The New York Legislature is considering an amendment to New York’s Civil Practice Law and Rules (“CPLR”) that could allow judgment creditors to obtain an order from a New York court to force a bank with an office in New York to compel an overseas affiliate to turn over property or money that the affiliate is holding for a customer. The Clearing House submitted to the Legislature a memorandum in opposition to the amendment. The memorandum states that the amendment could subject banks and their affiliates to double liability, raises substantial issues under the U.S. Constitution, and will overburden NY courts.
TCH Files Memo in Opposition to Proposal to Amend N.Y. Law to Facilitate Collection Actions of Foreign Affiliates of Banks
