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

New York § 171

• Jurisdiction: New York
• Law BNK: Banking
• Art. 4: Private Bankers

Text

§ 171. 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 territory. 1. When any deposit shall be made by or in the name\nof any minor, the same shall be held for the exclusive right and benefit\nof such minor, and free from the control or lien of all other persons,\nexcept creditors, and shall be paid, together with the interest thereon\nto the person in whose name the deposit shall have been made, and the\nreceipt or acquittance of such minor shall be a valid and sufficient\nrelease and discharge for such deposit or any part thereof to the\nprivate banker.\n 4. A private banker need not recognize or give any effect to a claim\nof authority to order the payment or delivery of any funds or other\nproperty standing on his books to the credit of, or held by him for the\naccount of, any person, corporation, unincorporated association or\npartnership, which claim conflicts with a claim of authority of which\nthe private banker had prior notice, unless the person or persons\nasserting such subsequent claim shall procure a restraining order,\ninjunction or other appropriate process against said private banker from\na court of competent jurisdiction in the United States, or, in lieu\nthereof, with the consent of said private banker, shall execute to said\nprivate banker, in form and with sureties acceptable to him, a bond,\nindemnifying him for any and all liability, loss, damage, costs and\nexpenses for or on account of any payment or delivery of such property\nby him pursuant to such subsequent claim of authority or for or on\naccount of the dishonor of any check or other order of any person or\npersons asserting the claim of authority of which such private banker\nalready had notice at the time the subsequent conflicting claim of\nauthority is asserted by the person or persons furnishing such bond.\n 5. Notice to any private banker of an adverse claim to any property,\nor to a deposit of cash or securities standing on his books to the\ncredit of, or held for the account of, any person shall not be effectual\nto cause said private banker to recognize said adverse claimant unless\nsaid adverse claimant shall also either procure a restraining order,\ninjunction or other appropriate process against said private banker from\na court of competent jurisdiction in the United States in a cause\ntherein instituted by him wherein the person to whose credit the deposit\nstands, or for whose account the property or deposit is held, or his\nexecutor or administrator is made a party and served with summons, or\nshall execute to said private banker, in form and with sureties\nacceptable to him a bond, indemnifying said private banker from any and\nall liability, loss, damage, costs and expenses, for and on account of\nthe payment of or delivery pursuant to such adverse claim or the\ndishonor of the check or other order of the person to whose credit the\ndeposit stands, or for whose account the property or deposit is held, on\nthe books of said private banker.\n 6. (a) In all actions against any private banker to recover for moneys\non deposit therewith, if there be any person or persons, not parties to\nthe action who claim the same fund, the court in which the action is\npending, may, on the petition of such private banker, and upon eight\ndays' notice to the plaintiff and such claimants, and without proof as\nto the merits of the claim, make an order amending the proceedings in\nthe action by making such claimants parties defendant thereto; and the\ncourt shall thereupon proceed to determine the rights and interests of\nthe several parties to the action in and to such funds. The remedy\nprovided in this section shall be in addition to and not exclusive of\nthat provided in any other interpleader provision.\n (b) The funds on deposit which are the subject of such an action may\nremain with such private banker to the credit of the action until final\njudgment therein, and be entitled to the same interest as other deposits\nof the same class, and shall be paid by such private banker in\naccordance with the final judgment of the court; or the deposit in\ncontroversy may be paid into court to await the final determination of\nthe action, and when the deposit is so paid into court such private\nbanker shall be struck out as a party to the action, and its liability\nfor such deposit shall cease.\n (c) The costs in all actions against a private banker to recover\ndeposits shall be in the discretion of the court, and may be charged\nupon the fund affected by the action.\n 7. (a) A private banker need not recognize or give any effect to (1)\nany claim to a deposit of cash, securities, or other property standing\non his books to the credit of, or held by him for the account of, any\ncorporation, firm or association in occupied territory, or (2) any\nadvice, 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 private banker as authorized to withdraw\nor otherwise dispose of cash, securities, or other property of such\ncorporation, firm or association, unless such private banker is required\nso to do by appropriate process procured against him in a court of\ncompetent 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 private banker, in form and with sureties acceptable to him, a bond\nindemnifying him from any and all liability, loss, damage, costs and\nexpenses for and on account of recognizing or giving any effect to such\nclaim, 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