§ 518. Payment of claims by investment companies where adverse claim\nis asserted; effect of claims or advices originating in, and statutes,\nrules or regulations purporting to be in force in occupied territory. 1.\nNotice to any investment company of an adverse claim to a credit\nstanding on its books to the account of any person, or of an adverse\nclaim to securities or other property held for the account of any\nperson, shall not be effectual to cause said investment company to\nrecognize said adverse claimant unless said adverse claimant shall also\neither procure a restraining order, injunction or other appropriate\nprocess against said investment company from a court of competent\njurisdiction in the United States in a cause therein instituted by him\nwherein the person to whose account the credit stands, or for whose\naccount the securities or other property are held, or his executor or\nadministrator is made a party and served with summons, or shall execute\nto said investment company, in form and with sureties acceptable to it a\nbond, indemnifying said investment company from any and all liability,\nloss, damage, costs and expenses, for and on account of the payment of\nor delivery pursuant to such adverse claim or the dishonor of the order\nof the person to whose account the credit stands on the books of said\ninvestment company or for whose account the securities or other property\nare held by said investment company.\n 2. (a) An investment company need not recognize or give any effect to\n(1) any claim to a credit standing on its books to the account of, or\nany claim to securities or other property held by it for the account of,\nany corporation, firm or association in occupied territory or (2) any\nadvice, statute, rule or regulation purporting to cancel or to give\nnotice of the cancellation of the authority of any person at the time\nappearing on the books of such investment company as authorized to\nwithdraw or otherwise dispose of cash, securities or other property of\nsuch corporation, firm or association, unless such investment company is\nrequired so to do by appropriate process procured against it in a court\nof competent jurisdiction in the United States in a cause therein\ninstituted by or in the name of such corporation, firm or association,\nor unless the person making such claim or giving such advice or invoking\nsuch statute, rule or regulation, as the case may be, shall execute to\nsuch investment company, in form and with sureties acceptable to it, a\nbond indemnifying it from any and all liability, loss, damage, costs and\nexpenses for and on account of recognizing or giving any effect to such\nclaim, advice, statute, rule or regulation.\n (b) For the purposes of this subdivision (1) the term "occupied\nterritory" shall mean territory occupied by a dominant authority\nasserting governmental, military or police powers of any kind in such\nterritory, but not recognized by the United States as the de jure\ngovernment of such territory, and (2) the term "corporation, firm or\nassociation in occupied territory" shall mean a corporation, firm or\nassociation which has, or at any time has had, a place of business in\nterritory which has at any time been occupied territory.\n (c) The foregoing provisions of this subdivision shall be effective\nonly in cases where (1) such claim or advice purports or appears to have\nbeen sent from or is reasonably believed to have been sent pursuant to\norders originating in, such occupied territory during the period of\noccupation, or (2) such statute, rule or regulation appears to have\nemanated from such dominant authority and purports to be or to have been\nin force in such occupied territory during the period of occupation.\n (d) The foregoing provisions of this subdivision shall apply to\nclaims, advices, statutes, rules or regulations made, given or invoked\neither prior to, or on or subsequent to the effective date of this act.\n 3. An investment company ne
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