N.Y. Lien Law § 5: Liens under contracts for public improvements

§ 5. Liens under contracts for public improvements. A person

performing labor for or furnishing materials to a contractor, his or her

subcontractor or legal representative, for the construction or

demolition of a public improvement pursuant to a contract by such

contractor with the state or a public corporation, and any trust fund to

which benefits and wage supplements are due or payable for the benefit

of such person performing labor, shall have a lien for the principal and

interest of the value or agreed price of such labor, including benefits

and wage supplements due or payable for the benefit of any person

performing labor, or materials upon the moneys of the state or of such

corporation applicable to the construction or demolition of such

improvement, to the extent of the amount due or to become due on such

contract, and under a judgment of the court of claims awarded to the

contractor for damages arising from the breach of such contract by the

state, or awarded for furnishing labor or materials not contemplated by

the provisions of said contract, upon filing a notice of lien as

prescribed in this article, except as hereinafter in this article

provided. Where no public fund has been established for the financing of

a public improvement with estimated cost in excess of two hundred fifty

thousand dollars, the chief financial officer of the public owner shall

require the private entity for whom the public improvement is being made

to post, or cause to be posted, a bond or other form of undertaking

guaranteeing prompt payment of moneys due to the contractor, his or her

subcontractors and to all persons furnishing labor or materials to the

contractor or his or her subcontractors in the prosecution of the work

on the public improvement.