2023 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.