NY Banking L § 202-H (2021)
2021 New York Laws BNK - Banking Article 5 - Foreign Banking Corporations and National Banks 202-H - Repayment of Deposits Standing in the Names of Minors, Trustees, Joint Depositors or Custodians; Interpleader in Certain Actions.

§  202-h.  Repayment  of  deposits  standing  in  the names of minors, trustees,  joint  depositors  or  custodians;  interpleader  in  certain actions.  1.  Any minor may endorse a check payable to his order for the purpose of depositing the proceeds in a  deposit  in  his  name  with  a branch  in  this  state  of  a  foreign banking corporation and when any deposit shall be made by or in the name of any minor, the same 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 the interest thereon to the person or upon the order by check or otherwise of the person in  whose  name  the  deposit  shall stand,  and  the  receipt, acquittance or order of payment of such minor shall be a valid and sufficient release and discharge for  such  deposit or any part thereof to the foreign banking corporation.   4.  (a)  In  all  actions  against  any foreign banking corporation to recover for moneys on deposit with a branch thereof in  this  state,  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 foreign  banking  corporation,  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 defendant 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 any other interpleader provision.  (b) The funds on deposit which are the subject of such an  action  may remain with such foreign banking corporation 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  foreign banking  corporation 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 foreign banking corporation 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 a foreign banking corporation to recover deposits shall be in the discretion of the  court,  and  may  be charged upon the fund affected by the action.   5.  Deposits  by custodian for a minor under part six of article seven of the estates, powers and trusts law.  When  any  deposit  of  cash  or securities  shall  be  made  with  a  branch  in this state of a foreign banking corporation by a person purporting to act  as  custodian  for  a minor  under part six of article seven of the estates, powers and trusts law or under a similar law of another state, the deposit  together  with any  interest  or dividends credited thereon may be paid or delivered to or upon the order of such person, or his successor as custodian, or to a minor upon the minor's attaining either  eighteen  years  or  twenty-one years,  as  provided in accordance with part six of article seven of the estates, powers and trusts law, if no custodian is acting at the time of such payment or delivery, and any  receipt  or  order  of  such  person, successor  or  minor shall be valid and sufficient release and discharge of the depositary for any payment or delivery  so  made.  No  depositary dealing with a person purporting to act as a custodian for a minor under said  article  shall be bound to inquire into any facts bearing upon the designation of such person as such custodian  or  the  propriety  of  or authority  for any act of such person under said article or otherwise or the age of the person designated as a  minor.  No  depositary  shall  be liable for any act performed pursuant to the instruction or direction of any  person purporting to act as custodian under said article unless the  depositary has actual knowledge that such act,  or  the  instruction  or direction therefor, constitutes a breach of such person's obligations as such  custodian,  or  unless  the  depositary  performs  such  act  with knowledge  of  such  facts  that  acting pursuant to such instruction or direction amounts to bad faith.