2013 New York Consolidated Laws
BNK - Banking
Article 13 - (600 - 634) MERGER; VOLUNTARY DISSOLUTION; SUPERINTENDENT'S TAKING POSSESSION; REORGANIZATION; LIQUIDATION
617 - Disposition of property held as bailee, or depositary; opening of safe deposit boxes; disposal of contents.

 
    § 617.  Disposition of property held as bailee, or depositary; opening
  of safe deposit boxes; disposal of contents. 1. The superintendent  may,
  after  he  has taken possession of any banking organization, cause to be
  mailed to each person claiming to be, or appearing  upon  the  books  of
  such banking organization to be
    (1) the owner of any personal property in the custody or possession of
  such banking organization as bailee or depositary for hire or otherwise,
  including  the contents of any safe, vault or box theretofore opened for
  non-payment of rental in accordance with the provisions of this chapter,
  or
    (2) the lessee of any safe, vault or box, a notice in writing directed
  by registered mail to such person  at  his  last  address  as  the  same
  appears  on  the books of such banking organization or at his last known
  address if no address appears on such books, notifying  such  person  to
  remove all such property or the contents of any such safe, vault or box,
  within  a  period  stated in said notice, which period shall be not less
  than sixty days from the date of such notice, and further notifying such
  person of the terms and provisions of  this  section.  The  contract  of
  bailment or of deposit for hire, or lease of safe, vault or box, if any,
  between  the  person  to  whom  such  notice  is mailed and such banking
  organization shall cease and determine upon the date for  removal  fixed
  in  such  notice.  Such  person  shall have a claim against such banking
  organization for the amount of the unearned rent  or  charges,  if  any,
  paid  by such person from the date fixed in such notice, if the property
  or contents is removed on or before such  date,  or  from  the  date  of
  actual removal, if the property or contents is removed after such date.
    As  used  herein  the  phrase  "personal  property  in  the custody or
  possession of such banking organization as bailee or depositary for hire
  or otherwise" shall include,  without  limitation,  securities,  whether
  held  in  custody  directly  or  in  book-entry  form  by  such  banking
  organization, its nominee, subcustodian, clearing corporation or similar
  entity.
    2. If such property or contents shall not be removed, and all rent  or
  storage  and  other  charges  theretofore  accrued, if any, shall not be
  paid, within the time fixed by such notice, the superintendent may cause
  such property to be inventoried, or such safe,  vault  or  box,  or  any
  package,  parcel  or  receptacle  in  the  custody or possession of such
  banking organization as bailee or depositary for hire or  otherwise,  to
  be  opened  and  the contents, if any, to be removed and inventoried, in
  his presence or in the presence of a deputy  superintendent,  a  special
  deputy  superintendent,  or  an  examiner and of a notary public, not an
  officer or employee of such banking organization or of the department of
  financial services. Such property or contents shall thereupon be  sealed
  up  by such notary public in a package distinctly marked by him with the
  name of the person in whose name such property or such safe, vault, box,
  package, parcel or receptacle stands upon  the  books  of  such  banking
  organization,  and a copy of the inventory of the property therein shall
  be certified and attached thereto by such notary  public.  Such  package
  may  be  kept by the superintendent in such place as he may determine at
  the expense and risk of  the  person  in  whose  name  it  stands  until
  delivered  to such person or until sold, destroyed or otherwise disposed
  of as hereinafter provided. Such package may, pending final  disposition
  of   its   contents,   be   opened   by  the  superintendent,  a  deputy
  superintendent, special deputy superintendent or examiner, from time  to
  time  for  inspection  or  appraisal, or to enable the superintendent to
  exercise any of the powers conferred or duties imposed upon him by  this
  article.  Whenever  such  package  is opened, the superintendent, deputy
  superintendent, special deputy superintendent or examiner, shall endorse

