Federal Interpleader Act of 1917

The Federal Interpleader Act of 1917 39 Stat. 929 was United States federal legislation enacted by the 64th United States Congress approved February 22, 1917. In 1925 it was codified in the United States Code as 28 U.S.C. 41(26) (1925).

The Act allowed an insurance company, or fraternal benefit society subject to multiple claims on the same policy to file a suit in equity by a bill of interpleader in United States District Courts and providing nationwide service of process. It was introduced to overcome the ruling of the United States Supreme Court in New York Life v. Dunlevy 241 U.S. 518, that for a party to be bound by an interpleader that party must be served process in a way that obtains personal jurisdiction. The policy must have a value of at least $500 is claimed or may be claimed by adverse claimants; which is less than the amount in controversy of $3,000 in Judicial Code §48(1) then required for general diversity jurisdiction. Two or more of the beneficiaries must live in different states.