§ 138. Foreign branches; performance of contracts and repayment of
deposits. 1. Notwithstanding section 1--301 of the uniform commercial
code, any bank or trust company or national bank located in this state
which in accordance with the provisions of this chapter or otherwise
applicable law shall have opened and occupied a branch office or branch
offices in any foreign country shall be liable for contracts to be
performed at such branch office or offices and for deposits to be repaid
at such branch 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 section 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 branch office is located, whether or not such
dominant authority be recognized as a de facto or de jure government.

2. Notwithstanding section 1--301 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 branch office of such
bank or trust company or national bank in such foreign territory is
seized, destroyed or cancelled, then the liability of such bank or trust
company or national bank 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 branch 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 bank or trust company or
national bank 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 branch office or offices of such bank or trust
company or national bank in such foreign territory, as shown at such
time by the books or other records of such bank or trust company or
national bank.

2-a. Notwithstanding the provisions of any law to the contrary, a bank
or trust company or national bank located in this state shall not be
required to repay any deposit made at a foreign branch of any such bank
if the branch 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 branch is located preventing such repayment, unless such bank has
expressly agreed in writing to repay the deposit under such
circumstances. The superintendent of financial services may promulgate
regulations necessary to effectuate the provisions of this subdivision,
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 subdivision 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.

3. If any provision of this section, or the application of such
provision to any bank, trust company or national bank, shall be held
invalid, the remainder of this section, and the application of such
section to banks, trust companies and national banks other than those to
which it is held invalid, shall not be affected thereby.