§ 656. Claims against the fund. 1. If an uninsured transmitter of
money has defaulted in making payment on any of its New York
instruments, the superintendent shall give notice of such default to
purchasers and holders of such instruments. Such notice may be given by
means of publication in such newspaper or newspapers as the
superintendent may direct and by such other means, if any, as the
superintendent may determine to be reasonable and necessary under the
circumstances. The determination of the superintendent as to the means
of notice shall be conclusively presumed reasonable if notice is
published in such newspaper or newspapers for five consecutive days.
Such notices shall request purchasers and holders of such instruments
who wish to file claims against the fund to present such claims to the
superintendent and to file proper proof thereof within the period of
time set forth in the notice and at a place specified therein. Such
notice may limit the period of time within which claims may be filed to
a period of time no less than ten business days from the final date of
notice. Claimants shall file their claims in the form and manner
prescribed by the superintendent and shall make proof thereof and of the
loss actually suffered by such claimants to the satisfaction of the
superintendent. The superintendent shall examine the claims so filed,
determine the amount due upon such claims and certify, in writing, the
amount due each claimant, whereupon payment by the fund to the claimant
shall be made as provided for in this article. In any case where the
superintendent is not satisfied as to the allowability of a claim or if
he has notice of an adverse claim with respect to such New York
instrument, he may require the final determination of a court of
competent jurisdiction before certifying such claim. Whoever, for the
purpose of obtaining payment on any insured New York instrument, or the
payment of any claim, makes any statement knowing it to be false, or
willfully overvalues any claim, shall be guilty of a Class A
misdemeanor.

2. The payment by the fund to the claimant shall constitute an
assignment, by operation of law, of all rights which the claimant has
with respect to the New York instrument, including all rights, claims
and interests in property which the claimant could have asserted against
the transmitter of money or its property or otherwise, and all
recoveries which he would have been entitled to under the provisions of
section six hundred forty-three of this chapter, provided that if any
portion of such New York instrument is uninsured by virtue of the fact
that it exceeds the maximum amount of insurance provided for by section
six hundred fifty-five of this article or otherwise, the claimant shall
retain all of his rights with respect to the uninsured portion of such
instrument.