE EDUCATION LOAN DEBT AT
 THE TIME THE DEBT BECAME DELINQUENT OR DEFAULTED, EVEN IF THAT PERSON OR
 ENTITY DID NOT ORIGINATE THE PRIVATE EDUCATION LOAN, AND  WHERE  SUCH  A
 DEBT HAS NOT SUBSEQUENTLY BEEN SOLD, TRANSFERRED OR ASSIGNED; OR
   (C)  A  PERSON  OR  ENTITY  THAT  PURCHASED  A DELINQUENT OR DEFAULTED
 PRIVATE EDUCATION LOAN DEBT FOR COLLECTION PURPOSES, WHETHER IT COLLECTS
 THE DEBT ITSELF, HIRES A THIRD PARTY FOR COLLECTION, OR HIRES AN  ATTOR-
 NEY FOR COLLECTION LITIGATION.
   7.  "DEBT  COLLECTOR"  MEANS  ANY  PERSON  WHO  REGULARLY  COLLECTS OR
 ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY, CONSUMER  DEBTS  ORIGINALLY
 OWED  OR  DUE  OR  ASSERTED TO BE OWED OR DUE ANOTHER. THE TERM DOES NOT
 INCLUDE ANY OFFICER OR EMPLOYEE OF A CREDITOR WHO, IN THE  NAME  OF  THE
 CREDITOR,  COLLECTS  DEBTS  FOR  SUCH  CREDITOR, BUT IT DOES INCLUDE ANY
 CREDITOR WHO, IN THE PROCESS OF COLLECTING ITS OWN DEBTS, USES ANY  NAME
 OTHER  THAN ITS OWN WHICH WOULD INDICATE THAT A THIRD PERSON IS COLLECT-
 ING OR ATTEMPTING TO COLLECT SUCH DEBTS.
    8. "HIGHER EDUCATION EXPENSE" MEANS ANY EXPENSE ARISING  FROM  HIGHER
 EDUCATION, AS DEFINED IN SECTION TWO OF THE EDUCATION LAW, REGARDLESS OF
 WHETHER  THE  HIGHER EDUCATION INSTITUTION IS ACCREDITED WITHIN NEW YORK
 STATE.
   § 1101. APPLICABILITY. 1. ANY PERSON OR  ENTITY  THAT  ENTERS  INTO  A
 CONTRACT  OR  SUBCONTRACT WITH A PRIVATE EDUCATION LENDER OR SERVICER TO

 A. 6226                             3
 
 PERFORM THE SERVICING OF A PRIVATE EDUCATION LOAN MUST FULFILL THE OBLI-
 GATIONS OF THE PRIVATE EDUCATION LENDER UNDER THIS ARTICLE.
   2.  ANY  PRIVATE  EDUCATION  LENDER AS DESCRIBED IN SUBDIVISION TWO OF
 SECTION ELEVEN HUNDRED OF THIS ARTICLE BE JOINTLY AND  SEVERALLY  LIABLE
 FOR THE ACTIONS OF THE ENTITY OR PERSON IN FULFILLING THE OBLIGATIONS OF
 THE PRIVATE EDUCATIONAL LENDER OR SERVICER UNDER THIS ARTICLE.
   §  1102.  EXEMPT ORGANIZATIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE
 PROVISIONS OF THIS ARTICLE ONLY TO THE EXTENT THAT STATE  REGULATION  IS
 PREEMPTED BY FEDERAL LAW:
   1.  ANY  BANKING  ORGANIZATION,  FOREIGN BANKING CORPORATION, NATIONAL
 BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION,  OR  ANY  BANK,
 TRUST  COMPANY,  SAVINGS  BANK,  SAVINGS AND LOAN ASSOCIATION, OR CREDIT
 UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE; AND
   2. ANY SUBSIDIARY OF SUCH ENTITIES SET FORTH  IN  SUBDIVISION  ONE  OF
 THIS SECTION.
   § 1103. PROVISIONS APPLICABLE TO COSIGNERS. 1. (A) PRIOR TO THE ORIGI-
 NATION  OF  A PRIVATE EDUCATION LOAN, THE PRIVATE EDUCATION LENDER SHALL
 PROVIDE TO ALL COSIGNER APPLICANTS  INFORMATION  ABOUT  THE  RIGHTS  AND
 RESPONSIBILITIES OF THE COSIGNER OF THE LOAN, INCLUDING:
   (I)  INFORMATION  ABOUT HOW THE PRIVATE EDUCATION LOAN OBLIGATION WILL
 APPEAR ON THE COSIGNER'S CREDIT;
   (II) INFORMATION ABOUT HOW  THE  COSIGNER  WILL  BE  NOTIFIED  IF  THE
 PRIVATE  EDUCATION  LOAN  BECOMES DELINQUENT, INCLUDING HOW THE COSIGNER
 CAN CURE THE DELINQUENCY IN ORDER TO AVOID  NEGATIVE  CREDIT  FURNISHING
 AND LOSS OF COSIGNER RELEASE ELIGIBILITY; AND
   (III)  INFORMATION  ABOUT  ELIGIBILITY  FOR  RELEASE OF THE COSIGNER'S
 OBLIGATION ON THE PRIVATE EDUCATION LOAN, INCLUDING  NUMBER  OF  ON-TIME
 PAYMENTS  AND  ANY  OTHER  CRITERIA  REQUIRED  TO APPROVE THE RELEASE OF
 COSIGNER FROM THE LOAN OBLIGATION.
   (B) LENDERS SHALL SEND BORROWERS AND COSIGNERS ANNUAL WRITTEN  NOTICES
 CONTAINING  INFORMATION  ABOUT  COSIGNER RELEASE, INCLUDING CRITERIA THE
 LENDER REQUIRES TO APPROVE THE RELEASE OF COSIGNER FROM THE  LOAN  OBLI-
 GATION AND THE PROCESS FOR APPLYING FOR COSIGNER RELEASE.
   (C)  ONCE  THE  BORROWER  HAS  MET  THE APPLICABLE CONSECUTIVE ON-TIME
 PAYMENT REQUIREMENT TO BE ELIGIBLE  FOR  COSIGNER  RELEASE,  THE  LENDER
 SHALL SEND THE BORROWER AND COSIGNER A WRITTEN NOTIFICATION BY U.S. MAIL
 AND  BY  ELECTRONIC  MAIL, WHERE A BORROWER HAS ELECTED TO RECEIVE ELEC-
 TRONIC COMMUNICATIONS FROM THE LENDER, INFORMING THE BORROWER AND COSIG-
 NER THAT HE OR SHE HAS MET THE APPLICABLE CONSECUTIVE, ON-TIME  PAYMENTS
 REQUIREMENT  TO BE ELIGIBLE FOR COSIGNER RELEASE. THE NOTIFICATION SHALL
 ALSO INCLUDE INFORMATION ABOUT ANY ADDITIONAL CRITERIA  TO  QUALIFY  FOR
 COSIGNER RELEASE, AND THE PROCEDURE TO APPLY FOR COSIGNER RELEASE.
   (D)  LENDERS  SHALL  PROVIDE WRITTEN NOTICE WITHIN FIFTEEN DAYS TO ANY
 BORROWER WHO APPLIES FOR COSIGNER  RELEASE,  BUT  WHOSE  APPLICATION  IS
 INCOMPLETE.  THE WRITTEN NOTICE MUST INCLUDE A DESCRIPTION OF THE INFOR-
 MATION NEEDED TO CONSIDER THE APPLICATION COMPLETE AND THE DATE BY WHICH
 THE APPLICANT SHOULD FURNISH THE MISSING INFORMATION.
   (E) AFTER A BORROWER  SUBMITS  A  COMPLETE  APPLICATION  FOR  COSIGNER
 RELEASE,  WITHIN  THIRTY  DAYS,  THE  LENDER SHALL SEND THE BORROWER AND
 COSIGNER A WRITTEN NOTICE THAT INFORMS THE BORROWER AND COSIGNER WHETHER
 THE COSIGNER RELEASE APPLICATION HAS BEEN APPROVED  OR  DENIED.  IF  THE
 LENDER  DENIES  A  REQUEST FOR COSIGNER RELEASE, THE LENDER SHALL INFORM
 THE BORROWER OF HIS OR HER RIGHT TO REQUEST ALL DOCUMENTS  AND  INFORMA-
 TION  USED  IN  THE  DETERMINATION, INCLUDING THE CREDIT SCORE THRESHOLD
 USED BY THE LENDER, THE BORROWER'S CONSUMER REPORT, THE BORROWER'S CRED-
 IT SCORE, AND ANY OTHER DOCUMENTS SPECIFIC TO THE BORROWER.  THE  LENDER

 A. 6226                             4
 
 MUST  ALSO  PROVIDE ANY ADVERSE ACTION NOTICES REQUIRED UNDER APPLICABLE
 FEDERAL LAW IF THE DENIAL IS BASED IN WHOLE OR IN PART ON  ANY  INFORMA-
 TION CONTAINED IN A CONSUMER REPORT.
   2.  (A)  IN  RESPONSE  TO  ANY  WRITTEN  OR  ORAL REQUEST FOR COSIGNER
 RELEASE, LENDERS SHALL SEND THE INFORMATION DESCRIBED IN  PARAGRAPH  (B)
 OF SUBDIVISION ONE OF THIS SECTION.
   (B) LENDERS SHALL NOT IMPOSE ANY RESTRICTIONS THAT MAY PERMANENTLY BAR
 A  BORROWER  FROM QUALIFYING FOR COSIGNER RELEASE, INCLUDING RESTRICTING
 THE NUMBER OF TIMES A BORROWER MAY APPLY FOR COSIGNER RELEASE.
   (C) LENDERS SHALL NOT IMPOSE ANY NEGATIVE CONSEQUENCES ON ANY BORROWER
 OR COSIGNER DURING THE SIXTY DAYS FOLLOWING THE ISSUANCE OF  THE  NOTICE
 REQUIRED  UNDER  PARAGRAPH  (D)  OF  SUBDIVISION ONE OF THIS SECTION, OR
 UNTIL THE LENDER MAKES A FINAL DETERMINATION ABOUT A BORROWER'S COSIGNER
 RELEASE APPLICATION. FOR THE PURPOSE OF THIS PARAGRAPH, "NEGATIVE CONSE-
 QUENCES" INCLUDES, BUT IS NOT LIMITED TO, THE IMPOSITION  OF  ADDITIONAL
 ELIGIBILITY  CRITERIA,  NEGATIVE  CREDIT REPORTING, LOST ELIGIBILITY FOR
 COSIGNER RELEASE, LATE FEES, INTEREST CAPITALIZATION, OR OTHER FINANCIAL
 INJURY.
   (D) LENDERS SHALL NOT REQUIRE GREATER THAN TWELVE CONSECUTIVE, ON-TIME
 PAYMENTS AS CRITERIA TO APPLY FOR COSIGNER RELEASE. ANY BORROWER WHO HAS
 PAID THE EQUIVALENT OF TWELVE MONTHS OF PRINCIPAL AND INTEREST  PAYMENTS
 WITHIN  ANY TWELVE-MONTH PERIOD WILL BE CONSIDERED TO HAVE SATISFIED THE
 CONSECUTIVE, ON-TIME PAYMENT REQUIREMENT, EVEN IF THE BORROWER  HAS  NOT
 MADE PAYMENTS MONTHLY DURING THE TWELVE-MONTH PERIOD.
   (E)  IF  A  BORROWER  OR  COSIGNER REQUESTS A CHANGE THAT RESTARTS THE
 COUNT OF CONSECUTIVE, ON-TIME PAYMENTS REQUIRED  FOR  COSIGNER  RELEASE,
 THE  LENDER SHALL NOTIFY THE BORROWER AND COSIGNER IN WRITING WITHIN TEN
 DAYS OF THE IMPACT OF SUCH AN ARRANGEMENT AND PROVIDE  THE  BORROWER  OR
 COSIGNER  THE  RIGHT  TO  WITHDRAW  OR REVERSE THE REQUEST TO AVOID SUCH
 IMPACT.
   (F) THE BORROWER HAS THE RIGHT TO REQUEST  AN  APPEAL  OF  A  LENDER'S
 DETERMINATION  TO  DENY  THE  COSIGNER RELEASE APPLICATION WITHIN NINETY
 DAYS OF RECEIVING THE  LENDER'S  DETERMINATION,  AND  THE  LENDER  SHALL
 PERMIT  SUCH BORROWER TO SUBMIT ADDITIONAL DOCUMENTATION EVIDENCING THAT
 THE BORROWER HAS THE ABILITY, WILLINGNESS, AND STABILITY TO  HANDLE  HIS
 OR  HER  PAYMENT  OBLIGATIONS.  THE  BORROWER  MAY REQUEST REVIEW OF THE
 COSIGNER RELEASE DETERMINATION BY ANOTHER EMPLOYEE.   THE  LENDER  SHALL
 INFORM  THE  BORROWER OF THIS RIGHT IN A CLEAR AND CONSPICUOUS MANNER ON
 THE NOTICE DENYING THE COSIGNER RELEASE APPLICATION.
   (G) A LENDER  MUST  ESTABLISH  AND  MAINTAIN  A  COMPREHENSIVE  RECORD
 MANAGEMENT SYSTEM REASONABLY DESIGNED TO ENSURE THE ACCURACY, INTEGRITY,
 AND  COMPLETENESS  OF  DATA AND OTHER INFORMATION ABOUT COSIGNER RELEASE
 APPLICATIONS. THIS SYSTEM SHALL INCLUDE THE NUMBER OF  COSIGNER  RELEASE
 APPLICATIONS  RECEIVED,  THE  APPROVAL  AND DENIAL RATE, AND THE PRIMARY
 REASONS FOR ANY DENIAL.
   (H) IF A COSIGNER HAS A TOTAL AND PERMANENT DISABILITY, AS  DETERMINED
 BY  ANY FEDERAL AGENCY, STATE AGENCY, OR PHYSICIAN OR DOCTOR OF OSTEOPA-
 THY LEGALLY AUTHORIZED TO PRACTICE  IN  THIS  STATE,  THE  LENDER  SHALL
 RELEASE  THE  COSIGNER  FROM THE COSIGNER'S OBLIGATION TO REPAY THE LOAN
 UPON RECEIVING A NOTIFICATION OF  THE  COSIGNER'S  TOTAL  AND  PERMANENT
 DISABILITY.  THE  LENDER SHALL NOT REQUIRE A NEW COSIGNER TO BE ADDED TO
 THE LOAN AFTER THE ORIGINAL COSIGNER HAS BEEN RELEASED FROM THE LOAN.
   3. (A) A LENDER SHALL PROVIDE A COSIGNER OF A PRIVATE  EDUCATION  LOAN
 WITH  ACCESS TO ALL DOCUMENTS OR RECORDS RELATED TO THE COSIGNED PRIVATE
 EDUCATION LOAN THAT ARE AVAILABLE TO THE BORROWER;

