On August 30, 2019, Governor Cuomo signed Senate Bill No. 6395, amending Civil Practice Law and Rules ("CPLR") §3218 and eliminating filing in New York Confessions of Judgment ("COJ") against non-New York residents. The language of the new law does not take into account the circumstance behind the execution of the COJ. For example, it does not expressly address circumstances where the COJ: (a) was part of a settlement resolving a pending litigation in which the court had personal jurisdiction over the confessor; (b) was to secure payment on a business loan rather than a consumer loan; or (c) was given after default rather than being required at the time a loan was originated. Instead, the new law in New York is a blanket prohibition against filing a COJ against an individual or entity that never resided in the State of New York.
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