§ 617. Disposition of property held as bailee, or depositary; opening
of safe deposit boxes; disposal of contents. 1. The superintendent may,
after he has taken possession of any banking organization, cause to be
mailed to each person claiming to be, or appearing upon the books of
such banking organization to be

(1) the owner of any personal property in the custody or possession of
such banking organization as bailee or depositary for hire or otherwise,
including the contents of any safe, vault or box theretofore opened for
non-payment of rental in accordance with the provisions of this chapter,
or

(2) the lessee of any safe, vault or box, a notice in writing directed
by registered mail to such person at his last address as the same
appears on the books of such banking organization or at his last known
address if no address appears on such books, notifying such person to
remove all such property or the contents of any such safe, vault or box,
within a period stated in said notice, which period shall be not less
than sixty days from the date of such notice, and further notifying such
person of the terms and provisions of this section. The contract of
bailment or of deposit for hire, or lease of safe, vault or box, if any,
between the person to whom such notice is mailed and such banking
organization shall cease and determine upon the date for removal fixed
in such notice. Such person shall have a claim against such banking
organization for the amount of the unearned rent or charges, if any,
paid by such person from the date fixed in such notice, if the property
or contents is removed on or before such date, or from the date of
actual removal, if the property or contents is removed after such date.

As used herein the phrase "personal property in the custody or
possession of such banking organization as bailee or depositary for hire
or otherwise" shall include, without limitation, securities, whether
held in custody directly or in book-entry form by such banking
organization, its nominee, subcustodian, clearing corporation or similar
entity.

2. If such property or contents shall not be removed, and all rent or
storage and other charges theretofore accrued, if any, shall not be
paid, within the time fixed by such notice, the superintendent may cause
such property to be inventoried, or such safe, vault or box, or any
package, parcel or receptacle in the custody or possession of such
banking organization as bailee or depositary for hire or otherwise, to
be opened and the contents, if any, to be removed and inventoried, in
his presence or in the presence of a deputy superintendent, a special
deputy superintendent, or an examiner and of a notary public, not an
officer or employee of such banking organization or of the department of
financial services. Such property or contents shall thereupon be sealed
up by such notary public in a package distinctly marked by him with the
name of the person in whose name such property or such safe, vault, box,
package, parcel or receptacle stands upon the books of such banking
organization, and a copy of the inventory of the property therein shall
be certified and attached thereto by such notary public. Such package
may be kept by the superintendent in such place as he may determine at
the expense and risk of the person in whose name it stands until
delivered to such person or until sold, destroyed or otherwise disposed
of as hereinafter provided. Such package may, pending final disposition
of its contents, be opened by the superintendent, a deputy
superintendent, special deputy superintendent or examiner, from time to
time for inspection or appraisal, or to enable the superintendent to
exercise any of the powers conferred or duties imposed upon him by this
article. Whenever such package is opened, the superintendent, deputy
superintendent, special deputy superintendent or examiner, shall endorse
on the outside of said package the date of opening and re-sealing, and
shall prepare an affidavit which shall be attached thereto, showing the
reason for opening and the articles, if any, removed therefrom, or
placed or replaced therein.

3. At any time prior to the sale, destruction or other disposition of
the contents thereof, the person in whose name such package stands may
require the delivery thereof upon payment of all rental or storage
charges accrued, and all other charges or expenses paid or incurred to
the date of delivery with respect to such package or the contents
thereof, including the cost of inventorying or of opening and
inventorying, the fees of the notary public, the cost of preparing and
mailing the notice, and advertising, if any. In case the superintendent
is in doubt concerning the person entitled to receive such package, or
there are conflicting claims thereto, he may require of the claimant an
order of the supreme court authorizing and directing the delivery
thereof, but for any delivery or transfer made by him in good faith to
the claimant appearing from the records in his office to be entitled
thereto, he shall be held harmless and shall not be liable to any
subsequent claimant. If the principal of, or interest, income, or
dividends on any bonds, stock certificates, promissory notes, choses in
action or other securities contained in such package, is or becomes due
and payable while it is in the possession of the superintendent, he may
at his election collect such principal, interest, income or dividends,
and from the proceeds thereof may deduct all such sums due for rental
and other charges, until the time of such collection. The balance, if
any, of the amount or amounts so collected shall be disposed of by the
superintendent as hereafter in subdivision five provided.

4. After the expiration of one year from the time of mailing the
notice in subdivision one hereof described, the superintendent may apply
to the supreme court for an order authorizing him to sell, destroy or
otherwise dispose of the contents of such package. In a proper case, the
court shall make such order upon such terms and conditions as justice
may require. The application for an order of the supreme court pursuant
to this subdivision shall be made upon an order to show cause, which
shall provide that notice thereof to the person in whose name such
package stands and to any other person claiming or appearing to have an
interest therein, shall be published, mailed or given in such other
manner as the court may prescribe. Whenever, pursuant to the provisions
of this subdivision, the superintendent is given the power to sell the
contents of any package, such power to sell shall be deemed a power to
sell in satisfaction of a lien for non-payment of rental or storage
charges accrued, and all other charges and expenses paid or incurred to
the date of sale with respect to such package and the contents thereof,
including the charges and expenses described in subdivision three
hereof. Such power to sell, or the power to destroy or otherwise dispose
of, when authorized pursuant to the provisions of this subdivision,
shall be deemed to include the power to sell, destroy or otherwise
dispose of, as the case may be, any bonds, stock certificates,
promissory notes, choses in action, or other securities, and any other
tangible or intangible property contained in any package, regardless of
whether or not it shall appear from such securities or properties that
the person in whose name the package stands, possesses title to or
interest in such securities or other properties, or power to transfer
such title or interest, and any sale of such securities or properties,
pursuant to this subdivision, shall vest good title thereto in the
purchaser thereof.

5. From the proceeds of any sale, the superintendent shall deduct all
rental or storage charges accrued, and all other charges and expenses
paid or incurred to the date of sale, including the charges and expenses
described in subdivision three hereof, and the expenses of sale. The
balance of such proceeds, if any, shall be credited to the person in
whose name such package stood and shall be paid over to such person, his
assignee or legal representative on satisfactory evidence of identity.
At the expiration of six months after the completion of the liquidation
of such banking organization, the superintendent shall deposit any
unclaimed amounts derived from such sale, as provided in article two of
this chapter.

6. The provisions of this section do not affect or preclude any other
remedy by action or otherwise for the enforcement of the claims or
rights of the superintendent, or of a banking organization of which he
is in possession, against the person in whose name any property, or any
safe, vault, box, package, parcel or receptacle stands, nor affect, nor
bar the right of the superintendent or the banking organization to
recover, before sale, any debt or claim due him or it, or, after sale,
so much of the debt or claim as shall not be paid by the proceeds of the
sale.