N.Y. Personal Property Law Section 420
Guaranties to sellers of liabilities of buyers under retail instalment contracts

(a)

No guaranty given to the seller or to the seller and the seller’s assignee of the liabilities of a buyer under a retail instalment contract shall be valid unless the guaranty is incorporated in or endorsed on the contract or identifies the contract and specifies the time balance thereof. A copy of the guaranty and the contract to which it relates shall be given or mailed to the guarantor upon or immediately after the execution and delivery of the guaranty by the guarantor. As used in this section, “retail instalment contract” and “contract” include a retail instalment obligation and a retail instalment contract as defined in the motor vehicle retail instalment sales act, constituting article 9 (Motor Vehicle Retail Instalment Sales Act)article nine of this chapter. This section does not apply to a guaranty made by a seller or a holder of a retail instalment contract.

(b)

No guaranty given to the seller or to the seller and the seller’s assignee of the liabilities of a buyer under a retail instalment contract shall relate to any future retail instalment contracts.

Source: Section 420 — Guaranties to sellers of liabilities of buyers under retail instalment contracts, https://www.nysenate.gov/legislation/laws/PEP/420 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

401
Definitions 402
Provisions of retail instalment contracts and obligations 402‑A
Merchandise certificates and obligations therefor 402‑B
Total loss notice and waiver of the gap amount 403
Restrictions on retail instalment contracts and obligations 404
Credit service charge limitation 405
Delivery of copy of contract or obligation 406
Notice of assignment 407
Statements of account 408
Credit upon anticipation of payments 409
Refinancing 410
Add-ons to and consolidations of retail instalment contracts and obligations 411
Terms of purchase by financing agency 412
Cancellation 412‑A
Cancellation of contracts for future consumer services 413
Retail instalment credit agreements 414
Penalties 415
Exceptions 416
Waiver 417
Severability 418
Short title 419
Refund credit on cancellation of credit related insurance or prepayment of contract 420
Guaranties to sellers of liabilities of buyers under retail instalment contracts 421
Security interest in other property 422
Claim for deficiency after default and repossession

Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 420’s source at nysenate.gov

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Location: https://newyork.public.law/laws/n.y._personal_property_law_section_420

Original Source: Section 420 — Guaranties to sellers of liabilities of buyers under retail instalment contracts, https://www.nysenate.gov/legislation/laws/PEP/420 (last accessed Aug. 20, 2023).