N.Y. Debtor & Creditor Law § 251: Authority for committee or conservator to compromise claims

§ 251. Authority for committee or conservator to compromise claims. A

court exercising jurisdiction over the property of a person with a

mental illness, or conservatee may, upon the application of the

committee of the property of such incompetent person or the conservator

of the conservatee, and for good and sufficient cause shown, and upon

such terms as it may direct, authorize the committee or conservator to

sell, compromise or compound any claim or debt belonging to the estate

of the incompetent person or conservatee. But such authority shall not

prevent any party interested in the trust estate, from showing upon the

final accounting of such committee or conservator that such debt or

claim was fraudulently or negligently sold, compounded or compromised.

The sale of any debt or claim heretofore made in good faith by any such

committee or conservator, shall be valid, subject, however, to the

approval of the court, and the committee or conservator shall be charged

with and liable for, as a part of the trust fund, any sum which might or

ought to have been collected by him.