US Laws, Codes, Statutes & Cases

 
  § 1218. Special  provisions  relating  to actions or special proceedings
            against foreign corporations.
    (a)  In any action or special proceeding  brought  against  a  foreign
  corporation under this article, the following provisions shall apply:
    (1)    Service  of  the  summons in such action may be made personally
  within the state of New York, by delivery of the same to any officer  or
  director  of  the  corporation,  or  by publication pursuant to an order
  obtained as hereinafter provided.
    (2)  An order directing service by publication of the summons shall be
  made upon application of a plaintiff in any such  action  and  shall  be
  founded  upon  a  verified  complaint,  alleging that the defendant is a
  foreign corporation and has or may have or may be  entitled  to  assets,
  credits,  choses  in  action  or  other property, tangible or intangible
  within  the  state  and  that  such  corporation  has  been   dissolved,
  nationalized  or  that its authority or existence has been terminated or
  cancelled in the jurisdiction of  its  incorporation,  or  that  it  has
  ceased  to  conduct  its activities, and upon an affidavit reciting that
  personal service of the summons cannot be effected within the state with
  due diligence and that a temporary receiver of its property  within  the
  state  of  New  York has been appointed pursuant to this article in such
  action and that a copy of the order appointing  the  receiver  has  been
  served  personally  by or on behalf of such receiver upon a person, firm
  or corporation holding property, tangible or  intangible,  of  the  said
  foreign  corporation, or against whom a claim or demand in favor of such
  foreign corporation exists and that demand therefor has been  made  upon
  such person, firm or corporation by or on behalf of such receiver.
    (3)    The  order  directing  service of the summons shall require the
  publication thereof in a newspaper published in the state of New York in
  the English language at least once a week for four successive weeks, and
  shall also require the mailing on  or  before  the  date  of  the  first
  publication  of  a  copy  of  the  summons,  complaint  and order to the
  corporation at its last known principal or head office in the  state  or
  country of its incorporation.
    (4)   In any such action, the summons shall be served personally or an
  order directing service thereof by publication shall be obtained and the
  first publication thereof made within sixty days after  the  appointment
  of  the  temporary  receiver,  and if served by publication, the service
  shall be made complete by the continuance thereof.
    (5)  If served by publication, service of the summons shall be  deemed
  complete  on  the  date  of  the last publication.   The action shall be
  deemed commenced upon the issuance of the summons.  The order appointing
  the receiver and the papers upon which the  same  is  granted  shall  be
  filed  in  the  office  of  the  clerk  of the court where the action is
  triable within ten days after the order is made.
    (6)  In the event that the defendant  defaults  in  answering,  or  if
  after  a  trial  the court is satisfied that the defendant has ceased to
  conduct its activities by reason of any thing or matter  whatsoever,  or
  that  it has been dissolved, nationalized, or its authority or existence
  has been otherwise terminated or cancelled, the  court  shall  thereupon
  direct  judgment,  appointing  a  permanent  receiver  and directing the
  receiver  to  liquidate  the  assets,  credits,  choses  in  action  and
  property,  tangible and intangible, in the state of New York of the said
  defendant, in the manner provided in this article.
    (7)   The  time  between  the  cessation  of  its  activities  by  the
  corporation  or its dissolution or nationalization or the termination or
  cancellation of its authority or existence  and  the  appointment  of  a
  receiver  in  this  state  pursuant  to  this article, whichever time is
  longer, plus three years after such appointment, shall not be a part  of
  the  time limited by domestic or foreign laws for the commencement of an
  action or for the assertion of a claim therein by or  on  behalf  of  or
  against  said corporation or by or against said receiver, whether or not
  said  action  or  claim  has  heretofore  been  barred by any statute of
  limitations of this state or of any other state or country.
    (8)   The existence of  and  causes  of  action  of  or  against  such
  corporation existing at the time of its dissolution, nationalization, or
  the  termination  or  cancellation  of  its  authority  or existence, or
  arising thereafter, shall  not  be  deemed  ended,  abated  or  affected
  thereby,  nor  shall actions brought by or against such corporation or a
  receiver appointed hereunder or any remedy therein  be  deemed  to  have
  ended  or abated or to have been affected by reason of such dissolution,
  nationalization, or termination or  cancellation  of  its  authority  or
  existence.    This  provision  shall apply to all property, tangible and
  intangible, debts, demands, and choses in  action  of  such  corporation
  within  the  state  of  New  York,  and  to all litigation heretofore or
  hereafter brought in the courts of the state or of the United States  to
  which  the  corporation  or  the  receiver of said corporation appointed
  pursuant to the provisions of this article is a  party.    Any  receiver
  appointed  pursuant to the provisions of this article may be substituted
  for such corporation in any action or proceeding pending in  the  courts
  of  the  state  or  of  the United States to which such corporation is a
  party and may intervene in any action or proceeding which relates to  or
  affects  any  of  the assets or claims of the corporation and revive any
  action which shall have heretofore or which may hereafter  have  abated,
  and such dissolution, nationalization, or termination or cancellation of
  its  authority or existence in the jurisdiction of its incorporation, or
  any confiscatory law or decree thereof, shall not be deemed to have  any
  extra-territorial  effect  or  validity  as to the property, tangible or
  intangible, debts, demands or  choses  in  action  of  such  corporation
  within  the  state or any debts or obligations owing to such corporation
  from persons,  firms  or  corporations  residing,  sojourning  or  doing
  business  in  the state.  Nothing contained in this subdivision shall be
  deemed to validate claims for or causes of action or actions to  recover
  property   located   in   or  moneys  payable  in  the  jurisdiction  of
  incorporation  which  are  unenforceable  under   the   laws   of   such
  jurisdiction.
    (9)   If any receiver or trustee has heretofore been appointed in this
  state for such corporation or its property in any action or  proceeding,
  either  before or supplementary to judgment, otherwise than in an action
  brought pursuant to this  article,  such  receiver  or  trustee  may  be
  appointed or continued as the receiver in any action brought pursuant to
  the provisions of this article.
    (10)    The appointment of a receiver or the pendency of an action for
  the appointment of such receiver, shall until  such  receiver  shall  be
  discharged  or  until such action shall have terminated, be a bar to any
  subsequent application or action for the appointment of  a  receiver  of
  the assets of the same corporation.
    (11)    An  action  shall  be  commenced  within  three years from the
  discovery by the plaintiff or his predecessor in interest, of any  asset
  of said corporation in the state of New York.