N.Y. Lien Law § 56: Preference over contractors

§ 56. Preference over contractors. When a laborer, subcontractor or

material man shall perform labor or furnish materials for an improvement

of real property or for a public improvement, for which he is entitled

to a mechanic's lien, the amount due to him shall be paid out of the

proceeds of the sale of such property or out of the moneys of the state

or public corporation applicable to the construction or demolition of

the public improvement, under any judgment rendered pursuant to this

article, before any part of such proceeds is paid to the person for whom

he has performed such labor or furnished such materials. If several

notices of lien are filed for the same claim, as where the contractor

has filed a notice of lien, for the services of his workmen, and the

workmen have also filed notices of lien, the judgment shall provide for

but one payment of the claim which shall be paid to the parties entitled

thereto. Payment voluntarily made upon any claim filed as a lien shall

not impair or diminish the lien of any person except the person to whom

the payment was made.