NY Pers Prop L § 402B (2021)
2021 New York Laws PEP - Personal Property Article 10 - Retail Instalment Sales Act 402B - Total Loss Notice and Waiver of the Gap Amount.

§  402B.  Total  loss  notice  and waiver of the gap amount. 1. If the   retail instalment contract provides that the buyer shall be  responsible   upon  a  total  loss  of  the goods occasioned by theft, confiscation or   physical damage for the gap amount as defined in paragraph fifty-two  of   subsection  (a)  of  section one hundred seven of the insurance law, the   holder, prior to the execution of the contract, shall by a notice  on  a   separate  document  conspicuously disclose that fact and the obligations   for which the buyer would  remain  liable  in  the  event  of  a  theft,   confiscation or total loss of the goods. If the holder is required under   subdivision  two of this section to offer to waive its contractual right   to hold the buyer liable for the gap amount in the event of a total loss   of the goods occasioned by theft or physical damage,  the  notice  shall   also:  (a)  state that for a separate charge disclosed in the notice the   holder will waive its contractual right to hold the buyer liable for the   gap amount in the event of a total loss of the goods occasioned by theft   or physical damage; (b) contain a provision informing the buyer that  he   or  she  may,  as  an  alternative  to  purchasing  a waiver, be able to   purchase insurance covering the gap amount  from  an  insurance  company   which  has  been licensed by the superintendent of financial services to   write non-motor vehicle debtor gap insurance  in  this  state;  and  (c)   contain  a  provision permitting the buyer to indicate whether he or she   wants the holder to waive its contractual right to hold the buyer liable   for the gap amount in the event of a total loss of the goods  occasioned   by  theft  or  physical damage. The notice shall be signed by the buyer.   The holder shall provide a copy of the signed notice to  the  buyer  and   shall maintain a copy in the holder's files for at least the term of the   contract.  Failure  to  provide  the  notice  and  to obtain the buyer's   signature as required by this subdivision shall invalidate any provision   of the agreement which otherwise would obligate a buyer to  pay  to  the   holder,   after   a  total  loss  of  the  goods  occasioned  by  theft,   confiscation or physical damage, the gap amount.  No  retail  instalment   contract  shall  be  conditioned upon the buyer's obtaining of non-motor   vehicle debtor gap  insurance  as  set  forth  in  subparagraph  (D)  of   paragraph  twenty-six  of  subsection  (a)  of  section one thousand one   hundred thirteen of the insurance law.2. If the retail instalment contract provides that the buyer shall  be   responsible  upon  a  total  loss  of  the  goods occasioned by theft or   physical damage for the gap amount, the holder, prior to  the  execution   of  the contract, shall offer to waive its contractual right to hold the   buyer liable for the gap amount in the event of  a  total  loss  of  the   goods  occasioned by theft or physical damage, only if non-motor vehicle   creditor gap insurance coverage is available  to  the  holder  and  such   coverage  is  obtained from a property/casualty insurance company, which   has been licensed by the superintendent of financial  services  of  this   state  to  write non-motor vehicle creditor gap insurance in this state.   This offer may be made contingent upon the payment by  the  buyer  of  a   separate  charge  that  shall  not  exceed the cost of non-motor vehicle   creditor gap insurance covering the retail instalment contract.  Nothing   contained  in  this section shall be construed to authorize a waiver, in   connection with a transaction with respect to  which  non-motor  vehicle   creditor  gap insurance has not been obtained, of a contractual right to   hold the buyer liable for the gap amount in the event of a total loss of   the goods occasioned by theft or physical damage.3. A holder shall not be  obligated  under  subdivision  two  of  this   section to offer to waive its contractual right to hold the buyer liable   for  the  gap  amount if, during the current calendar year or during the   odd-numbered calendar year immediately preceding the  calendar  year  in   which  the  agreement is entered into, the holder has received non-motor    vehicle creditor gap insurance declination notices or other evidence  of   unavailability  from  every  insurance company whose name appears on the   department of financial  services  compilation  of  insurance  companies   which  during  that  calendar  year  were  authorized to write non-motor   vehicle  creditor  gap  insurance  in  this  state.  Evidence  of  these   declinations  shall  be  retained  by  such a holder for a period of six   years after the expiration of the  calendar  year  in  which  they  were   issued.4.  In order to enable holders to comply with the requirements imposed   by subdivision two of this  section,  the  superintendent  of  financial   services shall compile and make available a periodically updated list of   those  insurance  companies  which  are  authorized  to  write non-motor   vehicle creditor gap insurance coverage in this state.5. Nothing in this section shall be construed to apply to  the  holder   under  a  retail instalment contract under which the buyer is not liable   upon a total loss of the goods  occasioned  by  theft,  confiscation  or   physical damage for the gap amount.