2010 New York Code
BNK - Banking
Article 10 - (375 - 413) SAVINGS AND LOAN ASSOCIATIONS
378-A - Time deposits.

§ 378-a.   Time   deposits.   1.   Subject  to  such  regulations  and
  restrictions as the banking board 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 banks, 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.