N.Y. Public Officers Law § 27: When claimants entitled to ratable distribution

§ 27. When claimants entitled to ratable distribution. If the

aggregate amount of the liabilities, which might be recovered by actions

upon an official bond or undertaking, as prescribed in this article,

exceeds the sum for which the sureties are liable, the court must, upon

the application of a person who has obtained leave to prosecute the bond

or undertaking, made upon notice to the plaintiff's attorney, in each

action then pending upon such bond or undertaking, and in each

uncollected judgment recovered thereupon, direct and provide for the

distribution of the money, collected out of the property of the

sureties, among the persons in favor of whom the liabilities have

accrued, in proportion to the amount which each one is entitled to

recover; to be ascertained by a reference, or in such other manner as

the court directs. For the purposes of the motion an order may be made

by a judge, forbidding the payment to the plaintiff in any action, of

the sum collected or to be collected by virtue of a judgment therein.

But this section does not authorize the court to compel a plaintiff to

refund any money, collected and received by him, in good faith, before

service of notice of such an order.