§ 1218 — Special provisions relating to actions or special proceedings against foreign corporations

New York § 1218

• Jurisdiction: New York
• Law BSC: Business Corporation
• Art. 12: Receivership

Text

§ 1218. Special provisions relating to actions or special proceedings\n against foreign corporations.\n (a) In any action or special proceeding brought against a foreign\ncorporation under this article, the following provisions shall apply:\n (1) Service of the summons in such action may be made personally\nwithin the state of New York, by delivery of the same to any officer or\ndirector of the corporation, or by publication pursuant to an order\nobtained as hereinafter provided.\n (2) An order directing service by publication of the summons shall be\nmade upon application of a plaintiff in any such action and shall be\nfounded upon a verified complaint, alleging that the defendant is a\nforeign corporation and has or may have or may be entitled to assets,\ncredits, choses in action or other property, tangible or intangible\nwithin the state and that such corporation has been dissolved,\nnationalized or that its authority or existence has been terminated or\ncancelled in the jurisdiction of its incorporation, or that it has\nceased to do business, and upon an affidavit reciting that personal\nservice of the summons cannot be effected within the state with due\ndiligence and that a temporary receiver of its property within the state\nof New York has been appointed pursuant to this article in such action\nand that a copy of the order appointing the receiver has been served\npersonally by or on behalf of such receiver upon a person, firm or\ncorporation holding property, tangible or intangible, of the said\nforeign corporation, or against whom a claim or demand in favor of such\nforeign corporation exists and that demand therefor has been made upon\nsuch person, firm or corporation by or on behalf of such receiver.\n (3) The order directing service of the summons shall require the\npublication thereof in a newspaper published in the state of New York in\nthe English language at least once a week for four successive weeks, and\nshall also require the mailing on or before the date of the first\npublication of a copy of the summons, complaint and order to the\ncorporation at its last known principal or head office in the state or\ncountry of its incorporation.\n (4) In any such action, the summons shall be served personally or an\norder directing service thereof by publication shall be obtained and the\nfirst publication thereof made within sixty days after the appointment\nof the temporary receiver, and if served by publication, the service\nshall be made complete by the continuance thereof.\n (5) If served by publication, service of the summons shall be deemed\ncomplete on the date of the last publication. The action shall be deemed\ncommenced upon the issuance of the summons. The order appointing the\nreceiver and the papers upon which the same is granted shall be filed in\nthe office of the clerk of the court where the action is triable within\nten days after the order is made.\n (6) In the event that the defendant defaults in answering, or if after\na trial the court is satisfied that the defendant has ceased to do\nbusiness by reason of any thing or matter whatsoever, or that it has\nbeen dissolved, nationalized, or its authority or existence has been\notherwise terminated or cancelled, the court shall thereupon direct\njudgment, appointing a permanent receiver and directing the receiver to\nliquidate the assets, credits, choses in action and property, tangible\nand intangible, in the state of New York of the said defendant, in the\nmanner provided in this article.\n (7) The time between the cessation of business by the corporation or\nits dissolution or nationalization or the termination or cancellation of\nits authority or existence and the appointment of a receiver in this\nstate pursuant to this article, whichever time is longer, plus three\nyears after such appointment, shall not be a part of the time limited by\ndomestic or foreign law for the commencement of an action or for the\nassertion of a claim therein by or on behalf of or against said\ncorporation or by or against said receiver, whether or not said action\nor claim has heretofore been barred by any statute of limitations of\nthis state or of any other state or country.\n (8) The existence of and causes of action of or against such\ncorporation existing at the time of its dissolution, nationalization, or\nthe termination or cancellation of its authority or existence, or\narising thereafter, shall not be deemed ended, abated or affected\nthereby, nor shall actions brought by or against such corporation or a\nreceiver appointed hereunder or any remedy therein be deemed to have\nended or abated or to have been affected by reason of such dissolution,\nnationalization, or termination or cancellation of its authority or\nexistence. This provision shall apply to all property, tangible and\nintangible, debts, demands, and choses in action of such corporation\nwithin the state of New York, and to all litigation heretofore or\nhereafter brought in the courts of the state or of the United States to\nwhich the corporation or the receiver of said corporation appointed\npursuant to the provisions of this article is a party. Any receiver\nappointed pursuant to the provisions of this article may be substituted\nfor such corporation in any action or proceeding pending in the courts\nof the state or of the United States to which such corporation is a\nparty and may intervene in any action or proceeding which relates to or\naffects any of the assets or claims of the corporation and revive any\naction which shall have heretofore or which may hereafter have abated,\nand such dissolution, nationalization, or termination or cancellation of\nits authority or existence in the jurisdiction of its incorporation, or\nany confiscatory law or decree thereof, shall not be deemed to have any\nextra-territorial effect or validity as to the property, tangible or\nintangible, debts, demands or choses in action of such corporation\nwithin the state or any debts or obligations owing to such corporation\nfrom persons, firms or corporations residing, sojourning or doing\nbusiness in the state. Nothing contained in this subdivision shall be\ndeemed to validate claims for or causes of action or actions to recover\nproperty located in or moneys payable in the jurisdiction of\nincorporation which are unenforcible under the laws of such\njurisdiction.\n (9) If any receiver or trustee has heretofore been appointed in this\nstate for such corporation or its property in any action or proceeding,\neither before or supplementary to judgment, otherwise than in an action\nbrought pursuant to this article, such receiver or trustee may be\nappointed or continued as the receiver in any action brought pursuant to\nthe provisions of this article.\n (10) The appointment of a receiver or the pendency of an action for\nthe appointment of such receiver, shall until such receiver shall be\ndischarged or until such action shall have terminated, be a bar to any\nsubsequent application or action for the appointment of a receiver of\nthe assets of the same corporation.\n (11) An action shall be commenced within three years from the\ndiscovery by the plaintiff or his predecessor in interest, of any asset\nof said corporation in the state of New York.\n