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This entry was published on 2018-08-31
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SECTION 204-A
Payment of claims by foreign banking corporations where adverse claim is asserted; effect of claims or advices originating in, and statut...
Banking (BNK) CHAPTER 2, ARTICLE 5
§ 204-a. Payment of claims by foreign banking corporations where
adverse claim is asserted; effect of claims or advices originating in,
and statutes, rules or regulations purporting to be in force in occupied
territory; performance of contracts and repayment of deposits
performable or repayable at foreign offices of foreign banking
corporations. 1. Notice to any foreign banking corporation doing
business in this state under a license issued by the superintendent in
accordance with the provisions of this chapter, of an adverse claim to a
credit standing on its books to the account of any person, or to the
balance in any deposit account, or of an adverse claim to securities or
other property held for the account of any person, shall not be
effectual in this state to cause said foreign banking corporation to
recognize said adverse claimant unless said adverse claimant shall also
either procure a restraining order, injunction or other appropriate
process against said foreign banking corporation from a court of
competent jurisdiction in the United States in a cause therein
instituted by him wherein the person to whose account the credit or
deposit stands, or for whose account the securities or other property
are held, or his executor or administrator is made a party and served
with summons, or shall execute to said foreign banking corporation, in
form and with sureties acceptable to it a bond, indemnifying said
foreign banking corporation from any and all liability, loss, damage,
costs and expenses, for and on account of the payment of or delivery
pursuant to such adverse claim or the dishonor of the order of the
person to whose account the credit or deposit stands on the books of
said foreign banking corporation or for whose account the securities or
other property are held by said foreign banking corporation.

2. (a) A foreign banking corporation doing business in this state
under a license issued by the superintendent in accordance with the
provisions of this chapter, need not in this state recognize or give any
effect to (1) any claim to a credit standing on its books to the account
of, or the balance in any deposit account of, or any claim to
securities, or other property held by it for the account of, any
corporation, firm or association in occupied territory or (2) any
advice, statute, rule or regulation purporting to cancel or to give
notice of the cancellation of the authority of any person at the time
appearing on the books of such foreign banking corporation as authorized
to withdraw or otherwise dispose of cash, securities, or other property
of such corporation, firm or association, unless such foreign banking
corporation is required so to do by appropriate process procured against
it in a court of competent jurisdiction in the United States in a cause
therein instituted by or in the name of such corporation, firm or
association, or unless the person making such claim or giving such
advice or invoking such statute, rule or regulation, as the case may be,
shall execute to such foreign banking corporation, in form and with
sureties acceptable to it, a bond indemnifying it from any and all
liability, loss, damage, costs and expenses for and on account of
recognizing or giving any effect to such claim, advice, statute, rule or
regulation.

(b) For the purposes of this subdivision (1) the term "occupied
territory" shall mean territory occupied by a dominant authority
asserting governmental, military or police powers of any kind in such
territory, but not recognized by the United States as the de jure
government of such territory, and (2) the term "corporation, firm or
association in occupied territory" shall mean a corporation, firm or
association which has, or at any time has had, a place of business in
territory which has at any time been occupied territory.

(c) The foregoing provisions of this subdivision shall be effective
only in cases where (1) such claim or advice purports or appears to have
been sent from or is reasonably believed to have been sent pursuant to
orders originating in, such occupied territory during the period of
occupation, or (2) such statute, rule or regulation appears to have
emanated from such dominant authority and purports to be or to have been
in force in such occupied territory during the period of occupation.

(d) The foregoing provisions of this subdivision shall apply to
claims, advices, statutes, rules or regulations made, given or invoked
either prior to, or on or subsequent to the effective date of this act.

(e) A foreign banking corporation doing business in this state under a
license issued by the superintendent in accordance with the provisions
of this chapter need not in this state recognize or give any effect to a
claim of authority to order the payment or delivery of any funds or
other property standing on its books to the credit of, or held by it for
the account of, any person, corporation, unincorporated association or
partnership, which claim conflicts with a claim of authority of which
the foreign banking corporation had prior notice, unless the person or
persons asserting such subsequent claim shall procure a restraining
order, injunction or other appropriate process against said foreign
banking corporation from a court of competent jurisdiction in the United
States, or, in lieu thereof, at the option of said foreign banking
corporation, shall execute to said foreign banking corporation, in form
and with sureties acceptable to it, a bond, indemnifying it for any and
all liability, loss, damage, costs and expenses for or on account of any
payment or delivery of such property by it pursuant to such subsequent
claim of authority or for or on account of the dishonor of any check or
other order of any person or persons asserting the claim of authority of
which such foreign banking corporation already had notice at the time
the subsequent conflicting claim of authority is asserted by the person
or persons furnishing such bond.

3. (a) Notwithstanding section 1--301 of the uniform commercial code,
any foreign banking corporation doing business in this state under a
license issued by the superintendent in accordance with the provisions
of this chapter shall be liable in this state for contracts to be
performed at its office or offices in any foreign country, and for
deposits to be repaid at such office or offices, to no greater extent
than a bank, banking corporation or other organization or association
for banking purposes organized and existing under the laws of such
foreign country would be liable under its laws. The laws of such foreign
country for the purpose of this subdivision shall be deemed to include
all acts, decrees, regulations and orders promulgated or enforced by a
dominant authority asserting governmental, military or police power of
any kind at the place where any such office is located, whether or not
such dominant authority be recognized as a de facto or de jure
government.

(b) Notwithstanding section 1--301 of the uniform commercial code, if
by action of any such dominant authority which is not recognized by the
United States as the de jure government of the foreign territory
concerned, any property situated in or any amount to be received in such
foreign territory and carried as an asset of any office of such foreign
banking corporation in such foreign territory is seized, destroyed or
cancelled, then the liability, if any, in this state of such foreign
banking corporation for any deposit theretofore received and thereafter
to be repaid by it, and for any contract theretofore made and thereafter
to be performed by it, at any office in such foreign territory shall be
reduced pro tanto by the proportion that the value (as shown by the
books or other records of such foreign banking corporation, at the time
of such seizure, destruction or cancellation) of such assets bears to
the aggregate of all the deposit and contract liabilities of the office
or offices of such foreign banking corporation in such foreign
territory, as shown at such time by the books or other records of such
foreign banking corporations. Nothing contained in this paragraph shall
diminish or otherwise affect the liability of any such foreign banking
corporation to any corporation, firm or individual which at the time of
such seizure, destruction or cancellation was incorporated or resident
in any state of the United States.

(c) Notwithstanding the provisions of any law to the contrary, a
foreign banking corporation operating a branch or branches or an agency
or agencies in this state shall not be required to repay, at any such
branch, branches, agency or agencies in this state, any deposit made at
a foreign office of any such foreign banking corporation if such office
cannot repay the deposit due to (i) an act of war, insurrection, or
civil strife; or (ii) an action by a foreign government or
instrumentality, whether de jure or de facto, in the country in which
the office is located preventing such repayment, unless the foreign
banking corporation operating in this state has expressly agreed in
writing to repay the deposit under such circumstances. The
superintendent of financial services may promulgate regulations
necessary to effectuate the provisions of this paragraph, including
regulations providing for adequate disclosure to retail depositors in
the United States of the restrictions on repayment contained in this
subdivision. The provisions of this paragraph shall not alter or
diminish the liability of a custodian of assets of a fund under section
one hundred seventy-eight-a of the retirement and social security law.