NY Banking L § 656 (2021)
2021 New York Laws BNK - Banking Article 13-C - State Transmitter of Money Insurance Fund 656 - Claims Against the Fund.

§ 656.  Claims  against  the  fund.  1. If an uninsured transmitter of   money  has  defaulted  in  making  payment  on  any  of  its  New   York   instruments,  the  superintendent  shall  give notice of such default to   purchasers and holders of such instruments.  Such notice may be given by   means  of  publication  in  such  newspaper   or   newspapers   as   the   superintendent  may  direct  and  by  such  other  means, if any, as the   superintendent may determine to be reasonable and  necessary  under  the   circumstances.   The determination of the superintendent as to the means   of notice  shall  be  conclusively  presumed  reasonable  if  notice  is   published  in  such  newspaper  or newspapers for five consecutive days.   Such notices shall request purchasers and holders  of  such  instruments   who  wish  to file claims against the fund to present such claims to the   superintendent and to file proper proof thereof  within  the  period  of   time  set  forth  in  the  notice and at a place specified therein. Such   notice may limit the period of time within which claims may be filed  to   a  period  of time no less than ten business days from the final date of   notice.   Claimants shall file their  claims  in  the  form  and  manner   prescribed by the superintendent and shall make proof thereof and of the   loss  actually  suffered  by  such  claimants to the satisfaction of the   superintendent. The superintendent shall examine the  claims  so  filed,   determine  the  amount due upon such claims and certify, in writing, the   amount due each claimant, whereupon payment by the fund to the  claimant   shall  be  made  as  provided for in this article. In any case where the   superintendent is not satisfied as to the allowability of a claim or  if   he  has  notice  of  an  adverse  claim  with  respect  to such New York   instrument, he may  require  the  final  determination  of  a  court  of   competent  jurisdiction  before  certifying such claim. Whoever, for the   purpose of obtaining payment on any insured New York instrument, or  the   payment  of  any  claim,  makes any statement knowing it to be false, or   willfully  overvalues  any  claim,  shall  be  guilty  of  a   Class   A   misdemeanor.2.  The  payment  by  the  fund  to  the  claimant shall constitute an   assignment, by operation of law, of all rights which  the  claimant  has   with  respect  to  the New York instrument, including all rights, claims   and interests in property which the claimant could have asserted against   the  transmitter  of  money  or  its  property  or  otherwise,  and  all   recoveries  which he would have been entitled to under the provisions of   section six hundred forty-three of this chapter, provided  that  if  any   portion  of  such New York instrument is uninsured by virtue of the fact   that it exceeds the maximum amount of insurance provided for by  section   six  hundred fifty-five of this article or otherwise, the claimant shall   retain all of his rights with respect to the uninsured portion  of  such   instrument.