2023 New York Laws › BNK - Banking › Article 8-A - Safe Deposit Business › 335 - Special Remedies Where Rental of Safe Deposit Box Is Not Paid or When Safe Deposit Box Is Not Vacated on Termination of Lease.

§ 335.  Special  remedies where rental of safe deposit box is not paid
or when safe deposit box is not vacated on termination of  lease.  Every
lessor shall be entitled to the following special remedies:
1. (a) If the amount due for the rental of any safe deposit box let by
any  lessor  shall  not  have  been  paid for one year, or if the lessee
thereof shall not have removed the contents thereof within  thirty  days
from the termination of the lease therefor for any reason other than for
non-payment  of  rent, the lessor may, at the expiration of such period,
send to the lessee of such safe deposit box by registered  or  certified
mail, return receipt requested, a notice in writing in a securely closed
postpaid  letter,  directed to such person at his last known post-office
address, as recorded upon the books of the lessor, notifying such lessee
that if the amount due for the rental of such safe deposit  box  is  not
paid  within  thirty  days from date, and/or if the contents thereof are
not removed within thirty days from date, the lessor may,  at  any  time
thereafter,  cause  such safe deposit box to be opened, and the contents
thereof to be inventoried and removed from such safe deposit box.
(b) At any time after the expiration of thirty days from the  date  of
mailing  such  notice, and the failure of the lessee of the safe deposit
box to pay the amount due for the rental thereof to the date of payment,
and/or remove the contents thereof, the lessor may, in the presence of a
notary public and of any officer of the lessor or any other employee  of
the  lessor  designated  for such purpose by the lessor, cause such safe
deposit box to be opened, and  the  contents  thereof,  if  any,  to  be
removed  and  inventoried. Such contents shall be retained by the lessor
for safe-keeping for a period of not less than two years  unless  sooner
removed  by the lessee of the safe deposit box so opened. The charge for
such safe-keeping shall not exceed  the  original  rental  of  the  safe
deposit  box  so  opened. The notary public shall file with the lessor a
certificate under seal, which shall  fully  set  out  the  date  of  the
opening  of  such  safe deposit box, the name of the lessee of such safe
deposit box and a list of the contents, if any.
(c) A copy of such certificate shall within ten days after the opening
be mailed by registered or certified mail, return receipt requested,  to
the  lessee  of  the  safe  deposit  box  so  opened,  at his last known
post-office address, in a securely closed postpaid letter, together with
a notice that the contents will be kept, at the expense of  the  lessee,
by  the lessor for a period of not less than two years. Upon the payment
of all rentals due at the time of the opening of the safe  deposit  box,
the  cost  of  the  opening  thereof,  the fees of the notary public for
issuing his certificate thereon, and the payment of all further  charges
and costs of safe-keeping such contents for the period since the opening
of  the safe deposit box, the lessee may require the delivery of such of
the contents set out in such certificate as have not been sold  pursuant
to  paragraph (d) of this subdivision or destroyed pursuant to paragraph
(f) of this subdivision, or become abandoned property.
(d) At any time after the expiration of two years  from  the  time  of
mailing  the  certificate  herein  provided  for, the lessor may mail by
registered or certified mail, return receipt requested,  in  a  securely
closed  postpaid  letter,  addressed  to  the  lessee  at his last known
post-office address, a notice stating that the lessor will sell all  the
property or articles of apparent value set out in such certificate, at a
time  and  place  stated in such notice, not less than thirty days after
the time of mailing such notice and stating the amount which shall  have
then  been  due  for  rental up to the time of opening such safe deposit
box, the cost of the opening thereof, the fees of the notary public  for
issuing  his  certificate  thereon  and the further charges and costs of
safe-keeping all of its contents for the period since the opening of the

