NY Banking L § 615 (2021)
2021 New York Laws BNK - Banking Article 13 - Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation 615 - On Taking Possession, Superintendent Shall Notify Those Holding Assets; Effect of Notification; Turnover of Assets and Payment of Debts Owed to the Ba

§ 615. On taking possession, superintendent shall notify those holding   assets;  effect of notification; turnover of assets and payment of debts   owed to the banking organization. When  the  superintendent  shall  take   possession of the property and business of any banking organization:1.  The superintendent shall forthwith give notice of such fact to all   corporations, unincorporated  associations,  partnerships,  governmental   entities  and  other  entities  and individuals known to him to hold any   assets of such  banking  organization.  No  corporation,  unincorporated   association,   partnership,  governmental  entity  or  other  entity  or   individual having notice or knowledge that the superintendent has  taken   possession of such banking organization, shall have a lien or charge for   any  payment,  advance  or  clearance thereafter made against any of the   assets of such banking organization for liability thereafter incurred.2. Upon the written demand of  the  superintendent,  any  corporation,   unincorporated  association,  partnership,  governmental entity or other   entity or individual holding assets of such banking  organization  shall   deliver  such  assets  to  the  superintendent  and  shall  thereupon be   discharged from liability with respect to any claim  upon  such  assets;   provided,  however  that  such  demand  shall  not affect the right of a   secured creditor with a perfected security interest, or other valid lien   or security  interest  enforceable  against  third  parties,  to  retain   collateral,  including  any  right  of  such  secured creditor under any   security arrangement related  to  a  qualified  financial  contract,  as   defined  in  section  six  hundred  eighteen-a of this article to retain   collateral and apply such collateral in accordance with paragraph (d) of   subdivision two of section  six  hundred  eighteen-a  of  this  article.   Nothing in this section shall affect any right of setoff permitted under   applicable   law;   provided,  however,  that  in  connection  with  the   liquidation of a branch or  agency  of  a  foreign  banking  corporation   pursuant  to  this  article,  no  entity  or  individual may set off the   business and property in this state of such foreign banking  corporation   described  in  subparagraph  one of paragraph (c) of subdivision four of   section six hundred six of this  article  against  liabilities  of  such   foreign   banking  corporation  other  than  those  that  arise  out  of   transactions had by such entity or individual with such branch or agency   (which liabilities shall be deemed to include in the case  of  qualified   financial  contracts  the  lesser  of  the  two  amounts calculated with   respect to any such qualified financial contract pursuant  to  paragraph   (c)  of  subdivision  two  of  section  six  hundred  eighteen-a of this   article) and provided that such setoff is  otherwise  permissible  under   applicable law.