§ 378-A — Time deposits

§ 378-a. Time deposits. 1. Subject to such regulations and\nrestrictions as the superintendent of financial services finds to be\nnecessary and proper, a savings and loan association may contract to\nreceive time deposits including deposits upon which the savings and loan\nassociation contracts to pay interest at a fixed rate.\n 2. Any time deposit made by or in the name of any minor shall be held\nfor the exclusive right and benefit of such minor, and free from the\ncontrol or lien of all other persons, except creditors, and shall be\npaid together with interest credited thereon, to the person in whose\nname the deposit shall have been made. The receipt or acquittance of\nsuch minor shall be a valid and sufficient release and discharge to the\nassociation for any payment so made. When any time deposit shall be made\nby any person in trust for another, including a minor, and no other or\nfurther notice of the existence and terms of a legal and valid trust\nshall have been given in writing to the association, in the event of the\ndeath of the trustee, the deposit, together with the interest credited\nthereon, may be paid to the person for whom the deposit was made. The\nreceipt of acquittance of such person shall be a valid and sufficient\nrelease and discharge to the association for any payment so made.\n 3. The repayment of time deposits made with any association and any\ninterest credited thereto, shall be subject to the provisions of this\nchapter and to rules and regulations made in accordance therewith. Any\nsuch regulations adopted by the board of directors shall be posted in a\nconspicious place in the office or offices of such association, and\nshall be available to depositors upon request. All such rules and\nregulations, from time to time in effect, and all amendments thereto,\nfrom time to time in effect, shall be binding upon all depositors.\n 4. Notice to any association of an adverse claim to a time deposit\nstanding on its books to the credit of any person shall not be effectual\nto cause such association to recognize such adverse claimant unless he\nshall also either procure a restraining order, injunction or other\nappropriate process against such association from a court of competent\njurisdiction in a cause therein instituted by him wherein the person to\nwhose credit the deposit stands or his executor or administrator is made\na party and served with summons, or shall execute to such association,\nin form and with sureties acceptable to it a bond, indemnifying such\nassociation from any and all liability, loss, damage, costs and\nexpenses, for and on account of the payment of such adverse claim or the\ndishonor of the order of the person to whose credit the deposit stands\non the books of such association; provided, that this section shall not\napply in any instance where the person to whose credit the deposit\nstands is a fiduciary for such adverse claimant, and the facts\nconstituting such relationship, and the facts showing reasonable cause\nfor belief on the part of such claimant that such fiduciary is about to\nmisappropriate such deposit, are made to appear by the affidavit of such\nclaimant.\n 5. (a) In all actions against any association to recover a time\ndeposit, if there be any person or persons, not parties to the action,\nwho claim the same fund, the court in which the action is pending may,\non the petition of such association, and upon eight days' notice to the\nplaintiff and such claimants, and without proof as to the merits of the\nclaim, make an order amending the proceedings in the action by making\nsuch claimants parties defendants thereto; and the court shall thereupon\nproceed to determine the rights and interests of the several parties to\nthe action in and to such funds. The remedy provided in this section\nshall be in addition to and not exclusive of that provided in any other\ninterpleader provision.\n (b) The time deposit which is the subject of such an action may remain\nwith such association to the credit of the action until final judgment\ntherein, and be entitled to the same interest as other deposits of the\nsame class, and shall be paid by such association in accordance with the\nfinal judgment of the court; or the deposit in controversy may be paid\ninto court to await the final determination of the action, and when the\ndeposit is so paid into court such association shall be struck out as a\nparty to the action, and its liability for such deposit shall cease.\n (c) The costs in all actions against an association to recover\ndeposits shall be in the discretion of the court, and may be charged\nupon the fund affected by the action.\n 7. Subject to any regulations and restrictions prescribed by the\nsuperintendent of financial services, a savings and loan association may\naccept time deposit without the issuance of a passbook in connection\ntherewith, and may issue such other evidences of its obligation to repay\nsuch time deposits as may be appropriate to safeguard the interests of\nthe depositors and of the savings and loan association.\n