§ 455 — Definitions

§ 455. Definitions. 1. Budget planning, as used in this article, means\nthe making of a contract between a person or entity engaged in the\nbusiness of budget planning with a particular debtor whereby (i) the\ndebtor agrees to pay a sum or sums of money in any manner or form and\nthe person or entity engaged in the business of budget planning\ndistributes, or supervises, coordinates or controls the distribution of,\nor has a contractual relationship with another person or entity that\ndistributes, or supervises, coordinates or controls such distribution\nof, the same among certain specified creditors in accordance with a plan\nagreed upon and (ii) the debtor agrees to pay to such person or entity,\nor such other person or entity that distributes, or supervises,\ncoordinates or controls such distribution of, a sum or sums of money,\nany valuable consideration for such services or for any other services\nrendered in connection therewith. For the purposes of this article, a\nperson or entity shall be considered as engaged in the business of\nbudget planning in New York, and subject to this article and the\nlicensing and other requirements of article twelve-C of the banking law,\nif such person or entity solicits budget planning business within this\nstate and, in connection with such solicitation, enters into a contract\nfor budget planning with an individual then resident in this state.\n 2. Person, as used in this article, shall not include a person\nadmitted to practice law in this state.\n 3. Entity, as used in this article, shall not include a firm,\npartnership, professional corporation, or other organization, all of the\nmembers or principals of which are admitted to practice law in this\nstate.\n 4. Person or entity as used in this article shall not include a\ncharitable corporation as defined in paragraph (a) of section one\nhundred two (Definitions) of the not-for-profit corporation law of this\nstate, or an entity incorporated in another state and having a similar\nnot-for-profit status, licensed by the superintendent, to engage in the\nbusiness of budget planning as defined in this section.\n 5. Any attorney licensed to practice law in this state who is engaged\nin budget planning shall (a) negotiate directly with creditors on behalf\nof the client; (b) ensure that all moneys received from the client are\ndeposited in the attorney's account maintained for client funds; (c) pay\ncreditors from such account; and (d) offer budget planning services\nthrough the same legal entity that the attorney uses to practice law.\n