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Are Emails and Letters Sufficient Demands for Payment on a Promissory Note?

Envelopes to represent Demands for Payment Promissory Note.Your company lends a borrower $100,000.00 and issues a promissory note to that effect, payable within two years. The note is straightforward, containing between 10 and 15 paragraphs of terms. After two years, you email the borrower asking for payment. The borrower responds to your demands for payment on the promissory note saying they will pay but never does. You fax the borrower a letter demanding payment of the $100,000.00 plus interest. The debtor responds saying they will pay but again doesn’t. While suing the borrower in court may seem like the obvious next step, suit may be premature if the note contains a notice clause with stated requirements.

Many agreements and stipulations executed by parties contain a notice clause specifically indicating the method parties must adhere to when providing notices or demands. Promissory notes frequently require notices to be in writing and either made by personal delivery or by registered or certified mail with a return receipt to ensure proof of delivery.

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New York Vacating 29,617 Northern Leasing Default Judgments

Image of a credit card processor to represent Northern Leasing vacating judgmentsA recent decision by the NY attorney general resulted in New York vacating 29,617 default judgments obtained by Northern Leasing. New York’s four-year crusade against Northern Leasing, a deceptive company, and its collection attorneys ends with a victory for business owners affected by their practices. The victory may be bittersweet however, as many of the affected businesses went under due to improperly entered judgments and the results that followed when the judgment creditor executed against the businesses’ assets.

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New York Shortens Time to Sue for Medical Services Rendered

Photo of a stethoscope to represent Collect Debt for Medical Services.Following specific guidelines, medical providers can attempt to collect past due balances regardless of when the services were rendered. However, the time during which a provider can sue for the balances owed has always been restricted. New York recently enacted a new law which dramatically shortens the time to collect debt for medical services.

In April 2020, in the midst of New York on pause, Governor Cuomo signed legislation shortening the time providers can sue for medical services rendered. The shortening of the statute of limitations cut the time to sue in half, from 6 years from the date of service to 3 years.

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Can a NY Judgment Creditor Garnish PPP or Other CARES Act Funds?

Image of money on top of an envelope to represent garnishing PPPWith both consumers and small businesses receiving funds from the Paycheck Protection Program (PPP)  and CARES Act, questions have come up as to whether these amounts can be frozen or garnished by debt collectors or creditors. Is garnishing PPP or CARES Act funds an option for satisfying outstanding monies owed to judgment creditors?

Although New York has liberal laws on judgment enforcement, CPLR Sect 5222-a provides a laundry list of funds exempt from creditors’ reach. For commercial judgment debtors, although an unintended consequence, an exemption of $2,850 is applied.

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