N.Y. Personal Property Law § 431: Restriction on assignment of obligation

§ 431. Restriction on assignment of obligation. 1. A seller shall not

negotiate, transfer, sell or assign any note or other evidence of

indebtedness to a finance company or other third party prior to midnight

of the fifth business day, or in the case of a contract for door-to-door

sale of a personal emergency response service, prior to midnight of the

ninth business day, following the day the contract was signed or the

goods or services were purchased.

2. The assignee of any note or evidence of indebtedness shall be

subject to all claims and defenses of the buyer against the seller

arising from the sale notwithstanding any agreement to the contrary, but

the assignee's liability under this subdivision shall not exceed the

amount owing to the assignee at the time the claim or defense is

asserted against the assignee. Rights of the buyer under this section

can be asserted affirmatively against or as a matter of defense to or

set-off against a claim by the assignee.