§ 625 — Effect of accepting claims and accounts; limitation upon actions to establish claims and accounts; necessary allegations; effect of judgment

New York § 625

• Jurisdiction: New York
• Law BNK: Banking
• Art. 13: Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation

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§ 625. Effect of accepting claims and accounts; limitation upon\nactions to establish claims and accounts; necessary allegations; effect\nof judgment. 1. When the superintendent has accepted a duly filed claim\nand has filed such claim endorsed "accepted" in his office, the\nclaimant, unless priority of payment has been duly demanded, and such\nclaim is entitled by law to priority of payment, shall be entitled to\nshare ratably with other general creditors in the distribution of the\nproceeds of the liquidation of the assets of such banking organization\nas such proceeds are distributed pursuant to section six hundred\ntwenty-seven of this article, provided, however, that any accepted claim\nor claims for taxes owed to any taxing authority shall be paid in full,\nto the extent that assets of the banking organization are available,\nprior to the payment of any other accepted claim. Where the claimant has\nduly demanded priority of payment, and such claim is entitled by law to\npriority of payment, the receipt and acceptance of ratable dividends\nshall be without prejudice to the right to such priority of payment.\n 2. When the superintendent has accepted an account payable as shown by\nthe books and records and as to which no claim has been presented and\nincluded the same in the list filed in his office as provided in section\nsix hundred twenty-four of this article, the owner thereof shall be\nentitled to share ratably with other general creditors in the\ndistribution of the proceeds of the liquidation of the assets of such\nbanking organization as such proceeds are distributed pursuant to\nsection six hundred twenty-seven of this article.\n 3. Within six months after the date that the superintendent files the\nlist required by subdivision four of section six hundred twenty-four of\nthis article listing the claims and accounts payable accepted or\nrejected by the superintendent, a claimant whose claim has been duly\nfiled and has not been accepted by the superintendent, or any person\nwhose account payable as shown by the books and records, as to which no\nclaim has been presented, has not been accepted by the superintendent,\nmay institute and maintain an action thereon against such banking\norganization. Such action may be maintained only in the supreme court in\nthe judicial district in which the principal office of such banking\norganization was located.\n 4. No action shall be maintained against such banking organization\nwhile the superintendent is in possession of its affairs and business\nunless brought within the period of limitation specified in this\nsection. In all actions instituted against such banking organization\nwhile the superintendent is in possession of its property and business,\nthe plaintiff shall be required to allege and prove that the claim upon\nwhich the action is instituted was duly filed and that such claim has\nnot been accepted, or in the case of an action upon an account as to\nwhich no claim has been presented the plaintiff shall be required to\nallege and prove that such account appeared upon the books and records\nand that such account has not been accepted.\n 5. If, in an action instituted in accordance with this section, the\ncourt should determine that a claim or account rejected by the\nsuperintendent should be allowed, the judgment entered therein shall so\nprovide and shall fix and determine the amount thereof as of the date\nthe superintendent took possession. A claim or account whose status and\namount have been so fixed shall have the same force and effect as a\nclaim or account which has been accepted by the superintendent in\naccordance with the provisions of section six hundred twenty-four of\nthis article. Notwithstanding any other provision of law, the court\nshall not award interest, nor shall interest accrue, in any such action\nat a rate greater than the amount rate of interest, if any, that the\nsuperintendent has determined is payable to other creditors; provided\nfurther that the court shall not award interest, nor shall interest\naccrue, except from the date from which the superintendent has\ndetermined to pay interest to creditors whose claims or accounts payable\nhave been accepted or otherwise duly established to the date such claims\nor accounts are paid; provided, however, that the court may in its\ndiscretion award interest at a rate not to exceed the rate permitted by\nsection six hundred twenty-seven of this article on any such judgment\nfor the claimant in any such action for the period from the date such\nclaim would have been paid had it been accepted initially by the\nsuperintendent to the date such judgment is paid.\n