N.Y. Debtor & Creditor Law § 252: Payment by committee or conservator of claims

§ 252. Payment by committee or conservator of claims. A committee of

the property of a person, incompetent by reason of mental illness, a

developmental disability or alcohol abuse, to manage his or her affairs,

or a conservator of the property of a conservatee, may, under direction

of the court exercising jurisdiction of such estate, after payment of

the expenses, disbursements and commissions of such trust, apply so much

of the funds and property of said estate remaining in his or her hands

as such committee or conservator, as may be necessary to pay and

discharge the proper claims of creditors who have presented claims

pursuant to the notice in this article provided for, to the payment of

such claims, and if the property so remaining be insufficient to pay

such claims in full, then the committee or conservator may distribute

the same according to law among the creditors who have presented and

proved their claims as in this article provided, and such payment, when

so made in good faith and under direction of such court, shall relieve

such committee or conservator and his or her sureties from liability to

creditors who have failed to present their claims as in this article

provided.