  on the outside of said package the date of opening and  re-sealing,  and
  shall  prepare an affidavit which shall be attached thereto, showing the
  reason for opening and the  articles,  if  any,  removed  therefrom,  or
  placed or replaced therein.
    3.  At any time prior to the sale, destruction or other disposition of
  the contents thereof, the person in whose name such package  stands  may
  require  the  delivery  thereof  upon  payment  of all rental or storage
  charges accrued, and all other charges or expenses paid or  incurred  to
  the  date  of  delivery  with  respect  to  such package or the contents
  thereof,  including  the  cost  of  inventorying  or  of   opening   and
  inventorying,  the  fees of the notary public, the cost of preparing and
  mailing the notice, and advertising, if any. In case the  superintendent
  is  in  doubt concerning the person entitled to receive such package, or
  there are conflicting claims thereto, he may require of the claimant  an
  order  of  the  supreme  court  authorizing  and  directing the delivery
  thereof, but for any delivery or transfer made by him in good  faith  to
  the  claimant  appearing  from  the records in his office to be entitled
  thereto, he shall be held harmless  and  shall  not  be  liable  to  any
  subsequent  claimant.  If  the  principal  of,  or  interest, income, or
  dividends on any bonds, stock certificates, promissory notes, choses  in
  action  or other securities contained in such package, is or becomes due
  and payable while it is in the possession of the superintendent, he  may
  at  his  election collect such principal, interest, income or dividends,
  and from the proceeds thereof may deduct all such sums  due  for  rental
  and  other  charges,  until the time of such collection. The balance, if
  any, of the amount or amounts so collected shall be disposed of  by  the
  superintendent as hereafter in subdivision five provided.
    4.  After  the  expiration  of  one  year from the time of mailing the
  notice in subdivision one hereof described, the superintendent may apply
  to the supreme court for an order authorizing him to  sell,  destroy  or
  otherwise dispose of the contents of such package. In a proper case, the
  court  shall  make  such order upon such terms and conditions as justice
  may require. The application for an order of the supreme court  pursuant
  to  this  subdivision  shall  be made upon an order to show cause, which
  shall provide that notice thereof to  the  person  in  whose  name  such
  package  stands and to any other person claiming or appearing to have an
  interest therein, shall be published, mailed  or  given  in  such  other
  manner  as the court may prescribe. Whenever, pursuant to the provisions
  of this subdivision, the superintendent is given the power to  sell  the
  contents  of  any package, such power to sell shall be deemed a power to
  sell in satisfaction of a lien for  non-payment  of  rental  or  storage
  charges  accrued, and all other charges and expenses paid or incurred to
  the date of sale with respect to such package and the contents  thereof,
  including  the  charges  and  expenses  described  in  subdivision three
  hereof. Such power to sell, or the power to destroy or otherwise dispose
  of, when authorized pursuant to  the  provisions  of  this  subdivision,
  shall  be  deemed  to  include  the  power to sell, destroy or otherwise
  dispose  of,  as  the  case  may  be,  any  bonds,  stock  certificates,
  promissory  notes,  choses in action, or other securities, and any other
  tangible or intangible property contained in any package, regardless  of
  whether  or  not it shall appear from such securities or properties that
  the person in whose name the  package  stands,  possesses  title  to  or
  interest  in  such  securities or other properties, or power to transfer
  such title or interest, and any sale of such securities  or  properties,
  pursuant  to  this  subdivision,  shall  vest  good title thereto in the
  purchaser thereof.
    5. From the proceeds of any sale, the superintendent shall deduct  all
  rental  or  storage  charges accrued, and all other charges and expenses

  paid or incurred to the date of sale, including the charges and expenses
  described in subdivision three hereof, and the  expenses  of  sale.  The
  balance  of  such  proceeds,  if any, shall be credited to the person in
  whose name such package stood and shall be paid over to such person, his
  assignee  or  legal representative on satisfactory evidence of identity.
  At the expiration of six months after the completion of the  liquidation
  of  such  banking  organization,  the  superintendent  shall deposit any
  unclaimed amounts derived from such sale, as provided in article two  of
  this chapter.
    6.  The provisions of this section do not affect or preclude any other
  remedy by action or otherwise for  the  enforcement  of  the  claims  or
  rights  of  the superintendent, or of a banking organization of which he
  is in possession, against the person in whose name any property, or  any
  safe,  vault, box, package, parcel or receptacle stands, nor affect, nor
  bar the right of the  superintendent  or  the  banking  organization  to
  recover,  before  sale, any debt or claim due him or it, or, after sale,
  so much of the debt or claim as shall not be paid by the proceeds of the
  sale.