Posts Categorized: Banking and Finance

Posted: December 12, 2018

Court Lacks Subject Matter Jurisdiction Over Claim Against Foreign Bank By Non-Resident

On November 28, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Garcia v Banco BCT S.A., 2018 NY Slip Op. 32989(U), holding that the court lacked subject matter jurisdiction over a non-resident’s claim against a foreign bank, explaining: Banking Law section 200-g provides that: 2. Except as otherwise provided in... Read more »

Posted: November 18, 2016

Once Wire Transfer Request is Accepted, Funds Become Property of the Beneficiary

On November 15, 2016, the First Department issued a decision in Bayerische Hypo-Und Vereinsbank AG v. HSBC Bank USA, N.A., 2016 NY Slip Op. 07603, holding that once a wire transfer request is accepted, the funds become the property of the beneficiary and are subject to attachment, explaining: Because the mistaken payment at issue was... Read more »

Posted: August 10, 2016

Not Maintaining Security Deposit in New York Bank Branch Violates GOL § 7-103; No Damages

On August 5, 2016, Justice Kornreich of the New York County Commercial Division issued a decision in Urban Soccer Inc. v. Royal Wine Corp., 2016 NY Slip Op. 26250, holding that the failure to deposit a security deposit in the New York branch of a New York bank violated General Obligations Law § 7-103, but... Read more »

Posted: May 5, 2015

Litigant Ordered to Use Hague Convention to Obtain Foreign Bank Documents

On April 28, 2015, the First Department issued a decision in Peters v. Peters, 2015 NY Slip Op. 03488, affirming an order requiring documents subject to foreign bank secrecy laws to be sought under the Hague Convention. In Peters, the trial court denied the plaintiff’s “motion to compel nonparty witness UBS AG to comply with... Read more »

Posted: March 21, 2015

First Department Analyzes Rules for Interpreting Letters of Credit

On March 17, 2015, the First Department issued a decision in BasicNet S.p.A. v. CFP Servs. Ltd., 2015 NY Slip Op. 02080, discussing the rules governing the interpretation of letters of credit. In BasicNet, the plaintiffs brought an action against a bank that issued two letters of credit to which the plaintiffs were beneficiaries. The trial court... Read more »

Posted: November 9, 2014

Separate Entity Rule Prevents Garnishment of Assets in Foreign Bank Through its New York Branch

On October 23, 2014, the Court of Appeals issued a decision in Motorola Credit Corp. v. Standard Chartered Bank, 2014 NY Slip Op. 07199, upholding the “separate entity rule” to prevent a judgment creditor from ordering a garnishee bank operating branches in New York to restrain a judgment debtor’s assets held in foreign branches of... Read more »