NY A08604

Expands the definition of who may consign artworks to art merchants to include successors in interest such as personal representatives, testamentary beneficiaries, trustees, beneficiaries of lifetime trusts, and heirs of artists and craftspeople.

Establishes that artworks consigned to art merchants are held in statutory trust and prohibits the consignee's creditors from claiming the artworks or proceeds from their sale.

Allows consignors to waive protections regarding proceeds from sales only if the waiver is clear, conspicuous, and in writing, with exceptions that protect at least the first $2,500 of gross proceeds annually and all proceeds from works purchased by the consignee.

Creates penalties for consignees who fail to treat trust property according to fiduciary requirements under the Estates, Powers and Trusts Law, and permits injured parties to bring legal action for damages and attorney fees.

Takes effect 60 days after becoming law and applies to all art consignment contracts entered into, extended, or renewed after the effective date.