N.Y. Personal Property Law 431 – Restriction on assignment of obligation
§ 431. Restriction on assignment of obligation. 1. A seller shall not negotiate, transfer, sell or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day, or in the case of a contract for door-to-door sale of a personal emergency response service, prior to midnight of the ninth business day, following the day the contract was signed or the goods or services were purchased.
Terms Used In N.Y. Personal Property Law 431
- Business day: shall mean any calendar day except Sunday, or the following business holidays: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving Day, and Christmas Day. See N.Y. Personal Property Law 426
- Contract: A legal written agreement that becomes binding when signed.
- Door-to-door sale: shall mean a sale, lease or rental of consumer goods or services in which the seller or his representative personally solicits the sale, including those in response to or following an invitation by the buyer, and the buyer's agreement or offer to purchase is made at a place other than the place of business of the seller. See N.Y. Personal Property Law 426
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- 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.
- Personal emergency response service: shall mean (i) the provision and maintenance of electronic communication equipment in the home of an individual which signals a monitoring agency for help when activated by the individual, or after a period of time if a timer mechanism has not been reset; (ii) the continuous monitoring of such signals by a trained operator and, in case of receipt of such signal, the immediate notification of such emergency response organizations or persons, if necessary, as the individual has previously specified. See N.Y. Personal Property Law 426
- Seller: shall mean any person, partnership, corporation or association engaged in the the door-to-door sale of consumer goods or services. See N.Y. Personal Property Law 426
2. The assignee of any note or evidence of indebtedness shall be subject to all claims and defenses of the buyer against the seller arising from the sale notwithstanding any agreement to the contrary, but the assignee's liability under this subdivision shall not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Rights of the buyer under this section can be asserted affirmatively against or as a matter of defense to or set-off against a claim by the assignee.