N.Y. Labor Law § 574: Insolvency or bankruptcy

§ 574. Insolvency or bankruptcy. 1. Priority of contributions. In the

event of the dissolution, insolvency, composition, or assignment for

benefit of creditors of any employer, contributions then and thereafter

due from such employer under this article, together with any interest

and penalties thereon, shall (1) be on a parity with taxes (other than

real property taxes), together with any interest and penalties thereon,

due the state of New York or any city thereof and (2) have priority over

all other claims, except taxes due the United States and wages due for

employment performed within the three months preceding such event. In

the event of an employer's adjudication in bankruptcy, judicially

confirmed extension proposal, composition, or reorganization under the

federal bankruptcy act, contributions then and thereafter due under this

article, together with any interest and penalties thereon, shall be

entitled to such priority as is provided in such act.

2. Discharge in bankruptcy. If the commissioner was given due notice

or had knowledge of the bankruptcy proceedings, the payment of

contributions due, together with interest and penalties thereon, which

accrued on or before the date of the petition for bankruptcy and which

remain unpaid upon the discharge of the employer in bankruptcy by a

court of competent jurisdiction, shall not be enforced unless civil

action or warrant proceedings are begun not later than two years after

the date of such discharge and their total amount is two thousand

dollars or more.