N.Y. Banking Law § 239: Repayment of deposits of minors, trust deposits, joint deposits, and deposits adversely claimed; interpleader in certain actions; statute...

§ 239. Repayment of deposits of minors, trust deposits, joint

deposits, and deposits adversely claimed; interpleader in certain

actions; statute of limitations. 1. Any deposit made by or in the name

of any minor 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 credited

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 to the savings bank for any payment so

made.

5. Notice to any savings bank of an adverse claim to a deposit

standing on its books to the credit of any person shall not be effectual

to cause such savings bank to recognize such adverse claimant unless he

shall also either procure a restraining order, injunction or other

appropriate process against such savings bank from a court of competent

jurisdiction in a cause therein instituted by him wherein the person to

whose credit the deposit stands or his executor or administrator is made

a party and served with summons, or shall execute to such savings bank,

in form and with sureties acceptable to it a bond, indemnifying such

savings bank from any and all liability, loss, damage, costs and

expenses, for and on account of the payment of such adverse claim or the

dishonor of the order of the person to whose credit the deposit stands

on the books of such savings bank; provided, that this section shall not

apply in any instance where the person to whose credit the deposit

stands is a fiduciary for such adverse claimant, and the facts

constituting such relationship, and the facts showing reasonable cause

for belief on the part of such claimant that such fiduciary is about to

misappropriate such deposit, are made to appear by the affidavit of such

claimant.

6. (a) In all actions against any savings bank to recover 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 savings bank, 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 savings bank to the credit of the action until final

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

of the same class, or, in the case of deposits held pursuant to

subdivision one-a of section two hundred thirty-four of this chapter, to

interest at the rate specified in the deposit contract until maturity

and at the rate at which interest is credited on regular savings

accounts from maturity until final judgment, and shall be paid by such

savings bank in accordance with the final judgment of the courts; 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 savings bank 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 savings bank to recover

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

upon the fund affected by the action.