Second Circuit Vacates Winter Storm And Holds that Electronic Funds Transfers At An Intermediary Bank Are Not Property Subject To Maritime Attachment Orders

The attached Alert Memo explains the Second Circuit’s recent decision in The Shipping Corporation of India, Ltd. v. Jaldhi Overseas Pte Ltd., in which the Court held, reversing a prior ruling, that electronic funds transfers at intermediary banks are not property subject to maritime attachment orders. Shipping Corporation is likely to free financial institutions from the heavy burdens imposed by such maritime orders, restore certainty to the international funds transfer process, and help preserve the U.S. dollar’s status as the world’s reserve currency.