Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Time deposits
§ 378-a. Time deposits. 1. Subject to such regulations and
restrictions as the superintendent of financial services finds to be
necessary and proper, a savings and loan association may contract to
receive time deposits including deposits upon which the savings and loan
association contracts to pay interest at a fixed rate.

2. Any time deposit made by or in the name of any minor shall be held
for the exclusive right and benefit of such minor, and free from the
control or lien of all other persons, except creditors, and shall be
paid together with interest credited thereon, to the person in whose
name the deposit shall have been made. The receipt or acquittance of
such minor shall be a valid and sufficient release and discharge to the
association for any payment so made. When any time deposit shall be made
by any person in trust for another, including a minor, and no other or
further notice of the existence and terms of a legal and valid trust
shall have been given in writing to the association, in the event of the
death of the trustee, the deposit, together with the interest credited
thereon, may be paid to the person for whom the deposit was made. The
receipt of acquittance of such person shall be a valid and sufficient
release and discharge to the association for any payment so made.

3. The repayment of time deposits made with any association and any
interest credited thereto, shall be subject to the provisions of this
chapter and to rules and regulations made in accordance therewith. Any
such regulations adopted by the board of directors shall be posted in a
conspicious place in the office or offices of such association, and
shall be available to depositors upon request. All such rules and
regulations, from time to time in effect, and all amendments thereto,
from time to time in effect, shall be binding upon all depositors.

4. Notice to any association of an adverse claim to a time deposit
standing on its books to the credit of any person shall not be effectual
to cause such association to recognize such adverse claimant unless he
shall also either procure a restraining order, injunction or other
appropriate process against such association from a court of competent
jurisdiction in a cause therein instituted by him wherein the person to
whose credit the deposit stands or his executor or administrator is made
a party and served with summons, or shall execute to such association,
in form and with sureties acceptable to it a bond, indemnifying such
association from any and all liability, loss, damage, costs and
expenses, for and on account of the payment of such adverse claim or the
dishonor of the order of the person to whose credit the deposit stands
on the books of such association; provided, that this section shall not
apply in any instance where the person to whose credit the deposit
stands is a fiduciary for such adverse claimant, and the facts
constituting such relationship, and the facts showing reasonable cause
for belief on the part of such claimant that such fiduciary is about to
misappropriate such deposit, are made to appear by the affidavit of such

5. (a) In all actions against any association to recover a time
deposit, if there be any person or persons, not parties to the action,
who claim the same fund, the court in which the action is pending may,
on the petition of such association, and upon eight days' notice to the
plaintiff and such claimants, and without proof as to the merits of the
claim, make an order amending the proceedings in the action by making
such claimants parties defendants thereto; and the court shall thereupon
proceed to determine the rights and interests of the several parties to
the action in and to such funds. The remedy provided in this section
shall be in addition to and not exclusive of that provided in any other
interpleader provision.

(b) The time deposit which is the subject of such an action may remain
with such association to the credit of the action until final judgment
therein, and be entitled to the same interest as other deposits of the
same class, and shall be paid by such association in accordance with the
final judgment of the court; or the deposit in controversy may be paid
into court to await the final determination of the action, and when the
deposit is so paid into court such association shall be struck out as a
party to the action, and its liability for such deposit shall cease.

(c) The costs in all actions against an association to recover
deposits shall be in the discretion of the court, and may be charged
upon the fund affected by the action.

7. Subject to any regulations and restrictions prescribed by the
superintendent of financial services, a savings and loan association may
accept time deposit without the issuance of a passbook in connection
therewith, and may issue such other evidences of its obligation to repay
such time deposits as may be appropriate to safeguard the interests of
the depositors and of the savings and loan association.