N.Y. Personal Property Law Section 446
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 following the day the seller sent written notice to the buyer informing the buyer of his right to cancel.

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 a claim by the assignee.

Source: Section 446 — Restriction on assignment of obligation, https://www.­nysenate.­gov/legislation/laws/PEP/446 (updated Sep. 4, 2015; accessed Dec. 6, 2025).

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Verified:
Dec. 6, 2025

Last modified:
Sep. 4, 2015

§ 446. Restriction on assignment of obligation's source at nysenate​.gov

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