2023 New York Laws › GOB - General Obligations › Article 15 - Modification and Discharge of Obligations › Title 7 - Discharge of Surety › 15-702 - Surety Disclosure.

§ 15-702. Surety disclosure. 1. As used in this section:
a. "Consumer" means a natural person.
b. "Consumer credit transaction" or "transaction" means a loan or sale
pursuant  to  which  credit  is  extended  to  a  consumer primarily for
personal, family, or household  purposes.  The  term  does  not  include
transactions pursuant to a consumer credit account.
c.  "Consumer credit account" means an account established pursuant to
an agreement under which the creditor may permit the  consumer  to  make
purchases  or  obtain loans, for personal, family or household purposes,
from time to time, directly from the creditor or indirectly by use of  a
credit card, check, or other device as the agreement may provide.
d.  "Creditor"  means a person, partnership, corporation, association,
or other entity who, in  the  ordinary  course  of  business,  regularly
enters  into  or  acquires evidences of, consumer credit transactions or
extends credit pursuant to consumer credit accounts.
e. "Co-signer" means a natural  person  who  (i)  in  the  case  of  a
consumer  credit  transaction  becomes obligated on the transaction as a
co-signer, co-maker, guarantor, endorser or surety,  but  who  does  not
receive  the  property,  services,  or  money that is the subject of the
transaction. The term does not include a seller, holder  or  lender  who
becomes  obligated to an assignee of such party's rights; or (ii) in the
case of a consumer credit account becomes obligated under the  agreement
as  a  co-signer,  co-maker,  guarantor, endorser or surety with respect
either to all purchases and loans, or a specified maximum dollar  amount
of  purchases and loans that will be obtained from time to time pursuant
to the agreement whether or not it is contemplated  that  the  co-signer
may  receive  any of the property, services or money to be obtained. The
term does not include a seller, holder or lender who  becomes  obligated
to  an  assignee  of such party's rights or a joint applicant for credit
who is intended to be primarily liable under the agreement.
2. The creditor shall:
a.  before  a  co-signer  becomes  obligated  on  a  consumer   credit
transaction,  deliver  to  the  co-signer a completed copy of each note,
contract, or other writing evidencing the obligation of the consumer  or
of  the  co-signer  on  the  transaction,  and  a  written  notice  that
identifies the debt the co-signer may have to pay and reasonably informs
the co-signer of his or her obligation with respect to it;
b. before a co-signer becomes obligated on a consumer credit  account,
deliver  to the co-signer a completed copy of the agreement establishing
the account, any other writing evidencing the co-signer's obligation and
a written notice that identifies the account the co-signer may  have  to
pay  and  reasonably informs the co-signer of his or her obligation with
respect to it.
If the creditor does not comply with the provisions of  this  section,
the  co-signer  shall  not  be  obligated  as  a guarantor of payment as
described in subdivision one of section 3-416 of the uniform  commercial
code.
3.  The  notice  must  be  in  at least ten point type and may be on a
separate sheet, attached to a guarantee or similar instrument,  or  part
of  the  note, contract, or other writing evidencing the consumer credit
transaction, or agreement establishing the consumer  credit  account.  A
separately signed written acknowledgment of receipt in substantially the
form  below  is  prima  facie  proof of such receipt in any action by or
against the co-signer. A notice substantially similar to  the  following
complies with this section:
(a) as to a consumer credit transaction:
NOTICE

You  agree  to  pay  the  debt  identified  below  although  you may not
personally receive any property, services, or money. You may be sued for
payment although the person who  receives  the  property,  services,  or
money  is able to pay. You should know that the Total of Payments listed
below  does not include finance charges resulting from delinquency, late
charges, repossession or foreclosure costs, court  costs  or  attorney's
fees,  or  other charges that may be stated in the note or contract. You
will also have to pay some or all of these costs and charges if the note
or contract, the payment of which you  are  guaranteeing,  requires  the
borrower to pay such costs and charges. If this debt is ever in default,
that  fact  may  become a part of your credit record. This notice is not
the note, contract, or other writing that obligates you to pay the debt.
Read that writing for the exact terms of your obligation.
IDENTIFICATION OF DEBT(S) YOU MAY HAVE TO PAY
 
________________________________________________________________________
Name of Debtor)
 
________________________________________________________________________                         Name of Creditor)
 
________________________________________________________________________
(Date)
 
_________________________________ $ ____________________________________
Kind of Debt)                Total of Payments)
 
I have been given a completed copy of this notice and  of  each  writing
that obligates me or the Debtor on this debt.
 
_________________________________  _____________________________________
(Date)
(Signed)
 
(b) as to a consumer credit account:
NOTICE
 
You  agree  to  pay  the debts incurred from time to time on the account
identified below although you may not personally receive  any  property,
services,  or  money.  You  may  be sued for payment although the person
opening the account is able to pay. You should know that  the  Limit  of
Liability  listed below does not include court costs or attorney's fees,
or other costs or charges that may be stated in the agreement. You  will
also have to pay some or all of these costs and charges if the agreement
for  the consumer credit account, payment of which you are guaranteeing,
requires the borrower to  pay  such  costs  and  charges.  If  any  debt
incurred  on the account is ever in default, that fact may become a part
of your credit record. This  notice  is  not  the  agreement,  or  other
writing that obligates you to pay. Read that writing for the exact terms
of your obligations and of your rights to limit or end your obligations.
IDENTIFICATION OF ACCOUNT(S) YOU MAY HAVE TO PAY
 
________________________________________________________________________
Name of Debtor)

________________________________________________________________________                         Name of Creditor)
 
________________________________________________________________________
(Date)
 
_________________________________ $ ____________________________________
Kind of Account)             Limit of Liability)
 
I  have  been  given a completed copy of this notice and of each writing
that obligates me or the Debtor on this account.
 
_________________________________  _____________________________________
(Date)
(Signed)