§ 489 — Purchase of claims by corporations or collection agencies

New York § 489

• Jurisdiction: New York
• Law JUD: Judiciary
• Art. 15: Attorneys and Counsellors

Text

§ 489. Purchase of claims by corporations or collection agencies. 1.\nNo person or co-partnership, engaged directly or indirectly in the\nbusiness of collection and adjustment of claims, and no corporation or\nassociation, directly or indirectly, itself or by or through its\nofficers, agents or employees, shall solicit, buy or take an assignment\nof, or be in any manner interested in buying or taking an assignment of\na bond, promissory note, bill of exchange, book debt, or other thing in\naction, or any claim or demand, with the intent and for the purpose of\nbringing an action or proceeding thereon; provided however, that bills\nreceivable, notes receivable, bills of exchange, judgments or other\nthings in action may be solicited, bought, or assignment thereof taken,\nfrom any executor, administrator, assignee for the benefit of creditors,\ntrustee or receiver in bankruptcy, or any other person or persons in\ncharge of the administration, settlement or compromise of any estate,\nthrough court actions, proceedings or otherwise. Nothing herein\ncontained shall affect any assignment heretofore or hereafter taken by\nany moneyed corporation authorized to do business in the state of New\nYork or its nominee pursuant to a subrogation agreement or a salvage\noperation, or by any corporation organized for religious, benevolent or\ncharitable purposes. Any corporation or association violating the\nprovisions of this section shall be liable to a fine of not more than\nfive thousand dollars; any person or co-partnership, violating the\nprovisions of this section, and any officer, trustee, director, agent or\nemployee of any person, co-partnership, corporation or association\nviolating this section who, directly or indirectly, engages or assists\nin such violation, is guilty of a misdemeanor.\n 2. Except as set forth in subdivision three of this section, the\nprovisions of subdivision one of this section shall not apply to any\nassignment, purchase or transfer hereafter made of one or more bonds,\npromissory notes, bills of exchange, book debts, or other things in\naction, or any claims or demands, if such assignment, purchase or\ntransfer included bonds, promissory notes, bills of exchange and/or book\ndebts, issued by or enforceable against the same obligor (whether or not\nalso issued by or enforceable against any other obligors), having an\naggregate purchase price of at least five hundred thousand dollars, in\nwhich event the exemption provided by this subdivision shall apply as\nwell to all other items, including other things in action, claims and\ndemands, included in such assignment, purchase or transfer (but only if\nsuch other items are issued by or enforceable against the same obligor,\nor relate to or arise in connection with such bonds, promissory notes,\nbills of exchange and/or book debts or the issuance thereof).\n 3. The rights of an indenture trustee, its agents and employees shall\nnot be affected by the provisions of subdivision two of this section.\n