New York § 338 - 338Security interest prohibited
Full text of New York New York Consolidated Laws § 338 — 338Security interest prohibited, with citation guidance and answers to common questions.
§ 338. 338Security interest prohibited
§ 338. Security interest prohibited. 1. No retail lease agreement, or any other agreement executed by the lessee in connection therewith, shall provide for the creation of a security interest in any personal or real property of the lessee to secure the payment of the debt arising from the lease. This prohibition shall not apply to: (a) the taking of a security deposit, advance payment of rent or other prepayment by cash, check or similar means; (b) the retention or exercise by a banking organization of a right of set off; or (c) the retention of a security interest in the proceeds, cancellation refunds or other rights of the lessee under any insurance, repair or service contract whose cost is included in the total monthly lease payment. 2. A security interest taken in violation of this section shall be void but shall not otherwise affect the validity of a retail lease agreement.
Frequently Asked Questions About New York § 338
What does New York Consolidated Laws § 338 cover?
Section 338 ("338Security interest prohibited") is part of the New York Consolidated Laws, the codified statutory law of New York. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite New York § 338?
A common citation format is "New York Consolidated Laws § 338" (New York). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of New York law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New York official source linked on this page or consult a licensed New York attorney.
How does New York § 338 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New York can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in New York.