Relates to certain judgments by confession

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          2305

                               2025-2026 Regular Sessions

                                    I N  S E N A T E

                                    January 16, 2025
                                       ___________

        Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Judiciary

        AN ACT to amend the civil practice law and rules, in relation to certain
          judgments by confession

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section  1.  Subdivision (a) of section 3218 of the civil practice law
     2  and rules, as amended by chapter 311 of the laws of 1963, paragraph 1 as
     3  amended by chapter 831 of the laws  of  2021,  is  amended  to  read  as
     4  follows:
     5    (a)  Affidavit  of defendant. Except as provided in section thirty-two
     6  hundred one OF THIS ARTICLE AND SUBDIVISION (E) OF THIS SECTION, a judg-
     7  ment by confession may be entered, without an action, either  for  money
     8  due  or  to  become due, or to secure the plaintiff against a contingent
     9  liability [in] ON behalf of the defendant, or both,  upon  an  affidavit
    10  executed by the defendant[;]:
    11    1.  stating the sum for which judgment may be entered, authorizing the
    12  entry of judgment, AND stating the county where  the  defendant  resides
    13  [and,  if  applicable,  stating that the interest rate for consumer debt
    14  pursuant to section five thousand four of this chapter applies];
    15    2. if the judgment to be confessed is for money due or to become  due,
    16  stating concisely the facts out of which the debt arose and showing that
    17  the sum confessed is justly due or to become due; and
    18    3.  if the judgment to be confessed is for the purpose of securing the
    19  plaintiff against a contingent liability, stating  concisely  the  facts
    20  constituting  the  liability and showing that the sum confessed does not
    21  exceed the amount of the liability.
    22    § 2. Section 3218 of the civil practice law and rules  is  amended  by
    23  adding a new subdivision (e)  to read as follows:
    24    (E)  PROHIBITION  ON  CERTAIN JUDGMENTS BY CONFESSION.  NO JUDGMENT BY
    25  CONFESSION MAY BE ENTERED ON:

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05691-01-5
        S. 2305                             2

     1    1. ANY AMOUNT DUE FROM ONE OR MORE INDIVIDUALS FOR  PERSONAL,  FAMILY,
     2  HOUSEHOLD, CONSUMER, OR OTHER NON-BUSINESS PURPOSES; OR
     3    2.  ANY AMOUNT DUE ON A DEBT INCURRED BY ANY PERSON FOR ANY PURPOSE IF
     4  THE PRINCIPAL AMOUNT OF SUCH DEBT WAS LESS THAN FIVE MILLION DOLLARS  AT
     5  THE TIME THE DEBT WAS INCURRED.
     6    § 3.  This act shall take effect immediately and apply to judgments by
     7  confession  entered  upon  affidavits  filed  on or after such effective
     8  date.