Assembly Bill A7773

2023-2024 Legislative Session

Relates to providing financial consumer protections for small businesses

download bill text pdf

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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2023-A7773 (ACTIVE) - Details

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
2021-2022: A1978

2023-A7773 (ACTIVE) - Summary

Expands consumer protections for usury and interest to small businesses.

2023-A7773 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7773
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 15, 2023
                                ___________
 
 Introduced  by M. of A. SIMON -- 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
 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.
                                                            LBD09711-01-3

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