S 3845: Prohibits residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof, provided such dishonored check fee was included in the initial lease.

  
  STATE OF NEW YORK ________________________________________________________________________ 3845 2025-2026 Regular Sessions  IN SENATE January 30, 2025 ___________ Introduced by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law and the general obligations law, in relation to prohibiting residential landlords from charging tenants a fee for a dishonored rent check in excess of the actual costs or fees incurred by such landlord as a result thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 238-a of real property law is amended by adding a 2 new subdivision 2-a to read as follows: 3 2-a. (a) No landlord, lessor, sub-lessor or grantor shall demand any 4 payment, fee, or charge from a tenant for the delivery of a check, draft 5 or like instrument that was given in payment for rent and subsequently 6 dishonored by the tenant's financial institution for insufficient funds 7 except as provided in paragraph (b) of this subdivision. 8 (b) Notwithstanding any contrary provision herein, a landlord, lessor, 9 sub-lessor or grantor may demand any payment, fee, or charge from a 10 tenant for the delivery of a dishonored check only if such payment, fee, 11 or charge was provided for in the lease or contract between landlord, 12 lessor, sub-lessor or grantor and the tenant; provided, however, that 13 such payment, fee, or charge shall not exceed the actual costs, charges 14 or fees incurred by landlord, lessor, sub-lessor or grantor for the 15 return of such dishonored check or the amount set forth in subdivision 16 three of section 5-328 of the general obligations law, whichever is 17 less. 18 (c) As used in this subdivision, "dishonored check" shall have the 19 same meaning as such term is defined in section 5-328 of the general 20 obligations law. 21 § 2. Subdivision 3 of section 5-328 of the general obligations law, as 22 added by chapter 529 of the laws of 1995, is amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00565-01-5 
 S. 3845 2 1 3. (a) Notwithstanding any other provision of law, any person to whom 2 a check, draft or like instrument, other than a money order, bank cash- 3 ier's check or certified check, is tendered for any transaction, other 4 than a consumer transaction, may, if such instrument is dishonored 5 charge or collect from the maker or drawer the amount of twenty dollars 6 for the return of such unpaid or dishonored instrument. 7 (b) Notwithstanding any other provision of this subdivision, a land- 8 lord, lessor, sub-lessor or grantor to whom a check, draft or like 9 instrument, other than a money order, bank cashier's check or certified 10 check, is tendered for payment of rent, may if such instrument is 11 dishonored charge or collect from the maker or drawer the amount of 12 actual costs, charges or fees incurred by such landlord, lessor, sub- 13 lessor or grantor for the return of such dishonored check or the amount 14 set forth in paragraph (a) of this subdivision, whichever is less, 15 provided that such dishonored check charge was contracted for in the 16 lease agreement between the tenant and landlord, lessor, sub-lessor or 17 grantor in accordance with the requirements of subdivision two-a of 18 section two hundred thirty-eight-a of the real property law. 19 § 3. This act shall take effect immediately and shall apply to actions 20 and proceedings commenced on and after such effective date.