§ 5-702. Requirements for use of plain language in consumer
transactions. a. Every written agreement entered into after November
first, nineteen hundred seventy-eight, for the lease of space to be
occupied for residential purposes, for the lease of personal property to
be used primarily for personal, family or household purposes or to which
a consumer is a party and the money, property or service which is the
subject of the transaction is primarily for personal, family or
household purposes must be:

1. Written in a clear and coherent manner using words with common and
every day meanings;

2. Appropriately divided and captioned by its various sections.

Any creditor, seller or lessor who fails to comply with this
subdivision shall be liable to a consumer who is a party to a written
agreement governed by this subdivision in an amount equal to any actual
damages sustained plus a penalty of fifty dollars. The total class
action penalty against any such creditor, seller or lessor shall not
exceed ten thousand dollars in any class action or series of class
actions arising out of the use by a creditor, seller or lessor of an
agreement which fails to comply with this subdivision. No action under
this subdivision may be brought after both parties to the agreement have
fully performed their obligation under such agreement, nor shall any
creditor, seller or lessor who attempts in good faith to comply with
this subdivision be liable for such penalties. This subdivision shall
not apply to a good faith attempt to describe the constant yield or
other method of determining the lease charge and depreciation portions
of each base rental payment under a lease of personal property. It also
shall not apply to agreements involving amounts in excess of two hundred
fifty thousand dollars nor prohibit the use of words or phrases or forms
of agreement required by state or federal law, rule or regulation or by
a governmental instrumentality.

b. A violation of the provisions of subdivision a of this section
shall not render any such agreement void or voidable nor shall it
constitute:

1. A defense to any action or proceeding to enforce such agreement; or

2. A defense to any action or proceeding for breach of such agreement.

c. In addition to the above, whenever the attorney general finds that
there has been a violation of this section, he may proceed as provided
in subdivision twelve of section sixty-three of the executive law.