N.Y. General Business Law § 455: Definitions

§ 455. Definitions. 1. Budget planning, as used in this article, means

the making of a contract between a person or entity engaged in the

business of budget planning with a particular debtor whereby (i) the

debtor agrees to pay a sum or sums of money in any manner or form and

the person or entity engaged in the business of budget planning

distributes, or supervises, coordinates or controls the distribution of,

or has a contractual relationship with another person or entity that

distributes, or supervises, coordinates or controls such distribution

of, the same among certain specified creditors in accordance with a plan

agreed upon and (ii) the debtor agrees to pay to such person or entity,

or such other person or entity that distributes, or supervises,

coordinates or controls such distribution of, a sum or sums of money,

any valuable consideration for such services or for any other services

rendered in connection therewith. For the purposes of this article, a

person or entity shall be considered as engaged in the business of

budget planning in New York, and subject to this article and the

licensing and other requirements of article twelve-C of the banking law,

if such person or entity solicits budget planning business within this

state and, in connection with such solicitation, enters into a contract

for budget planning with an individual then resident in this state.

2. Person, as used in this article, shall not include a person

admitted to practice law in this state.

3. Entity, as used in this article, shall not include a firm,

partnership, professional corporation, or other organization, all of the

members or principals of which are admitted to practice law in this

state.

4. Person or entity as used in this article shall not include a

charitable corporation as defined in paragraph (a) of section one

hundred two (Definitions) of the not-for-profit corporation law of this

state, or an entity incorporated in another state and having a similar

not-for-profit status, licensed by the superintendent, to engage in the

business of budget planning as defined in this section.

5. Any attorney licensed to practice law in this state who is engaged

in budget planning shall (a) negotiate directly with creditors on behalf

of the client; (b) ensure that all moneys received from the client are

deposited in the attorney's account maintained for client funds; (c) pay

creditors from such account; and (d) offer budget planning services

through the same legal entity that the attorney uses to practice law.