 A. 6226                             5
 
   (B) IF A LENDER PROVIDES ELECTRONIC ACCESS TO  DOCUMENTS  AND  RECORDS
 FOR  A  BORROWER,  IT  SHALL PROVIDE EQUIVALENT ELECTRONIC ACCESS TO THE
 COSIGNER; AND
   (C)  UPON  RECEIVING  NOTICE FROM THE BORROWER OR COSIGNER, THE LENDER
 SHALL REDACT THE CONTACT INFORMATION OF THE OTHER PARTY.
   § 1104. PROHIBITION ON ACCELERATION OF PAYMENTS ON  PRIVATE  EDUCATION
 LOANS.  1.  EXCEPT  AS  PROVIDED  IN  SUBDIVISION TWO OF THIS SECTION, A
 PRIVATE EDUCATION LOAN EXECUTED AFTER THE EFFECTIVE DATE OF THIS ARTICLE
 MAY NOT INCLUDE A PROVISION THAT PERMITS THE PRIVATE EDUCATIONAL  LENDER
 TO  ACCELERATE,  IN  WHOLE OR IN PART, PAYMENTS ON THE PRIVATE EDUCATION
 LOAN.
   2. A PRIVATE EDUCATION LOAN  MAY  INCLUDE  A  PROVISION  THAT  PERMITS
 ACCELERATION OF THE LOAN IN CASES OF PAYMENT DEFAULT.
   3. A LENDER SHALL NOT PLACE ANY LOAN OR ACCOUNT INTO DEFAULT OR ACCEL-
 ERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   4.  (A)  IN  THE  EVENT OF THE DEATH OF A COSIGNER, A LENDER SHALL NOT
 ATTEMPT TO COLLECT AGAINST THE COSIGNER'S ESTATE, OTHER THAN FOR FAILURE
 TO PAY.
   (B) UPON RECEIVING NOTIFICATION OF THE DEATH OR BANKRUPTCY OF A COSIG-
 NER, WHEN THE LOAN IS NOT MORE THAN SIXTY DAYS DELINQUENT AT THE TIME OF
 THE NOTIFICATION, A LENDER SHALL NOT CHANGE ANY TERMS OR BENEFITS  UNDER
 THE  PROMISSORY  NOTE,  REPAYMENT  SCHEDULE, REPAYMENT TERMS, OR MONTHLY
 PAYMENT AMOUNT OR ANY OTHER PROVISION ASSOCIATED WITH THE LOAN.
   (C) A LENDER SHALL NOT PLACE ANY  LOAN  OR  ACCOUNT  INTO  DEFAULT  OR
 ACCELERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   §  1105. REQUIRED COMMUNICATIONS. IN ADDITION TO ANY OTHER INFORMATION
 REQUIRED UNDER APPLICABLE FEDERAL OR STATE LAW, A DEBT  COLLECTOR  SHALL
 PROVIDE  IN  THE  FIRST  DEBT  COLLECTION COMMUNICATION WITH THE PRIVATE
 EDUCATION LOAN BORROWER OR COSIGNER AND AT ANY OTHER TIME  THE  BORROWER
 OR COSIGNER REQUESTS SUCH DOCUMENTATION:
   1. THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN DEBT;
   2.  THE  ORIGINAL  CREDITOR'S NAME AT THE TIME OF SALE OF THE LOAN, IF
 APPLICABLE;
   3. THE ORIGINAL CREDITOR'S ACCOUNT NUMBER USED TO IDENTIFY THE PRIVATE
 EDUCATION LOAN DEBT AT THE TIME OF SALE, IF THE ORIGINAL  CREDITOR  USED
 AN  ACCOUNT  NUMBER  TO  IDENTIFY THE PRIVATE EDUCATION LOAN DEBT AT THE
 TIME OF SALE;
   4. THE AMOUNT DUE AT THE TIME OF DEFAULT OR THE AMOUNT  DUE  TO  BRING
 THE LOAN CURRENT IF THE LOAN IS DELINQUENT;
   5.  A  SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE PRIVATE
 EDUCATION LOAN ACCOUNT;
   6. A COPY OF ALL PAGES OF THE CONTRACT, APPLICATION OR OTHER DOCUMENTS
 EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S OR COSIGNER'S LIABILITY
 FOR THE PRIVATE EDUCATION LOAN, STATING ALL TERMS AND CONDITIONS  APPLI-
 CABLE TO THE PRIVATE EDUCATION LOAN; AND
   7.  A  CLEAR AND CONSPICUOUS STATEMENT DISCLOSING THAT THE BORROWER OR
 COSIGNER HAS A RIGHT TO REQUEST ALL INFORMATION POSSESSED BY THE  CREDI-
 TOR  RELATED  TO  THE  PRIVATE  EDUCATION  LOAN DEBT, INCLUDING, BUT NOT
 LIMITED TO THE REQUIRED INFORMATION DESCRIBED IN SECTION ELEVEN  HUNDRED
 SIX OF THIS ARTICLE.
   §  1106.  REQUIRED  INFORMATION  TO  BE PROVIDED BY CREDITORS AND DEBT
 COLLECTORS. A CREDITOR MAY NOT COLLECT OR ATTEMPT TO COLLECT  A  PRIVATE
 EDUCATION  LOAN DEBT UNLESS THE CREDITOR OR DEBT COLLECTOR POSSESSES THE
 FOLLOWING:
   1. THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN;

 A. 6226                             6
 
   2. THE ORIGINAL CREDITOR'S NAME AT THE TIME OF SALE  OF  THE  LOAN  OR
 DEFAULT, IF APPLICABLE;
   3. THE ORIGINAL CREDITOR'S ACCOUNT NUMBER USED TO IDENTIFY THE PRIVATE
 EDUCATION  LOAN AT THE TIME OF SALE OR DEFAULT, IF THE ORIGINAL CREDITOR
 USED AN ACCOUNT NUMBER TO IDENTIFY THE PRIVATE  EDUCATION  LOAN  AT  THE
 TIME OF SALE OR DEFAULT;
   4.  THE AMOUNT DUE AT THE TIME OF SALE, OR AT DEFAULT, OR, IF THE LOAN
 IS DELINQUENT, TO BRING THE LOAN CURRENT;
   5. A SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO  THE  PRIVATE
 EDUCATION LOAN ACCOUNT;
   6. AN ITEMIZATION OF INTEREST AND FEES, IF ANY, CLAIMED TO BE OWED AND
 WHETHER  THOSE  WERE  IMPOSED BY THE ORIGINAL CREDITOR OR ANY SUBSEQUENT
 OWNERS OF THE PRIVATE EDUCATION LOAN;
   7. THE DATE THAT THE PRIVATE EDUCATION LOAN WAS INCURRED;
   8. A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE  OF
 THE  FIRST  PARTIAL  PAYMENT  AND/OR  THE  FIRST  DAY THAT A PAYMENT WAS
 MISSED, WHICHEVER IS EARLIER;
   9. A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE  OF
 THE LAST PAYMENT MADE BY THE BORROWER OR COSIGNER, IF APPLICABLE;
   10.  ANY  PAYMENTS,  SETTLEMENT, OR FINANCIAL REMUNERATION OF ANY KIND
 PAID TO THE CREDITOR BY A GUARANTOR, COSIGNER, OR SURETY, AND THE AMOUNT
 OF PAYMENT RECEIVED;
   11. A COPY OF THE SELF-CERTIFICATION FORM AND ANY OTHER "NEEDS  ANALY-
 SIS"  CONDUCTED  BY  THE  ORIGINAL  CREDITOR PRIOR TO ORIGINATION OF THE
 LOAN;
   12. THE NAMES OF ALL PERSONS OR ENTITIES THAT OWNED THE PRIVATE EDUCA-
 TION LOAN AFTER IT BECAME DELINQUENT OR WENT INTO DEFAULT,  IF  APPLICA-
 BLE, AND THE DATE OF EACH SALE OR TRANSFER;
   13.  A  LOG  OF ALL COLLECTION ATTEMPTS MADE IN THE LAST TWELVE MONTHS
 INCLUDING DATE AND TIME OF ALL CALLS AND LETTERS;
   14. COPIES OF ALL SETTLEMENT LETTERS MADE IN THE LAST  TWELVE  MONTHS,
 OR,  IN THE ALTERNATIVE, A STATEMENT THAT THE CREDITOR HAS NOT ATTEMPTED
 TO SETTLE OR OTHERWISE RENEGOTIATE THE DEBT PRIOR TO SUIT;
   15. COPIES OF ALL COLLECTION LETTERS SENT TO THE BORROWER AND COSIGNER
 SINCE INCEPTION OF THE LOAN;
   16. DOCUMENTATION ESTABLISHING THAT THE CREDITOR IS THE OWNER  OF  THE
 SPECIFIC  INDIVIDUAL  PRIVATE  EDUCATION  LOAN  AT ISSUE. IF THE PRIVATE
 EDUCATION LOAN WAS ASSIGNED MORE THAN ONCE, THE  CREDITOR  MUST  POSSESS
 EACH ASSIGNMENT OR OTHER WRITING EVIDENCING THE TRANSFER OF OWNERSHIP OF
 THE  SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN TO ESTABLISH AN UNBROKEN
 CHAIN OF OWNERSHIP, BEGINNING WITH THE ORIGINAL CREDITOR  TO  THE  FIRST
 SUBSEQUENT  CREDITOR  AND  EACH  ADDITIONAL CREDITOR. EACH ASSIGNMENT OR
 OTHER WRITING EVIDENCING TRANSFER OF OWNERSHIP OR THE RIGHT  TO  COLLECT
 MUST  CONTAIN THE ORIGINAL CREDITOR'S ACCOUNT NUMBER (REDACTED FOR SECU-
 RITY PURPOSES TO SHOW ONLY THE LAST FOUR DIGITS) OF THE  PRIVATE  EDUCA-
 TION  LOAN  PURCHASED  OR  OTHERWISE  ASSIGNED, THE DATE OF PURCHASE AND
 ASSIGNMENT, AND MUST CLEARLY SHOW THE  BORROWER'S,  AND  IF  APPLICABLE,
 COSIGNER'S CORRECT NAME ASSOCIATED WITH THE ORIGINAL ACCOUNT NUMBER. THE
 ASSIGNMENT OR OTHER WRITING ATTACHED SHALL BE THAT BY WHICH THE CREDITOR
 OR  OTHER  ASSIGNEE  ACQUIRED THE PRIVATE EDUCATION LOAN, NOT A DOCUMENT
 PREPARED FOR LITIGATION OR COLLECTION PURPOSES;
   17. A COPY OF ALL PAGES OF THE CONTRACT, APPLICATION  OR  OTHER  DOCU-
 MENTS  EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S, AND IF APPLICA-
 BLE, COSIGNER'S LIABILITY FOR THE PRIVATE EDUCATION  LOAN,  STATING  ALL
 TERMS AND CONDITIONS APPLICABLE TO THE PRIVATE EDUCATION LOAN; AND

