{"data":{"id":"us-ny/n.y.-personal-property-law-338","jurisdiction":"us-ny","citation":"N.Y. Personal Property Law § 338","heading":"Security interest prohibited","body":"§ 338. Security interest prohibited. 1. No retail lease agreement, or\nany other agreement executed by the lessee in connection therewith,\nshall provide for the creation of a security interest in any personal or\nreal property of the lessee to secure the payment of the debt arising\nfrom the lease.  This prohibition shall not apply to: (a) the taking of\na security deposit, advance payment of rent or other prepayment by cash,\ncheck or similar means; (b) the retention or exercise by a banking\norganization of a right of set off; or (c) the retention of a security\ninterest in the proceeds, cancellation refunds or other rights of the\nlessee under any insurance, repair or service contract whose cost is\nincluded in the total monthly lease payment.\n  2. A security interest taken in violation of this section shall be\nvoid but shall not otherwise affect the validity of a retail lease\nagreement.","path":["Personal Property Law","Article 9-A. Motor Vehicle Retail Leasing Act"],"source_url":"https://legislation.nysenate.gov/api/3/laws/PEP/338","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"6697c8c84aab0d667f17dcaa6a91a349ee3db15607e5f80a5efcd496792d0ce0","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-personal-property-law-337","next":"us-ny/n.y.-personal-property-law-339"},"notice":"GroundRules: Original legal text. Not legal advice."}