New York A 4918: Relates to interest rate limitations for financing arrangements and the extension of credit

Bill Text

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A04918 Summary:

BILL NOA04918 

&nbsp

SAME ASSAME AS S01726

&nbsp

SPONSORRaga

&nbsp

COSPNSREpstein, Gonzalez-Rojas, Shimsky, Glick, Shrestha, Lunsford, Burdick, Forrest, Tapia, Septimo,
 Davila, Burroughs, Schiavoni, Gallagher, Torres, Mitaynes, Sayegh, Lee, Fall

&nbsp

MLTSPNSR

&nbsp

Amd §§5-501, 5-511, 5-513, 5-517 & 5-524, Gen Ob L; amd §§14-a, 340 & 351, Bank L; amd §§190.40 & 190.42, Pen
L; amd §508, Pers Prop L

&nbsp

Provides interest rate limitations for financing arrangements and the extension of consumer credit; relates to the definitions of criminal usury in the first and second degrees; relates to the functions of the attorney general regarding rental purchase agreements.

Go to top A04918 Actions:

BILL NOA04918 

&nbsp

02/10/2025referred to banks

01/07/2026referred to banks

Go to topA04918 Committee&nbspVotes:

Go to topA04918 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA04918 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4918

 2025-2026 Regular Sessions

 IN ASSEMBLY

 February 10, 2025
 ___________

 Introduced by M. of A. RAGA -- read once and referred to the Committee
 on Banks

 AN ACT to amend the general obligations law and the banking law, in
 relation to limitations of rates of interest for financing arrange-
 ments and the extension of consumer credit; to amend the penal law, in
 relation to criminal usury; and to amend the personal property law, in
 relation to certain functions of the attorney general

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivisions 1, 2, 4, 4-a, 6 and 7 of section 5-501 of the
 2 general obligations law, subdivisions 1, 2 and 4 as amended by chapter
 3 883 of the laws of 1980, subdivision 2 as further amended by section 104
 4 of part A of chapter 62 of the laws of 2011, subdivision 4-a as added by
 5 chapter 721 of the laws of 1976, subdivision 6 as amended by chapter 369
 6 of the laws of 1980 and subdivision 7 as added by chapter 296 of the
 7 laws of 1983, are amended and two new subdivisions 1-a and 8 are added
 8 to read as follows:
 9 1. The rate of interest, as computed pursuant to this title, [upon the
 10 loan or forbearance of any money, goods, or things in action] in
 11 connection with any financing arrangement, except as provided in subdi-
 12 visions five and six of this section [or as otherwise provided by law],
 13 shall be six per centum per annum unless a different rate is prescribed
 14 in section fourteen-a of the banking law.
 15 1-a. Financing arrangement is defined to include loans, forbearance of
 16 any money, goods or things in action, and all other transactions that
 17 involve the lending or advancing of money, goods or things in action for
 18 an amount charged, taken or received, and all transactions that operate
 19 as substitutes for such products, including but not limited to retail
 20 installment contracts, merchant cash advances, invoice financing, reven-
 21 ue-based financing, earned wage access or similar wage advance trans-
 22 actions, lease- or rent-to-own arrangements, rental-purchase agreements

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03633-01-5

 A. 4918 2

 1 as defined in subdivision six of section five hundred of the personal
 2 property law, buy-now pay-later transactions, financing for litigation
 3 or legal settlements, income-sharing agreements and financing for educa-
 4 tion.
 5 2. [No] Notwithstanding any other New York statute, regulation or
 6 rule, no person or corporation shall, directly or indirectly, charge,
 7 take or receive any money, goods or things in action as interest [on the
 8 loan or forbearance of any money, goods or things in action] in
 9 connection with a financing arrangement at a rate exceeding the rate
 10 above prescribed. The amount charged, taken or received as interest
 11 shall include any and all amounts paid or payable, directly or indirect-
 12 ly, voluntary or otherwise, by any person, to or for the account of the
 13 lender, including any discount applied to any amounts advanced, in
 14 [consideration for making the loan or forbearance] co