2A:41A-1. Interstate Compact on Interpleader

The Governor is hereby authorized and directed to execute a compact in the following form on behalf of this State with any other State or States as defined in said compact when entered into in accordance with the terms of said compact by said other State or States and not disapproved by the Governor of this State under paragraph (c) of article 7 of such compact:

Interstate Compact on Interpleader

The contracting States solemnly agree:

Article I--Purpose.

The aims of this compact are to promote comity and judicial cooperation among the States party thereto; and to relieve from undue risk and uncertainty, a person who may be subject to double or multiple liability because of the existence of adverse claimants, 1 or more of whom in the absence of this compact may not be subject to the jurisdiction of the adjudicating court, when such person makes all reasonable efforts to secure judicial determination and discharge of his liability.

Article II--Definitions.

For the purpose of this compact the following definitions shall apply:

(a) A State shall mean (1) a State of the United States or any territory or possession of the United States and the District of Columbia acting under Article 1, section 10, clause 3, of the Constitution of the United States in entering this compact with an American or a foreign jurisdiction, or (2) a State of the community of nations and any component governmental unit of such a State which under the laws thereof may validly become party to this compact.

(b) A person shall include any entity capable of suing or being sued in the State in which the interpleader is pending.

(c) Interpleader shall mean a judicial procedure by which 2 or more persons who have adverse claims against a third person may be required to litigate these claims in 1 proceeding.

Article III--Service of Process.

(a) Service of process sufficient to acquire personal jurisdiction may be made within a State party to this compact, by a person who institutes an interpleader proceeding or interpleader part of a proceeding in another State, party to this compact, provided that such service shall fulfill the requirements for service of process of the State in which the service is made and provided further that such service shall meet the minimum standards for service of the jurisdiction where the proceeding is pending.

(b) No such service of process shall be valid unless either: (1) the subject matter of the proceeding is specific real property or tangible personal property situated within the State in which the proceeding is pending; or (2) 1 or more of the claimants shall be either a permanent resident or domiciliary of the State in which the proceeding is pending; or (3) a significant portion of the transaction out of which the proceeding shall have arisen shall have taken place in the State in which the proceeding is pending; or (4) 1 of the claimants shall have initiated the action.

Article IV--Scope of Interpleader Unaffected.

Nothing in this compact shall be construed to change any requirement or limitation on the scope of interpleader of the State in which the interpleader proceeding is pending except in relation to acquisition of personal jurisdiction.

Article V--Finality of Judgment.

No judgment obtained against any person in any proceeding to which he had become a party by reason of service of process effected pursuant to the provisions of this compact shall be subject to attack on the ground that the adjudicating court did not have personal jurisdiction over such person.

Article VI--Enactment.

(a) This compact shall enter into force and effect as to a State 1 year from the date it has taken whatever action may be necessary pursuant to its required processes to make this compact part of the laws of such State and the appropriate authority of such State shall have deposited a duly authenticated copy of its statute, proclamation, order, or similar official pronouncement having the force of law and embodying this compact as law with the appropriate officer or agency of each of the States party thereto. In the statute, proclamation, order or similar act by which a State adopts this compact, it shall specify the officer or agency with whom the documents referred to in this article shall be deposited.

(b) Unless the statute, proclamation, order, or similar act by which a State adopts this compact shall specify otherwise, and name the States with which the State intends to compact, such adoption shall apply to all other States then party to or who may subsequently become party to this compact. In the event that a State shall enter this compact with some States but not with others, the deposit of documents required by paragraph (a) of this article shall be effected only with those States to which the adopting State specifies an intention to be bound.

Article VII--Withdrawal.

(a) This compact shall continue in force and remain binding on a party State until such State shall withdraw therefrom. To be valid and effective, any withdrawal must be preceded by a formal notice in writing of 1 year from the appropriate authority of that State. Such notice shall be communicated to the same officer or agency in each party State with which the notice of adoption was deposited pursuant to article 6 of this compact. In the event that a State wishes to withdraw with respect to 1 or more States, but wishes to remain a party to this compact with other States party thereto, its notice of withdrawal shall be communicated only to those States with respect to which withdrawal is contemplated.

(b) Withdrawal shall not be effective as to service of process accomplished pursuant to this compact prior to the actual date of withdrawal.

(c) Any State receiving a notice of adoption from another State may by action of its executive head within a year from the receipt of such notice in the manner provided for withdrawal in paragraph (a) of this article specify its intention not to be bound to the State depositing such notice and such adoption thereupon shall not be binding upon the State so acting.

Article VIII--Severability and Construction.

The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is declared to be contrary to the constitution of any participating State, or in the case of a component governmental unit, to the constitution of the State of which it is a part, or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby; provided that if this compact shall be held invalid or contrary to the constitution of any government participating therein the compact shall remain in full force and effect as to the remaining governments and in full force and effect as to the government affected to all severable matters. It is the intent that the provisions of this compact shall be reasonably and liberally construed.

L.1957, c. 97, p. 187, s. 1, eff. June 21, 1957.