NY Banking L § 154 (2021)
2021 New York Laws BNK - Banking Article 3-B - Subsidiary Trust Companies 154 - Transfer of Fiduciary Relationships From Affiliated Banks or Trust Companies to Subsidiary Trust Companies.

§ 154.  Transfer  of  fiduciary relationships from affiliated banks or trust companies to subsidiary trust companies. 1. (a)  At  any  time  or times   after   the   issuance  to  it  by  the  superintendent  of  the authorization certificate specified in article two of  this  chapter,  a subsidiary  trust  company may apply by verified petition to the supreme court, special term, in and for the county in which its principal office is located requesting that it be substituted for each of its  affiliated banks or trust companies specified in the petition (i) in every existing fiduciary  capacity designated therein and (ii) in the case of the first such petition, in every fiduciary capacity which may take  effect  after the  date  of  the  hearing  provided  for  below.  Each  such specified affiliated bank or trust company shall join in such petition. Notice  of the  filing  of such petition shall be given prior to the filing thereof to the superintendent.  (b) Such petition shall indicate  the  county  wherein  the  principal office  of each affiliated bank or trust company joining in the petition is located and shall designate each fiduciary relationship  existing  at the  date  thereof  with  respect to which such subsidiary trust company requests substitution. Such petition shall additionally set forth,  with regard  to  each existing fiduciary relationship designated therein, the name and address last known to the petitioner of each person entitled to receive notice of hearing thereon, to wit:  (i) in the case where an affiliated bank or trust company specified in the petition is acting with one or more cofiduciaries in respect to such fiduciary relationship, each such cofiduciary; and  (ii)  in  the  case  where  the  instrument  creating  such  fiduciary relationship  so  provides,  each  person  who,  alone  or together with others, is empowered to revoke, terminate or amend such instrument or to remove the corporate fiduciary; and  (iii) in the case of  any  fiduciary  relationship  not  specified  in subparagraph   (ii)   of  this  paragraph,  each  beneficiary  currently receiving income and any other beneficiary interested in the income  and any person presumptively entitled to share in distributions of principal were  such  fiduciary  relationship  terminated  at  the  date  of  such petition; and  (iv) in the  case  of  any  fiduciary  relationship,  including  those specified  in subparagraphs (i), (ii) and (iii) of this paragraph, which is an estate of  a  deceased  person  or  which  is  a  guardianship  or conservatorship,   the   clerk  of  the  court  in  which  such  estate, guardianship or conservatorship  matter  is  pending,  together  with  a statement  that  a  notice  has  been, or is being, given to the persons specified in such subparagraphs. If any  of  the  persons  specified  in subparagraph  (i),  (ii)  or  (iii) of this paragraph is an infant or an incompetent, such notice shall be given to the guardian or committee, as the case may be, of his property. If any  such  infant,  or  incompetent shall not have a guardian or committee to so represent him, or if any of the  persons  specified  in  subparagraph  (i),  (ii)  or  (iii) of this paragraph is incapacitated, unknown (or a person whose  whereabouts  are unknown)  or  confined  as  a prisoner in a penal institution, the court may, in its discretion, appoint  one  or  more  guardians  ad  litem  to represent any one or more of such persons.   2.  When  any  petition  described  in subdivision one of this section shall have been filed, the supreme court  for  the  county  where  filed shall  enter  an order fixing a date and time for hearing thereon, which date shall not be less than thirty-five days after  the  filing  of  the petition, and approving the form of notice to be given by the petitioner as  hereinafter provided. At least twenty-five days prior to the hearing date, the petitioner shall cause a copy of such notice to be  mailed  by  first  class  mail  to  each  person identified in the petition as being entitled to receive notice under the provisions of this article, at such person's address last known to  the  petitioner  as  set  forth  in  the petition.  In addition, the petitioner shall cause a copy of such notice to be published  at  least  once  a  week  for  three  successive  weeks preceding  the  hearing  date, the first such publication to be at least twenty-five days prior to the hearing date, such publication to be in  a newspaper  of  general circulation published in each county in which the principal office of an affiliated bank or trust company specified in the petition is located, or if in any case there be no such newspaper,  then in a newspaper of general circulation published in a contiguous county.   3.  The  notice  to  be mailed and published with respect to each such petition shall state (a) the time and place of the hearing thereon,  (b) the  name  of the subsidiary trust company which has filed the petition, (c) the name of each affiliated bank or trust company which  has  joined in  such  petition,  (d)  that the petition requests that the subsidiary trust company be substituted for each of its affiliated banks  or  trust companies specified in the petition in every existing fiduciary capacity designated  therein  and,  if  appropriate,  in every fiduciary capacity which may take effect after such hearing, and (e)  that  any  person  to whom  such notice is addressed may file an objection as provided in, and in accordance with, subdivision four of this section. All costs incurred in connection with the printing, mailing and publishing of  such  notice shall be borne by the petitioner.   