2023 New York Laws › BNK - Banking › Article 5 - Foreign Banking Corporations and National Banks › 202-H - Repayment of Deposits Standing in the Names of Minors, Trustees, Joint Depositors or Custodians; Interpleader in Certain Actions.

§  202-h.  Repayment  of  deposits  standing  in  the names of minors,
trustees,  joint  depositors  or  custodians;  interpleader  in  certain
actions.  1.  Any minor may endorse a check payable to his order for the
purpose of depositing the proceeds in a  deposit  in  his  name  with  a
branch  in  this  state  of  a  foreign banking corporation 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 foreign banking corporation.
4.  (a)  In  all  actions  against  any foreign banking corporation to
recover for moneys on deposit with a branch thereof in  this  state,  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 foreign  banking  corporation,  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 any other
interpleader provision.
(b) The funds on deposit which are the subject of such an  action  may
remain with such foreign banking corporation 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  foreign
banking  corporation 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 foreign banking corporation 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 foreign banking corporation to
recover deposits shall be in the discretion of the  court,  and  may  be
charged upon the fund affected by the action.
5.  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  with  a  branch  in this state of a foreign
banking corporation 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.