New York Laws
Article 13 - Merger; Voluntary Dissolution; Superintendent's Taking Possession; Reorganization; Liquidation
615 - On Taking Possession, Superintendent Shall Notify Those Holding Assets; Effect of Notification; Turnover of Assets and Payment of Debts Owed to the Ba

§ 615. On taking possession, superintendent shall notify those holding
assets; effect of notification; turnover of assets and payment of debts
owed to the banking organization. When the superintendent shall take
possession of the property and business of any banking organization:

1. The superintendent shall forthwith give notice of such fact to all
corporations, unincorporated associations, partnerships, governmental
entities and other entities and individuals known to him to hold any
assets of such banking organization. No corporation, unincorporated
association, partnership, governmental entity or other entity or
individual having notice or knowledge that the superintendent has taken
possession of such banking organization, shall have a lien or charge for
any payment, advance or clearance thereafter made against any of the
assets of such banking organization for liability thereafter incurred.

2. Upon the written demand of the superintendent, any corporation,
unincorporated association, partnership, governmental entity or other
entity or individual holding assets of such banking organization shall
deliver such assets to the superintendent and shall thereupon be
discharged from liability with respect to any claim upon such assets;
provided, however that such demand shall not affect the right of a
secured creditor with a perfected security interest, or other valid lien
or security interest enforceable against third parties, to retain
collateral, including any right of such secured creditor under any
security arrangement related to a qualified financial contract, as
defined in section six hundred eighteen-a of this article to retain
collateral and apply such collateral in accordance with paragraph (d) of
subdivision two of section six hundred eighteen-a of this article.
Nothing in this section shall affect any right of setoff permitted under
applicable law; provided, however, that in connection with the
liquidation of a branch or agency of a foreign banking corporation
pursuant to this article, no entity or individual may set off the
business and property in this state of such foreign banking corporation
described in subparagraph one of paragraph (c) of subdivision four of
section six hundred six of this article against liabilities of such
foreign banking corporation other than those that arise out of
transactions had by such entity or individual with such branch or agency
(which liabilities shall be deemed to include in the case of qualified
financial contracts the lesser of the two amounts calculated with
respect to any such qualified financial contract pursuant to paragraph
(c) of subdivision two of section six hundred eighteen-a of this
article) and provided that such setoff is otherwise permissible under
applicable law.