§ 204-A — Payment of claims by foreign banking corporations where adverse claim is asserted; effect of claims or advices originating in, and statut...

New York § 204-A

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

Text

§ 204-a. Payment of claims by foreign banking corporations where\nadverse claim is asserted; effect of claims or advices originating in,\nand statutes, rules or regulations purporting to be in force in occupied\nterritory; performance of contracts and repayment of deposits\nperformable or repayable at foreign offices of foreign banking\ncorporations. 1. Notice to any foreign banking corporation doing\nbusiness in this state under a license issued by the superintendent in\naccordance with the provisions of this chapter, of an adverse claim to a\ncredit standing on its books to the account of any person, or to the\nbalance in any deposit account, or of an adverse claim to securities or\nother property held for the account of any person, shall not be\neffectual in this state to cause said foreign banking corporation to\nrecognize said adverse claimant unless said adverse claimant shall also\neither procure a restraining order, injunction or other appropriate\nprocess against said foreign banking corporation from a court of\ncompetent jurisdiction in the United States in a cause therein\ninstituted by him wherein the person to whose account the credit or\ndeposit stands, or for whose account the securities or other property\nare held, or his executor or administrator is made a party and served\nwith summons, or shall execute to said foreign banking corporation, in\nform and with sureties acceptable to it a bond, indemnifying said\nforeign banking corporation from any and all liability, loss, damage,\ncosts and expenses, for and on account of the payment of or delivery\npursuant to such adverse claim or the dishonor of the order of the\nperson to whose account the credit or deposit stands on the books of\nsaid foreign banking corporation or for whose account the securities or\nother property are held by said foreign banking corporation.\n 2. (a) A foreign banking corporation doing business in this state\nunder a license issued by the superintendent in accordance with the\nprovisions of this chapter, need not in this state recognize or give any\neffect to (1) any claim to a credit standing on its books to the account\nof, or the balance in any deposit account of, or any claim to\nsecurities, or other property held by it 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 foreign banking corporation as authorized\nto withdraw or otherwise dispose of cash, securities, or other property\nof such corporation, firm or association, unless such foreign banking\ncorporation is required so to do by appropriate process procured against\nit in a court of competent jurisdiction in the United States in a cause\ntherein instituted by or in the name of such corporation, firm or\nassociation, or unless the person making such claim or giving such\nadvice or invoking such statute, rule or regulation, as the case may be,\nshall execute to such foreign banking corporation, in form and with\nsureties acceptable to it, a bond indemnifying it from any and all\nliability, loss, damage, costs and expenses for and on account of\nrecognizing or giving any effect to such claim, advice, statute, rule or\nregulation.\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 (e) A foreign banking corporation doing business in this state under a\nlicense issued by the superintendent in accordance with the provisions\nof this chapter need not in this state 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 foreign banking corporation had prior notice, unless the person or\npersons asserting such subsequent claim shall procure a restraining\norder, injunction or other appropriate process against said foreign\nbanking corporation from a court of competent jurisdiction in the United\nStates, or, in lieu thereof, at the option of said foreign banking\ncorporation, shall execute to said foreign banking corporation, in form\nand with sureties acceptable to it, a bond, indemnifying it for any and\nall liability, loss, damage, costs and expenses for or on account of any\npayment or delivery of such property by it pursuant to such subsequent\nclaim of authority or for or on account of the dishonor of any check or\nother order of any person or persons asserting the claim of authority of\nwhich such foreign banking corporation already had notice at the time\nthe subsequent conflicting claim of authority is asserted by the person\nor persons furnishing such bond.\n 3. (a) Notwithstanding section 1--301 of the uniform commercial code,\nany foreign banking corporation doing business in this state under a\nlicense issued by the superintendent in accordance with the provisions\nof this chapter shall be liable in this state for contracts to be\nperformed at its office or offices in any foreign country, and for\ndeposits to be repaid at such office or offices, to no greater extent\nthan a bank, banking corporation or other organization or association\nfor banking purposes organized and existing under the laws of such\nforeign country would be liable under its laws. The laws of such foreign\ncountry for the purpose of this subdivision shall be deemed to include\nall acts, decrees, regulations and orders promulgated or enforced by a\ndominant authority asserting governmental, military or police power of\nany kind at the place where any such office is located, whether or not\nsuch dominant authority be recognized as a de facto or de jure\ngovernment.\n (b) Notwithstanding section 1--301 of the uniform commercial code, if\nby action of any such dominant authority which is not recognized by the\nUnited States as the de jure government of the foreign territory\nconcerned, any property situated in or any amount to be received in such\nforeign territory and carried as an asset of any office of such foreign\nbanking corporation in such foreign territory is seized, destroyed or\ncancelled, then the liability, if any, in this state of such foreign\nbanking corporation for any deposit theretofore received and thereafter\nto be repaid by it, and for any contract theretofore made and thereafter\nto be performed by it, at any office in such foreign territory shall be\nreduced pro tanto by the proportion that the value (as shown by the\nbooks or other records of such foreign banking corporation, at the time\nof such seizure, destruction or cancellation) of such assets bears to\nthe aggregate of all the deposit and contract liabilities of the office\nor offices of such foreign banking corporation in such foreign\nterritory, as shown at such time by the books or other records of such\nforeign banking corporations. Nothing contained in this paragraph shall\ndiminish or otherwise affect the liability of any such foreign banking\ncorporation to any corporation, firm or individual which at the time of\nsuch seizure, destruction or cancellation was incorporated or resident\nin any state of the United States.\n (c) Notwithstanding the provisions of any law to the contrary, a\nforeign banking corporation operating a branch or branches or an agency\nor agencies in this state shall not be required to repay, at any such\nbranch, branches, agency or agencies in this state, any deposit made at\na foreign office of any such foreign banking corporation if such office\ncannot repay the deposit due to (i) an act of war, insurrection, or\ncivil strife; or (ii) an action by a foreign government or\ninstrumentality, whether de jure or de facto, in the country in which\nthe office is located preventing such repayment, unless the foreign\nbanking corporation operating in this state has expressly agreed in\nwriting to repay the deposit under such circumstances. The\nsuperintendent of financial services may promulgate regulations\nnecessary to effectuate the provisions of this paragraph, including\nregulations providing for adequate disclosure to retail depositors in\nthe United States of the restrictions on repayment contained in this\nsubdivision. The provisions of this paragraph shall not alter or\ndiminish the liability of a custodian of assets of a fund under section\none hundred seventy-eight-a of the retirement and social security law.\n