N.Y. Banking Law § 655: Maximum amount of insurance

§ 655. Maximum amount of insurance. 1. Subject to the provisions of

subdivisions two and three of this section, the maximum amount of

insurance that any claimant shall be entitled to shall be determined by

the superintendent after taking into account the amount of claims, the

amount of the fund, including the authority of the fund to make

assessments pursuant to section six hundred fifty-seven of this article,

and any claim for recovery which the fund would have pursuant to the

provisions of section six hundred forty-three of this chapter.

2. No insurance shall be paid on any New York instrument payable for

an amount in excess of one thousand dollars, other than those New York

instruments issued for the purpose of paying utility bills.

3. The maximum amount of insurance which any claimant shall be

entitled to shall be determined as follows:

a. If the claimant is a purchaser, the maximum amount of insurance

which such purchaser shall be entitled to on all insured New York

instruments purchased by said purchaser shall be five thousand dollars.

b. If the claimant is a holder, the maximum amount of insurance which

such holder shall be entitled to shall be the aggregate of the amounts

which would have been due to the purchasers of the insured New York

instruments held by the holder, had the instruments remained in the

possession of the purchasers, rather than the holder.