safe deposit box. Unless the lessee shall  pay  on  or  before  the  day
mentioned  all  such  sums and all the charges and costs accruing to the
time of payment, including advertising, the  lessor  may  sell  all  the
property  or  articles of apparent value set out in such certificate, at
public auction, at the time and place stated in such notice, provided  a
notice  of the time and place of sale has been published once within ten
days prior to the sale, in a newspaper published in the place where  the
sale is to be held or, if there be no newspaper published in such place,
then  in a newspaper published in the same or in an adjoining county and
in general circulation in the place where the sale is to be held.
(e) From the proceeds of the sale, the lessor  shall  deduct  all  its
charges  and  costs  as stated in such notice, together with any further
charges and costs that shall have accrued  since  the  mailing  thereof,
including  reasonable  expenses  for  notice,  advertising and sale. The
balance, if any, may be used to pay from time to time the further  costs
and  charges  of safe-keeping and destroying the other contents, if any,
of the safe deposit box. Unless sooner claimed by the lessee of the safe
deposit box so opened, such balance or such part as shall  remain  after
the  payment  of  such  further  charges  and  costs  shall,  after  the
expiration of three years from the time  of  the  opening  of  the  safe
deposit  box,  be deemed abandoned property subject to the provisions of
article three of the abandoned property law.
(f) Any documents, letters or other papers of a private nature and any
property or articles of no apparent value among the contents of any such
safe deposit box shall not be sold, but shall be retained by the  lessor
for  a  period of at least ten years from the time of the opening of the
safe deposit box, and, unless sooner claimed by the lessee of  the  safe
deposit box, may thereafter be destroyed.
(f-1)  Any  military awards, medals, or decorations among the contents
of any safe deposit box shall not be sold, but  shall  be  sent  to  the
division of military and naval affairs of the executive department where
such awards, medals, or decorations shall be retained indefinitely until
claimed  by the lessee of the safe deposit box or the lessee's estate or
released to a person or entity lawfully entitled to possession  thereof.
The   state   comptroller   shall  develop  regulations  specifying  the
procedures and requirements for delivering such items to the division of
military and naval affairs and for reporting  such  information  to  the
state  comptroller's  office.  The  New  York  state military museum and
veterans research center under  the  jurisdiction  of  the  division  of
military  and  naval  affairs  of the executive department shall provide
storage for and shall display any such awards, medals, or decorations.
(g) United States coin or currency among  the  contents  of  any  safe
deposit box so opened need not be sold, but may be used by the lessor to
pay  the  amount  which shall have been due for rental up to the time of
opening such safe deposit box, the cost of the opening thereof, the fees
of the notary public for issuing his certificate  thereon,  and  to  pay
from time to time the further charges and costs of safe-keeping, selling
and destroying the contents of the safe deposit box so opened, including
reasonable  expenses  for notices, advertising and sale and destruction.
Unless sooner claimed by the lessee of the safe deposit box,  such  coin
and  currency  or  such  part  as shall remain after payment of the said
charges and costs shall, after the expiration of three  years  from  the
time  of  the  opening  of  the  safe  deposit  box, be deemed abandoned
property subject to the provisions of article  three  of  the  abandoned
property law.
2.  Whenever in subdivision one of this section, a lessor is given the
power to sell the contents of a safe deposit box, such  power  shall  be
deemed  to  include  the  power  to  sell any bonds, stock certificates,

promissory notes, choses in action or other  securities  and  any  other
tangible  and  intangible  properties  found  in  such safe deposit box,
regardless of whether or not it shall appear  from  such  securities  or
properties that the lessee of the safe deposit box possesses title to or
any  interest  in  such  securities,  or  other  properties, or power to
transfer such title or interest.
3. If the principal of or interest  or  dividends  on  any  securities
found  in  a  safe deposit box opened pursuant to the provisions of this
section, is due and payable at the time of  the  opening  of  such  safe
deposit  box  or  thereafter while the same remains in the possession of
the lessor shall  become  due  and  payable,  the  lessor  may,  at  its
election,  collect  such  principal and/or interest and/or dividends and
from the proceeds thereof may deduct all sums due from the lessee of the
safe deposit box for rental to the time of opening such safe deposit box
and for the cost of opening thereof, the fees of the notary  public  for
issuing  his  certificate  thereon, and the further charges and costs of
safe-keeping of the contents  thereof  from  the  time  of  the  opening
thereof  including reasonable expenses for notices, advertising and sale
and destruction.  The balance, if any, of such collection  shall,  after
the  expiration of three years from the time of the opening of such safe
deposit box, be deemed abandoned property subject to the  provisions  of
article three of the abandoned property law.
4. A lessor holding a safe deposit box originally let by a predecessor
in  interest,  or a lessor which has been dissolved, or a lessor holding
the contents of such safe deposit box may have the remedies provided  by
this section as to such safe deposit box or the contents thereof in like
manner  and  to  the  same  extent  as if such safe deposit box had been
rented from such lessor in the first instance.
5. The provisions of this section shall not preclude any other  remedy
by  action  or otherwise for the enforcement of the claims of the lessor
against the person to whom a safe deposit box shall have been  let,  nor
bar  the  right  of  the  lessor to recover the debt due it in any other
lawful manner.