New York Laws
Article 12
518 - Payment of Claims by Investment Companies Where Adverse Claim Is Asserted; Effect of Claims or Advices Originating In, and Statutes, Rules or Regulati

(b) For the purposes of this subdivision (1) the term "occupied
territory" shall mean territory occupied by a dominant authority
asserting governmental, military or police powers of any kind in such
territory, but not recognized by the United States as the de jure
government of such territory, and (2) the term "corporation, firm or
association in occupied territory" shall mean a corporation, firm or
association which has, or at any time has had, a place of business in
territory which has at any time been occupied territory.
(c) The foregoing provisions of this subdivision shall be effective
only in cases where (1) such claim or advice purports or appears to have
been sent from or is reasonably believed to have been sent pursuant to
orders originating in, such occupied territory during the period of
occupation, or (2) such statute, rule or regulation appears to have
emanated from such dominant authority and purports to be or to have been
in force in such occupied territory during the period of occupation.
(d) The foregoing provisions of this subdivision shall apply to
claims, advices, statutes, rules or regulations made, given or invoked
either prior to, or on or subsequent to the effective date of this act.

3. An investment company 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 its books to the credit of, or held by it for
the account of, any person, corporation, unincorporated association or
partnership, which claim conflicts with a claim of authority of which
the investment company had prior notice, unless the person or persons
asserting such subsequent claim shall procure a restraining order,
injunction or other appropriate process against said investment company
from a court of competent jurisdiction in the United States, or, in lieu
thereof, at the option of said investment company, shall execute to said
investment company, in form and with sureties acceptable to it, a bond,
indemnifying it for any and all liability, loss, damage, costs and
expenses for or on account of any payment or delivery of such property
by it pursuant to such subsequent claim of authority on for or on
account of the dishonor of any draft or other order of any person or
persons asserting the claim of authority of which such investment
company already had notice at the time the subsequent conflicting claim
of authority is asserted by the person or persons furnishing such bond.