New York Statutes

§ 338 — Security interest prohibited

New York § 338
JurisdictionNew York
Law PEPPersonal Property
Art. 9-AMotor Vehicle Retail Leasing Act

This text of New York § 338 (Security interest prohibited) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.Y. Personal Property § 338 (2026).

Text

§ 338. Security interest prohibited. 1. No retail lease agreement, or\nany other agreement executed by the lessee in connection therewith,\nshall provide for the creation of a security interest in any personal or\nreal property of the lessee to secure the payment of the debt arising\nfrom the lease. This prohibition shall not apply to:

(a)the taking of\na security deposit, advance payment of rent or other prepayment by cash,\ncheck or similar means;
(b)the retention or exercise by a banking\norganization of a right of set off; or (c) the retention of a security\ninterest in the proceeds, cancellation refunds or other rights of the\nlessee under any insurance, repair or service contract whose cost is\nincluded in the total monthly lease payment.\n 2. A security interest taken in viola

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Bluebook (online)
New York § 338, Counsel Stack Legal Research, https://law.counselstack.com/statute/ny/PEP/338.