§ 890 — Auto equity promotion prohibited

New York § 890

• Jurisdiction: New York
• Law GBS: General Business
• Art. 39-D: Auto Equity Promoters

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§ 890. Auto equity promotion prohibited. 1. No person shall engage in\nthe business of auto equity promotion. A person engages in the business\nof auto equity promotion, as used in this article, provided all of the\nfollowing conditions are met:\n (A) The motor vehicle is subject to an outstanding lease contract,\nretail installment contract or security agreement the terms of which\nprohibit or prohibit without permission of the lessor, seller or secured\nparty, the sublease, sale, transfer or assignment of any right or\ninterest in the motor vehicle or any right or interest under the lease\ncontract, retail installment contract, or security agreement by the\nlessee, buyer or debtor.\n (B) The person is not a party to the lease contract, retail\ninstallment contract or security agreement.\n (C) The person subleases, sells, transfers or assigns, or purports to\nsublease, sell, transfer, or assign, any right or interest in the motor\nvehicle or under the lease contract, retail installment contract or\nsecurity agreement, to any person who is not a party to the lease\ncontract, retail installment contract or security agreement.\n (D) The person does not obtain, prior to the sublease, sale, transfer\nor assignment described in paragraph (C) of this subdivision, written\nconsent to the sublease, sale, transfer or assignment from the motor\nvehicle's lessor, seller or secured party.\n (E) The person receives compensation or some other consideration for\nthe sublease, sale, transfer or assignment as described in paragraph (C)\nof this subdivision.\n 2. A person also engages in the business of auto equity promotion when\nsuch person is not a party to the lease contract, retail installment\ncontract or security agreement, and assists, facilitates, solicits,\ncauses or arranges the actual or purported sublease, sale, transfer or\nassignment as described in subdivision one of this section.\n 3. For purposes of this section, the term "person" means any natural\nperson, corporation, sole proprietorship, business, trust, partnership,\nincorporated or unincorporated association, estate, co-operative or any\nother legal entity.\n