NY Banking L § 204-A (2021)
2021 New York Laws BNK - Banking Article 5 - Foreign Banking Corporations and National Banks 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

§ 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.