 A. 6226                             7
 
   18.  A SIGNED AFFIDAVIT OR AFFIDAVITS FROM EACH OF THE PREVIOUS OWNERS
 OF THE PRIVATE EDUCATION LOAN REGARDING WHEN THE PREVIOUS OWNER ACCELER-
 ATED THE LOAN FROM DELINQUENCY STATUS TO DEFAULT STATUS, OR IF  APPLICA-
 BLE, A STATEMENT THAT NO SUCH ACCELERATION OCCURRED.
   §  1107.  ENFORCEMENT. 1. ALL PRIVATE EDUCATION LENDERS, CREDITORS AND
 DEBT COLLECTORS SHALL COMPLY WITH THE PROVISIONS OF THIS ARTICLE.
   2.  ANY BORROWER OR COSIGNER WHO SUFFERS DAMAGE AS  A  RESULT  OF  THE
 FAILURE  OF  A  PRIVATE  EDUCATION  LENDER,  CREDITOR, OR DEBT COLLECTOR
 COVERED BY THE PROVISION OF THIS ARTICLE MAY BRING AN  ACTION  ON  THEIR
 OWN  BEHALF  AND  ON  BEHALF  OF A SIMILARLY SITUATED CLASS OF CONSUMERS
 AGAINST THAT PERSON TO RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ACTUAL DAMAGES, BUT IN NO CASE SHALL THE TOTAL AWARD OF DAMAGES BE
 LESS THAN FIVE HUNDRED DOLLARS PER PERSON, PER VIOLATION.
   (B) PUNITIVE DAMAGES.
   (C) CORRECTION OF THAT PERSON'S CREDIT REPORT.
   (D) INJUNCTIVE RELIEF.
   (E) ANY OTHER RELIEF THAT THE COURT DEEMS PROPER.
   3. IN THE CASE OF ANY  SUCCESSFUL  ACTION  TO  ENFORCE  THE  FOREGOING
 LIABILITY,  A  PRIVATE  EDUCATION LENDER, CREDITOR, OR DEBT COLLECTOR IS
 LIABLE FOR THE COSTS OF THE ACTION, TOGETHER WITH REASONABLE  ATTORNEYS'
 FEES AS DETERMINED BY THE COURT.
   4.  THE  ATTORNEY  GENERAL  OR THE DISTRICT ATTORNEY OF ANY COUNTY MAY
 BRING AN ACTION IN THE NAME OF THE PEOPLE OF THE STATE  TO  RESTRAIN  OR
 PREVENT  ANY  VIOLATION  OF  THIS ARTICLE OR ANY CONTINUANCE OF ANY SUCH
 VIOLATION.
   5. NOTHING IN THIS ARTICLE SHALL LIMIT ANY  STATUTORY  OR  COMMON  LAW
 RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
 RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW.
   §  1108.  RULES  AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY
 OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT OF FINANCIAL
 SERVICES IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND
 REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT  BE  CONSISTENT
 WITH  THE  PURPOSES  OF  THIS  ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE
 ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO:
   (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH  THE  ACTIVITIES  OF
 PRIVATE  EDUCATION  LENDERS,  CREDITORS,  AND  DEBT COLLECTORS AS MAY BE
 NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE;
   (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE  TO
 DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH
 THE ACTIVITIES OF PRIVATE EDUCATION LENDERS, CREDITORS, AND DEBT COLLEC-
 TORS;
   (C)  SUCH  RULES  AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS
 ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND  IMPLE-
 MENT THE PROVISIONS OF THIS ARTICLE; AND
   (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
 OF THIS ARTICLE.
   2.  THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH
 SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE  SUPERINTENDENT  MAY  DEEM
 NECESSARY FOR THE PROPER CONDUCT OF THE PRIVATE EDUCATION LOAN INDUSTRY.
   §  1109.  PENALTIES. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE
 APPLICABLE BY LAW, INCLUDING BUT NOT LIMITED TO THE PENALTIES  AVAILABLE
 UNDER  SECTION  FORTY-FOUR  OF  THE  BANKING  LAW, THE SUPERINTENDENT OF
 FINANCIAL SERVICES OR THE ATTORNEY GENERAL MAY, AFTER NOTICE  AND  HEAR-
 ING,  REQUIRE  ANY PERSON FOUND VIOLATING THE PROVISIONS OF THIS ARTICLE
 OR THE RULES OR REGULATIONS PROMULGATED HEREUNDER TO PAY TO  THE  PEOPLE
 OF  THIS  STATE A PENALTY FOR EACH VIOLATION OF THE ARTICLE OR ANY REGU-

 A. 6226                             8
 
 LATION OR POLICY PROMULGATED HEREUNDER A SUM NOT TO EXCEED  THE  GREATER
 OF  (I)  TEN  THOUSAND  DOLLARS FOR EACH OFFENSE; (II) A MULTIPLE OF TWO
 TIMES THE AGGREGATE DAMAGES ATTRIBUTABLE TO THE VIOLATION;  OR  (III)  A
 MULTIPLE  OF  TWO  TIMES THE AGGREGATE ECONOMIC GAIN ATTRIBUTABLE TO THE
 VIOLATION.
   § 2. The civil practice law and rules  is  amended  by  adding  a  new
 section 3012-c to read as follows:
   § 3012-C. REQUIREMENTS RELATING TO JUDGMENTS AGAINST PRIVATE EDUCATION
 LOAN  BORROWERS  OR  COSIGNERS.  (A) IN ADDITION TO ANY OTHER PAPERS AND
 DOCUMENTS REQUIRED BY THIS CHAPTER, AN ATTORNEY REPRESENTING A  CREDITOR
 SEEKING  A  JUDGMENT  ARISING  FROM A PRIVATE EDUCATION LOAN DEBT, SHALL
 SUBMIT A SWORN AFFIDAVIT ATTESTING THAT:
   (1) THE CREDITOR HAS IN ITS POSSESSION THE FOLLOWING INFORMATION:
   (I) THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN;
   (II) THE ORIGINAL CREDITOR'S NAME AT THE TIME THE LOAN WAS  PURCHASED,
 AND/OR THE LOAN WENT INTO DEFAULT, IF APPLICABLE;
   (III)  THE  ORIGINAL  CREDITOR'S  ACCOUNT  NUMBER USED TO IDENTIFY THE
 PRIVATE EDUCATION LOAN WHEN THE LOAN WAS SOLD  AND/OR  AT  THE  TIME  OF
 DEFAULT, IF THE ORIGINAL CREDITOR USED AN ACCOUNT NUMBER TO IDENTIFY THE
 PRIVATE EDUCATION LOAN AT THE TIME OF SALE AND/OR DEFAULT;
   (IV)  THE  AMOUNT  DUE  AT  THE TIME THE LOAN WAS SOLD BY THE ORIGINAL
 CREDITOR AND/OR AT THE TIME OF DEFAULT;
   (V) A SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE  PRIVATE
 EDUCATION LOAN ACCOUNT;
   (VI)  AN  ITEMIZATION OF INTEREST AND FEES, IF ANY, CLAIMED TO BE OWED
 AND WHETHER THOSE WERE IMPOSED BY THE ORIGINAL CREDITOR  OR  ANY  SUBSE-
 QUENT OWNERS OF THE PRIVATE EDUCATION LOAN;
   (VII) THE DATE THAT THE PRIVATE EDUCATION LOAN WAS INCURRED;
   (VIII) THE DATE OF THE FIRST PARTIAL PAYMENT AND/OR THE FIRST DAY THAT
 A PAYMENT WAS MISSED, WHICHEVER IS EARLIER;
   (IX) THE DATE AND AMOUNT OF THE LAST PAYMENT, IF APPLICABLE;
   (X)  ANY  PAYMENTS,  SETTLEMENT, OR FINANCIAL REMUNERATION OF ANY KIND
 PAID TO THE CREDITOR BY A GUARANTOR, COSIGNER, OR SURETY, AND THE AMOUNT
 OF PAYMENT RECEIVED;
   (XI) A COPY OF THE SELF-CERTIFICATION FORM AND ANY OTHER "NEEDS ANALY-
 SIS" CONDUCTED BY THE ORIGINAL CREDITOR  PRIOR  TO  ORIGINATION  OF  THE
 LOAN;
   (XII)  THE  NAMES  OF  ALL  PERSONS OR ENTITIES THAT OWNED THE PRIVATE
 EDUCATION LOAN, IF APPLICABLE, AND THE DATE OF EACH SALE OR TRANSFER;
   (XIII) A LOG OF ALL COLLECTION ATTEMPTS MADE IN THE LAST TWELVE MONTHS
 INCLUDING DATE AND TIME OF ALL CALLS AND LETTERS;
   (XIV) A STATEMENT AS TO WHETHER THE CREDITOR IS WILLING TO  RE-NEGOTI-
 ATE THE TERMS OF THE DEBT;
   (XV)  COPIES OF ALL SETTLEMENT LETTERS MADE IN THE LAST TWELVE MONTHS,
 OR, IN THE ALTERNATIVE, A STATEMENT THAT THE CREDITOR HAS NOT  ATTEMPTED
 TO SETTLE OR OTHERWISE RENEGOTIATE THE DEBT PRIOR TO SUIT;
   (XVI) COPIES OF ALL COLLECTION LETTERS SENT TO THE BORROWER AND COSIG-
 NER SINCE INCEPTION OF THE LOAN;
   (XVII)  DOCUMENTATION  ESTABLISHING  THAT THE CREDITOR IS THE OWNER OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN AT ISSUE. IF THE  PRIVATE
 EDUCATION  LOAN  WAS  ASSIGNED MORE THAN ONCE, THE CREDITOR MUST POSSESS
 EACH ASSIGNMENT OR OTHER WRITING EVIDENCING THE TRANSFER OF OWNERSHIP OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN TO ESTABLISH AN  UNBROKEN
 CHAIN  OF  OWNERSHIP,  BEGINNING WITH THE ORIGINAL CREDITOR TO THE FIRST
 SUBSEQUENT CREDITOR AND EACH ADDITIONAL  CREDITOR.  EACH  ASSIGNMENT  OR
 OTHER  WRITING  EVIDENCING TRANSFER OF OWNERSHIP OR THE RIGHT TO COLLECT

