§ 202-H — Repayment of deposits standing in the names of minors, trustees, joint depositors or custodians; interpleader in certain actions

New York § 202-H

• Jurisdiction: New York
• Law BNK: Banking
• Art. 5: Foreign Banking Corporations and National Banks

Text

§ 202-h. Repayment of deposits standing in the names of minors,\ntrustees, joint depositors or custodians; interpleader in certain\nactions. 1. Any minor may endorse a check payable to his order for the\npurpose of depositing the proceeds in a deposit in his name with a\nbranch in this state of a foreign banking corporation and when any\ndeposit shall be made by or in the name of any minor, the same shall be\nheld for the exclusive right and benefit of such minor, and free from\nthe control or lien of all other persons, except creditors, and shall be\npaid, together with the interest thereon to the person or upon the order\nby check or otherwise of the person in whose name the deposit shall\nstand, and the receipt, acquittance or order of payment of such minor\nshall be a valid and sufficient release and discharge for such deposit\nor any part thereof to the foreign banking corporation.\n 4. (a) In all actions against any foreign banking corporation to\nrecover for moneys on deposit with a branch thereof in this state, if\nthere be any person or persons, not parties to the action, who claim the\nsame fund, the court in which the action is pending, may, on the\npetition of such foreign banking corporation, and upon eight days'\nnotice to the plaintiff and such claimants, and without proof as to the\nmerits of the claim, make an order amending the proceedings in the\naction by making such claimants parties defendant thereto; and the court\nshall thereupon proceed to determine the rights and interests of the\nseveral parties to the action in and to such funds. The remedy provided\nin this section shall be in addition to and not exclusive of any other\ninterpleader provision.\n (b) The funds on deposit which are the subject of such an action may\nremain with such foreign banking corporation to the credit of the action\nuntil final judgment therein, and be entitled to the same interest as\nother deposits of the same class, and shall be paid by such foreign\nbanking corporation in accordance with the final judgment of the court;\nor the deposit 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 foreign banking corporation shall be struck out as a party to the\naction, and its liability for such deposit shall cease.\n (c) The costs in all actions against a foreign banking corporation to\nrecover deposits shall be in the discretion of the court, and may be\ncharged upon the fund affected by the action.\n 5. 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 with a branch in this state of a foreign\nbanking corporation by a person purporting to act as custodian for a\nminor under part six of article seven of the estates, powers and trusts\nlaw or under a similar law of another state, the deposit together with\nany interest or dividends credited thereon may be paid or delivered to\nor upon the order of such person, or his successor as custodian, or to a\nminor upon the minor's attaining either eighteen years or twenty-one\nyears, as provided in accordance with part six of article seven of the\nestates, powers and trusts law, if no custodian is acting at the time of\nsuch payment or delivery, and any receipt or order of such person,\nsuccessor or minor shall be valid and sufficient release and discharge\nof the depositary for any payment or delivery so made. No depositary\ndealing with a person purporting to act as a custodian for a minor under\nsaid article shall be bound to inquire into any facts bearing upon the\ndesignation of such person as such custodian or the propriety of or\nauthority for any act of such person under said article or otherwise or\nthe age of the person designated as a minor. No depositary shall be\nliable for any act performed pursuant to the instruction or direction of\nany person purporting to act as custodian under said article unless the\ndepositary has actual knowledge that such act, or the instruction or\ndirection therefor, constitutes a breach of such person's obligations as\nsuch custodian, or unless the depositary performs such act with\nknowledge of such facts that acting pursuant to such instruction or\ndirection amounts to bad faith.\n