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STATE OF NEW YORK
________________________________________________________________________

2995--A

2011-2012 Regular Sessions

IN ASSEMBLY

January 21, 2011
___________

Introduced by M. of A. MAISEL, M. MILLER, McDONOUGH, ROBERTS, STEVENSON,
  N. RIVERA,  COLTON,  JAFFEE,  WEPRIN -- Multi-Sponsored by -- M. of A.
  CALHOUN, CROUCH, JACOBS, MARKEY, MONTESANO -- read once  and  referred
  to  the Committee on Consumer Affairs and Protection -- recommitted to
  the Committee on Consumer Affairs and Protection  in  accordance  with
  Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to prohibiting the
  unsolicited mailing of convenience checks to consumers

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

  Section 1. The general business law is amended by adding a new section
520-d to read as follows:
  S 520-D. UNSOLICITED CONVENIENCE CHECKS.  1. AS USED IN THIS  SECTION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "CHECK"  MEANS  ANY  NEGOTIABLE INSTRUMENT, AS DEFINED BY SECTION
3-104 OF THE UNIFORM COMMERCIAL CODE, THAT HAS IMPRINTED ON IT THE HOLD-
ER'S NAME AND THE DEPOSITORY INSTITUTION'S NAME, LOCATION,  AND  ROUTING
NUMBER.
  (B)  "UNSOLICITED CHECK" MEANS ANY CHECK MAILED OR OTHERWISE DELIVERED
TO A HOLDER BY AN ISSUER OR AGENT ACTING ON BEHALF OF AN ISSUER FOR  THE
PURPOSE OF DRAWING ON AN EXISTING ACCOUNT THAT IS AN EXTENSION OF CREDIT
OR ACTIVATING AN ACCOUNT TO OBTAIN CREDIT OTHER THAN:
  (1) IN RESPONSE TO A REQUEST OR APPLICATION FOR A CHECK OR ACCOUNT; OR
  (2)  AS  A  SUBSTITUTE FOR A CHECK OR ACCOUNT PREVIOUSLY ISSUED TO THE
PERSON TO WHOM THE CHECK IS MAILED OR OTHERWISE DELIVERED.
  2. NO HOLDER IN WHOSE NAME AN UNSOLICITED CHECK  IS  ISSUED  SHALL  BE
LIABLE  FOR  ANY  AMOUNT  RESULTING  FROM  USE OF THAT CHECK OR ACCOUNT,
UNLESS THE HOLDER HAS ACCEPTED THE CHECK OR ACCOUNT BY USING  THE  CHECK
OR  ACCOUNT. FAILURE TO DESTROY OR RETURN AN UNSOLICITED CHECK SHALL NOT
CONSTITUTE ACCEPTANCE OF THE CHECK OR ACCOUNT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06410-02-2
A. 2995--A                          2

  3. ANY AGREEMENT ENTERED INTO BY A  HOLDER  WHICH  WAIVES,  LIMITS  OR
DISCLAIMS THE RIGHTS SET FORTH IN THIS SECTION SHALL BE VOID AS CONTRARY
TO PUBLIC POLICY.
  S 2. This act shall take effect immediately.