 A. 6226                             9
 
 MUST CONTAIN THE ORIGINAL CREDITOR'S ACCOUNT NUMBER (REDACTED FOR  SECU-
 RITY  PURPOSES  TO SHOW ONLY THE LAST FOUR DIGITS) OF THE PRIVATE EDUCA-
 TION LOAN PURCHASED OR OTHERWISE ASSIGNED,  THE  DATE  OF  PURCHASE  AND
 ASSIGNMENT,  AND  MUST  CLEARLY  SHOW THE BORROWER'S, AND IF APPLICABLE,
 COSIGNER'S CORRECT NAME ASSOCIATED WITH THE ORIGINAL ACCOUNT NUMBER. THE
 ASSIGNMENT OR OTHER WRITING ATTACHED SHALL BE THAT BY WHICH THE CREDITOR
 OR OTHER ASSIGNEE ACQUIRED THE PRIVATE EDUCATION LOAN,  NOT  A  DOCUMENT
 PREPARED FOR LITIGATION;
   (XVIII)  A  COPY  OF  ALL  PAGES OF THE CONTRACT, APPLICATION OR OTHER
 DOCUMENTS EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S OR COSIGNER'S
 LIABILITY FOR THE PRIVATE EDUCATION LOAN, STATING ALL TERMS  AND  CONDI-
 TIONS APPLICABLE TO THE PRIVATE EDUCATION LOAN;
   (XIX)  AN AFFIDAVIT STATING THAT THE COMMUNICATION REQUIRED IN SECTION
 ELEVEN HUNDRED FIVE OF THE GENERAL BUSINESS LAW HAS BEEN COMPLIED WITH;
   (XX) A STATEMENT AS TO WHETHER THE DEBT IS  ELIGIBLE  FOR  AN  INCOME-
 BASED  REPAYMENT PLAN FREE OF CHARGE TO THE BORROWER OR COSIGNER, EQUIV-
 ALENT TO THE REPAYMENT ARRANGEMENT ESTABLISHED FOR FEDERAL STUDENT LOANS
 UNDER ARTICLE IV OF THE HIGHER EDUCATION ACT (20 USC 1078 ET. SEQ.);
   (XXI) A STATEMENT AS TO WHETHER THE DEBT IS A QUALIFIED EDUCATION LOAN
 AS DEFINED IN 26 U.S.C. § 221; AND
   (XXII) A SIGNED AFFIDAVIT OR AFFIDAVITS  FROM  EACH  OF  THE  PREVIOUS
 OWNERS  OF  THE  PRIVATE  EDUCATION LOAN STATING WHEN THE PREVIOUS OWNER
 ACCELERATED THE LOAN FROM DELINQUENCY STATUS TO DEFAULT  STATUS,  OR  IF
 APPLICABLE,  THAT  THE  LOAN HAD NOT BEEN ACCELERATED AT THE TIME OF THE
 SALE; AND
   (2) A REPRESENTATIVE OF THE CREDITOR PERSONALLY REVIEWED THE  INFORMA-
 TION SET FORTH IN PARAGRAPH ONE OF THIS SUBDIVISION FOR FACTUAL ACCURACY
 AND  CONFIRMED  THE FACTUAL ACCURACY OF THE ALLEGATIONS SET FORTH IN THE
 COMPLAINT AND ANY SUPPORTING AFFIDAVITS OR AFFIRMATIONS FILED  WITH  THE
 COURT,  AS  WELL  AS  THE ACCURACY OF THE NOTARIZATIONS CONTAINED IN THE
 SUPPORTING DOCUMENTS FILED THEREWITH.
   (B) COPIES OF THE DOCUMENTATION IDENTIFIED  IN  SUBPARAGRAPHS  (XVII),
 (XVIII)  AND  (XXII) OF PARAGRAPH ONE OF SUBDIVISION (A) OF THIS SECTION
 SHALL BE ATTACHED TO THE APPLICATION SEEKING A JUDGMENT ARISING  FROM  A
 PRIVATE EDUCATION LOAN DEBT.
   (C)  AN  ATTORNEY  REPRESENTING  A CREDITOR SEEKING A JUDGMENT ARISING
 FROM A PRIVATE EDUCATION LOAN DEBT SHALL ALSO SUBMIT A  SWORN  AFFIDAVIT
 CONTAINING THE FOLLOWING INFORMATION:
   (1) THE APPLICABLE STATUTE OR STATUTES OF LIMITATIONS FOR THE CAUSE OR
 CAUSES OF ACTION ASSERTED BY THE CREDITOR FOR THE PRIVATE EDUCATION LOAN
 DEBT; AND
   (2)  A  STATEMENT  THAT  BASED  UPON COUNSEL'S REASONABLE INQUIRY, THE
 APPLICABLE STATUTE OR STATUTES OF LIMITATIONS FOR THE CAUSE OR CAUSES OF
 ACTION ASSERTED BY THE CREDITOR HAS NOT EXPIRED.
   (D) A JUDGE OR CLERK SHALL NOT GRANT OR ENTER A JUDGMENT ARISING  FROM
 A PRIVATE EDUCATION LOAN DEBT THAT DOES NOT COMPLY WITH THE REQUIREMENTS
 DESCRIBED IN SUBDIVISIONS (A), (B), AND (C) OF THIS SECTION.
   (E)  (1)  UPON  RECEIPT  OF  WRITTEN  NOTICE PROVIDED BY A BORROWER OR
 COSIGNER, OR UPON NOTICE FROM THE ATTORNEY GENERAL OR SUPERINTENDENT  OF
 FINANCIAL  SERVICES  ON BEHALF OF A GROUP OF BORROWERS, TO A CREDITOR OR
 DEBT COLLECTOR STATING THAT THE CREDITOR OR DEBT COLLECTOR HAS FAILED TO
 COMPLY WITH THIS SECTION, THE CREDITOR OR DEBT COLLECTOR SHALL:
   (I) PROVIDE PROOF OF COMPLIANCE WITH THE PROVISIONS OF  THIS  SECTION;
 OR
   (II) TAKE THE FOLLOWING ACTIONS:
   1. MOVE TO VACATE THE JUDGMENT;

 A. 6226                            10
 
   2.  REFUND ALL MONIES PAID BY THE BORROWER OR COSIGNER AFTER THE JUDG-
 MENT WAS ENTERED; AND
   3.  TAKE  ALL  ACTIONS NECESSARY TO REMOVE ALL NEGATIVE CREDIT HISTORY
 FURNISHED AFTER DEFAULT.
   (2) IF A CREDITOR OR DEBT COLLECTOR FAILS TO COMPLY WITH PARAGRAPH ONE
 OF THIS SUBDIVISION, THE BORROWER OR COSIGNER MAY BRING AN ACTION ON HIS
 OR HER OWN BEHALF OR ON BEHALF OF A SIMILARLY SITUATED CLASS OF  PERSONS
 AGAINST THAT CREDITOR TO RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (I)  AN  ORDER  SETTING ASIDE OR VACATING ANY JUDGMENT ENTERED AGAINST
 THE BORROWER OR COSIGNER;
   (II) A JUDGMENT IN FAVOR OF THE BORROWER OR COSIGNER;
   (III) ACTUAL DAMAGES, BUT IN NO CASE SHALL THE TOTAL AWARD OF  DAMAGES
 BE LESS THAN FIVE HUNDRED DOLLARS PER PERSON, PER VIOLATION;
   (IV)  RESTITUTION  OF ALL MONEYS TAKEN FROM OR PAID BY THE BORROWER OR
 COSIGNER AFTER A JUDGMENT WAS OBTAINED BY A CREDITOR;
   (V) PUNITIVE DAMAGES;
   (VI) CORRECTION OF THE BORROWER'S OR COSIGNER'S CREDIT REPORT;
   (VII) INJUNCTIVE RELIEF; AND
   (VIII) ANY OTHER RELIEF THAT THE COURT DEEMS PROPER.
   (3) IN THE CASE OF ANY SUCCESSFUL  ACTION  TO  ENFORCE  THE  FOREGOING
 LIABILITY,  A  PRIVATE  EDUCATION LENDER, CREDITOR, OR DEBT COLLECTOR IS
 LIABLE FOR THE COSTS OF THE ACTION, TOGETHER WITH REASONABLE  ATTORNEYS'
 FEES AS DETERMINED BY THE COURT.
   (4)  IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY THIS SUBDIVISION OR
 OTHERWISE PROVIDED BY LAW, WHENEVER IT IS PROVEN BY A  PREPONDERANCE  OF
 THE  EVIDENCE  THAT A CREDITOR OR ATTORNEY REPRESENTING A CREDITOR FILED
 AN AFFIDAVIT REQUIRED UNDER THIS SECTION CONTAINING  FALSE  INFORMATION,
 THE COURT SHALL AWARD TREBLE ACTUAL DAMAGES TO THE BORROWER OR COSIGNER,
 BUT IN NO CASE SHALL THE AWARD OF DAMAGES BE LESS THAN ONE THOUSAND FIVE
 HUNDRED DOLLARS, PER PERSON, PER VIOLATION.
   (F)  THE  DEFINITIONS  OF TERMS SET FORTH IN SECTION ELEVEN HUNDRED OF
 THE GENERAL BUSINESS LAW SHALL APPLY TO THE PROVISIONS OF THIS SECTION.
   § 3. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6226--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2021
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Consumer Affairs and Protection  --  recommitted  to  the
   Committee on Consumer Affairs and Protection in accordance with Assem-
   bly  Rule  3,  sec.  2  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the general business law and the civil practice law  and
   rules,  in relation to protecting private education loan borrowers and
   cosigners
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42 to read as follows:
                                ARTICLE 42
                    PRIVATE EDUCATION LOAN PROTECTIONS
 SECTION 1100. DEFINITIONS.
         1101. APPLICABILITY.
         1102. EXEMPT ORGANIZATIONS.
         1103. PROVISIONS APPLICABLE TO COSIGNERS.
         1104. PROHIBITION  ON ACCELERATION OF PAYMENTS ON PRIVATE EDUCA-
                 TION LOANS.
         1105. REQUIRED COMMUNICATIONS.
         1106. REQUIRED INFORMATION TO BE PROVIDED BY CREDITORS AND  DEBT
                 COLLECTORS.
         1107. ENFORCEMENT.
         1108. RULES AND REGULATIONS.
         1109. PENALTIES.
   § 1100. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "PRIVATE EDUCATION LOAN" MEANS AN EXTENSION OF CREDIT THAT:
   (A)  IS  NOT MADE, INSURED, OR GUARANTEED UNDER TITLE IV OF THE HIGHER
 EDUCATION ACT OF 1965 (20 U.S.C. 1070 ET SEQ.);
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09464-05-1
 A. 6226--A                          2
              

