S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3845
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2025
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law and the general  obligations  law,
   in relation to prohibiting residential landlords from charging tenants
   a  fee  for  a  dishonored rent check in excess of the actual costs or
   fees incurred by such landlord as a result thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 238-a of real property law is amended by adding a
 new subdivision 2-a to read as follows:
   2-A. (A) NO LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR SHALL  DEMAND  ANY
 PAYMENT, FEE, OR CHARGE FROM A TENANT FOR THE DELIVERY OF A CHECK, DRAFT
 OR  LIKE  INSTRUMENT THAT WAS GIVEN IN PAYMENT FOR RENT AND SUBSEQUENTLY
 DISHONORED BY THE TENANT'S FINANCIAL INSTITUTION FOR INSUFFICIENT  FUNDS
 EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
   (B) NOTWITHSTANDING ANY CONTRARY PROVISION HEREIN, A LANDLORD, LESSOR,
 SUB-LESSOR  OR  GRANTOR  MAY  DEMAND  ANY PAYMENT, FEE, OR CHARGE FROM A
 TENANT FOR THE DELIVERY OF A DISHONORED CHECK ONLY IF SUCH PAYMENT, FEE,
 OR CHARGE WAS PROVIDED FOR IN THE LEASE OR  CONTRACT  BETWEEN  LANDLORD,
 LESSOR,  SUB-LESSOR  OR  GRANTOR AND THE TENANT; PROVIDED, HOWEVER, THAT
 SUCH PAYMENT, FEE, OR CHARGE SHALL NOT EXCEED THE ACTUAL COSTS,  CHARGES
 OR  FEES  INCURRED  BY  LANDLORD,  LESSOR, SUB-LESSOR OR GRANTOR FOR THE
 RETURN OF SUCH DISHONORED CHECK OR THE AMOUNT SET FORTH  IN  SUBDIVISION
 THREE  OF  SECTION  5-328  OF  THE GENERAL OBLIGATIONS LAW, WHICHEVER IS
 LESS.
   (C) AS USED IN THIS SUBDIVISION, "DISHONORED  CHECK"  SHALL  HAVE  THE
 SAME  MEANING  AS  SUCH  TERM IS DEFINED IN SECTION 5-328 OF THE GENERAL
 OBLIGATIONS LAW.
   § 2. Subdivision 3 of section 5-328 of the general obligations law, as
 added by chapter 529 of the laws of 1995, is amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00565-01-5
 S. 3845                             2
              

 
   3. (A) Notwithstanding any other provision of law, any person to  whom
 a  check, draft or like instrument, other than a money order, bank cash-
 ier's check or certified check, is tendered for any  transaction,  other
 than  a  consumer  transaction,  may,  if  such instrument is dishonored
 charge  or collect from the maker or drawer the amount of twenty dollars
 for the return of such unpaid or dishonored instrument.
   (B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION,  A  LAND-
 LORD,  LESSOR,  SUB-LESSOR  OR  GRANTOR  TO  WHOM A CHECK, DRAFT OR LIKE
 INSTRUMENT, OTHER THAN A MONEY ORDER, BANK CASHIER'S CHECK OR  CERTIFIED
 CHECK,  IS  TENDERED  FOR  PAYMENT  OF  RENT,  MAY IF SUCH INSTRUMENT IS
 DISHONORED CHARGE OR COLLECT FROM THE MAKER  OR  DRAWER  THE  AMOUNT  OF
 ACTUAL  COSTS,  CHARGES  OR FEES INCURRED BY SUCH LANDLORD, LESSOR, SUB-
 LESSOR OR GRANTOR FOR THE RETURN OF SUCH DISHONORED CHECK OR THE  AMOUNT
 SET  FORTH  IN  PARAGRAPH  (A)  OF  THIS SUBDIVISION, WHICHEVER IS LESS,
 PROVIDED THAT SUCH DISHONORED CHECK CHARGE WAS  CONTRACTED  FOR  IN  THE
 LEASE  AGREEMENT  BETWEEN THE TENANT AND LANDLORD, LESSOR, SUB-LESSOR OR
 GRANTOR IN ACCORDANCE WITH THE  REQUIREMENTS  OF  SUBDIVISION  TWO-A  OF
 SECTION TWO HUNDRED THIRTY-EIGHT-A OF THE REAL PROPERTY LAW.
   § 3. This act shall take effect immediately and shall apply to actions
 and proceedings commenced on and after such effective date.