NY Banking L § 134 (2021)
2021 New York Laws BNK - Banking Article 3 - Banks and Trust Companies 134 - Repayment of Deposits Standing in the Names of Minors, Trustees or Joint Depositors; Repayment Where Adverse Claim Is Asserted; Interpleader in Certai

§ 134. Repayment of deposits standing in the names of minors, trustees or   joint  depositors;  repayment  where  adverse  claim  is  asserted; interpleader in certain actions; effect of claims or advices originating in, and statutes, rules or regulations purporting  to  be  in  force  in occupied  territories. 1.   Any minor may endorse a check payable to his order for the purpose of depositing the proceeds in  a  deposit  in  his name  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  bank  or  trust company.   4.  A bank or trust company need not 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 bank or trust company had prior notice, unless the person or persons asserting  such  subsequent  claim  shall  procure  a restraining order, injunction or other appropriate  process  against  said  bank  or  trust company from a court of competent jurisdiction in the United States, or, in  lieu  thereof, with the consent of said bank or trust company, shall execute to said bank  or  trust  company,  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 bank or trust company already had notice at the time the subsequent conflicting  claim  of  authority  is  asserted by the person or persons furnishing such bond.   5. Notice to any bank or trust company of  an  adverse  claim  to  any property, or to a deposit of cash or securities standing on its books to the  credit  of,  or  held  for  the account of, any person shall not be effectual to cause said bank or trust company to recognize said  adverse claimant  unless  said  adverse  claimant  shall  also  either procure a restraining order, injunction or other appropriate process against  said bank  or  trust  company  from  a court of competent jurisdiction in the United States in a cause therein instituted by him wherein the person to whose credit the deposit stands, or for whose account  the  property  or deposit  is  held,  or his executor or administrator is made a party and served with summons, or shall execute to said bank or trust company,  in form  and  with sureties acceptable to it a bond, indemnifying said bank or trust company 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 check or other  order  of  the person  to  whose credit the deposit stands on the books of said bank or trust company or for whose account the property or deposit  is  held  by said bank or trust company.   6. (a) In all actions against any bank or trust company to recover for moneys  on  deposit  therewith,  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 bank or trust company, 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 that provided in any other interpleader provision.  (b) The funds on deposit which are the subject of such an  action  may remain with such bank or trust company 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  bank  or  trust company  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 bank or trust company 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  bank  or  trust  company  to recover  deposits  shall  be  in the discretion of the court, and may be charged upon the fund affected by the action.   7. (a) A bank or trust company need not recognize or give  any  effect to  (1)  any  claim  to a deposit of cash, securities, or other property standing on its books to the credit of, or 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 bank or trust company  as  authorized  to withdraw  or otherwise dispose of cash, securities, or other property of such corporation, firm or association, unless such bank or trust company 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 bank or trust company, 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.   9. 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 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.