S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        6093--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 14, 2013
                                      ___________
       Introduced  by  M. of A. SIMOTAS, MAISEL, STECK, BROOK-KRASNY, DINOWITZ,
         MONTESANO,  GUNTHER,  BENEDETTO,  SCHIMEL,  McKEVITT,  COOK,   MARKEY,
         WEPRIN,  KELLNER,  GOLDFEDER, QUART, JAFFEE, GABRYSZAK, MILLER, BRAUN-
         STEIN, CAMARA -- Multi-Sponsored by -- M. of A. ABBATE, CLARK, CROUCH,
         GALEF, GIBSON, GOTTFRIED, HEVESI, HOOPER, McDONOUGH, MOYA,  SEPULVEDA,
         SWEENEY, TITONE, WEISENBERG -- read once and referred to the Committee
         on Economic Development -- committee discharged, bill amended, ordered
         reprinted as amended and recommitted to said committee
       AN  ACT  to  amend  the  general business law, in relation to permitting
         storage fees in connection with collateral loans
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 46 of the general business law, as amended by chap-
    2  ter 651 of the laws of 2005, is amended to read as follows:
    3    S  46.  Rate  of  interest;  STORAGE FEE.   1. (A) Notwithstanding any
    4  general or special statutes, local laws and ordinances to the  contrary,
    5  no  collateral loan broker shall ask, demand or receive any greater rate
    6  of interest than four per centum per month, or any fraction of a  month,
    7  and  a  notice  containing  a  list  of such rates of interest as herein
    8  provided and in accordance with the act of congress entitled  "Truth  in
    9  Lending Act" and the regulations thereunder, as such act and regulations
   10  may from time to time be amended shall be conspicuously displayed within
   11  the  premises  of such collateral loan broker. A minimum interest charge
   12  of twenty-five cents per month may be made on any loan.
   13    (B) No collateral loan broker shall receive  or  be  entitled  to  any
   14  interest  or  charges  OR STORAGE FEE as provided by this article on any
   15  loan for any period of time exceeding fifteen months from  the  date  of
   16  the  making of such loan, provided however that where a loan is extended
   17  at the direct request of the pledgor, the  collateral  loan  broker  may
   18  receive  and  be  entitled  to  any interest or charges provided by this
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09597-02-3
       A. 6093--A                          2
    1  article on such loan for any period of time not to exceed fifteen months
    2  from the date of such extension.
    3    2.  NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW, LOCAL LAW OR ORDINANCE
    4  TO THE CONTRARY, NO COLLATERAL LOAN BROKER SHALL ASK, DEMAND OR  RECEIVE
    5  A  STORAGE  FEE WHICH EXCEEDS AN AMOUNT EQUAL TO THIRTEEN PERCENT OF THE
    6  AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND SEVENTEEN  PERCENT  OF
    7  THE  AMOUNT  OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF IF SUCH
    8  LOAN IS EXTENDED BEYOND THIRTY DAYS AT THE SOLE DISCRETION OF THE  PLED-
    9  GOR.
   10    S 2. This act shall take effect immediately and shall apply to collat-
   11  eral loans made on or after such date.