216 - Abbreviation of period to one year after notice.

§  216. Abbreviation of period to one year after notice. (a) Action to  recover money. 1. No action for the recovery of any sum of money due and  payable under or on account of a contract,  or  for  any  part  thereof,  shall  be  commenced  by any person who has made claim to the sum, after  the expiration of one year from the giving  of  notice,  as  hereinafter  provided,  to the claimant that an action commenced by another person is  pending to recover the sum, or any part thereof, exceeding fifty dollars  in amount. This limitation shall not be construed to  enlarge  the  time  within  which  the  cause  of  action of the claimant would otherwise be  barred.    2. If any person shall make claim for the recovery of any sum of money  due and payable under or on account of a contract,  and  an  action  has  theretofore been, or shall thereafter be, commenced by another person to  recover the sum, or any part thereof, exceeding fifty dollars in amount,  the  defendant  in  such action may, within twenty days from the date of  service upon him of the complaint or from the date of receipt by him  of  the  claim,  whichever  occurs  later, make a motion before the court in  which the action is pending for an order  permitting  the  defendant  to  give  notice  to  the claimant that the action is pending.  The court in  which the action is pending shall grant the order where it appears  that  a  person not a party to the action has made claim against the defendant  for the sum of money, or any part thereof, exceeding  fifty  dollars  in  amount;  that  the  action  was  brought  without  collusion between the  defendant and the plaintiff; and that  the  claimant  cannot,  with  due  diligence,  be  served  with  process  in  such  a  manner  as to obtain  jurisdiction over his person. The order shall provide, among such  other  terms  and conditions as justice may require, that notice shall be given  to the claimant by sending by registered mail a copy of the summons  and  complaint  in  the  action  and  the order and a notice addressed to the  claimant at his last known address. In the event  that  registration  of  mail  directed  to  any country or part thereof shall be discontinued or  suspended, notice to a claimant whose last known address is within  such  country  or  part  thereof  shall  be given by ordinary mail, under such  terms and conditions as the court may direct. Proof that the notice  has  been  mailed  shall be filed within ten days from the date of the order;  otherwise the order becomes inoperative. Upon such filing, notice  shall  be  deemed  to  have  been given on the tenth day after the date of such  order.    3. Upon proof by affidavit or otherwise, to the  satisfaction  of  the  court,  that  the conditions of this subdivision have been satisfied and  that there is no collusion between the claimant and the  defendant,  the  court  shall make an order staying further prosecution of the action for  a period not to exceed one year from the date when the notice shall have  been given to the claimant. At the time of the granting of such order or  at any time thereafter, the court, upon the motion of any party,  shall,  as  a condition of the granting of the order or its continuation, impose  upon the  defendant  such  terms  as  justice  may  require  as  to  the  furnishing  of an undertaking in an amount to be fixed by the court. The  stay shall be vacated and the undertaking, if any has been given, may be  discharged or modified, as justice may require, upon proof to the  court  by  any  party  to  the  action  that the claimant has intervened or has  instituted another action in any court of this state to recover the said  sum of money, or any part thereof, exceeding fifty dollars.    4. A motion for any relief as prescribed in this subdivision shall  be  made on notice to all other parties to the action.    5.  Whenever  claims are made by two or more persons, each claiming to  be, to the exclusion of the other, the duly authorized  deputy,  officer  or agent to demand, receive, collect, sue for or recover the same sum ofmoney  due  and  payable  under or on account of a contract, or any part  thereof, exceeding fifty dollars in amount, for and  on  behalf  of  the  same  person, each person making such a claim shall be deemed an adverse  claimant.  Notwithstanding that an action has been commenced in the name  of or on behalf of the  person  for  whom  he  claims  to  be  the  duly  authorized  deputy,  officer  or agent, any such adverse claimant may be  notified of the pendency of an action as provided  in  this  subdivision  and  may  intervene in the action and be designated as claiming to be or  as the alleged deputy, officer or agent.    6. Whenever an action has been commenced for the recovery of  any  sum  of  money exceeding fifty dollars due and payable under or on account of  a contract and the records of the defendant show  that  a  person  other  than  the plaintiff has the right, exclusive of other deputies, officers  or agents of the plaintiff, to demand, sue for and recover the same  sum  of money, or any part thereof, exceeding fifty dollars in amount, either  in his own name, on his own behalf, or as the authorized deputy, officer  or  agent for the plaintiff, and the defendant has received no notice of  transfer, revocation, or other change in right or  authority  acceptable  to  it,  the  person so appearing on the records shall be deemed to have  made an adverse claim to the sum of money  and  may  be  treated  as  an  adverse claimant.    (b)  Action  to recover property. When an action has been commenced to  recover specific personal property, including  certificates  of  stocks,  bonds, notes or other securities or obligations, exceeding fifty dollars  in value, held by the defendant within the state, or to enforce a vested  or  contingent  interest  or lien upon such property, and a person not a  party to the action asserts a claim to the whole or any part of the same  property or to a right, interest or lien upon it which is adverse to the  plaintiff's claim, and the court in which the action is pending  has  no  jurisdiction over the adverse claimant to direct the issuance of process  or if the same be issued it would be without effect notwithstanding that  the  action  seeks  to  have  declared,  enforced, regulated, defined or  limited, rights, interests or  liens  upon  specific  personal  property  within  the  state,  the  defendant in the action may within twenty days  from the date of service upon him of the complaint or within twenty days  of the date of the receipt by him of the adverse claim, whichever  shall  occur  later, make a motion before the court for leave to give notice to  the adverse claimant of  the  pending  action  in  the  same  manner  as  provided  in  subdivision  (a).  Upon the granting of such an order, the  provisions of subdivision (a) shall apply insofar as they are compatible  with the subject matter of the action.