New York Banking Law

Sec. § 337
Sale of Safe Deposit Business


Subject to the provisions of subdivision eight of section six hundred five of article thirteen of this chapter, any banking organization or foreign banking corporation may, with the approval of the superintendent, sell to another banking organization, foreign banking corporation or national banking association authorized to conduct the business of renting safe deposit boxes, all or any part of its safe deposit business, and upon at least thirty days notice in writing to the lessees of the safe deposit boxes so sold, such safe deposit boxes may be delivered to the possession of such purchasing banking organization, foreign banking corporation or national banking association and thereupon, except for claims against the selling banking organization or foreign banking corporation asserted in writing prior to such delivery, the obligations and rights of the selling banking organization or foreign banking corporation upon the leases relating thereto shall be deemed to be assumed by the purchasing banking organization, foreign banking corporation or national banking association as a successor in interest of the selling banking organization or foreign banking corporation and the selling banking organization or foreign banking corporation shall be discharged from liability in respect thereof. Any lessee of a safe deposit box, upon receipt of a notice in writing of the proposed sale of such safe deposit box by a banking organization or foreign banking corporation, may terminate his lease therefor by removing the contents therefrom and surrendering such safe deposit box to the banking organization or foreign banking corporation prior to the date fixed in such notice for the delivery of such safe deposit box to the purchasing banking organization, foreign banking corporation or national banking association and thereupon such lessee shall be entitled to a refund of the unearned rent, if any, paid by such lessee to the selling banking organization or foreign banking corporation.
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Last accessed
Dec. 13, 2016