 
   (B) IS EXTENDED TO A CONSUMER EXPRESSLY, IN  WHOLE  OR  IN  PART,  FOR
 HIGHER EDUCATION EXPENSES, REGARDLESS OF WHETHER THE LOAN IS PROVIDED BY
 THE EDUCATIONAL INSTITUTION THAT THE STUDENT ATTENDS;
   (C)  DOES  NOT  INCLUDE OPEN-END CREDIT OR ANY LOAN THAT IS SECURED BY
 REAL PROPERTY OR A DWELLING; AND
   (D) DOES NOT INCLUDE AN EXTENSION  OF  CREDIT  IN  WHICH  THE  COVERED
 EDUCATIONAL INSTITUTION IS THE CREDITOR IF:
   (I) THE TERM OF THE EXTENSION OF CREDIT IS NINETY DAYS OR LESS; OR
   (II)  AN  INTEREST  RATE  OR FINANCE CHARGE WILL NOT BE APPLIED TO THE
 CREDIT BALANCE AND THE TERM OF THE EXTENSION OF CREDIT IS  ONE  YEAR  OR
 LESS, EVEN IF THE CREDIT IS PAYABLE IN MORE THAN FOUR INSTALLMENTS.
   2.  "PRIVATE EDUCATION LENDER", EXCEPT AS EXEMPTED UNDER THIS ARTICLE,
 MEANS:
   (A) ANY PERSON OR ENTITY ENGAGED IN THE BUSINESS OF SECURING,  MAKING,
 OR EXTENDING PRIVATE EDUCATION LOANS; OR
   (B) ANY HOLDER OF A PRIVATE EDUCATION LOAN.
   3.  "BORROWER" OR "PRIVATE EDUCATION LOAN BORROWER" MEANS A PERSON WHO
 HAS RECEIVED OR AGREED TO PAY A PRIVATE EDUCATION LOAN FOR  HIS  OR  HER
 OWN EDUCATIONAL EXPENSES.
   4. "COSIGNER" (A) MEANS:
   (I) ANY INDIVIDUAL WHO IS LIABLE FOR THE OBLIGATION OF ANOTHER WITHOUT
 COMPENSATION, REGARDLESS OF HOW DESIGNATED IN THE CONTRACT OR INSTRUMENT
 WITH RESPECT TO THAT OBLIGATION, INCLUDING AN OBLIGATION UNDER A PRIVATE
 EDUCATION LOAN EXTENDED TO CONSOLIDATE A BORROWER'S PRE-EXISTING PRIVATE
 EDUCATION LOANS; AND
   (II) INCLUDES ANY PERSON THE SIGNATURE OF WHICH IS REQUESTED AS CONDI-
 TION TO GRANT CREDIT OR TO FORBEAR ON COLLECTION;
   (B)  DOES  NOT INCLUDE A SPOUSE OF AN INDIVIDUAL DESCRIBED IN SUBPARA-
 GRAPH (I) OF PARAGRAPH (A) OF THIS SUBDIVISION, THE SIGNATURE OF WHOM IS
 NEEDED TO PERFECT THE SECURITY INTEREST IN A LOAN.
   5. "ORIGINAL CREDITOR" MEANS THE PRIVATE EDUCATION  LENDER  IDENTIFIED
 IN A PROMISSORY NOTE, LOAN AGREEMENT, OR LOAN CONTRACT ENTERED INTO WITH
 A PRIVATE EDUCATION LOAN BORROWER OR COSIGNER.
   6. "CREDITOR" MEANS:
   (A) THE ORIGINAL CREDITOR, WHERE OWNERSHIP OF A PRIVATE EDUCATION LOAN
 DEBT HAS NOT BEEN SOLD, ASSIGNED, OR TRANSFERRED;
   (B) THE PERSON OR ENTITY THAT OWNED THE PRIVATE EDUCATION LOAN DEBT AT
 THE TIME THE DEBT BECAME DELINQUENT OR DEFAULTED, EVEN IF THAT PERSON OR
 ENTITY  DID  NOT  ORIGINATE THE PRIVATE EDUCATION LOAN, AND WHERE SUCH A
 DEBT HAS NOT SUBSEQUENTLY BEEN SOLD, TRANSFERRED OR ASSIGNED; OR
   (C) A PERSON OR  ENTITY  THAT  PURCHASED  A  DELINQUENT  OR  DEFAULTED
 PRIVATE EDUCATION LOAN DEBT FOR COLLECTION PURPOSES, WHETHER IT COLLECTS
 THE  DEBT ITSELF, HIRES A THIRD PARTY FOR COLLECTION, OR HIRES AN ATTOR-
 NEY FOR COLLECTION LITIGATION.
   7. "DEBT  COLLECTOR"  MEANS  ANY  PERSON  WHO  REGULARLY  COLLECTS  OR
 ATTEMPTS  TO  COLLECT, DIRECTLY OR INDIRECTLY, CONSUMER DEBTS ORIGINALLY
 OWED OR DUE OR ASSERTED TO BE OWED OR DUE ANOTHER.  THE  TERM  DOES  NOT
 INCLUDE  ANY  OFFICER  OR EMPLOYEE OF A CREDITOR WHO, IN THE NAME OF THE
 CREDITOR, COLLECTS DEBTS FOR SUCH CREDITOR,  BUT  IT  DOES  INCLUDE  ANY
 CREDITOR  WHO, IN THE PROCESS OF COLLECTING ITS OWN DEBTS, USES ANY NAME
 OTHER THAN ITS OWN WHICH WOULD INDICATE THAT A THIRD PERSON IS  COLLECT-
 ING OR ATTEMPTING TO COLLECT SUCH DEBTS.
    8.  "HIGHER  EDUCATION EXPENSE" MEANS ANY EXPENSE ARISING FROM HIGHER
 EDUCATION, AS DEFINED IN SECTION TWO OF THE EDUCATION LAW, REGARDLESS OF
 WHETHER THE HIGHER EDUCATION INSTITUTION IS ACCREDITED WITHIN  NEW  YORK
 STATE.
 A. 6226--A                          3

   §  1101.  APPLICABILITY.  1.  ANY  PERSON OR ENTITY THAT ENTERS INTO A
 CONTRACT OR SUBCONTRACT WITH A PRIVATE EDUCATION LENDER OR  SERVICER  TO
 PERFORM THE SERVICING OF A PRIVATE EDUCATION LOAN MUST FULFILL THE OBLI-
 GATIONS OF THE PRIVATE EDUCATION LENDER UNDER THIS ARTICLE.
   2.  ANY  PRIVATE  EDUCATION  LENDER AS DESCRIBED IN SUBDIVISION TWO OF
 SECTION ELEVEN HUNDRED OF THIS ARTICLE BE JOINTLY AND  SEVERALLY  LIABLE
 FOR THE ACTIONS OF THE ENTITY OR PERSON IN FULFILLING THE OBLIGATIONS OF
 THE PRIVATE EDUCATIONAL LENDER OR SERVICER UNDER THIS ARTICLE.
   §  1102.  EXEMPT ORGANIZATIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE
 PROVISIONS OF THIS ARTICLE ONLY TO THE EXTENT THAT STATE  REGULATION  IS
 PREEMPTED BY FEDERAL LAW:
   1.  ANY  BANKING  ORGANIZATION,  FOREIGN BANKING CORPORATION, NATIONAL
 BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION,  OR  ANY  BANK,
 TRUST  COMPANY,  SAVINGS  BANK,  SAVINGS AND LOAN ASSOCIATION, OR CREDIT
 UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE; AND
   2. ANY SUBSIDIARY OF SUCH ENTITIES SET FORTH  IN  SUBDIVISION  ONE  OF
 THIS SECTION.
   § 1103. PROVISIONS APPLICABLE TO COSIGNERS. 1. (A) PRIOR TO THE ORIGI-
 NATION  OF  A PRIVATE EDUCATION LOAN, THE PRIVATE EDUCATION LENDER SHALL
 PROVIDE TO ALL COSIGNER APPLICANTS  INFORMATION  ABOUT  THE  RIGHTS  AND
 RESPONSIBILITIES OF THE COSIGNER OF THE LOAN, INCLUDING:
   (I)  INFORMATION  ABOUT HOW THE PRIVATE EDUCATION LOAN OBLIGATION WILL
 APPEAR ON THE COSIGNER'S CREDIT;
   (II) INFORMATION ABOUT HOW  THE  COSIGNER  WILL  BE  NOTIFIED  IF  THE
 PRIVATE  EDUCATION  LOAN  BECOMES DELINQUENT, INCLUDING HOW THE COSIGNER
 CAN CURE THE DELINQUENCY IN ORDER TO AVOID  NEGATIVE  CREDIT  FURNISHING
 AND LOSS OF COSIGNER RELEASE ELIGIBILITY; AND
   (III)  INFORMATION  ABOUT  ELIGIBILITY  FOR  RELEASE OF THE COSIGNER'S
 OBLIGATION ON THE PRIVATE EDUCATION LOAN, INCLUDING  NUMBER  OF  ON-TIME
 PAYMENTS  AND  ANY  OTHER  CRITERIA  REQUIRED  TO APPROVE THE RELEASE OF
 COSIGNER FROM THE LOAN OBLIGATION.
   (B) LENDERS SHALL SEND BORROWERS AND COSIGNERS ANNUAL WRITTEN  NOTICES
 CONTAINING  INFORMATION  ABOUT  COSIGNER RELEASE, INCLUDING CRITERIA THE
 LENDER REQUIRES TO APPROVE THE RELEASE OF COSIGNER FROM THE  LOAN  OBLI-
 GATION AND THE PROCESS FOR APPLYING FOR COSIGNER RELEASE.
   (C)  ONCE  THE  BORROWER  HAS  MET  THE APPLICABLE CONSECUTIVE ON-TIME
 PAYMENT REQUIREMENT TO BE ELIGIBLE  FOR  COSIGNER  RELEASE,  THE  LENDER
 SHALL SEND THE BORROWER AND COSIGNER A WRITTEN NOTIFICATION BY U.S. MAIL
 AND  BY  ELECTRONIC  MAIL, WHERE A BORROWER HAS ELECTED TO RECEIVE ELEC-
 TRONIC COMMUNICATIONS FROM THE LENDER, INFORMING THE BORROWER AND COSIG-
 NER THAT HE OR SHE HAS MET THE APPLICABLE CONSECUTIVE, ON-TIME  PAYMENTS
 REQUIREMENT  TO BE ELIGIBLE FOR COSIGNER RELEASE. THE NOTIFICATION SHALL
 ALSO INCLUDE INFORMATION ABOUT ANY ADDITIONAL CRITERIA  TO  QUALIFY  FOR
 COSIGNER RELEASE, AND THE PROCEDURE TO APPLY FOR COSIGNER RELEASE.
   (D)  LENDERS  SHALL  PROVIDE WRITTEN NOTICE WITHIN FIFTEEN DAYS TO ANY
 BORROWER WHO APPLIES FOR COSIGNER  RELEASE,  BUT  WHOSE  APPLICATION  IS
 INCOMPLETE.  THE WRITTEN NOTICE MUST INCLUDE A DESCRIPTION OF THE INFOR-
 MATION NEEDED TO CONSIDER THE APPLICATION COMPLETE AND THE DATE BY WHICH
 THE APPLICANT SHOULD FURNISH THE MISSING INFORMATION.
   (E) AFTER A BORROWER  SUBMITS  A  COMPLETE  APPLICATION  FOR  COSIGNER
 RELEASE,  WITHIN  THIRTY  DAYS,  THE  LENDER SHALL SEND THE BORROWER AND
 COSIGNER A WRITTEN NOTICE THAT INFORMS THE BORROWER AND COSIGNER WHETHER
 THE COSIGNER RELEASE APPLICATION HAS BEEN APPROVED  OR  DENIED.  IF  THE
 LENDER  DENIES  A  REQUEST FOR COSIGNER RELEASE, THE LENDER SHALL INFORM
 THE BORROWER OF HIS OR HER RIGHT TO REQUEST ALL DOCUMENTS  AND  INFORMA-
 TION  USED  IN  THE  DETERMINATION, INCLUDING THE CREDIT SCORE THRESHOLD
 A. 6226--A                          4
 
