N.Y. Judiciary Law Section 489
Purchase of claims by corporations or collection agencies


1.

No person or co-partnership, engaged directly or indirectly in the business of collection and adjustment of claims, and no corporation or association, directly or indirectly, itself or by or through its officers, agents or employees, shall solicit, buy or take an assignment of, or be in any manner interested in buying or taking an assignment of a bond, promissory note, bill of exchange, book debt, or other thing in action, or any claim or demand, with the intent and for the purpose of bringing an action or proceeding thereon; provided however, that bills receivable, notes receivable, bills of exchange, judgments or other things in action may be solicited, bought, or assignment thereof taken, from any executor, administrator, assignee for the benefit of creditors, trustee or receiver in bankruptcy, or any other person or persons in charge of the administration, settlement or compromise of any estate, through court actions, proceedings or otherwise. Nothing herein contained shall affect any assignment heretofore or hereafter taken by any moneyed corporation authorized to do business in the state of New York or its nominee pursuant to a subrogation agreement or a salvage operation, or by any corporation organized for religious, benevolent or charitable purposes. Any corporation or association violating the provisions of this section shall be liable to a fine of not more than five thousand dollars; any person or co-partnership, violating the provisions of this section, and any officer, trustee, director, agent or employee of any person, co-partnership, corporation or association violating this section who, directly or indirectly, engages or assists in such violation, is guilty of a misdemeanor.

2.

Except as set forth in subdivision three of this section, the provisions of subdivision one of this section shall not apply to any assignment, purchase or transfer hereafter made of one or more bonds, promissory notes, bills of exchange, book debts, or other things in action, or any claims or demands, if such assignment, purchase or transfer included bonds, promissory notes, bills of exchange and/or book debts, issued by or enforceable against the same obligor (whether or not also issued by or enforceable against any other obligors), having an aggregate purchase price of at least five hundred thousand dollars, in which event the exemption provided by this subdivision shall apply as well to all other items, including other things in action, claims and demands, included in such assignment, purchase or transfer (but only if such other items are issued by or enforceable against the same obligor, or relate to or arise in connection with such bonds, promissory notes, bills of exchange and/or book debts or the issuance thereof).

3.

The rights of an indenture trustee, its agents and employees shall not be affected by the provisions of subdivision two of this section.

Source: Section 489 — Purchase of claims by corporations or collection agencies, https://www.­nysenate.­gov/legislation/laws/JUD/489 (updated Sep. 22, 2014; accessed Dec. 2, 2023).

460
Examination and admission of attorneys
460–B
Applications for special arrangements
461
Compensation of state board of law examiners
462
Annual account by state board of law examiners
463
Times and places of examinations
464
Certification by state board of successful candidates
465
Fee for examinations and for credential review for admission on motion
466
Attorney’s oath of office
467
Registration of attorneys
468
Official registration of attorneys to be kept by the chief administrator of the courts
468–A
Biennial registration of attorneys
468–B
Clients’ security fund of the state of New York
469
Continuance where attorney is member of legislature
470
Attorneys having offices in this state may reside in adjoining state
471
Attorney who is judge’s partner or clerk prohibited from practicing before him or in his court
472
Attorney who is surrogate’s parent or child prohibited from practicing berfore him
473
Constables, coroners, criers and attendants prohibited from practicing during term of office
474
Compensation of attorney or counsellor
474–A
Contingent fees for attorneys in claims or actions for medical, dental or podiatric malpractice
474–B
Attorney retainer statements
475
Attorney’s lien in action, special or other proceeding
475–A
Notice of lien
476
Action against attorney for lending his name in suits and against person using name
476–A
Action for unlawful practice of the law
476–B
Injunction to restrain defendant from unlawful practice of the law
476–C
Investigation by the attorney-general
477
Settlement of actions for personal injury
478
Practicing or appearing as attorney-at-law without being admitted and registered
479
Soliciting business on behalf of an attorney
480
Entering hospital to negotiate settlement or obtain release or statement
481
Aiding, assisting or abetting the solicitation of persons or the procurement of a retainer for or on behalf of an attorney
482
Employment by attorney of person to aid, assist or abet in the solicitation of business or the procurement through solicitation of a reta...
483
Signs advertising services as attorney at law
484
None but attorneys to practice in the state
485
Violation of certain preceding sections a misdemeanor
485–A
Violation of certain sections a class E felony
486
Practice of law by attorney who has been disbarred, suspended, or convicted of a felony
486–A
Conviction for felony of person who is an attorney and counselor at law
487
Misconduct by attorneys
488
Buying demands on which to bring an action
489
Purchase of claims by corporations or collection agencies
490
Limitation
491
Sharing of compensation by attorneys prohibited
492
Use of attorney’s name by another
493
Attorneys forbidden to defend criminal prosecutions carried on by their partners, or formerly by themselves
494
Attorneys may defend themselves
495
Corporations and voluntary associations not to practice law
496
An organization described in subdivision seven of section four hundred ninety-five of this article shall file with the appellate division...
497
Attorneys fiduciary funds
498
Professional referrals
499
Lawyer assistance committees

Accessed:
Dec. 2, 2023

Last modified:
Sep. 22, 2014

§ 489’s source at nysenate​.gov

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