S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4115--A
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     March 8, 2013
                                      ___________
       Introduced  by  Sens.  SAVINO, ADDABBO, AVELLA -- read twice and ordered
         printed, and when printed to be committed to the Committee on Consumer
         Protection -- 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
   19  article on such loan for any period of time not to exceed fifteen months
   20  from the date of such extension.
   21    2.  NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW, LOCAL LAW OR ORDINANCE
   22  TO THE CONTRARY, NO COLLATERAL LOAN BROKER SHALL ASK, DEMAND OR  RECEIVE
   23  A  STORAGE  FEE WHICH EXCEEDS AN AMOUNT EQUAL TO THIRTEEN PERCENT OF THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09597-03-3
       S. 4115--A                          2
    1  AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND SEVENTEEN  PERCENT  OF
    2  THE  AMOUNT  OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF IF SUCH
    3  LOAN IS EXTENDED BEYOND THIRTY DAYS AT THE SOLE DISCRETION OF THE  PLED-
    4  GOR.
    5    S 2. This act shall take effect immediately and shall apply to collat-
    6  eral loans made on or after such date.