 USED BY THE LENDER, THE BORROWER'S CONSUMER REPORT, THE BORROWER'S CRED-
 IT SCORE, AND ANY OTHER DOCUMENTS SPECIFIC TO THE BORROWER.  THE  LENDER
 MUST  ALSO  PROVIDE ANY ADVERSE ACTION NOTICES REQUIRED UNDER APPLICABLE
 FEDERAL  LAW  IF THE DENIAL IS BASED IN WHOLE OR IN PART ON ANY INFORMA-
 TION CONTAINED IN A CONSUMER REPORT.
   2. (A) IN RESPONSE  TO  ANY  WRITTEN  OR  ORAL  REQUEST  FOR  COSIGNER
 RELEASE,  LENDERS  SHALL SEND THE INFORMATION DESCRIBED IN PARAGRAPH (B)
 OF SUBDIVISION ONE OF THIS SECTION.
   (B) LENDERS SHALL NOT IMPOSE ANY RESTRICTIONS THAT MAY PERMANENTLY BAR
 A BORROWER FROM QUALIFYING FOR COSIGNER RELEASE,  INCLUDING  RESTRICTING
 THE NUMBER OF TIMES A BORROWER MAY APPLY FOR COSIGNER RELEASE.
   (C) LENDERS SHALL NOT IMPOSE ANY NEGATIVE CONSEQUENCES ON ANY BORROWER
 OR  COSIGNER  DURING THE SIXTY DAYS FOLLOWING THE ISSUANCE OF THE NOTICE
 REQUIRED UNDER PARAGRAPH (D) OF SUBDIVISION  ONE  OF  THIS  SECTION,  OR
 UNTIL THE LENDER MAKES A FINAL DETERMINATION ABOUT A BORROWER'S COSIGNER
 RELEASE APPLICATION. FOR THE PURPOSE OF THIS PARAGRAPH, "NEGATIVE CONSE-
 QUENCES"  INCLUDES,  BUT IS NOT LIMITED TO, THE IMPOSITION OF ADDITIONAL
 ELIGIBILITY CRITERIA, NEGATIVE CREDIT REPORTING,  LOST  ELIGIBILITY  FOR
 COSIGNER RELEASE, LATE FEES, INTEREST CAPITALIZATION, OR OTHER FINANCIAL
 INJURY.
   (D) LENDERS SHALL NOT REQUIRE GREATER THAN TWELVE CONSECUTIVE, ON-TIME
 PAYMENTS AS CRITERIA TO APPLY FOR COSIGNER RELEASE. ANY BORROWER WHO HAS
 PAID  THE EQUIVALENT OF TWELVE MONTHS OF PRINCIPAL AND INTEREST PAYMENTS
 WITHIN ANY TWELVE-MONTH PERIOD WILL BE CONSIDERED TO HAVE SATISFIED  THE
 CONSECUTIVE,  ON-TIME  PAYMENT REQUIREMENT, EVEN IF THE BORROWER HAS NOT
 MADE PAYMENTS MONTHLY DURING THE TWELVE-MONTH PERIOD.
   (E) IF A BORROWER OR COSIGNER REQUESTS  A  CHANGE  THAT  RESTARTS  THE
 COUNT  OF  CONSECUTIVE,  ON-TIME PAYMENTS REQUIRED FOR COSIGNER RELEASE,
 THE LENDER SHALL NOTIFY THE BORROWER AND COSIGNER IN WRITING WITHIN  TEN
 DAYS  OF  THE  IMPACT OF SUCH AN ARRANGEMENT AND PROVIDE THE BORROWER OR
 COSIGNER THE RIGHT TO WITHDRAW OR REVERSE  THE  REQUEST  TO  AVOID  SUCH
 IMPACT.
   (F)  THE  BORROWER  HAS  THE  RIGHT TO REQUEST AN APPEAL OF A LENDER'S
 DETERMINATION TO DENY THE COSIGNER  RELEASE  APPLICATION  WITHIN  NINETY
 DAYS  OF  RECEIVING  THE  LENDER'S  DETERMINATION,  AND THE LENDER SHALL
 PERMIT SUCH BORROWER TO SUBMIT ADDITIONAL DOCUMENTATION EVIDENCING  THAT
 THE  BORROWER  HAS THE ABILITY, WILLINGNESS, AND STABILITY TO HANDLE HIS
 OR HER PAYMENT OBLIGATIONS. THE  BORROWER  MAY  REQUEST  REVIEW  OF  THE
 COSIGNER  RELEASE  DETERMINATION  BY ANOTHER EMPLOYEE.  THE LENDER SHALL
 INFORM THE BORROWER OF THIS RIGHT IN A CLEAR AND CONSPICUOUS  MANNER  ON
 THE NOTICE DENYING THE COSIGNER RELEASE APPLICATION.
   (G)  A  LENDER  MUST  ESTABLISH  AND  MAINTAIN  A COMPREHENSIVE RECORD
 MANAGEMENT SYSTEM REASONABLY DESIGNED TO ENSURE THE ACCURACY, INTEGRITY,
 AND COMPLETENESS OF DATA AND OTHER INFORMATION  ABOUT  COSIGNER  RELEASE
 APPLICATIONS.  THIS  SYSTEM SHALL INCLUDE THE NUMBER OF COSIGNER RELEASE
 APPLICATIONS RECEIVED, THE APPROVAL AND DENIAL  RATE,  AND  THE  PRIMARY
 REASONS FOR ANY DENIAL.
   (H)  IF A COSIGNER HAS A TOTAL AND PERMANENT DISABILITY, AS DETERMINED
 BY ANY FEDERAL AGENCY, STATE AGENCY, OR PHYSICIAN OR DOCTOR OF  OSTEOPA-
 THY  LEGALLY  AUTHORIZED  TO  PRACTICE  IN  THIS STATE, THE LENDER SHALL
 RELEASE THE COSIGNER FROM THE COSIGNER'S OBLIGATION TO  REPAY  THE  LOAN
 UPON  RECEIVING  A  NOTIFICATION  OF  THE COSIGNER'S TOTAL AND PERMANENT
 DISABILITY. THE LENDER SHALL NOT REQUIRE A NEW COSIGNER TO BE  ADDED  TO
 THE LOAN AFTER THE ORIGINAL COSIGNER HAS BEEN RELEASED FROM THE LOAN.
 A. 6226--A                          5
 
   3.  (A)  A LENDER SHALL PROVIDE A COSIGNER OF A PRIVATE EDUCATION LOAN
 WITH ACCESS TO ALL DOCUMENTS OR RECORDS RELATED TO THE COSIGNED  PRIVATE
 EDUCATION LOAN THAT ARE AVAILABLE TO THE BORROWER;
   (B)  IF  A  LENDER PROVIDES ELECTRONIC ACCESS TO DOCUMENTS AND RECORDS
 FOR A BORROWER, IT SHALL PROVIDE EQUIVALENT  ELECTRONIC  ACCESS  TO  THE
 COSIGNER; AND
   (C)  UPON  RECEIVING  NOTICE FROM THE BORROWER OR COSIGNER, THE LENDER
 SHALL REDACT THE CONTACT INFORMATION OF THE OTHER PARTY.
   § 1104. PROHIBITION ON ACCELERATION OF PAYMENTS ON  PRIVATE  EDUCATION
 LOANS.  1.  EXCEPT  AS  PROVIDED  IN  SUBDIVISION TWO OF THIS SECTION, A
 PRIVATE EDUCATION LOAN EXECUTED AFTER THE EFFECTIVE DATE OF THIS ARTICLE
 MAY NOT INCLUDE A PROVISION THAT PERMITS THE PRIVATE EDUCATIONAL  LENDER
 TO  ACCELERATE,  IN  WHOLE OR IN PART, PAYMENTS ON THE PRIVATE EDUCATION
 LOAN.
   2. A PRIVATE EDUCATION LOAN  MAY  INCLUDE  A  PROVISION  THAT  PERMITS
 ACCELERATION OF THE LOAN IN CASES OF PAYMENT DEFAULT.
   3. A LENDER SHALL NOT PLACE ANY LOAN OR ACCOUNT INTO DEFAULT OR ACCEL-
 ERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   4.  (A)  IN  THE  EVENT OF THE DEATH OF A COSIGNER, A LENDER SHALL NOT
 ATTEMPT TO COLLECT AGAINST THE COSIGNER'S ESTATE, OTHER THAN FOR FAILURE
 TO PAY.
   (B) UPON RECEIVING NOTIFICATION OF THE DEATH OR BANKRUPTCY OF A COSIG-
 NER, WHEN THE LOAN IS NOT MORE THAN SIXTY DAYS DELINQUENT AT THE TIME OF
 THE NOTIFICATION, A LENDER SHALL NOT CHANGE ANY TERMS OR BENEFITS  UNDER
 THE  PROMISSORY  NOTE,  REPAYMENT  SCHEDULE, REPAYMENT TERMS, OR MONTHLY
 PAYMENT AMOUNT OR ANY OTHER PROVISION ASSOCIATED WITH THE LOAN.
   (C) A LENDER SHALL NOT PLACE ANY  LOAN  OR  ACCOUNT  INTO  DEFAULT  OR
 ACCELERATE A LOAN FOR ANY REASON, OTHER THAN FOR FAILURE TO PAY.
   §  1105. REQUIRED COMMUNICATIONS. IN ADDITION TO ANY OTHER INFORMATION
 REQUIRED UNDER APPLICABLE FEDERAL OR STATE LAW, A DEBT  COLLECTOR  SHALL
 PROVIDE  IN  THE  FIRST  DEBT  COLLECTION COMMUNICATION WITH THE PRIVATE
 EDUCATION LOAN BORROWER OR COSIGNER AND AT ANY OTHER TIME  THE  BORROWER
 OR COSIGNER REQUESTS SUCH DOCUMENTATION:
   1. THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN DEBT;
   2.  THE  ORIGINAL  CREDITOR'S NAME AT THE TIME OF SALE OF THE LOAN, IF
 APPLICABLE;
   3. THE ORIGINAL CREDITOR'S ACCOUNT NUMBER USED TO IDENTIFY THE PRIVATE
 EDUCATION LOAN DEBT AT THE TIME OF SALE, IF THE ORIGINAL  CREDITOR  USED
 AN  ACCOUNT  NUMBER  TO  IDENTIFY THE PRIVATE EDUCATION LOAN DEBT AT THE
 TIME OF SALE;
   4. THE AMOUNT DUE AT THE TIME OF DEFAULT OR THE AMOUNT  DUE  TO  BRING
 THE LOAN CURRENT IF THE LOAN IS DELINQUENT;
   5.  A  SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE PRIVATE
 EDUCATION LOAN ACCOUNT;
   6. A COPY OF ALL PAGES OF THE CONTRACT, APPLICATION OR OTHER DOCUMENTS
 EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S OR COSIGNER'S LIABILITY
 FOR THE PRIVATE EDUCATION LOAN, STATING ALL TERMS AND CONDITIONS  APPLI-
 CABLE TO THE PRIVATE EDUCATION LOAN; AND
   7.  A  CLEAR AND CONSPICUOUS STATEMENT DISCLOSING THAT THE BORROWER OR
 COSIGNER HAS A RIGHT TO REQUEST ALL INFORMATION POSSESSED BY THE  CREDI-
 TOR  RELATED  TO  THE  PRIVATE  EDUCATION  LOAN DEBT, INCLUDING, BUT NOT
 LIMITED TO THE REQUIRED INFORMATION DESCRIBED IN SECTION ELEVEN  HUNDRED
 SIX OF THIS ARTICLE.
   §  1106.  REQUIRED  INFORMATION  TO  BE PROVIDED BY CREDITORS AND DEBT
 COLLECTORS. A CREDITOR MAY NOT COLLECT OR ATTEMPT TO COLLECT  A  PRIVATE
 A. 6226--A                          6
 
