N.Y. Debtor & Creditor Law § 194: Provision for pending actions

§ 194. Provision for pending actions. If, at the time any dividend is

made, any action or proceeding be pending against the trustees, in which

a demand against such debtor may be established, the trustees may retain

in their hands, the proportion which would belong to such demand if

established, and the necessary costs and expenses of such action or

proceeding, to be applied according to the event of such proceeding or

action, or to be distributed in a second or other dividend.