N.Y. Banking Law § 202-h: Repayment of deposits standing in the names of minors, trustees, joint depositors or custodians; interpleader in certain actions

§ 202-h. Repayment of deposits standing in the names of minors,

trustees, joint depositors or custodians; interpleader in certain

actions. 1. Any minor may endorse a check payable to his order for the

purpose of depositing the proceeds in a deposit in his name with a

branch in this state of a foreign banking corporation and 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 or upon the order

by check or otherwise of the person in whose name the deposit shall

stand, and the receipt, acquittance or order of payment of such minor

shall be a valid and sufficient release and discharge for such deposit

or any part thereof to the foreign banking corporation.

4. (a) In all actions against any foreign banking corporation to

recover for moneys on deposit with a branch thereof in this state, 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 foreign banking corporation, 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 any other

interpleader provision.

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

remain with such foreign banking corporation 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 foreign

banking corporation 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 foreign banking corporation 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 foreign banking corporation to

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

charged upon the fund affected by the action.

5. Deposits by custodian for a minor under part six of article seven

of the estates, powers and trusts law. When any deposit of cash or

securities shall be made with a branch in this state of a foreign

banking corporation by a person purporting to act as custodian for a

minor under part six of article seven of the estates, powers and trusts

law or under a similar law of another state, the deposit together with

any interest or dividends credited thereon may be paid or delivered to

or upon the order of such person, or his successor as custodian, or to a

minor upon the minor's attaining either eighteen years or twenty-one

years, as provided in accordance with part six of article seven of the

estates, powers and trusts law, if no custodian is acting at the time of

such payment or delivery, and any receipt or order of such person,

successor or minor shall be valid and sufficient release and discharge

of the depositary for any payment or delivery so made. No depositary

dealing with a person purporting to act as a custodian for a minor under

said article shall be bound to inquire into any facts bearing upon the

designation of such person as such custodian or the propriety of or

authority for any act of such person under said article or otherwise or

the age of the person designated as a minor. No depositary shall be

liable for any act performed pursuant to the instruction or direction of

any person purporting to act as custodian under said article unless the

depositary has actual knowledge that such act, or the instruction or

direction therefor, constitutes a breach of such person's obligations as

such custodian, or unless the depositary performs such act with

knowledge of such facts that acting pursuant to such instruction or

direction amounts to bad faith.