§ 134 — Repayment of deposits standing in the names of minors, trustees or joint depositors; repayment where adverse claim is asserted; interplea...

New York § 134

• Jurisdiction: New York
• Law BNK: Banking
• Art. 3: Banks and Trust Companies

Text

§ 134. Repayment of deposits standing in the names of minors, trustees\nor joint depositors; repayment where adverse claim is asserted;\ninterpleader in certain actions; effect of claims or advices originating\nin, and statutes, rules or regulations purporting to be in force in\noccupied territories. 1. Any minor may endorse a check payable to his\norder for the purpose of depositing the proceeds in a deposit in his\nname and when any deposit shall be made by or in the name of any minor,\nthe same shall be held for the exclusive right and benefit of such\nminor, and free from the control or lien of all other persons, except\ncreditors, and shall be paid, together with the interest thereon to the\nperson or upon the order by check or otherwise of the person in whose\nname the deposit shall stand, and the receipt, acquittance or order of\npayment of such minor shall be a valid and sufficient release and\ndischarge for such deposit or any part thereof to the bank or trust\ncompany.\n 4. A bank or trust company need not recognize or give any effect to a\nclaim of authority to order the payment or delivery of any funds or\nother property standing on its books to the credit of, or held by it for\nthe account of, any person, corporation, unincorporated association or\npartnership, which claim conflicts with a claim of authority of which\nthe bank or trust company had prior notice, unless the person or persons\nasserting such subsequent claim shall procure a restraining order,\ninjunction or other appropriate process against said bank or trust\ncompany from a court of competent jurisdiction in the United States, or,\nin lieu thereof, with the consent of said bank or trust company, shall\nexecute to said bank or trust company, in form and with sureties\nacceptable to it, a bond, indemnifying it for any and all liability,\nloss, damage, costs and expenses for or on account of any payment or\ndelivery of such property by it pursuant to such subsequent claim of\nauthority or for or on account of the dishonor of any check or other\norder of any person or persons asserting the claim of authority of which\nsuch bank or trust company already had notice at the time the subsequent\nconflicting claim of authority is asserted by the person or persons\nfurnishing such bond.\n 5. Notice to any bank or trust company of an adverse claim to any\nproperty, or to a deposit of cash or securities standing on its books to\nthe credit of, or held for the account of, any person shall not be\neffectual to cause said bank or trust company to recognize said adverse\nclaimant unless said adverse claimant shall also either procure a\nrestraining order, injunction or other appropriate process against said\nbank or trust company from a court of competent jurisdiction in the\nUnited States in a cause therein instituted by him wherein the person to\nwhose credit the deposit stands, or for whose account the property or\ndeposit is held, or his executor or administrator is made a party and\nserved with summons, or shall execute to said bank or trust company, in\nform and with sureties acceptable to it a bond, indemnifying said bank\nor trust company from any and all liability, loss, damage, costs and\nexpenses, for and on account of the payment of or delivery pursuant to\nsuch adverse claim or the dishonor of the check or other order of the\nperson to whose credit the deposit stands on the books of said bank or\ntrust company or for whose account the property or deposit is held by\nsaid bank or trust company.\n 6. (a) In all actions against any bank or trust company to recover for\nmoneys on deposit therewith, if there be any person or persons not\nparties to the action, who claim the same fund, the court in which the\naction is pending, may, on the petition of such bank or trust company,\nand upon eight days' notice to the plaintiff and such claimants, and\nwithout proof as to the merits of the claim, make an order amending the\nproceedings in the action by making such claimants parties defendant\nthereto; and the court shall thereupon proceed to determine the rights\nand interests of the several parties to the action in and to such funds.\nThe remedy provided in this section shall be in addition to and not\nexclusive of that provided in any other interpleader provision.