4.  Any person entitled to receive notice under the provisions of this article may, as to the fiduciary relationship by which he  is  affected, object to the substitution of the subsidiary trust company as fiduciary. Any  such  person  wishing to so object must file a written objection to such substitution, setting forth the reasons therefor, with the clerk of the court in which the hearing is to be held, and serve a  copy  thereof upon  the  attorney  for  the petitioner, at least three days before the date of hearing and  must  appear  at  such  hearing  in  person  or  by attorney.   5.  On  the date fixed for the hearing on such petition, upon making a determination that notice has been properly given as  required  by  this section,  the  said  supreme court shall enter an order substituting the subsidiary trust company for each of its specified affiliated  banks  or trust  companies in every designated existing fiduciary capacity and, in the case of the first petition by the  petitioner,  in  every  fiduciary capacity   which   may   take  effect  thereafter,  excepting  fiduciary capacities in  any  existing  relationship  with  respect  to  which  an objection  has been filed pursuant to and in accordance with subdivision four of this  section;  provided,  that  in  the  case  of  a  fiduciary relationship  where  more  than  one person would be entitled under this article to object to substitution of the subsidiary trust  company,  the properly  made  objection  by  less  than  all  of such persons shall be considered by the court which shall, in its sole  discretion,  determine whether  such  substitution  shall  be  so  ordered.  In  the  case of a fiduciary relationship in which an objection has been properly  made  by any  person  who  is entitled pursuant to this article to object to such substitution, the court may,  in  its  discretion,  determine  that  the resignation  of the affiliated bank or trust company will be accepted in respect of such fiduciary relationship; if  the  court  shall  determine that  such  resignation  will  be  accepted,  it  shall  enter  an order substituting  a  different  banking  institution  or  subsidiary   trust company, which shall have given its written consent to such substitution prior  to  the  entry  of  such order. In construing the language of any instrument which is  the  subject  of  a  proceeding  pursuant  to  this  article,  nothing  contained  herein  shall be considered to abrogate or affect the intent or written language of  the  instrument  creating  the fiduciary  relationship. Upon entry of the court's order, the subsidiary trust  company  shall, without further act, be substituted in every such fiduciary capacity.   6. In respect of each fiduciary capacity, existing and future,  as  to which  substitution  has  been  ordered  pursuant  to this article, each designation of  a  petitioning  affiliated  bank  or  trust  company  as fiduciary  in  any  capacity  contained  in  any contract, will or other document or instrument shall be deemed a designation of  the  subsidiary trust  company  substituted  for  such bank or trust company pursuant to this section. Any grant in any such contract, will or other document  or instrument  of any rights, powers, duties or authorities, whether or not discretionary, shall be  deemed  conferred  upon  the  subsidiary  trust company deemed designated as the fiduciary pursuant to this section.   7. Upon substitution pursuant to this section, each affiliated bank or trust  company  shall deliver to the subsidiary trust company all assets held  by  such  trust  company  as  fiduciary  (except  assets  held  in capacities with respect to which there has been no substitution pursuant to this section) and upon such substitution all such assets shall become the  property  of  the subsidiary trust company without the necessity of any instrument of transfer or conveyance. A trust company shall account, in respect of each of its existing fiduciary relationships designated in the petition and as to which a substitution has been ordered under  this section,  for  that  portion  of  the  accounting  period  in which such substitution was ordered ending on the date of  such  order;  thereafter the subsidiary trust company which has been substituted as fiduciary for such  bank  or  trust  company  shall  account  in  respect of each such fiduciary relationship. Notwithstanding any provision in this chapter to the contrary, after a  substitution  of  existing  fiduciary  capacities pursuant  to  this  article,  an  affiliated bank or trust company shall remain jointly liable with the subsidiary trust company which  has  been substituted  for  it  in  respect  of  each  of  the  existing fiduciary relationships as to which such substitution has been ordered,  but  such affiliated  bank  or  trust  company  shall  be  entitled  to a right of subrogation against such subsidiary trust company for all  amounts  paid by  such  affiliated  bank  or  trust  company as a result of such joint liability.