Governor Cuomo Signs Legislation Closing Loophole That Allows Creditors to Use State Courts to Penalize Borrowers Who Have No Connection to New York

Posted to Applied Web NY on Fri, 08/30/2019 - 13:12

Governor Andrew M. Cuomo today signed legislation (S.6395/A.7500A) closing the legal loophole that allows creditors to use New York courts to secure confessions of judgment and seize the assets of borrowers for cases where the borrower has no connection to New York. Prior to this new law, creditors were able to exploit New York laws to freeze and seize a borrower's assets by obtaining a judgment entered in a court far from where the contested agreement was executed, making it difficult for a borrower to legally contest the unfair penalty.

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