N.Y. Banking Law § 171: Repayment of deposits standing in the names of minors, trustees or joint depositors; repayment where adverse claim is asserted; interplea...

§ 171. Repayment of deposits standing in the names of minors, trustees

or joint depositors; repayment where adverse claim is asserted;

interpleader in certain actions; effect of claims or advices originating

in, and statutes, rules or regulations purporting to be in force in

occupied territory. 1. When any deposit shall be made by or in the name

of any minor, the same shall be held for the exclusive right and benefit

of such minor, and free from the control or lien of all other persons,

except creditors, and shall be paid, together with the interest thereon

to the person in whose name the deposit shall have been made, and the

receipt or acquittance of such minor shall be a valid and sufficient

release and discharge for such deposit or any part thereof to the

private banker.

4. A private banker need not recognize or give any effect to a claim

of authority to order the payment or delivery of any funds or other

property standing on his books to the credit of, or held by him for the

account of, any person, corporation, unincorporated association or

partnership, which claim conflicts with a claim of authority of which

the private banker had prior notice, unless the person or persons

asserting such subsequent claim shall procure a restraining order,

injunction or other appropriate process against said private banker from

a court of competent jurisdiction in the United States, or, in lieu

thereof, with the consent of said private banker, shall execute to said

private banker, in form and with sureties acceptable to him, a bond,

indemnifying him for any and all liability, loss, damage, costs and

expenses for or on account of any payment or delivery of such property

by him pursuant to such subsequent claim of authority or for or on

account of the dishonor of any check or other order of any person or

persons asserting the claim of authority of which such private banker

already had notice at the time the subsequent conflicting claim of

authority is asserted by the person or persons furnishing such bond.

5. Notice to any private banker of an adverse claim to any property,

or to a deposit of cash or securities standing on his books to the

credit of, or held for the account of, any person shall not be effectual

to cause said private banker to recognize said adverse claimant unless

said adverse claimant shall also either procure a restraining order,

injunction or other appropriate process against said private banker from

a court of competent jurisdiction in the United States in a cause

therein instituted by him wherein the person to whose credit the deposit

stands, or for whose account the property or deposit is held, or his

executor or administrator is made a party and served with summons, or

shall execute to said private banker, in form and with sureties

acceptable to him a bond, indemnifying said private banker from any and

all liability, loss, damage, costs and expenses, for and on account of

the payment of or delivery pursuant to such adverse claim or the

dishonor of the check or other order of the person to whose credit the

deposit stands, or for whose account the property or deposit is held, on

the books of said private banker.

6. (a) In all actions against any private banker to recover for moneys

on deposit therewith, if there be any person or persons, not parties to

the action who claim the same fund, the court in which the action is

pending, may, on the petition of such private banker, and upon eight

days' notice to the plaintiff and such claimants, and without proof as

to the merits of the claim, make an order amending the proceedings in

the action by making such claimants parties defendant thereto; and the

court shall thereupon proceed to determine the rights and interests of

the several parties to the action in and to such funds. The remedy

provided in this section shall be in addition to and not exclusive of

that provided in any other interpleader provision.

(b) The funds on deposit which are the subject of such an action may

remain with such private banker to the credit of the action until final

judgment therein, and be entitled to the same interest as other deposits

of the same class, and shall be paid by such private banker in

accordance with the final judgment of the court; or the deposit in

controversy may be paid into court to await the final determination of

the action, and when the deposit is so paid into court such private

banker shall be struck out as a party to the action, and its liability

for such deposit shall cease.

(c) The costs in all actions against a private banker to recover

deposits shall be in the discretion of the court, and may be charged

upon the fund affected by the action.

7. (a) A private banker need not recognize or give any effect to (1)

any claim to a deposit of cash, securities, or other property standing

on his books to the credit of, or held by him for the account of, any

corporation, firm or association in occupied territory, or (2) any

advice, statute, rule or regulation purporting to cancel or to give

notice of the cancellation of the authority of any person at the time

appearing on the books of such private banker as authorized to withdraw

or otherwise dispose of cash, securities, or other property of such

corporation, firm or association, unless such private banker is required

so to do by appropriate process procured against him in a court of

competent jurisdiction in the United States in a cause therein

instituted by or in the name of such corporation, firm or association,

or unless the person making such claim or giving such advice or invoking

such statute, rule or regulation, as the case may be, shall execute to

such private banker, in form and with sureties acceptable to him, a bond

indemnifying him from any and all liability, loss, damage, costs and

expenses for and on account of recognizing or giving any effect to such

claim, advice, statute, rule or regulation.

(b) For the purposes of this subdivision (1) the term "occupied

territory" shall mean territory occupied by a dominant authority

asserting governmental, military or police powers of any kind in such

territory, but not recognized by the United States as the de jure

government of such territory, and (2) the term "corporation, firm or

association in occupied territory" shall mean a corporation, firm or

association which has, or at any time has had, a place of business in

territory which has at any time been occupied territory.

(c) The foregoing provisions of this subdivision shall be effective

only in cases where (1) such claim or advice purports or appears to have

been sent from, or is reasonably believed to have been sent pursuant to

orders originating in, such occupied territory during the period of

occupation, or (2) such statute, rule or regulation appears to have

emanated from such dominant authority and purports to be or to have been

in force in such occupied territory during the period of occupation.

(d) The foregoing provisions of this subdivision shall apply to

claims, advices, statutes, rules or regulations made, given or invoked

either prior to, or on or subsequent to the effective date of this act.