2006 New York Code - Consumer Defenses.

 
    §  253.  Consumer  defenses.  A creditor, who made a consumer loan the
  proceeds of which were primarily used  in  a  consumer  sale,  shall  be
  subject  to all of the defenses of a consumer arising from such consumer
  sale, provided that  the  creditor  knowingly  participated  in  or  was
  directly  connected  with  such  consumer sale. The creditor's liability
  under this article shall not exceed the amount owing to the creditor  at
  the time the defenses of the consumer are asserted against the creditor.
  Rights  of  the  consumer  under  this article can only be asserted as a
  matter of defense to or set-off against a claim by the  creditor.    The
  creditor  shall be subrogated to the rights of the consumer arising from
  the consumer sale and shall have recourse  against  the  seller  to  the
  extent  of  any  liability  incurred  by  the  creditor pursuant to this
  article.