2023 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.