\n (b) The funds on deposit which are the subject of such an action may\nremain with such bank or trust company to the credit of the action until\nfinal judgment therein, and be entitled to the same interest as other\ndeposits of the same class, and shall be paid by such bank or trust\ncompany in accordance with the final judgment of the court; or the\ndeposit in controversy may be paid into court to await the final\ndetermination of the action, and when the deposit is so paid into court\nsuch bank or trust company shall be struck out as a party to the action,\nand its liability for such deposit shall cease.\n (c) The costs in all actions against a bank or trust company to\nrecover deposits shall be in the discretion of the court, and may be\ncharged upon the fund affected by the action.\n 7. (a) A bank or trust company need not recognize or give any effect\nto (1) any claim to a deposit of cash, securities, or other property\nstanding on its books to the credit of, or held by it for the account\nof, any corporation, firm or association in occupied territory or (2)\nany advice, statute, rule or regulation purporting to cancel or to give\nnotice of the cancellation of the authority of any person at the time\nappearing on the books of such bank or trust company as authorized to\nwithdraw or otherwise dispose of cash, securities, or other property of\nsuch corporation, firm or association, unless such bank or trust company\nis required so to do by appropriate process procured against it in a\ncourt of competent jurisdiction in the United States in a cause therein\ninstituted by or in the name of such corporation, firm or association,\nor unless the person making such claim or giving such advice or invoking\nsuch statute, rule or regulation, as the case may be, shall execute to\nsuch bank or trust company, in form and with sureties acceptable to it,\na bond indemnifying it from any and all liability, loss, damage, costs\nand expenses for and on account of recognizing or giving any effect to\nsuch claim, advice, statute, rule or regulation.\n (b) For the purposes of this subdivision (1) the term "occupied\nterritory" shall mean territory occupied by a dominant authority\nasserting governmental, military or police powers of any kind in such\nterritory, but not recognized by the United States as the de jure\ngovernment of such territory, and (2) the term "corporation, firm or\nassociation in occupied territory" shall mean a corporation, firm or\nassociation which has, or at any time has had, a place of business in\nterritory which has at any time been occupied territory.\n (c) The foregoing provisions of this subdivision shall be effective\nonly in cases where (1) such claim or advice purports or appears to have\nbeen sent from or is reasonably believed to have been sent pursuant to\norders originating in, such occupied territory during the period of\noccupation, or (2) such statute, rule or regulation appears to have\nemanated from such dominant authority and purports to be or to have been\nin force in such occupied territory during the period of occupation.\n (d) The foregoing provisions of this subdivision shall apply to\nclaims, advices, statutes, rules or regulations made, given or invoked\neither prior to, or on or subsequent to the effective date of this act.\n 9. Deposits by custodian for a minor under part six of article seven\nof the estates, powers and trusts law. When any deposit of cash or\nsecurities shall be made by a person purporting to act as custodian for\na minor under part six of article seven of the estates, powers and\ntrusts law or under a similar law of another state, the deposit together\nwith any interest or dividends credited thereon may be paid or delivered\nto or upon the order of such person, or his successor as custodian, or\nto a minor upon the minor's attaining either eighteen years or\ntwenty-one years, as provided in accordance with part six of article\nseven of the estates, powers and trusts law, if no custodian is acting\nat the time of such payment or delivery, and any receipt or order of\nsuch person, successor or minor shall be valid and sufficient release\nand discharge of the depositary for any payment or delivery so made. No\ndepositary dealing with a person purporting to act as a custodian for a\nminor under said article shall be bound to inquire into any facts\nbearing upon the designation of such person as such custodian or the\npropriety of or authority for any act of such person under said article\nor otherwise or the age of the person designated as a minor. No\ndepositary shall be liable for any act performed pursuant to the\ninstruction or direction of any person purporting to act as custodian\nunder said article unless the depositary has actual knowledge that such\nact, or the instruction or direction therefor, constitutes a breach of\nsuch person's obligations as such custodian, or unless the depositary\nperforms such act with knowledge of such facts that acting pursuant to\nsuch instruction or direction amounts to bad faith.\n