2006 New York Code - Surety Disclosure

 
    § 15-702. Surety disclosure. 1. As used in this section:
    a. "Consumer" means a natural person.
    b. "Consumer credit transaction" or "transaction" means a loan or sale
  pursuant  to  which  credit  is  extended  to  a  consumer primarily for
  personal, family, or household  purposes.  The  term  does  not  include
  transactions pursuant to a consumer credit account.
    c.  "Consumer credit account" means an account established pursuant to
  an agreement under which the creditor may permit the  consumer  to  make
  purchases  or  obtain loans, for personal, family or household purposes,
  from time to time, directly from the creditor or indirectly by use of  a
  credit card, check, or other device as the agreement may provide.
    d.  "Creditor"  means a person, partnership, corporation, association,
  or other entity who, in  the  ordinary  course  of  business,  regularly
  enters  into  or  acquires evidences of, consumer credit transactions or
  extends credit pursuant to consumer credit accounts.
    e. "Co-signer" means a natural  person  who  (i)  in  the  case  of  a
  consumer  credit  transaction  becomes obligated on the transaction as a
  co-signer, co-maker, guarantor, endorser or surety,  but  who  does  not
  receive  the  property,  services,  or  money that is the subject of the
  transaction. The term does not include a seller, holder  or  lender  who
  becomes  obligated to an assignee of such party's rights; or (ii) in the
  case of a consumer credit account becomes obligated under the  agreement
  as  a  co-signer,  co-maker,  guarantor, endorser or surety with respect
  either to all purchases and loans, or a specified maximum dollar  amount
  of  purchases and loans that will be obtained from time to time pursuant
  to the agreement whether or not it is contemplated  that  the  co-signer
  may  receive  any of the property, services or money to be obtained. The
  term does not include a seller, holder or lender who  becomes  obligated
  to  an  assignee  of such party's rights or a joint applicant for credit
  who is intended to be primarily liable under the agreement.
    2. The creditor shall:
    a.  before  a  co-signer  becomes  obligated  on  a  consumer   credit
  transaction,  deliver  to  the  co-signer a completed copy of each note,
  contract, or other writing evidencing the obligation of the consumer  or
  of  the  co-signer  on  the  transaction,  and  a  written  notice  that
  identifies the debt the co-signer may have to pay and reasonably informs
  the co-signer of his or her obligation with respect to it;
    b. before a co-signer becomes obligated on a consumer credit  account,
  deliver  to the co-signer a completed copy of the agreement establishing
  the account, any other writing evidencing the co-signer's obligation and
  a written notice that identifies the account the co-signer may  have  to
  pay  and  reasonably informs the co-signer of his or her obligation with
  respect to it.  If the creditor does not comply with the  provisions  of
  this  section,  the  co-signer  shall not be obligated as a guarantor of
  payment as described in subdivision one of section 3-416 of the  uniform
  commercial code.
    3.  The  notice  must  be  in  at least ten point type and may be on a
  separate sheet, attached to a guarantee or similar instrument,  or  part
  of  the  note, contract, or other writing evidencing the consumer credit
  transaction, or agreement establishing the consumer  credit  account.  A
  separately signed written acknowledgment of receipt in substantially the
  form  below  is  prima  facie  proof of such receipt in any action by or
  against the co-signer. A notice substantially similar to  the  following
  complies with this section:
    (a) as to a consumer credit transaction:
 
                                   NOTICE
    You  agree  to  pay  the  debt  identified  below although you may not
  personally receive any property, services, or money. You may be sued for
  payment although the person who  receives  the  property,  services,  or
  money  is able to pay. You should know that the Total of Payments listed
  below  does not include finance charges resulting from delinquency, late
  charges, repossession or foreclosure costs, court  costs  or  attorney's
  fees,  or  other charges that may be stated in the note or contract. You
  will also have to pay some or all of these costs and charges if the note
  or contract, the payment of which you  are  guaranteeing,  requires  the
  borrower to pay such costs and charges.
    This notice is not the note, contract, or other writing that obligates
  you  to  pay  the  debt.  Read  that writing for the exact terms of your
  obligation.
 
                              IDENTIFICATION OF
                         DEBT(S) YOU MAY HAVE TO PAY
 
  ________________________________________________________________________
                              (Name of Debtor)
 
  ________________________________________________________________________
                             (Name of Creditor)
 
  ________________________________________________________________________
                                   (Date)
 
  _________________________________     $ ________________________________
        (Kind of Debt)                        (Total of Payments)
 
    I have been given a completed copy of this notice and of each  writing
  that obligates me or the Debtor on this debt.
 
  _________________________________      _________________________________
         (Date)                                   (Signed)
 
    (b) as to a consumer credit account:
 
                                   NOTICE
 
    You  agree  to pay the debts incurred from time to time on the account
  identified below although you may not personally receive  any  property,
  services,  or  money.  You  may  be sued for payment although the person
  opening the account is able to pay. You should know that  the  Limit  of
  Liability  listed below does not include court costs or attorney's fees,
  or other costs or charges that may be stated in the agreement. You  will
  also have to pay some or all of these costs and charges if the agreement
  for  the consumer credit account, payment of which you are guaranteeing,
  requires the borrower to pay such costs and charges.
    This notice is not the agreement, or other writing that obligates  you
  to pay. Read that writing for the exact terms of your obligations and of
  your rights to limit or end your obligations.
 
                              IDENTIFICATION OF
                       ACCOUNT(S) YOU MAY HAVE TO PAY
 
  ________________________________________________________________________
                              (Name of Debtor)
  ________________________________________________________________________
                             (Name of Creditor)
 
  ________________________________________________________________________
                                   (Date)
 
  _________________________________     $ ________________________________
        (Kind of Debt)                        (Total of Payments)
 
    I  have been given a completed copy of this notice and of each writing
  that obligates me or the Debtor on this debt.
 
  _________________________________      _________________________________
         (Date)                                   (Signed)