2023 New York Laws › BNK - Banking › Article 10 - Savings and Loan Associations › 378-A - Time Deposits.

§ 378-a.   Time   deposits.   1.   Subject  to  such  regulations  and
restrictions as the superintendent of financial  services  finds  to  be
necessary  and  proper,  a  savings and loan association may contract to
receive time deposits including deposits upon which the savings and loan
association contracts to pay interest at a fixed rate.
2. Any time deposit made by or in the name of any minor 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  interest  credited thereon, to the person in whose
name the deposit shall have been made. The  receipt  or  acquittance  of
such  minor shall be a valid and sufficient release and discharge to the
association for any payment so made. When any time deposit shall be made
by any person in trust for another, including a minor, and no  other  or
further  notice  of  the  existence and terms of a legal and valid trust
shall have been given in writing to the association, in the event of the
death of the trustee, the deposit, together with the  interest  credited
thereon,  may  be  paid to the person for whom the deposit was made. The
receipt of acquittance of such person shall be a  valid  and  sufficient
release and discharge to the association for any payment so made.
3.  The  repayment  of time deposits made with any association and any
interest credited thereto, shall be subject to the  provisions  of  this
chapter  and  to rules and regulations made in accordance therewith. Any
such regulations adopted by the board of directors shall be posted in  a
conspicious  place  in  the  office  or offices of such association, and
shall be available to  depositors  upon  request.  All  such  rules  and
regulations,  from  time  to time in effect, and all amendments thereto,
from time to time in effect, shall be binding upon all depositors.
4. Notice to any association of an adverse claim  to  a  time  deposit
standing on its books to the credit of any person shall not be effectual
to  cause  such association to recognize such adverse claimant unless he
shall also either procure  a  restraining  order,  injunction  or  other
appropriate  process  against such association from a court of competent
jurisdiction in a cause therein instituted by him wherein the person  to
whose credit the deposit stands or his executor or administrator is made
a  party  and served with summons, or shall execute to such association,
in form and with sureties acceptable to it  a  bond,  indemnifying  such
association  from  any  and  all  liability,  loss,  damage,  costs  and
expenses, for and on account of the payment of such adverse claim or the
dishonor of the order of the person to whose credit the  deposit  stands
on  the books of such association; provided, that this section shall not
apply in any instance where the  person  to  whose  credit  the  deposit
stands  is  a  fiduciary  for  such  adverse  claimant,  and  the  facts
constituting such relationship, and the facts showing  reasonable  cause
for  belief on the part of such claimant that such fiduciary is about to
misappropriate such deposit, are made to appear by the affidavit of such
claimant.
5. (a) In all actions  against  any  association  to  recover  a  time
deposit,  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 association, 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 defendants 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 time deposit which is the subject of such an action may remain
with  such  association 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 association 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 association 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  an  association  to  recover
deposits  shall  be  in  the discretion of the court, and may be charged
upon the fund affected by the action.
7. Subject to any  regulations  and  restrictions  prescribed  by  the
superintendent of financial services, a savings and loan association may
accept  time  deposit  without  the issuance of a passbook in connection
therewith, and may issue such other evidences of its obligation to repay
such time deposits as may be appropriate to safeguard the  interests  of
the depositors and of the savings and loan association.