|SAME AS||SAME AS S04525|
|COSPNSR||Peoples-Stokes, Barron, Kim, Englebright, Frontus, Richardson, D'Urso, Fall, Sayegh, Solages, Pretlow|
|Add §5-522, Gen Ob L; amd §§173 & 380-e, Bank L|
|Expands consumer protections for usury and interest to small businesses.|
Go to top
STATE OF NEW YORK ________________________________________________________________________ 3638 2019-2020 Regular Sessions IN ASSEMBLY January 30, 2019 ___________ Introduced by M. of A. NIOU, PEOPLES-STOKES -- 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: 1 Section 1. The general obligations law is amended by adding a new 2 section 5-522 to read as follows: 3 § 5-522. Application to small businesses. All rights and privileges 4 granted under this title to persons shall also apply to small busi- 5 nesses. For purposes of this section, a small business shall be deemed 6 to be one which is resident in this state, independently owned and oper- 7 ated, not dominant in its field and employs one hundred or less persons. 8 § 2. Section 173 of the banking law is amended by adding a new subdi- 9 vision 4 to read as follows: 10 4. All rights and privileges granted under this section to persons 11 shall also apply to small businesses. For purposes of this subdivision, 12 a small business shall be deemed to be one which is resident in this 13 state, independently owned and operated, not dominant in its field and 14 employs one hundred or less persons. 15 § 3. Section 380-e of the banking law, as separately amended by chap- 16 ters 349 and 1072 of the laws of 1968, is amended to read as follows: 17 § 380-e. Effect of usury. The knowingly taking, receiving, reserving, 18 or charging by a savings and loan association of interest, as computed 19 pursuant to this article, at a rate greater than such rate of interest 20 as may be authorized by law shall be held and adjudged a forfeiture of 21 the entire interest which the note or other evidence of debt carries 22 with it, or which has been agreed to be paid thereon. If such greater 23 rate of interest has been paid, the person paying the same or his legal 24 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. LBD03232-01-9A. 3638 2 1 the entire amount of the interest thus paid. Nothing in this section 2 shall be deemed to affect the powers of any savings and loan association 3 with respect to loans or investments it is authorized to make. The 4 rights and privileges granted under this section shall also apply to 5 small businesses. For purposes of this section, a small business shall 6 be deemed to be one which is resident in this state, independently owned 7 and operated, not dominant in its field and employs one hundred or less 8 persons. 9 § 4. This act shall take effect immediately.