- Consolidated Laws - General Business
ARTICLE 39-D
AUTO EQUITY PROMOTERS
Section 890. Auto equity promotion prohibited.
891. Enforcement by attorney general.
892. Application of article.
893. Severability.
S 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:
(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.
S 891. Enforcement by attorney general. Whenever there shall be a
violation of this article, application may be made by the attorney
general in the name of the people of the state of New York to a court or
justice having jurisdiction by a special proceeding to issue an
injunction, and upon notice to the defendant of not less than five days,
to enjoin and restrain the continuance of such violation; and if it
shall appear to the satisfaction of the court or justice that the
defendant has, in fact, violated this article, an injunction may be
issued by such court or justice, enjoining and restraining any further
violation, without requiring proof that any person has, in fact, been
injured or damaged thereby. In any such proceeding, the court may make
allowances to the attorney general as provided in paragraph six of
subdivision (a) of section eighty-three hundred three of the civil
practice law and rules, and direct restitution. Whenever the court shall
determine that a violation of this article has occurred, the court may
impose a civil penalty of not more than one thousand dollars for each
violation. In connection with any such proposed application, the
attorney general is authorized to take proof and make a determination of
the relevant fact and to issue subpoenas in accordance with the civil
practice law and rules.
S 892. Application of article. 1. The actual or purported transfer or
assignment of any right or interest in a motor vehicle or under a lease
contract, retail installment contract, or security agreement, by an
individual who is a party to the original lease contract, retail
installment contract, or security contract is not an act of auto equity
promotion under this article.
2. This article shall not affect the enforceability of any provision
of any lease contract, retail installment contract, or security
agreement, by any party thereto.
S 893. Severability. If any provision of this article or if any
application thereof to any person or circumstances is held invalid, the
remainder of this article and the application of the provision to other
persons and circumstances shall not be affected thereby.
