Section 455. Definitions

1. Budget planning, as used in this article, means
  the  making  of  a  contract  between  a person or entity engaged in the
  business of budget planning with a particular  debtor  whereby  (i)  the
  debtor  agrees  to  pay a sum or sums of money in any manner or form and
  the person  or  entity  engaged  in  the  business  of  budget  planning
  distributes, or supervises, coordinates or controls the distribution of,
  or  has  a  contractual  relationship with another person or entity that
  distributes, or supervises, coordinates or  controls  such  distribution
  of, the same among certain specified creditors in accordance with a plan
  agreed  upon and (ii) the debtor agrees to pay to such person or entity,
  or  such  other  person  or  entity  that  distributes,  or  supervises,
  coordinates  or  controls  such distribution of, a sum or sums of money,
  any valuable consideration for such services or for any  other  services
  rendered  in  connection  therewith. For the purposes of this article, a
  person or entity shall be considered  as  engaged  in  the  business  of
  budget  planning  in  New  York,  and  subject  to  this article and the
  licensing and other requirements of article twelve-C of the banking law,
  if such person or entity solicits budget planning business  within  this
  state  and, in connection with such solicitation, enters into a contract
  for budget planning with an individual then resident in this state.
    2. Person, as used  in  this  article,  shall  not  include  a  person
  admitted to practice law in this state.
    3.  Entity,  as  used  in  this  article,  shall  not  include a firm,
  partnership, professional corporation, or other organization, all of the
  members or principals of which are admitted  to  practice  law  in  this
  state.
    4. Person or entity as used in this article shall not include a type B
  not-for-profit  corporation as defined in section two hundred one of the
  not-for-profit corporation law of this state, or an entity  incorporated
  in another state and having a similar not-for-profit status, licensed by
  the  superintendent,  to  engage  in  the business of budget planning as
  defined in this section.
    5. Any attorney licensed to practice law in this state who is  engaged
  in budget planning shall (a) negotiate directly with creditors on behalf
  of  the  client; (b) ensure that all moneys received from the client are
  deposited in the attorney's account maintained for client funds; (c) pay
  creditors from such account; and  (d)  offer  budget  planning  services
  through the same legal entity that the attorney uses to practice law.