§ 15-702 — Surety disclosure

New York § 15-702

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 7: Discharge of Surety
• Art. 15: Modification and Discharge of Obligations

Text

§ 15-702. Surety disclosure. 1. As used in this section:\n a. "Consumer" means a natural person.\n b. "Consumer credit transaction" or "transaction" means a loan or sale\npursuant to which credit is extended to a consumer primarily for\npersonal, family, or household purposes. The term does not include\ntransactions pursuant to a consumer credit account.\n c. "Consumer credit account" means an account established pursuant to\nan agreement under which the creditor may permit the consumer to make\npurchases or obtain loans, for personal, family or household purposes,\nfrom time to time, directly from the creditor or indirectly by use of a\ncredit card, check, or other device as the agreement may provide.\n d. "Creditor" means a person, partnership, corporation, association,\nor other entity who, in the ordinary course of business, regularly\nenters into or acquires evidences of, consumer credit transactions or\nextends credit pursuant to consumer credit accounts.\n e. "Co-signer" means a natural person who (i) in the case of a\nconsumer credit transaction becomes obligated on the transaction as a\nco-signer, co-maker, guarantor, endorser or surety, but who does not\nreceive the property, services, or money that is the subject of the\ntransaction. The term does not include a seller, holder or lender who\nbecomes obligated to an assignee of such party's rights; or (ii) in the\ncase of a consumer credit account becomes obligated under the agreement\nas a co-signer, co-maker, guarantor, endorser or surety with respect\neither to all purchases and loans, or a specified maximum dollar amount\nof purchases and loans that will be obtained from time to time pursuant\nto the agreement whether or not it is contemplated that the co-signer\nmay receive any of the property, services or money to be obtained. The\nterm does not include a seller, holder or lender who becomes obligated\nto an assignee of such party's rights or a joint applicant for credit\nwho is intended to be primarily liable under the agreement.\n 2. The creditor shall:\n a. before a co-signer becomes obligated on a consumer credit\ntransaction, deliver to the co-signer a completed copy of each note,\ncontract, or other writing evidencing the obligation of the consumer or\nof the co-signer on the transaction, and a written notice that\nidentifies the debt the co-signer may have to pay and reasonably informs\nthe co-signer of his or her obligation with respect to it;\n b. before a co-signer becomes obligated on a consumer credit account,\ndeliver to the co-signer a completed copy of the agreement establishing\nthe account, any other writing evidencing the co-signer's obligation and\na written notice that identifies the account the co-signer may have to\npay and reasonably informs the co-signer of his or her obligation with\nrespect to it.\n If the creditor does not comply with the provisions of this section,\nthe co-signer shall not be obligated as a guarantor of payment as\ndescribed in subdivision one of section 3-416 of the uniform commercial\ncode.\n 3. The notice must be in at least ten point type and may be on a\nseparate sheet, attached to a guarantee or similar instrument, or part\nof the note, contract, or other writing evidencing the consumer credit\ntransaction, or agreement establishing the consumer credit account. A\nseparately signed written acknowledgment of receipt in substantially the\nform below is prima facie proof of such receipt in any action by or\nagainst the co-signer. A notice substantially similar to the following\ncomplies with this section:\n (a) as to a consumer credit transaction:\n NOTICE\nYou agree to pay the debt identified below although you may not\npersonally receive any property, services, or money. You may be sued for\npayment although the person who receives the property, services, or\nmoney is able to pay. You should know that the Total of Payments listed\nbelow does not include finance charges resulting from delinquency, late\ncharges, repossession or foreclosure costs, court costs or attorney's\nfees, or other charges that may be stated in the note or contract. You\nwill also have to pay some or all of these costs and charges if the note\nor contract, the payment of which you are guaranteeing, requires the\nborrower to pay such costs and charges. If this debt is ever in default,\nthat fact may become a part of your credit record. This notice is not\nthe note, contract, or other writing that obligates you to pay the debt.\nRead that writing for the exact terms of your obligation.\n IDENTIFICATION OF DEBT(S) YOU MAY HAVE TO PAY\n________________________________________________________________________\n (Name of Debtor)\n________________________________________________________________________\n (Name of Creditor)\n________________________________________________________________________\n (Date)\n_________________________________ $ ____________________________________\n (Kind of Debt) (Total of Payments)\nI have been given a completed copy of this notice and of each writing\nthat obligates me or the Debtor on this debt.\n_________________________________ _____________________________________\n (Date) (Signed)\n(b) as to a consumer credit account:\n NOTICE\nYou agree to pay the debts incurred from time to time on the account\nidentified below although you may not personally receive any property,\nservices, or money. You may be sued for payment although the person\nopening the account is able to pay. You should know that the Limit of\nLiability listed below does not include court costs or attorney's fees,\nor other costs or charges that may be stated in the agreement. You will\nalso have to pay some or all of these costs and charges if the agreement\nfor the consumer credit account, payment of which you are guaranteeing,\nrequires the borrower to pay such costs and charges. If any debt\nincurred on the account is ever in default, that fact may become a part\nof your credit record. This notice is not the agreement, or other\nwriting that obligates you to pay. Read that writing for the exact terms\nof your obligations and of your rights to limit or end your obligations.\n IDENTIFICATION OF ACCOUNT(S) YOU MAY HAVE TO PAY\n________________________________________________________________________\n (Name of Debtor)\n________________________________________________________________________\n (Name of Creditor)\n________________________________________________________________________\n (Date)\n_________________________________ $ ____________________________________\n (Kind of Account) (Limit of Liability)\nI have been given a completed copy of this notice and of each writing\nthat obligates me or the Debtor on this account.\n_________________________________ _____________________________________\n (Date) (Signed)\n