N.Y. General Obligations Law § 5-531: Brokerage on loans; recovery of excess; effect of restitution

§ 5-531. Brokerage on loans; recovery of excess; effect of

restitution. 1. No person shall, directly or indirectly, take or receive

more than fifty cents for a brokerage, soliciting, driving or procuring

the loan or forbearance of one hundred dollars, and in that proportion

for a greater or less sum, except loans on real estate security; nor

more than thirty-eight cents for making or renewing any bond, bill, note

or other security given for such loan or forbearance, or for any counter

bond, bill, note or other security concerning the same.

2. For the purposes of this section:

a. "Consumer" means a natural person.

b. "Loan broker" means any individual, firm, corporation, or

partnership who agrees for a fee to obtain a loan or credit for a

consumer or to assist a consumer in obtaining a loan or credit, other

than a loan or credit on real estate security.

c. No loan broker shall solicit, receive or collect from a consumer

the fee authorized by subdivision one of this section in advance of the

disbursement of loan proceeds or the extension of credit to a consumer.

d. No loan broker shall solicit, receive or collect from a consumer

any fee, advance payment or compensation of any nature other than the

fee authorized by subdivision one of this section.

3. a. Every person who shall pay, deliver or deposit any money,

property or thing in action, over and above the rate aforesaid, and his

personal representatives may, within three years after such payment,

delivery or deposit, sue for and recover the same of the person so

taking or receiving such money, property or thing in action, or of his

personal representatives. Judgment may be entered in favor of a consumer

in an amount not to exceed three times the actual damages plus

reasonable attorneys' fees.

b. In case such suit shall not be brought within the time above

prescribed, in good faith, or in case it shall be discontinued, or

willfully delayed, then the public welfare officials of the city or town

where the offense was committed, may, within one year after such

neglect, discontinuance or delay, sue for and recover the money,

property or thing in action, so received, delivered or deposited, from

the person receiving the same, or his personal representatives, for the

use of the poor of the county.

c. In addition to the other remedies provided, whenever there shall be

a violation of subdivision two of this section, application may be made

by the attorney general in the name of the people of the state of New

York to a court or justice having jurisdiction by a special proceeding

to issue an injunction, and upon notice to the defendant of not less

than five days, to enjoin and restrain the continuance of such

violations; and if it shall appear to the satisfaction of the court or

justice that the defendant has, in fact, violated this article, an

injunction may be issued by such court or justice, enjoining and

restraining any further violation, without requiring proof that any

person has, in fact, been injured or damaged thereby. In any such

proceeding, the court may make allowances to the attorney general as

provided in paragraph six of subdivision (a) of section eighty-three

hundred three of the civil practice law and rules, and direct

restitution. Whenever the court shall determine that a violation of this

article has occurred, the court may impose a civil penalty of not more

than one thousand dollars for each violation. In connection with any

such proposed application, the attorney general is authorized to take

proof and make a determination of the relevant facts and to issue

subpoenas in accordance with the civil practice law and rules.