N.Y. Banking Law § 6026: Security for expenses in stockholders' derivative action brought in the right of the corporation to procure a judgment in its favor

§ 6026. Security for expenses in stockholders' derivative action

brought in the right of the corporation to procure a judgment in its

favor. In any action specified in section six thousand twenty-five, if

the plaintiff or plaintiffs hold less than five percent of any class of

the outstanding shares or hold a beneficial interest in shares

representing less than five percent of any class of such shares, then

unless the shares and beneficial interest of such plaintiff or

plaintiffs have a fair value in excess of fifty thousand dollars, the

corporation in whose right such action is brought shall be entitled at

any stage of the proceedings before final judgment to require the

plaintiff or plaintiffs to give security for the reasonable expenses,

including attorney's fees, which may be incurred by it in connection

with such action and by the other parties defendant in connection

therewith for which the corporation may become liable under this

article, under any contract or otherwise under law, to which the

corporation shall have recourse in such amount as the court having

jurisdiction of such action shall determine upon the termination of such

action. The amount of such security may thereafter from time to time be

increased or decreased in the discretion of the court having

jurisdiction of such action upon showing that the security provided has

or may become inadequate or excessive.