 EDUCATION  LOAN DEBT UNLESS THE CREDITOR OR DEBT COLLECTOR POSSESSES THE
 FOLLOWING:
   1. THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN;
   2.  THE  ORIGINAL  CREDITOR'S  NAME AT THE TIME OF SALE OF THE LOAN OR
 DEFAULT, IF APPLICABLE;
   3. THE ORIGINAL CREDITOR'S ACCOUNT NUMBER USED TO IDENTIFY THE PRIVATE
 EDUCATION LOAN AT THE TIME OF SALE OR DEFAULT, IF THE ORIGINAL  CREDITOR
 USED  AN  ACCOUNT  NUMBER  TO IDENTIFY THE PRIVATE EDUCATION LOAN AT THE
 TIME OF SALE OR DEFAULT;
   4. THE AMOUNT DUE AT THE TIME OF SALE, OR AT DEFAULT, OR, IF THE  LOAN
 IS DELINQUENT, TO BRING THE LOAN CURRENT;
   5.  A  SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE PRIVATE
 EDUCATION LOAN ACCOUNT;
   6. AN ITEMIZATION OF INTEREST AND FEES, IF ANY, CLAIMED TO BE OWED AND
 WHETHER THOSE WERE IMPOSED BY THE ORIGINAL CREDITOR  OR  ANY  SUBSEQUENT
 OWNERS OF THE PRIVATE EDUCATION LOAN;
   7. THE DATE THAT THE PRIVATE EDUCATION LOAN WAS INCURRED;
   8.  A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE OF
 THE FIRST PARTIAL PAYMENT AND/OR  THE  FIRST  DAY  THAT  A  PAYMENT  WAS
 MISSED, WHICHEVER IS EARLIER;
   9.  A BILLING STATEMENT OR OTHER ACCOUNT RECORD INDICATING THE DATE OF
 THE LAST PAYMENT MADE BY THE BORROWER OR COSIGNER, IF APPLICABLE;
   10. ANY PAYMENTS, SETTLEMENT, OR FINANCIAL REMUNERATION  OF  ANY  KIND
 PAID TO THE CREDITOR BY A GUARANTOR, COSIGNER, OR SURETY, AND THE AMOUNT
 OF PAYMENT RECEIVED;
   11.  A COPY OF THE SELF-CERTIFICATION FORM AND ANY OTHER "NEEDS ANALY-
 SIS" CONDUCTED BY THE ORIGINAL CREDITOR  PRIOR  TO  ORIGINATION  OF  THE
 LOAN;
   12. THE NAMES OF ALL PERSONS OR ENTITIES THAT OWNED THE PRIVATE EDUCA-
 TION  LOAN  AFTER IT BECAME DELINQUENT OR WENT INTO DEFAULT, IF APPLICA-
 BLE, AND THE DATE OF EACH SALE OR TRANSFER;
   13. A LOG OF ALL COLLECTION ATTEMPTS MADE IN THE  LAST  TWELVE  MONTHS
 INCLUDING DATE AND TIME OF ALL CALLS AND LETTERS;
   14.  COPIES  OF ALL SETTLEMENT LETTERS MADE IN THE LAST TWELVE MONTHS,
 OR, IN THE ALTERNATIVE, A STATEMENT THAT THE CREDITOR HAS NOT  ATTEMPTED
 TO SETTLE OR OTHERWISE RENEGOTIATE THE DEBT PRIOR TO SUIT;
   15. COPIES OF ALL COLLECTION LETTERS SENT TO THE BORROWER AND COSIGNER
 SINCE INCEPTION OF THE LOAN;
   16.  DOCUMENTATION  ESTABLISHING THAT THE CREDITOR IS THE OWNER OF THE
 SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN  AT  ISSUE.  IF  THE  PRIVATE
 EDUCATION  LOAN  WAS  ASSIGNED MORE THAN ONCE, THE CREDITOR MUST POSSESS
 EACH ASSIGNMENT OR OTHER WRITING EVIDENCING THE TRANSFER OF OWNERSHIP OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN TO ESTABLISH AN  UNBROKEN
 CHAIN  OF  OWNERSHIP,  BEGINNING WITH THE ORIGINAL CREDITOR TO THE FIRST
 SUBSEQUENT CREDITOR AND EACH ADDITIONAL  CREDITOR.  EACH  ASSIGNMENT  OR
 OTHER  WRITING  EVIDENCING TRANSFER OF OWNERSHIP OR THE RIGHT TO COLLECT
 MUST CONTAIN THE ORIGINAL CREDITOR'S ACCOUNT NUMBER (REDACTED FOR  SECU-
 RITY  PURPOSES  TO SHOW ONLY THE LAST FOUR DIGITS) OF THE PRIVATE EDUCA-
 TION LOAN PURCHASED OR OTHERWISE ASSIGNED,  THE  DATE  OF  PURCHASE  AND
 ASSIGNMENT,  AND  MUST  CLEARLY  SHOW THE BORROWER'S, AND IF APPLICABLE,
 COSIGNER'S CORRECT NAME ASSOCIATED WITH THE ORIGINAL ACCOUNT NUMBER. THE
 ASSIGNMENT OR OTHER WRITING ATTACHED SHALL BE THAT BY WHICH THE CREDITOR
 OR OTHER ASSIGNEE ACQUIRED THE PRIVATE EDUCATION LOAN,  NOT  A  DOCUMENT
 PREPARED FOR LITIGATION OR COLLECTION PURPOSES;
   17.  A  COPY  OF ALL PAGES OF THE CONTRACT, APPLICATION OR OTHER DOCU-
 MENTS EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S, AND IF  APPLICA-
 A. 6226--A                          7
 
 BLE,  COSIGNER'S  LIABILITY  FOR THE PRIVATE EDUCATION LOAN, STATING ALL
 TERMS AND CONDITIONS APPLICABLE TO THE PRIVATE EDUCATION LOAN; AND
   18.  A SIGNED AFFIDAVIT OR AFFIDAVITS FROM EACH OF THE PREVIOUS OWNERS
 OF THE PRIVATE EDUCATION LOAN REGARDING WHEN THE PREVIOUS OWNER ACCELER-
 ATED THE LOAN FROM DELINQUENCY STATUS TO DEFAULT STATUS, OR IF  APPLICA-
 BLE, A STATEMENT THAT NO SUCH ACCELERATION OCCURRED.
   §  1107.  ENFORCEMENT. 1. ALL PRIVATE EDUCATION LENDERS, CREDITORS AND
 DEBT COLLECTORS SHALL COMPLY WITH THE PROVISIONS OF THIS ARTICLE.
   2.  ANY BORROWER OR COSIGNER WHO SUFFERS DAMAGE AS  A  RESULT  OF  THE
 FAILURE  OF  A  PRIVATE  EDUCATION  LENDER,  CREDITOR, OR DEBT COLLECTOR
 COVERED BY THE PROVISION OF THIS ARTICLE MAY BRING AN  ACTION  ON  THEIR
 OWN  BEHALF  AND  ON  BEHALF  OF A SIMILARLY SITUATED CLASS OF CONSUMERS
 AGAINST THAT PERSON TO RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ACTUAL DAMAGES, BUT IN NO CASE SHALL THE TOTAL AWARD OF DAMAGES BE
 LESS THAN FIVE HUNDRED DOLLARS PER PERSON, PER VIOLATION.
   (B) PUNITIVE DAMAGES.
   (C) CORRECTION OF THAT PERSON'S CREDIT REPORT.
   (D) INJUNCTIVE RELIEF.
   (E) ANY OTHER RELIEF THAT THE COURT DEEMS PROPER.
   3. IN THE CASE OF ANY  SUCCESSFUL  ACTION  TO  ENFORCE  THE  FOREGOING
 LIABILITY,  A  PRIVATE  EDUCATION LENDER, CREDITOR, OR DEBT COLLECTOR IS
 LIABLE FOR THE COSTS OF THE ACTION, TOGETHER WITH REASONABLE  ATTORNEYS'
 FEES AS DETERMINED BY THE COURT.
   4.  THE  ATTORNEY  GENERAL  OR THE DISTRICT ATTORNEY OF ANY COUNTY MAY
 BRING AN ACTION IN THE NAME OF THE PEOPLE OF THE STATE  TO  RESTRAIN  OR
 PREVENT  ANY  VIOLATION  OF  THIS ARTICLE OR ANY CONTINUANCE OF ANY SUCH
 VIOLATION.
   5. NOTHING IN THIS ARTICLE SHALL LIMIT ANY  STATUTORY  OR  COMMON  LAW
 RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
 RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW.
   §  1108.  RULES  AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY
 OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT OF FINANCIAL
 SERVICES IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND
 REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT  BE  CONSISTENT
 WITH  THE  PURPOSES  OF  THIS  ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE
 ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO:
   (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH  THE  ACTIVITIES  OF
 PRIVATE  EDUCATION  LENDERS,  CREDITORS,  AND  DEBT COLLECTORS AS MAY BE
 NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE;
   (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE  TO
 DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH
 THE ACTIVITIES OF PRIVATE EDUCATION LENDERS, CREDITORS, AND DEBT COLLEC-
 TORS;
   (C)  SUCH  RULES  AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS
 ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND  IMPLE-
 MENT THE PROVISIONS OF THIS ARTICLE; AND
   (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT
 OF THIS ARTICLE.
   2.  THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH
 SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE  SUPERINTENDENT  MAY  DEEM
 NECESSARY FOR THE PROPER CONDUCT OF THE PRIVATE EDUCATION LOAN INDUSTRY.
   §  1109.  PENALTIES. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE
 APPLICABLE BY LAW, INCLUDING BUT NOT LIMITED TO THE PENALTIES  AVAILABLE
 UNDER  SECTION  FORTY-FOUR  OF  THE  BANKING  LAW, THE SUPERINTENDENT OF
 FINANCIAL SERVICES MAY, AFTER NOTICE AND A HEARING, OR UPON A FINDING OF
 A VIOLATION OF THIS ARTICLE IN A CIVIL ACTION BROUGHT  BY  THE  ATTORNEY
 A. 6226--A                          8
 
 GENERAL, REQUIRE ANY PERSON FOUND VIOLATING THE PROVISIONS OF THIS ARTI-
 CLE  OR  THE  RULES  OR  REGULATIONS PROMULGATED HEREUNDER TO PAY TO THE
 PEOPLE OF THIS STATE A PENALTY FOR EACH VIOLATION OF THE ARTICLE OR  ANY
 REGULATION  OR  POLICY  PROMULGATED  HEREUNDER  A  SUM NOT TO EXCEED THE
 GREATER OF (I) TEN THOUSAND DOLLARS FOR EACH OFFENSE; (II) A MULTIPLE OF
 TWO TIMES THE AGGREGATE DAMAGES ATTRIBUTABLE TO THE VIOLATION; OR  (III)
 A  MULTIPLE OF TWO TIMES THE AGGREGATE ECONOMIC GAIN ATTRIBUTABLE TO THE
 VIOLATION.
   § 2. The civil practice law and rules  is  amended  by  adding  a  new
 section 3012-c to read as follows:
   § 3012-C. REQUIREMENTS RELATING TO JUDGMENTS AGAINST PRIVATE EDUCATION
 LOAN  BORROWERS  OR  COSIGNERS.  (A) IN ADDITION TO ANY OTHER PAPERS AND
 DOCUMENTS REQUIRED BY THIS CHAPTER, AN ATTORNEY REPRESENTING A  CREDITOR
 SEEKING  A  JUDGMENT  ARISING  FROM A PRIVATE EDUCATION LOAN DEBT, SHALL
 SUBMIT A SWORN AFFIDAVIT ATTESTING THAT:
   (1) THE CREDITOR HAS IN ITS POSSESSION THE FOLLOWING INFORMATION:
   (I) THE NAME OF THE OWNER OF THE PRIVATE EDUCATION LOAN;
   (II) THE ORIGINAL CREDITOR'S NAME AT THE TIME THE LOAN WAS  PURCHASED,
 AND/OR THE LOAN WENT INTO DEFAULT, IF APPLICABLE;
   (III)  THE  ORIGINAL  CREDITOR'S  ACCOUNT  NUMBER USED TO IDENTIFY THE
 PRIVATE EDUCATION LOAN WHEN THE LOAN WAS SOLD  AND/OR  AT  THE  TIME  OF
 DEFAULT, IF THE ORIGINAL CREDITOR USED AN ACCOUNT NUMBER TO IDENTIFY THE
 PRIVATE EDUCATION LOAN AT THE TIME OF SALE AND/OR DEFAULT;
   (IV)  THE  AMOUNT  DUE  AT  THE TIME THE LOAN WAS SOLD BY THE ORIGINAL
 CREDITOR AND/OR AT THE TIME OF DEFAULT;
   (V) A SCHEDULE OF ALL TRANSACTIONS CREDITED OR DEBITED TO THE  PRIVATE
 EDUCATION LOAN ACCOUNT;
   (VI)  AN  ITEMIZATION OF INTEREST AND FEES, IF ANY, CLAIMED TO BE OWED
 AND WHETHER THOSE WERE IMPOSED BY THE ORIGINAL CREDITOR  OR  ANY  SUBSE-
 QUENT OWNERS OF THE PRIVATE EDUCATION LOAN;
   (VII) THE DATE THAT THE PRIVATE EDUCATION LOAN WAS INCURRED;
   (VIII) THE DATE OF THE FIRST PARTIAL PAYMENT AND/OR THE FIRST DAY THAT
 A PAYMENT WAS MISSED, WHICHEVER IS EARLIER;
   (IX) THE DATE AND AMOUNT OF THE LAST PAYMENT, IF APPLICABLE;
   (X)  ANY  PAYMENTS,  SETTLEMENT, OR FINANCIAL REMUNERATION OF ANY KIND
 PAID TO THE CREDITOR BY A GUARANTOR, COSIGNER, OR SURETY, AND THE AMOUNT
 OF PAYMENT RECEIVED;
   (XI) A COPY OF THE SELF-CERTIFICATION FORM AND ANY OTHER "NEEDS ANALY-
 SIS" CONDUCTED BY THE ORIGINAL CREDITOR  PRIOR  TO  ORIGINATION  OF  THE
 LOAN;
   (XII)  THE  NAMES  OF  ALL  PERSONS OR ENTITIES THAT OWNED THE PRIVATE
 EDUCATION LOAN, IF APPLICABLE, AND THE DATE OF EACH SALE OR TRANSFER;
   (XIII) A LOG OF ALL COLLECTION ATTEMPTS MADE IN THE LAST TWELVE MONTHS
 INCLUDING DATE AND TIME OF ALL CALLS AND LETTERS;
   (XIV) A STATEMENT AS TO WHETHER THE CREDITOR IS WILLING TO  RE-NEGOTI-
 ATE THE TERMS OF THE DEBT;
   (XV)  COPIES OF ALL SETTLEMENT LETTERS MADE IN THE LAST TWELVE MONTHS,
 OR, IN THE ALTERNATIVE, A STATEMENT THAT THE CREDITOR HAS NOT  ATTEMPTED
 TO SETTLE OR OTHERWISE RENEGOTIATE THE DEBT PRIOR TO SUIT;
   (XVI) COPIES OF ALL COLLECTION LETTERS SENT TO THE BORROWER AND COSIG-
 NER SINCE INCEPTION OF THE LOAN;
   (XVII)  DOCUMENTATION  ESTABLISHING  THAT THE CREDITOR IS THE OWNER OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN AT ISSUE. IF THE  PRIVATE
 EDUCATION  LOAN  WAS  ASSIGNED MORE THAN ONCE, THE CREDITOR MUST POSSESS
 EACH ASSIGNMENT OR OTHER WRITING EVIDENCING THE TRANSFER OF OWNERSHIP OF
 THE SPECIFIC INDIVIDUAL PRIVATE EDUCATION LOAN TO ESTABLISH AN  UNBROKEN
 A. 6226--A                          9
 
