N.Y. Banking Law § 171 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 Territory

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Banking Law § 171

1. 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 in whose name the deposit shall have been made, and the receipt or acquittance of such minor shall be a valid and sufficient release and discharge for such deposit or any part thereof to the private banker.

4. A private banker 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 his books to the credit of, or held by him for the account of, any person, corporation, unincorporated association or partnership, which claim conflicts with a claim of authority of which the private banker had prior notice, unless the person or persons asserting such subsequent claim shall procure a restraining order, injunction or other appropriate process against said private banker from a court of competent jurisdiction in the United States, or, in lieu thereof, with the consent of said private banker, shall execute to said private banker, in form and with sureties acceptable to him, a bond, indemnifying him for any and all liability, loss, damage, costs and expenses for or on account of any payment or delivery of such property by him 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 private banker 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 private banker of an adverse claim to any property, or to a deposit of cash or securities standing on his books to the credit of, or held for the account of, any person shall not be effectual to cause said private banker to recognize said adverse claimant unless said adverse claimant shall also either procure a restraining order, injunction or other appropriate process against said private banker 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 private banker, in form and with sureties acceptable to him a bond, indemnifying said private banker 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, or for whose account the property or deposit is held, on the books of said private banker.