N.Y. Personal Property Law 420 – Guaranties to sellers of liabilities of buyers under retail instalment contracts
§ 420. Guaranties to sellers of liabilities of buyers under retail instalment contracts. (a) No guaranty given to the seller or to the seller and the seller's assignee of the liabilities of a buyer under a retail instalment contract shall be valid unless the guaranty is incorporated in or endorsed on the contract or identifies the contract and specifies the time balance thereof. A copy of the guaranty and the contract to which it relates shall be given or mailed to the guarantor upon or immediately after the execution and delivery of the guaranty by the guarantor. As used in this section, "retail instalment contract" and "contract" include a retail instalment obligation and a retail instalment contract as defined in the motor vehicle retail instalment sales act, constituting article nine of this chapter. This section does not apply to a guaranty made by a seller or a holder of a retail instalment contract.
Terms Used In N.Y. Personal Property Law 420
- Contract: A legal written agreement that becomes binding when signed.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) No guaranty given to the seller or to the seller and the seller's assignee of the liabilities of a buyer under a retail instalment contract shall relate to any future retail instalment contracts.