N.Y. Banking Law § 420-i: Payment of insurance

§ 420-i. Payment of insurance. 1. Each savings and loan association

whose application for insurance under this article is approved by the

fund shall be entitled to insurance up to the full withdrawal value of

the accounts of each of its members and investors or in such amount as

shall be established by the board of trustees, but in no event shall the

maximum amount of insurance for any savings account be less than fifteen

thousand dollars.

2. In the event of a default by any insured savings and loan

association, payment of each insured account in such insured association

shall be made by the fund as soon as possible either (1) by cash or (2)

by making available to each savings account a transferred savings

account in a new insured savings and loan association in the same

community or in another insured savings and loan association in an

amount equal to the insured savings account; provided however, that the

fund, in its discretion, may require proof of claims to be filed before

paying the insured accounts, and that in any case where the fund is not

satisfied as to the validity of a claim for an insured account, it may

require the final determination of a court of competent jurisdiction

before paying such claim.