Bill Text: NY S00195 | 2011-2012 | General Assembly | Introduced

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Bill Title: Requires a principal creditor to send a notice of delinquency to the debtor and co-signer of an account.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-06-21 - COMMITTED TO RULES [S00195 Detail]

Download: New_York-2011-S00195-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          195
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
         printed to be committed to the Committee on Consumer Protection
       AN ACT to amend the general business  law,  in  relation  to  notice  of
         delinquency requirements
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 600 of the  general  business  law  is  amended  by
    2  adding a new subdivision 4 to read as follows:
    3    4. "CO-SIGNER" MEANS A NATURAL PERSON WHO (I) IN THE CASE OF A CONSUM-
    4  ER  CREDIT TRANSACTION BECOMES OBLIGATED ON THE TRANSACTION AS A CO-SIG-
    5  NER, CO-MAKER, GUARANTOR, ENDORSER OR SURETY, BUT WHO DOES  NOT  RECEIVE
    6  THE PROPERTY, SERVICES, OR MONEY THAT IS THE SUBJECT OF THE TRANSACTION.
    7  THE  TERM  DOES NOT INCLUDE A SELLER, HOLDER OR LENDER WHO BECOMES OBLI-
    8  GATED TO AN ASSIGNEE OF SUCH PARTY'S RIGHTS; OR (II) IN THE  CASE  OF  A
    9  CONSUMER  CREDIT  ACCOUNT  BECOMES  OBLIGATED  UNDER  THE AGREEMENT AS A
   10  CO-SIGNER, CO-MAKER, GUARANTOR, ENDORSER OR SURETY WITH  RESPECT  EITHER
   11  TO  ALL  PURCHASES  AND  LOANS,  OR A SPECIFIED MAXIMUM DOLLAR AMOUNT OF
   12  PURCHASES AND LOANS THAT WILL BE OBTAINED FROM TIME TO TIME PURSUANT  TO
   13  THE  AGREEMENT  WHETHER OR NOT IT IS CONTEMPLATED THAT THE CO-SIGNER MAY
   14  RECEIVE ANY OF THE PROPERTY, SERVICES OR MONEY TO BE OBTAINED. THE  TERM
   15  DOES  NOT INCLUDE A SELLER, HOLDER OR LENDER WHO BECOMES OBLIGATED TO AN
   16  ASSIGNEE OF SUCH PARTY'S RIGHTS OR A JOINT APPLICANT FOR CREDIT  WHO  IS
   17  INTENDED TO BE PRIMARILY LIABLE UNDER THE AGREEMENT.
   18    S 2. The general business law is amended by adding a new section 601-a
   19  to read as follows:
   20    S 601-A. NOTICE OF DELINQUENCY. EVERY PRINCIPAL CREDITOR OR HIS OR HER
   21  AGENT SHALL SEND A NOTICE TO THE LAST KNOWN ADDRESS OF THE DEBTOR ADVIS-
   22  ING  THE  DEBTOR  OF A DELINQUENCY ON HIS OR HER ACCOUNT. A COPY OF SUCH
   23  NOTICE SHALL ALSO BE SENT TO THE CO-SIGNER OF SUCH ACCOUNT.
   24    S 3. This act shall take effect on the first of January next  succeed-
   25  ing the date on which it shall have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01600-01-1