S T A T E   O F   N E W   Y O R K
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                                  2808

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2013
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Economic Development

AN  ACT  to  amend  the general business law, in relation to authorizing
  collateral loan brokers to extend the holding  period  for  collateral
  for an additional three months

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 44 of the general business law  is
amended by adding a new paragraph (f) to read as follows:
  (F)  THE  HOLDER  OF  THIS TICKET MAY REQUEST THAT THE COLLATERAL LOAN
BROKER RETAIN POSSESSION OF THE ARTICLE PLEDGED FOR AN ADDITIONAL  THREE
MONTHS  FOLLOWING  THE  INITIAL  FOUR  MONTH HOLDING PERIOD. AT ANY TIME
PRIOR TO THE EXPIRATION OF THE EXTENDED HOLDING PERIOD, THE  HOLDER  MAY
REDEEM  THE  ARTICLE  PLEDGED  BY  PAYING THE COLLATERAL LOAN BROKER THE
AMOUNT OF THE LOAN, INTEREST, SERVICE CHARGE AND OTHER  LAWFUL  CHARGES.
IN THE EVENT THAT THE EXTENDED HOLDING PERIOD IS REQUESTED AND THE ARTI-
CLE IS NOT REDEEMED, IT SHALL VEST IN THE COLLATERAL LOAN BROKER FOR HIS
OR HER USE OR BENEFIT.
  S 2. Section 48 of the general business law is amended by adding a new
subdivision 3 to read as follows:
  3.  NOTWITHSTANDING  ANY PROVISION OF ANY GENERAL OR SPECIAL STATUTES,
LOCAL LAWS AND ORDINANCES TO THE CONTRARY, AT THE REQUEST OF A PAWNOR  A
COLLATERAL  LOAN BROKER SHALL RETAIN POSSESSION OF A PLEDGE FOR AN ADDI-
TIONAL THREE MONTHS FOLLOWING THE INITIAL FOUR MONTH HOLDING PERIOD.  AT
ANY  TIME  PRIOR  TO  THE  EXPIRATION  OF THE EXTENDED HOLDING PERIOD, A
PERSON ENTITLED TO REDEEM A PLEDGE MAY REDEEM UPON PAYMENT OF PRINCIPAL,
INTEREST, SERVICE CHARGES AND ALL OTHER LAWFUL  CHARGES.  IN  THE  EVENT
THAT THE PLEDGE IS NOT SO REDEEMED, IT SHALL VEST IN THE COLLATERAL LOAN
BROKER  FOR  HIS  OR  HER  OWN USE OR BENEFIT. NOT LESS THAN THIRTY DAYS
PRIOR TO THE END OF THE THREE MONTH EXTENDED HOLDING  PERIOD,  NOR  MORE
THAN  FORTY-FIVE  DAYS  PRIOR  THERETO, THE COLLATERAL LOAN BROKER SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00543-01-3
              

A. 2808                             2

MAIL A NOTICE OF DEFAULT AND TRANSFER OF OWNERSHIP BY  LETTER  ADDRESSED
TO THE PAWNOR AT THE ADDRESS GIVEN AT THE TIME OF PLEDGE.
  S  3.  This  act shall take effect on the thirtieth day after it shall
have become a law, and shall apply to goods, articles and things  pawned
or pledged on or after such date.