N.Y. Banking Law § 624: Acceptance and rejection of claims and accounts; filing of list thereof; secured claims and accounts; determination of priorities

§ 624. Acceptance and rejection of claims and accounts; filing of list

thereof; secured claims and accounts; determination of priorities. 1.

The superintendent shall, not later than sixty days after the time has

expired to file objections to claims duly presented, accept or reject,

in whole or in part, every duly filed claim except claims as to which

objections are still pending undetermined by the court and accept or

reject, in whole or in part, every account payable as shown by the books

and records and as to which no claim has been presented except accounts

as to which objections are still pending undetermined by the court.

Whenever the superintendent accepts a portion of a claim or account and

rejects the remainder, the portion accepted and the portion rejected

shall, for the purposes of this article, each be deemed separate claims

or accounts as the case may be.

2. No claim or account of any secured claimant or creditor shall be

accepted at a sum greater than the difference between the value of the

claim or account without security and the value of the security itself

as of the commencement of the liquidation, unless the claimant or

creditor shall, prior to the expiration of the time fixed by the

superintendent for the presentation of claims, surrender his security to

the superintendent, in which event the claim or account may be accepted

in the full amount for which it is valued.

3. Every claim or account payable accepted by the superintendent shall

be endorsed "accepted" and filed so endorsed in his office. If the

superintendent is unable, from the books, accounts or records of the

banking organization, to determine the ownership of a claim or account

payable or if for any other reason he doubts the justice or validity of

any claim or account payable, he shall reject such claim or account

payable and shall endorse the same "rejected" and file it as so endorsed

in his office. He shall cause notice of such acceptance or rejection to

be mailed within fourteen calendar days after the superintendent has

accepted or rejected all claims duly filed. Where a proof of claim has

been filed, such notice need be mailed only to the address appearing

thereon, and where no proof of claim has been filed, only to the address

appearing upon the books of the banking organization. Where, however,

the superintendent is unable from the proof of claim or the books and

records of the banking organization to identify a name or address, such

notice of rejection need not be given.

4. Within thirty days after the superintendent has accepted or

rejected all claims duly filed, and all accounts payable as shown by the

books and records as to which no claims have been presented, he shall

make a list of all such claims and accounts accepted or rejected by him

and file one copy thereof in his office and one copy with the supreme

court in the judicial district in which the principal office of such

banking organization is located.

5. The superintendent shall not determine priorities, in accepting or

rejecting claims and the acceptance by the superintendent of a claim in

which priority of payment is demanded shall not entitle the claimant to

priority. Accepted claims in which priority of payment is duly demanded

shall be presented to the supreme court on notice to the claimant for

determination as to their priority of payment. All claims entitled to

priority of payment shall be paid ratably and proportionately.