Section 204-A. Payment of claims by foreign banking corporations where adverse claim is asserted; effect of claims or advices originating in, and statutes, rules or regulations purporting to be in force in occupied territory; performance of contracts and repayment of deposits performable or repayable at foreign offices of foreign banking corporations

1.  Notice  to  any  foreign  banking corporation doing  business in this state under a license issued by the  superintendent  in
  accordance with the provisions of this chapter, of an adverse claim to a
  credit  standing  on  its  books to the account of any person, or to the
  balance in any deposit account, or of an adverse claim to securities  or
  other  property  held  for  the  account  of  any  person,  shall not be
  effectual in this state to cause said  foreign  banking  corporation  to
  recognize  said adverse claimant unless said adverse claimant shall also
  either procure a restraining  order,  injunction  or  other  appropriate
  process  against  said  foreign  banking  corporation  from  a  court of
  competent  jurisdiction  in  the  United  States  in  a  cause   therein
  instituted  by  him  wherein  the  person to whose account the credit or
  deposit stands, or for whose account the securities  or  other  property
  are  held,  or  his executor or administrator is made a party and served
  with summons, or shall execute to said foreign banking  corporation,  in
  form  and  with  sureties  acceptable  to  it  a bond, indemnifying said
  foreign banking corporation from any and all  liability,  loss,  damage,
  costs  and  expenses,  for  and on account of the payment of or delivery
  pursuant to such adverse claim or the  dishonor  of  the  order  of  the
  person  to  whose  account  the credit or deposit stands on the books of
  said foreign banking corporation or for whose account the securities  or
  other property are held by said foreign banking corporation.
    2.  (a)  A  foreign  banking  corporation doing business in this state
  under a license issued by the  superintendent  in  accordance  with  the
  provisions of this chapter, need not in this state recognize or give any
  effect to (1) any claim to a credit standing on its books to the account
  of,  or  the  balance  in  any  deposit  account  of,  or  any  claim to
  securities, or other property  held  by  it  for  the  account  of,  any
  corporation,  firm  or  association  in  occupied  territory  or (2) any
  advice, statute, rule or regulation purporting  to  cancel  or  to  give
  notice  of  the  cancellation of the authority of any person at the time
  appearing on the books of such foreign banking corporation as authorized
  to withdraw or otherwise dispose of cash, securities, or other  property
  of  such  corporation,  firm or association, unless such foreign banking
  corporation is required so to do by appropriate process procured against
  it in a court of competent jurisdiction in the United States in a  cause
  therein  instituted  by  or  in  the  name  of such corporation, firm or
  association, or unless the person  making  such  claim  or  giving  such
  advice or invoking such statute, rule or regulation, as the case may be,
  shall  execute  to  such  foreign  banking corporation, in form and with
  sureties acceptable to it, a bond  indemnifying  it  from  any  and  all
  liability,  loss,  damage,  costs  and  expenses  for  and on account of
  recognizing or giving any effect to such claim, advice, statute, rule or
  regulation.
    (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.
    (e) A foreign banking corporation doing business in this state under a
  license issued by the superintendent in accordance with  the  provisions
  of this chapter need not in this state 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 foreign banking corporation had prior notice, unless the  person  or
  persons  asserting  such  subsequent  claim  shall procure a restraining
  order, injunction or other  appropriate  process  against  said  foreign
  banking corporation from a court of competent jurisdiction in the United
  States,  or,  in  lieu  thereof,  at  the option of said foreign banking
  corporation, shall execute to said foreign banking corporation, 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 or for or on account of the dishonor of any check or
  other order of any person or persons asserting the claim of authority of
  which such foreign banking corporation already had notice  at  the  time
  the  subsequent conflicting claim of authority is asserted by the person
  or persons furnishing such bond.
    3. (a) Notwithstanding section 1-105 of the uniform  commercial  code,
  any  foreign  banking  corporation  doing business in this state under a
  license issued by the superintendent in accordance with  the  provisions
  of  this  chapter  shall  be  liable  in  this state for contracts to be
  performed at its office or offices  in  any  foreign  country,  and  for
  deposits  to  be  repaid at such office or offices, to no greater extent
  than a bank, banking corporation or other  organization  or  association
  for  banking  purposes  organized  and  existing  under the laws of such
  foreign country would be liable under its laws. The laws of such foreign
  country for the purpose of this subdivision shall be deemed  to  include
  all  acts,  decrees, regulations and orders promulgated or enforced by a
  dominant authority asserting governmental, military or police  power  of
  any  kind  at the place where any such office is located, whether or not
  such dominant  authority  be  recognized  as  a  de  facto  or  de  jure
  government.
    (b)  Notwithstanding  section 1-105 of the uniform commercial code, if
  by action of any such dominant authority which is not recognized by  the
  United  States  as  the  de  jure  government  of  the foreign territory
  concerned, any property situated in or any amount to be received in such
  foreign territory and carried as an asset of any office of such  foreign
  banking  corporation  in  such foreign territory is seized, destroyed or
  cancelled, then the liability, if any, in this  state  of  such  foreign
  banking  corporation for any deposit theretofore received and thereafter
  to be repaid by it, and for any contract theretofore made and thereafter
  to be performed by it, at any office in such foreign territory shall  be
  reduced  pro  tanto  by  the  proportion that the value (as shown by the
  books or other records of such foreign banking corporation, at the  time

  of  such  seizure,  destruction or cancellation) of such assets bears to
  the aggregate of all the deposit and contract liabilities of the  office
  or   offices  of  such  foreign  banking  corporation  in  such  foreign
  territory,  as  shown at such time by the books or other records of such
  foreign banking corporations.  Nothing contained in this paragraph shall
  diminish or otherwise affect the liability of any such  foreign  banking
  corporation  to any corporation, firm or individual which at the time of
  such seizure, destruction or cancellation was incorporated  or  resident
  in any state of the United States.
    (c)  Notwithstanding  the  provisions  of  any  law to the contrary, a
  foreign banking corporation operating a branch or branches or an  agency
  or  agencies  in  this state shall not be required to repay, at any such
  branch, branches, agency or agencies in this state, any deposit made  at
  a  foreign office of any such foreign banking corporation if such office
  cannot repay the deposit due to (i) an  act  of  war,  insurrection,  or
  civil   strife;   or   (ii)   an  action  by  a  foreign  government  or
  instrumentality, whether de jure or de facto, in the  country  in  which
  the  office  is  located  preventing  such repayment, unless the foreign
  banking corporation operating in this  state  has  expressly  agreed  in
  writing  to  repay  the  deposit under such circumstances.   The banking
  board may promulgate regulations necessary to effectuate the  provisions
  of   this   paragraph,  including  regulations  providing  for  adequate
  disclosure to retail depositors in the United States of the restrictions
  on repayment contained in  this  subdivision.  The  provisions  of  this
  paragraph  shall  not  alter or diminish the liability of a custodian of
  assets of a fund  under  section  one  hundred  seventy-eight-a  of  the
  retirement and social security law.