 CHAIN  OF  OWNERSHIP,  BEGINNING WITH THE ORIGINAL CREDITOR TO THE FIRST
 SUBSEQUENT CREDITOR AND EACH ADDITIONAL  CREDITOR.  EACH  ASSIGNMENT  OR
 OTHER  WRITING  EVIDENCING TRANSFER OF OWNERSHIP OR THE RIGHT TO COLLECT
 MUST  CONTAIN THE ORIGINAL CREDITOR'S ACCOUNT NUMBER (REDACTED FOR SECU-
 RITY PURPOSES TO SHOW ONLY THE LAST FOUR DIGITS) OF THE  PRIVATE  EDUCA-
 TION  LOAN  PURCHASED  OR  OTHERWISE  ASSIGNED, THE DATE OF PURCHASE AND
 ASSIGNMENT, AND MUST CLEARLY SHOW THE  BORROWER'S,  AND  IF  APPLICABLE,
 COSIGNER'S CORRECT NAME ASSOCIATED WITH THE ORIGINAL ACCOUNT NUMBER. THE
 ASSIGNMENT OR OTHER WRITING ATTACHED SHALL BE THAT BY WHICH THE CREDITOR
 OR  OTHER  ASSIGNEE  ACQUIRED THE PRIVATE EDUCATION LOAN, NOT A DOCUMENT
 PREPARED FOR LITIGATION;
   (XVIII) A COPY OF ALL PAGES OF  THE  CONTRACT,  APPLICATION  OR  OTHER
 DOCUMENTS EVIDENCING THE PRIVATE EDUCATION LOAN BORROWER'S OR COSIGNER'S
 LIABILITY  FOR  THE PRIVATE EDUCATION LOAN, STATING ALL TERMS AND CONDI-
 TIONS APPLICABLE TO THE PRIVATE EDUCATION LOAN;
   (XIX) AN AFFIDAVIT STATING THAT THE COMMUNICATION REQUIRED IN  SECTION
 ELEVEN HUNDRED FIVE OF THE GENERAL BUSINESS LAW HAS BEEN COMPLIED WITH;
   (XX)  A  STATEMENT  AS  TO WHETHER THE DEBT IS ELIGIBLE FOR AN INCOME-
 BASED REPAYMENT PLAN FREE OF CHARGE TO THE BORROWER OR COSIGNER,  EQUIV-
 ALENT TO THE REPAYMENT ARRANGEMENT ESTABLISHED FOR FEDERAL STUDENT LOANS
 UNDER ARTICLE IV OF THE HIGHER EDUCATION ACT (20 USC 1078 ET. SEQ.);
   (XXI) A STATEMENT AS TO WHETHER THE DEBT IS A QUALIFIED EDUCATION LOAN
 AS DEFINED IN 26 U.S.C. § 221; AND
   (XXII)  A  SIGNED  AFFIDAVIT  OR  AFFIDAVITS FROM EACH OF THE PREVIOUS
 OWNERS OF THE PRIVATE EDUCATION LOAN STATING  WHEN  THE  PREVIOUS  OWNER
 ACCELERATED  THE  LOAN  FROM DELINQUENCY STATUS TO DEFAULT STATUS, OR IF
 APPLICABLE, THAT THE LOAN HAD NOT BEEN ACCELERATED AT THE  TIME  OF  THE
 SALE; AND
   (2)  A REPRESENTATIVE OF THE CREDITOR PERSONALLY REVIEWED THE INFORMA-
 TION SET FORTH IN PARAGRAPH ONE OF THIS SUBDIVISION FOR FACTUAL ACCURACY
 AND CONFIRMED THE FACTUAL ACCURACY OF THE ALLEGATIONS SET FORTH  IN  THE
 COMPLAINT  AND  ANY SUPPORTING AFFIDAVITS OR AFFIRMATIONS FILED WITH THE
 COURT, AS WELL AS THE ACCURACY OF THE  NOTARIZATIONS  CONTAINED  IN  THE
 SUPPORTING DOCUMENTS FILED THEREWITH.
   (B)  COPIES  OF  THE DOCUMENTATION IDENTIFIED IN SUBPARAGRAPHS (XVII),
 (XVIII) AND (XXII) OF PARAGRAPH ONE OF SUBDIVISION (A) OF  THIS  SECTION
 SHALL  BE  ATTACHED TO THE APPLICATION SEEKING A JUDGMENT ARISING FROM A
 PRIVATE EDUCATION LOAN DEBT.
   (C) AN ATTORNEY REPRESENTING A CREDITOR  SEEKING  A  JUDGMENT  ARISING
 FROM  A  PRIVATE EDUCATION LOAN DEBT SHALL ALSO SUBMIT A SWORN AFFIDAVIT
 CONTAINING THE FOLLOWING INFORMATION:
   (1) THE APPLICABLE STATUTE OR STATUTES OF LIMITATIONS FOR THE CAUSE OR
 CAUSES OF ACTION ASSERTED BY THE CREDITOR FOR THE PRIVATE EDUCATION LOAN
 DEBT; AND
   (2) A STATEMENT THAT BASED  UPON  COUNSEL'S  REASONABLE  INQUIRY,  THE
 APPLICABLE STATUTE OR STATUTES OF LIMITATIONS FOR THE CAUSE OR CAUSES OF
 ACTION ASSERTED BY THE CREDITOR HAS NOT EXPIRED.
   (D)  A JUDGE OR CLERK SHALL NOT GRANT OR ENTER A JUDGMENT ARISING FROM
 A PRIVATE EDUCATION LOAN DEBT THAT DOES NOT COMPLY WITH THE REQUIREMENTS
 DESCRIBED IN SUBDIVISIONS (A), (B), AND (C) OF THIS SECTION.
   (E) (1) UPON RECEIPT OF WRITTEN  NOTICE  PROVIDED  BY  A  BORROWER  OR
 COSIGNER,  OR UPON NOTICE FROM THE ATTORNEY GENERAL OR SUPERINTENDENT OF
 FINANCIAL SERVICES ON BEHALF OF A GROUP OF BORROWERS, TO A  CREDITOR  OR
 DEBT COLLECTOR STATING THAT THE CREDITOR OR DEBT COLLECTOR HAS FAILED TO
 COMPLY WITH THIS SECTION, THE CREDITOR OR DEBT COLLECTOR SHALL:
 A. 6226--A                         10
 
   (I)  PROVIDE  PROOF OF COMPLIANCE WITH THE PROVISIONS OF THIS SECTION;
 OR
   (II) TAKE THE FOLLOWING ACTIONS:
   1. MOVE TO VACATE THE JUDGMENT;
   2.  REFUND ALL MONIES PAID BY THE BORROWER OR COSIGNER AFTER THE JUDG-
 MENT WAS ENTERED; AND
   3. TAKE ALL ACTIONS NECESSARY TO REMOVE ALL  NEGATIVE  CREDIT  HISTORY
 FURNISHED AFTER DEFAULT.
   (2) IF A CREDITOR OR DEBT COLLECTOR FAILS TO COMPLY WITH PARAGRAPH ONE
 OF THIS SUBDIVISION, THE BORROWER OR COSIGNER MAY BRING AN ACTION ON HIS
 OR  HER OWN BEHALF OR ON BEHALF OF A SIMILARLY SITUATED CLASS OF PERSONS
 AGAINST THAT CREDITOR TO RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (I) AN ORDER SETTING ASIDE OR VACATING ANY  JUDGMENT  ENTERED  AGAINST
 THE BORROWER OR COSIGNER;
   (II) A JUDGMENT IN FAVOR OF THE BORROWER OR COSIGNER;
   (III)  ACTUAL DAMAGES, BUT IN NO CASE SHALL THE TOTAL AWARD OF DAMAGES
 BE LESS THAN FIVE HUNDRED DOLLARS PER PERSON, PER VIOLATION;
   (IV) RESTITUTION OF ALL MONEYS TAKEN FROM OR PAID BY THE  BORROWER  OR
 COSIGNER AFTER A JUDGMENT WAS OBTAINED BY A CREDITOR;
   (V) PUNITIVE DAMAGES;
   (VI) CORRECTION OF THE BORROWER'S OR COSIGNER'S CREDIT REPORT;
   (VII) INJUNCTIVE RELIEF; AND
   (VIII) ANY OTHER RELIEF THAT THE COURT DEEMS PROPER.
   (3)  IN  THE  CASE  OF  ANY SUCCESSFUL ACTION TO ENFORCE THE FOREGOING
 LIABILITY, A PRIVATE EDUCATION LENDER, CREDITOR, OR  DEBT  COLLECTOR  IS
 LIABLE  FOR THE COSTS OF THE ACTION, TOGETHER WITH REASONABLE ATTORNEYS'
 FEES AS DETERMINED BY THE COURT.
   (4) IN ADDITION TO ANY OTHER REMEDIES PROVIDED BY THIS SUBDIVISION  OR
 OTHERWISE  PROVIDED  BY LAW, WHENEVER IT IS PROVEN BY A PREPONDERANCE OF
 THE EVIDENCE THAT A CREDITOR OR ATTORNEY REPRESENTING A  CREDITOR  FILED
 AN  AFFIDAVIT  REQUIRED UNDER THIS SECTION CONTAINING FALSE INFORMATION,
 THE COURT SHALL AWARD TREBLE ACTUAL DAMAGES TO THE BORROWER OR COSIGNER,
 BUT IN NO CASE SHALL THE AWARD OF DAMAGES BE LESS THAN ONE THOUSAND FIVE
 HUNDRED DOLLARS, PER PERSON, PER VIOLATION.
   (F) THE DEFINITIONS OF TERMS SET FORTH IN SECTION  ELEVEN  HUNDRED  OF
 THE GENERAL BUSINESS LAW SHALL APPLY TO THE PROVISIONS OF THIS SECTION.
   § 3. This act shall take effect immediately.