S T A T E   O F   N E W   Y O R K
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                                  3996

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 25, 2015
                               ___________

Introduced  by  Sens.  SAVINO, FARLEY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Banks

AN ACT to amend the  banking  law,  in  relation  to  retail  instalment
  contracts and transmitters of money

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

  Section 1. Subdivisions 6-a and   6-b of section 491  of  the  banking
law,  subdivision  6-a as amended by chapter 289 of the laws of 1962 and
subdivision 6-b as added by chapter 358 of the laws of 1958, are amended
to read as follows:
  6-a. "Retail instalment obligation" or "obligation"  means  an  agree-
ment,  entered  into in this state, pursuant to which the buyer promises
to pay, in instalments, the time sale price or prices  of  goods  and/or
services,  or any part thereof. The term does not include [(a)] a retail
instalment contract[, (b)] OR a retail instalment credit  agreement  [or
(c)  an  obligation which is intended to be and is ultimately insured or
guaranteed under title three of the act of Congress  entitled  "Service-
men's  Readjustment  Act of 1944"].  THE TERM INCLUDES SUCH AN AGREEMENT
WHEREVER ENTERED INTO IF EXECUTED BY THE BUYER  IN  THIS  STATE  AND  IF
SOLICITED  IN  PERSON  BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR
HER OWN BEHALF OR THAT OF THE SELLER.
  6-b. "Retail instalment credit agreement" or "credit agreement"  means
an  agreement  entered  into  in this state, pursuant to which the buyer
promises to pay, in instalments, his  OR  HER  outstanding  indebtedness
from  time to time to a retail seller, not evidenced by a retail instal-
ment contract or obligation, for one or more items of goods or services,
whenever purchased or obtained, which provides for a service charge  and
under  which instalment payments apply to his OR HER outstanding indebt-
edness from time to time.  THE TERM INCLUDES SUCH AN AGREEMENT  WHEREVER
ENTERED  INTO IF EXECUTED BY THE BUYER IN THIS STATE AND IF SOLICITED IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07709-01-5

              

S. 3996                             2

PERSON BY A SALESPERSON OR OTHER PERSON ACTING ON HIS OR HER OWN  BEHALF
OR THAT OF THE SELLER.
  S  2.  Subdivision  1 of section 641 of the banking law, as amended by
chapter 677 of the laws of 2004, is amended to read as follows:
  1. No person shall engage IN THIS STATE in the business of selling  or
issuing  checks, or engage in the business of receiving money for trans-
mission or transmitting the same, without a  license  therefor  obtained
from  the  superintendent  as  provided  in  this article, nor shall any
person engage in such business as an agent, except  as  an  agent  of  a
licensee or as agent of a payee; provided, however, that nothing in this
article  shall  apply  to a bank, trust company, private banker, foreign
banking corporation licensed pursuant to article two of this chapter  or
foreign  banking  company authorized to operate pursuant to the Interna-
tional Banking Act of 1978 (12 USC 3101 et seq.),  as  amended,  savings
bank,  savings  and  loan association, an investment company, a national
banking association, federal reserve bank, corporation  organized  under
the  provisions  of section twenty-five-a of an act of congress entitled
the "Federal Reserve Act", federal savings  bank,  federal  savings  and
loan  association or state or federal credit union OR OUT-OF-STATE STATE
BANK.  A PERSON ENGAGES IN THIS STATE IN  THE  BUSINESS  OF  SELLING  OR
ISSUING  CHECKS  OR RECEIVING MONEY FOR TRANSMISSION OR TRANSMITTING THE
SAME IF SUCH PERSON INDUCES ANOTHER PERSON WHO  IS  A  RESIDENT  OF,  OR
LOCATED IN, THIS STATE TO ENTER INTO A TRANSACTION BY SOLICITATION IN OR
INTO  THIS STATE BY ANY MEANS, INCLUDING BUT NOT LIMITED TO, MAIL, ELEC-
TRONIC MAIL, TELEPHONE, RADIO, TELEVISION, THE  INTERNET  OR  ANY  OTHER
ELECTRONIC MEANS.
  S 3. This act shall take effect immediately.