The Clearing House (TCH) joined the IIB, NYBA, and the European Banking Federation in an amicus brief before the New York Court of Appeals in Motorola Credit Corp. v. Standard Chartered Bank. The brief argues that New York’s traditional rule (i.e., that each office of a bank should be treated as a separate bank) should be retained because subjecting international banks to global service of process in attachment and garnishment orders would force them to choose between conflicting laws. In addition, the brief argues that the rule should be retained because it is consistent with the presumption against extraterritorial application of New York law, and could impose unconstitutional double liability on global banks otherwise. The brief also argues that the separate-entity rule benefits New York because it allows foreign banks to participate in the New York markets through branches rather than separately incorporated subsidiaries.
TCH Files Amicus Brief in Separate Entity Case
