Section 216. Abbreviation of period to one year after notice

(a) Action to
  recover money. 1. No action for the recovery of any sum of money due and
  payable under or on account of a contract,  or  for  any  part  thereof,
  shall  be  commenced  by any person who has made claim to the sum, after
  the expiration of one year from the giving  of  notice,  as  hereinafter
  provided,  to the claimant that an action commenced by another person is
  pending to recover the sum, or any part thereof, exceeding fifty dollars
  in amount. This limitation shall not be construed to  enlarge  the  time
  within  which  the  cause  of  action of the claimant would otherwise be
  barred.
    2. If any person shall make claim for the recovery of any sum of money
  due and payable under or on account of a contract,  and  an  action  has
  theretofore been, or shall thereafter be, commenced by another person to
  recover the sum, or any part thereof, exceeding fifty dollars in amount,
  the  defendant  in  such action may, within twenty days from the date of
  service upon him of the complaint or from the date of receipt by him  of
  the  claim,  whichever  occurs  later, make a motion before the court in
  which the action is pending for an order  permitting  the  defendant  to
  give  notice  to  the claimant that the action is pending.  The court in
  which the action is pending shall grant the order where it appears  that
  a  person not a party to the action has made claim against the defendant
  for the sum of money, or any part thereof, exceeding  fifty  dollars  in
  amount;  that  the  action  was  brought  without  collusion between the
  defendant and the plaintiff; and that  the  claimant  cannot,  with  due
  diligence,  be  served  with  process  in  such  a  manner  as to obtain
  jurisdiction over his person. The order shall provide, among such  other
  terms  and conditions as justice may require, that notice shall be given
  to the claimant by sending by registered mail a copy of the summons  and
  complaint  in  the  action  and  the order and a notice addressed to the
  claimant at his last known address. In the event  that  registration  of
  mail  directed  to  any country or part thereof shall be discontinued or
  suspended, notice to a claimant whose last known address is within  such
  country  or  part  thereof  shall  be given by ordinary mail, under such
  terms and conditions as the court may direct. Proof that the notice  has
  been  mailed  shall be filed within ten days from the date of the order;
  otherwise the order becomes inoperative. Upon such filing, notice  shall
  be  deemed  to  have  been given on the tenth day after the date of such
  order.
    3. Upon proof by affidavit or otherwise, to the  satisfaction  of  the
  court,  that  the conditions of this subdivision have been satisfied and
  that there is no collusion between the claimant and the  defendant,  the
  court  shall make an order staying further prosecution of the action for
  a period not to exceed one year from the date when the notice shall have
  been given to the claimant. At the time of the granting of such order or
  at any time thereafter, the court, upon the motion of any party,  shall,
  as  a condition of the granting of the order or its continuation, impose
  upon the  defendant  such  terms  as  justice  may  require  as  to  the
  furnishing  of an undertaking in an amount to be fixed by the court. The
  stay shall be vacated and the undertaking, if any has been given, may be
  discharged or modified, as justice may require, upon proof to the  court
  by  any  party  to  the  action  that the claimant has intervened or has
  instituted another action in any court of this state to recover the said
  sum of money, or any part thereof, exceeding fifty dollars.
    4. A motion for any relief as prescribed in this subdivision shall  be
  made on notice to all other parties to the action.
    5.  Whenever  claims are made by two or more persons, each claiming to
  be, to the exclusion of the other, the duly authorized  deputy,  officer
  or agent to demand, receive, collect, sue for or recover the same sum of

  money  due  and  payable  under or on account of a contract, or any part
  thereof, exceeding fifty dollars in amount, for and  on  behalf  of  the
  same  person, each person making such a claim shall be deemed an adverse
  claimant.  Notwithstanding that an action has been commenced in the name
  of or on behalf of the  person  for  whom  he  claims  to  be  the  duly
  authorized  deputy,  officer  or agent, any such adverse claimant may be
  notified of the pendency of an action as provided  in  this  subdivision
  and  may  intervene in the action and be designated as claiming to be or
  as the alleged deputy, officer or agent.
    6. Whenever an action has been commenced for the recovery of  any  sum
  of  money exceeding fifty dollars due and payable under or on account of
  a contract and the records of the defendant show  that  a  person  other
  than  the plaintiff has the right, exclusive of other deputies, officers
  or agents of the plaintiff, to demand, sue for and recover the same  sum
  of money, or any part thereof, exceeding fifty dollars in amount, either
  in his own name, on his own behalf, or as the authorized deputy, officer
  or  agent for the plaintiff, and the defendant has received no notice of
  transfer, revocation, or other change in right or  authority  acceptable
  to  it,  the  person so appearing on the records shall be deemed to have
  made an adverse claim to the sum of money  and  may  be  treated  as  an
  adverse claimant.
    (b)  Action  to recover property. When an action has been commenced to
  recover specific personal property, including  certificates  of  stocks,
  bonds, notes or other securities or obligations, exceeding fifty dollars
  in value, held by the defendant within the state, or to enforce a vested
  or  contingent  interest  or lien upon such property, and a person not a
  party to the action asserts a claim to the whole or any part of the same
  property or to a right, interest or lien upon it which is adverse to the
  plaintiff's claim, and the court in which the action is pending  has  no
  jurisdiction over the adverse claimant to direct the issuance of process
  or if the same be issued it would be without effect notwithstanding that
  the  action  seeks  to  have  declared,  enforced, regulated, defined or
  limited, rights, interests or  liens  upon  specific  personal  property
  within  the  state,  the  defendant in the action may within twenty days
  from the date of service upon him of the complaint or within twenty days
  of the date of the receipt by him of the adverse claim, whichever  shall
  occur  later, make a motion before the court for leave to give notice to
  the adverse claimant of  the  pending  action  in  the  same  manner  as
  provided  in  subdivision  (a).  Upon the granting of such an order, the
  provisions of subdivision (a) shall apply insofar as they are compatible
  with the subject matter of the action.