Sumitomo Shoji New York, Inc. v. Chemical Bank New York Trust Co.

Respondent’s motion for reconsideration based on the claimed applicability of subdivision 5 of section 134 of the Banking Law is denied.

That section provides that notice to a bank of an adverse claim to an account standing on its books in the name of another person is not effectual to cause the bank to recognize it unless the adverse claimant either procures “ a restraining order, injunction or other appropriate process against said bank” in an action to which the depositor is made a party or posts a bond to indemnify the bank. The obvious purpose of the section is to protect banks against…