Assembly Bill A5290A

2023-2024 Legislative Session

Relates to the purchase of claims by corporations or collection agencies

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Sponsored By

Current 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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Bill Amendments

co-Sponsors

2023-A5290 - Details

See Senate Version of this Bill:
S5623
Current Committee:
Assembly Judiciary
Law Section:
Judiciary Law
Laws Affected:
Amd §489, Judy L; amd §5004, CPLR

2023-A5290 - Summary

Relates to the purchase of claims by corporations or collection agencies; relates to the inference of an assignee's intent and purpose in taking an assignment of a claim against an obligor that is not an eligible obligor.

2023-A5290 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5290
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by M. of A. GONZALEZ-ROJAS, DAVILA -- read once and referred
   to the Committee on Judiciary
 
 AN ACT to amend the judiciary law, in relation to the purchase of claims
   by corporations or collection  agencies  and  to  certain  instruments
   calling for payment of a monetary obligation by a foreign state

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 489 of the judiciary law, as added
 by chapter 394 of the laws of 2004, is amended to read as follows:
   2. Except as set forth in  subdivision  three  of  this  section,  the
 provisions  of  subdivision  one  of this section shall not apply to any
 assignment, purchase or transfer hereafter made of one  or  more  bonds,
 promissory  notes,  bills  of  exchange,  book debts, or other things in
 action, or any claims or demands, if such assignment, purchase or trans-
 fer included bonds, promissory notes,  bills  of  exchange  and/or  book
 debts,  issued  by  or  enforceable  against  the  same ELIGIBLE obligor
 (whether or not also issued by or enforceable against any other ELIGIBLE
 obligors), having an aggregate purchase price of at least  five  hundred
 thousand dollars, in which event the exemption provided by this subdivi-
 sion  shall  apply as well to all other items, including other things in
 action, claims and demands, included in  such  assignment,  purchase  or
 transfer  (but  only  if  such  other items are issued by or enforceable
 against the same ELIGIBLE obligor, or relate to or arise  in  connection
 with  such  bonds, promissory notes, bills of exchange and/or book debts
 or the issuance thereof).   FOR THE PURPOSES OF  THIS  SUBDIVISION,  THE
 TERM  "ELIGIBLE  OBLIGOR"  MEANS AN OBLIGOR THAT QUALIFIES AS A "DEBTOR"
 WITHIN THE MEANING OF TITLE 11 OF THE UNITED  STATES  CODE  (THE  UNITED
 STATES BANKRUPTCY CODE).
   §  2.  Section  489  of  the  judiciary law is amended by adding a new
 subdivision 4 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08948-01-3
 A. 5290                             2
              

co-Sponsors

2023-A5290A (ACTIVE) - Details

See Senate Version of this Bill:
S5623
Current Committee:
Assembly Judiciary
Law Section:
Judiciary Law
Laws Affected:
Amd §489, Judy L; amd §5004, CPLR

2023-A5290A (ACTIVE) - Summary

Relates to the purchase of claims by corporations or collection agencies; relates to the inference of an assignee's intent and purpose in taking an assignment of a claim against an obligor that is not an eligible obligor.

2023-A5290A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5290--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by  M. of A. GONZALEZ-ROJAS, DAVILA, SIMONE, BURGOS, WEPRIN,
   EPSTEIN, FAHY, REYES,  SHIMSKY,  GALLAGHER,  THIELE,  SEPTIMO,  LUCAS,
   SHRESTHA,  L. ROSENTHAL,  RAGA,  DE LOS SANTOS, SIMON, MEEKS, BURDICK,
   MAGNARELLI, DICKENS, KELLES, HYNDMAN, STECK, ROZIC, LEE,  MITAYNES  --
   read once and referred to the Committee on Judiciary -- recommitted to
   the  Committee on Judiciary in accordance with Assembly Rule 3, sec. 2
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT to amend the judiciary law and the civil practice law and rules,
   in relation to the purchase of claims by  corporations  or  collection
   agencies  and to certain instruments calling for payment of a monetary
   obligation by a foreign state
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative intent. The intended purpose of this act is to
 restore the champerty defense in  sovereign  debt  lawsuits  for  claims
 greater than $500,000 with respect to suits brought by litigious holdout
 investors.  The restoration is not intended to apply to conventional and
 generally cooperative investors who  may  occasionally  choose  to  sue,
 where "conventional investors" includes investors that regularly buy and
 hold  sovereign  debt  purchased  in the primary market and "cooperative
 investors" includes distressed debt investors  that  regularly  purchase
 debt at a discount in the secondary market and have a record of support-
 ing the consensual resolution of sovereign debt distress through serving
 as  a  member  of  creditor  committees or by generally participating in
 transactions accepted by other creditors following a negotiation.
   § 2. Subdivision 2 of section 489 of the judiciary law,  as  added  by
 chapter 394 of the laws of 2004, is amended to read as follows:
   2.  Except  as  set  forth  in  subdivision three of this section, the
 provisions of subdivision one of this section shall  not  apply  to  any
 assignment,  purchase  or  transfer hereafter made of one or more bonds,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08948-09-4
              

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