2023 New York Laws › BNK - Banking › Article 13 - Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation › 629 - Payment of Dividends to Minors, Trustees or Joint Depositors; Payment of Dividends Where Adverse Claim Is Asserted; Interpleader in Certain Actions.

§ 629.  Payment  of dividends to minors, trustees or joint depositors;
payment of dividends where adverse claim is  asserted;  interpleader  in
certain  actions.  1. Where a claim or an account payable in the name of
any minor has been accepted by  the  superintendent,  dividends  thereon
shall be paid to such minor and the receipt or acquittance of such minor
shall   be   a  valid  and  sufficient  release  and  discharge  to  the
superintendent.
5. Notice to the superintendent of an adverse interest in a  claim  or
account  payable  accepted  by  the  superintendent to the credit of any
person shall not be effectual to cause the superintendent  to  recognize
said  adverse  claimant  unless  said adverse claimant shall also either
procure a restraining order, injunction  or  other  appropriate  process
against  said superintendent from a court of competent jurisdiction in a
cause therein instituted by him wherein the person to whose credit  said
claim  or  account payable was accepted or his executor or administrator
is made a party and served  with  summons,  or  shall  execute  to  said
superintendent,  in  form  and  with sureties acceptable to him, a bond,
indemnifying the  superintendent  from  any  and  all  liability,  loss,
damage,  costs  and  expenses,  for  and  on  account  of the payment of
dividends to such adverse claimant.
6. (a) In all actions or proceedings  against  the  superintendent  to
recover  dividends  on  claims or accounts payable accepted, if there be
any person or persons, not parties to the action, who  claim  the  fund,
the  court  in  which  the  action or proceeding is pending, may, on the
motion of the superintendent, make an  order  amending  the  proceedings
making  such  claimants  parties thereto; and the court shall thereafter
proceed to determine the rights and interests of the several parties  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 dividends which are the subject of such an action  may  remain
with the superintendent to the credit of the action until final judgment
therein  and shall not be entitled to interest, and shall be paid by the
superintendent in accordance with the final judgment of  the  court;  or
the  dividends  in controversy may be paid into court to await the final
determination of the action and when the dividend or  dividends  are  so
paid  into  court the superintendent shall be stricken out as a party to
the action and his liability shall cease.
(c) The costs in all actions against  the  superintendent  to  recover
dividends  shall  be  in the discretion of the court, and may be charged
upon the fund affected by the action.
7. In case the  superintendent  is  in  doubt  concerning  the  person
entitled  to  receive  payment of any dividend, or there are conflicting
claims thereto, he may require of the claimant an order of  the  supreme
court authorizing and directing the payment thereof, but for any payment
made  by  him  in good faith, by check or order, payable to the claimant
appearing from the records in his office  to  be  entitled  thereto,  he
shall  be  held  harmless  and  shall  not  be  liable to any subsequent
claimant.