New York General Business Law Section 553 - Notes given for a speculative consideration.

553. Notes given for a speculative consideration. A person who takes, sells or transfers a negotiable promissory note within article three of the uniform commercial code, knowing the consideration of such note to consist in whole or in part of the purchase price of any farm product at a price greater by four or more times than the fair market value of the same product at the time in the locality, or in which the consideration shall be in whole or in part, membership of and rights in an association, company or combination to produce or sell any farm product at a fictitious rate, or of a contract or bond to purchase or sell any farm product at such rate, without having the words "given for a speculative consideration" or other words clearly showing the nature of the consideration prominently and legibly written or printed on the face of such note above the signature thereof, is guilty of a misdemeanor.


Last modified: February 3, 2019