Chapter 273. Authorizing casualty companies, surety companies, insurance companies or associations or fraternal or beneficial societies to file bills of interpleader
859 words·~4 min read·
/statutes-at-large/vol-44/chapter-273-18970259·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 273.— An Act Authorizing casualty companies, surety companies, insurance companies or associations or fraternal or beneficial societies to file bills of interpleader.May 8, 1926.[[S. 2296](/us/bill/69/s/2296).][[Public, No. 203](/us/pl/69/203).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,United States courts.Casualty, surety, insurance companies, etc., may file interpleader in, to determine beneficiaries, of different States.
That the district courts of the United States shall have original jurisdiction to entertain and determine suits in equity begun by bills of interpleader duly verified, filed by any casualty company, surety company, insurance company or association or fraternal or beneficial society, and averring that one or more persons who are bona fide claimants against such company, association, or society resides or reside within the territorial jurisdiction of said court; that such company, association, or society has in its custody or possession money or property of the value of $500 or more, or has issued a bond or a policy of insurance or certificate of membership providing for the payment of $500 or more to the obligee or obligees in such bond or as insurance, indemnity, or benefits to a beneficiary, beneficiaries, or the heirs, next of kin, legal representatives, or assignee of the person insured or member; that two or more adverse claimants, citizens of different States, are claiming to be entitled to such money or property or the penalty of such bond, or to such insurance, indemnity, or benefits;
Deposit in registry of court.that such company, association, or society has deposited such money or proper tv or has paid the amount of such bond or policy into the registry of the court, there to abide the judgment of the court. Sec. 2. Jurisdiction.In all such cases if the policy or certificate is drawn payable If policy not assigned.to the estate of the insured and has not been assigned in accordance with the terms of the policy or certificate the district court of the district of the residence of the personal representative of the insured If policy assigned.shall have jurisdiction of such suit.
In case the policy or certificate has been assigned during the life of the insured in accordance with the terms of the policy or certificate, the district court of the district of the residence of the assignee or of his personal representative shall If payable to beneficiary and not assigned.have jurisdiction. In case the policy or certificate is drawn payable to a beneficiary or beneficiaries and there has been no such assignment as aforesaid the jurisdiction shall be in the district court of the district in which the beneficiary or beneficiaries or their personal If claimants residents of diff ergot districts.representatives reside.
In case there are claimants of such money or property, or in case there are beneficiaries under any such bond or policy resident in more districts than one, then jurisdiction shall be in the district court in any district in which a beneficiary or the personal representative of a claimant or a deceased claimant or Issue of process, etc., enjoining suit by claimant tin other courts.beneficiary resides. Notwithstanding any provision of the Judicial Code to the contrary, said court shall have power to issue its process for all such claimants and to issue an order of injunction against each of them, enjoining them from instituting or prosecuting any suit or proceeding in any State court or in any other Federal court on account of such money or property or on such bond or on such policy or certificate of membership until the further order of the Procedure.court; which process and order of injunction shall be returnable at such time as the said court or a judge thereof shall determine and shall be addressed to and served by the United States marshals 417 for the respective districts wherein said claimants reside or may be found.
Sec. 3. Said court shall hear and determine the cause and shall dischargeFull power of court. the complainant from further liability; and shall make the injunction permanent and enter all such other orders and decrees as may be suitable and proper, and issue all such customary writs as may be necessary or convenient to carry out and enforce the same. Sec. 4. Public Act numbered 346, Sixty-fourth Congress, entitled Former laws repealed.Vol. 39, p. 929.“An Act authorizing insurance companies and fraternal beneficiary societies to file bills of interpleader,” approved February 22, 1917, and Public Act numbered 465, Sixty-eighth Congress, entitled “AnVol. 43, p. 976.
Act to amend an Act entitled ‘An Act authorizing insurance companies or associations and fraternal beneficiary societies to file bills of interpleader,’ approved February 22, 1917,” approved February 25, 1925, be and the same are hereby repealed. Said repeal shall notPrior suits, etc., not affected. affect any act done or any right, accruing or accrued in any suit or proceeding had or commenced under said Acts hereby repealed, prior to the passage of this Act, but all such acts or rights, suits or proceedings shall continue and be valid and may be prosecuted and enforced in the same manner as if said Acts had not been repealed hereby.
Approved, May 8, 1926.