N.Y. General Business Law 890 – Auto equity promotion prohibited
§ 890. Auto equity promotion prohibited. 1. No person shall engage in the business of auto equity promotion. A person engages in the business of auto equity promotion, as used in this article, provided all of the following conditions are met:
Terms Used In N.Y. General Business Law 890
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: means any natural person, corporation, sole proprietorship, business, trust, partnership, incorporated or unincorporated association, estate, co-operative or any other legal entity. See N.Y. General Business Law 890
(A) The motor vehicle is subject to an outstanding lease contract, retail installment contract or security agreement the terms of which prohibit or prohibit without permission of the lessor, seller or secured party, the sublease, sale, transfer or assignment of any right or interest in the motor vehicle or any right or interest under the lease contract, retail installment contract, or security agreement by the lessee, buyer or debtor.
(B) The person is not a party to the lease contract, retail installment contract or security agreement.
(C) The person subleases, sells, transfers or assigns, or purports to sublease, sell, transfer, or assign, any right or interest in the motor vehicle or under the lease contract, retail installment contract or security agreement, to any person who is not a party to the lease contract, retail installment contract or security agreement.
(D) The person does not obtain, prior to the sublease, sale, transfer or assignment described in paragraph (C) of this subdivision, written consent to the sublease, sale, transfer or assignment from the motor vehicle's lessor, seller or secured party.
(E) The person receives compensation or some other consideration for the sublease, sale, transfer or assignment as described in paragraph (C) of this subdivision.
2. A person also engages in the business of auto equity promotion when such person is not a party to the lease contract, retail installment contract or security agreement, and assists, facilitates, solicits, causes or arranges the actual or purported sublease, sale, transfer or assignment as described in subdivision one of this section.
3. For purposes of this section, the term "person" means any natural person, corporation, sole proprietorship, business, trust, partnership, incorporated or unincorporated association, estate, co-operative or any other legal entity.