N.Y.
Banking Law Section 655
Maximum amount of insurance
1.
Subject to the provisions of subdivisions two and three of this section, the maximum amount of insurance that any claimant shall be entitled to shall be determined by the superintendent after taking into account the amount of claims, the amount of the fund, including the authority of the fund to make assessments pursuant to § 657 (Payments to the fund)section six hundred fifty-seven of this article, and any claim for recovery which the fund would have pursuant to the provisions of § 643 (Bond or securities)section six hundred forty-three of this chapter.2.
No insurance shall be paid on any New York instrument payable for an amount in excess of one thousand dollars, other than those New York instruments issued for the purpose of paying utility bills.3.
The maximum amount of insurance which any claimant shall be entitled to shall be determined as follows:a.
If the claimant is a purchaser, the maximum amount of insurance which such purchaser shall be entitled to on all insured New York instruments purchased by said purchaser shall be five thousand dollars.b.
If the claimant is a holder, the maximum amount of insurance which such holder shall be entitled to shall be the aggregate of the amounts which would have been due to the purchasers of the insured New York instruments held by the holder, had the instruments remained in the possession of the purchasers, rather than the holder.
Source:
Section 655 — Maximum amount of insurance, https://www.nysenate.gov/legislation/laws/BNK/655 (updated Sep. 22, 2014; accessed Apr. 20, 2024).
