N.Y. Banking Law § 204-a: Payment of claims by foreign banking corporations where adverse claim is asserted; effect of claims or advices originating in, and statut...

§ 204-a. Payment of claims by foreign banking corporations where

adverse claim is asserted; effect of claims or advices originating in,

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

territory; performance of contracts and repayment of deposits

performable or repayable at foreign offices of foreign banking

corporations. 1. Notice to any foreign banking corporation doing

business in this state under a license issued by the superintendent in

accordance with the provisions of this chapter, of an adverse claim to a

credit standing on its books to the account of any person, or to the

balance in any deposit account, or of an adverse claim to securities or

other property held for the account of any person, shall not be

effectual in this state to cause said foreign banking corporation to

recognize said adverse claimant unless said adverse claimant shall also

either procure a restraining order, injunction or other appropriate

process against said foreign banking corporation from a court of

competent jurisdiction in the United States in a cause therein

instituted by him wherein the person to whose account the credit or

deposit stands, or for whose account the securities or other property

are held, or his executor or administrator is made a party and served

with summons, or shall execute to said foreign banking corporation, in

form and with sureties acceptable to it a bond, indemnifying said

foreign banking corporation 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 order of the

person to whose account the credit or deposit stands on the books of

said foreign banking corporation or for whose account the securities or

other property are held by said foreign banking corporation.

2. (a) A foreign banking corporation doing business in this state

under a license issued by the superintendent in accordance with the

provisions of this chapter, need not in this state recognize or give any

effect to (1) any claim to a credit standing on its books to the account

of, or the balance in any deposit account of, or any claim to

securities, or other property held by it 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 foreign banking corporation as authorized

to withdraw or otherwise dispose of cash, securities, or other property

of such corporation, firm or association, unless such foreign banking

corporation is required so to do by appropriate process procured against

it 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 foreign banking corporation, in form and with

sureties acceptable to it, a bond indemnifying it 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.

(e) A foreign banking corporation doing business in this state under a

license issued by the superintendent in accordance with the provisions

of this chapter need not in this state recognize or give any effect to a

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

other property standing on its books to the credit of, or held by it for

the account of, any person, corporation, unincorporated association or

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

the foreign banking corporation had prior notice, unless the person or

persons asserting such subsequent claim shall procure a restraining

order, injunction or other appropriate process against said foreign

banking corporation from a court of competent jurisdiction in the United

States, or, in lieu thereof, at the option of said foreign banking

corporation, shall execute to said foreign banking corporation, in form

and with sureties acceptable to it, a bond, indemnifying it for any and

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

payment or delivery of such property by it 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 foreign banking corporation already had notice at the time

the subsequent conflicting claim of authority is asserted by the person

or persons furnishing such bond.

3. (a) Notwithstanding section 1--301 of the uniform commercial code,

any foreign banking corporation doing business in this state under a

license issued by the superintendent in accordance with the provisions

of this chapter shall be liable in this state for contracts to be

performed at its office or offices in any foreign country, and for

deposits to be repaid at such office or offices, to no greater extent

than a bank, banking corporation or other organization or association

for banking purposes organized and existing under the laws of such

foreign country would be liable under its laws. The laws of such foreign

country for the purpose of this subdivision shall be deemed to include

all acts, decrees, regulations and orders promulgated or enforced by a

dominant authority asserting governmental, military or police power of

any kind at the place where any such office is located, whether or not

such dominant authority be recognized as a de facto or de jure

government.

(b) Notwithstanding section 1--301 of the uniform commercial code, if

by action of any such dominant authority which is not recognized by the

United States as the de jure government of the foreign territory

concerned, any property situated in or any amount to be received in such

foreign territory and carried as an asset of any office of such foreign

banking corporation in such foreign territory is seized, destroyed or

cancelled, then the liability, if any, in this state of such foreign

banking corporation for any deposit theretofore received and thereafter

to be repaid by it, and for any contract theretofore made and thereafter

to be performed by it, at any office in such foreign territory shall be

reduced pro tanto by the proportion that the value (as shown by the

books or other records of such foreign banking corporation, at the time

of such seizure, destruction or cancellation) of such assets bears to

the aggregate of all the deposit and contract liabilities of the office

or offices of such foreign banking corporation in such foreign

territory, as shown at such time by the books or other records of such

foreign banking corporations. Nothing contained in this paragraph shall

diminish or otherwise affect the liability of any such foreign banking

corporation to any corporation, firm or individual which at the time of

such seizure, destruction or cancellation was incorporated or resident

in any state of the United States.

(c) Notwithstanding the provisions of any law to the contrary, a

foreign banking corporation operating a branch or branches or an agency

or agencies in this state shall not be required to repay, at any such

branch, branches, agency or agencies in this state, any deposit made at

a foreign office of any such foreign banking corporation if such office

cannot repay the deposit due to (i) an act of war, insurrection, or

civil strife; or (ii) an action by a foreign government or

instrumentality, whether de jure or de facto, in the country in which

the office is located preventing such repayment, unless the foreign

banking corporation operating in this state has expressly agreed in

writing to repay the deposit under such circumstances. The

superintendent of financial services may promulgate regulations

necessary to effectuate the provisions of this paragraph, including

regulations providing for adequate disclosure to retail depositors in

the United States of the restrictions on repayment contained in this

subdivision. The provisions of this paragraph shall not alter or

diminish the liability of a custodian of assets of a fund under section

one hundred seventy-eight-a of the retirement and social security law.