§ 656 — Claims against the fund

§ 656. Claims against the fund. 1. If an uninsured transmitter of\nmoney has defaulted in making payment on any of its New York\ninstruments, the superintendent shall give notice of such default to\npurchasers and holders of such instruments. Such notice may be given by\nmeans of publication in such newspaper or newspapers as the\nsuperintendent may direct and by such other means, if any, as the\nsuperintendent may determine to be reasonable and necessary under the\ncircumstances. The determination of the superintendent as to the means\nof notice shall be conclusively presumed reasonable if notice is\npublished in such newspaper or newspapers for five consecutive days.\nSuch notices shall request purchasers and holders of such instruments\nwho wish to file claims against the fund to present such claims to the\nsuperintendent and to file proper proof thereof within the period of\ntime set forth in the notice and at a place specified therein. Such\nnotice may limit the period of time within which claims may be filed to\na period of time no less than ten business days from the final date of\nnotice. Claimants shall file their claims in the form and manner\nprescribed by the superintendent and shall make proof thereof and of the\nloss actually suffered by such claimants to the satisfaction of the\nsuperintendent. The superintendent shall examine the claims so filed,\ndetermine the amount due upon such claims and certify, in writing, the\namount due each claimant, whereupon payment by the fund to the claimant\nshall be made as provided for in this article. In any case where the\nsuperintendent is not satisfied as to the allowability of a claim or if\nhe has notice of an adverse claim with respect to such New York\ninstrument, he may require the final determination of a court of\ncompetent jurisdiction before certifying such claim. Whoever, for the\npurpose of obtaining payment on any insured New York instrument, or the\npayment of any claim, makes any statement knowing it to be false, or\nwillfully overvalues any claim, shall be guilty of a Class A\nmisdemeanor.\n 2. The payment by the fund to the claimant shall constitute an\nassignment, by operation of law, of all rights which the claimant has\nwith respect to the New York instrument, including all rights, claims\nand interests in property which the claimant could have asserted against\nthe transmitter of money or its property or otherwise, and all\nrecoveries which he would have been entitled to under the provisions of\nsection six hundred forty-three of this chapter, provided that if any\nportion of such New York instrument is uninsured by virtue of the fact\nthat it exceeds the maximum amount of insurance provided for by section\nsix hundred fifty-five of this article or otherwise, the claimant shall\nretain all of his rights with respect to the uninsured portion of such\ninstrument.\n