Security interest prohibited
Source:
Section 338 — Security interest prohibited, https://www.nysenate.gov/legislation/laws/PEP/338 (updated Sep. 22, 2014; accessed Feb. 28, 2026).
330
Short title 331
Definitions 332
Rebate or discount for information or assistance in lease or sale of motor vehicle 333
Pre-lease availability of sample form of agreement 334
Payment or trade-in pending execution of lease agreement 335
Total loss notice and waiver of the gap amount 336
Business purpose statement 337
Requirements as to retail lease agreements 338
Security interest prohibited 339
Notice of lessee’s reinstatement rights 340
Establishment of realized value at lease termination when purchase option not exercised 341
Restriction on early termination liability 342
Restriction on the reporting of early terminations 343
Assessment of excess wear and damage to the vehicle 344
Cancellation of agreement 345
Renegotiations and extensions 346
Penalties 347
Liability of assignees 348
Transactions subject to article by agreement 349
Applicability of certain provisions hereof to retail lease of a motor vehicle for any use 350
Waiver void 351
Supplementary general principles of law applicable 352
Construction against implicit repeal 353
Severability
Short title 331
Definitions 332
Rebate or discount for information or assistance in lease or sale of motor vehicle 333
Pre-lease availability of sample form of agreement 334
Payment or trade-in pending execution of lease agreement 335
Total loss notice and waiver of the gap amount 336
Business purpose statement 337
Requirements as to retail lease agreements 338
Security interest prohibited 339
Notice of lessee’s reinstatement rights 340
Establishment of realized value at lease termination when purchase option not exercised 341
Restriction on early termination liability 342
Restriction on the reporting of early terminations 343
Assessment of excess wear and damage to the vehicle 344
Cancellation of agreement 345
Renegotiations and extensions 346
Penalties 347
Liability of assignees 348
Transactions subject to article by agreement 349
Applicability of certain provisions hereof to retail lease of a motor vehicle for any use 350
Waiver void 351
Supplementary general principles of law applicable 352
Construction against implicit repeal 353
Severability
