N.Y. Real Property Actions & Proceedings Law § 1354: Distribution of proceeds of sale

§ 1354. Distribution of proceeds of sale. 1. The officer conducting

the sale shall pay, out of the proceeds, unless otherwise directed, the

expenses of the sale, and pay to the plaintiff, or his attorney, the

amount of the debt, interest and costs, or so much as the proceeds will

pay and take the receipt of the plaintiff, or his attorney, for the

amount so paid, and file the same with his report of sale.

2. The officer conducting the sale shall pay out of the proceeds all

taxes, assessments, and water rates which are liens upon the property

sold, and redeem the property sold from any sales for unpaid taxes,

assessments or water rates which have not apparently become absolute. In

any city having a population of three hundred thousand or more or any

city having a population between one hundred twenty-five thousand and

one hundred seventy-five thousand, such officer shall pay out of the

proceeds any liens or incumbrances placed by a city agency upon the real

property which have priority over the foreclosed mortgage. The sums

necessary to make those payments and redemptions are deemed expenses of

the sale. The provisions of this subdivision shall not apply to any

judgment in an action wherein any municipal corporation of this state is

the plaintiff and the purchaser at the foreclosure sale thereunder.

3. The officer conducting the sale after fully complying with the

provisions of subdivisions one and two of this section and if the

judgment of sale has so directed shall pay to the holder of any

subordinate mortgage or his attorney from the then remaining proceeds

the amount then due on such subordinate mortgage, or so much as the then

remaining proceeds will pay and take the receipt of the holder, or his

attorney for the amount so paid, and file the same with his report of

sale.

4. All surplus moneys arising from the sale shall be paid into court

by the officer conducting the sale within five days after the same shall

be received.