Federal Interpleader Act of 1936

The Federal Interpleader Act of 1936 49 Stat. 1096 was United States federal legislation enacted by the 74th United States Congress approved January 20, 1936.

The Act repealed and replaced the existing federal interpleader act 44 Stat. 416 approved May 8, 1926 and codified it as United States Judicial Code §41(26), and established the modern statutory interpleader. The act was drafted by Zechariah Chafee, who considered this his foremost professional accomplishment. The Federal Interpleader Act was enacted 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 by enabling nationwide service of process. The original act Federal Interpleader Act of 1917 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. 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.