N.Y. Not-for-Profit Corporation Law § 1209: Recovery of assets

§ 1209. Recovery of assets.

(a) Whenever a receiver, by verified petition to the supreme court at

a special term held in the judicial district in which the receiver was

appointed, shall show that he or she has good reason to believe that any

person has in his or her possession or under his or her control, or has

wrongfully concealed, withheld or disposed of, any property of the

corporation, or that any person can testify concerning such facts, the

court, with or without notice, shall make an order requiring such person

to appear before the court or a referee, at a time and place designated,

and submit to an examination concerning such facts. In such order, or at

any time thereafter, in its discretion, the court may enjoin and

restrain such person from disposing of any property of the corporation

in his or her possession or under his or her control.

(b) In any examination under such order, the court may confer immunity

in accordance with the provisions of section six hundred nineteen-c of

the code of criminal procedure; provided that no immunity shall be

conferred except upon twenty-four hours prior written notice to the

appropriate district attorney having an official interest therein.

(c) A person so ordered to appear shall be entitled to the same fees

and mileage, to be paid at the time of serving the order, as are allowed

by law to witnesses subpoenaed to attend and testify in an action in the

supreme court, and shall be subject to the same penalties upon failure

to appear and testify in obedience to such order as are provided by law

in the case of witnesses who fail to obey a subpoena to appear and

testify in an action.

(d) A person appearing for examination in obedience to such order

shall be sworn, and shall be entitled to be represented on such

examination by counsel, and may be cross-examined, or may make a

voluntary statement in his own behalf concerning the subject of his

examination.

(e) The testimony taken under such order shall be signed and sworn to

by the person examined, and be filed in the office of the clerk of the

county where the action or proceeding is pending. If it shall appear

that any person is wrongfully concealing or withholding, or has in his

or her possession or under his or her control, any property of the

corporation, on notice to such person, the court may make an order

requiring such person forthwith to deliver it to the receiver, subject

to the further order of the court.