N.Y. Real Property Actions & Proceedings Law § 1362: Payment of surplus out of court

§ 1362. Payment of surplus out of court. 1. Upon confirmation of the

report of sale, or upon such proceedings as are provided in section

1361, the court shall order the payment of the surplus proceeds of sale

out of court to such persons as are entitled thereto.

2. If the property sold has included a right to dower, whether

inchoate or consummate, a tendency by curtesy, or any other estate for

life or years, the owner of such particular estate in the real property

sold is entitled to receive from the surplus, in satisfaction of his

estate or interest, either a sum in gross or the earnings of a sum

invested for his benefit. The determination as to whether a sum in gross

or the earnings of a sum invested shall be awarded to the owner of such

particular estate shall be governed by the provisions of section 968

with respect to the proceeds of a sale in partition.

3. If real property or an interest in real property which is liable to

be disposed of as prescribed in article thirteen of the surrogate's

court act, be sold to satisfy a mortgage or other lien thereon, which

mortgage or lien accrued during the decedent's lifetime, the surplus

money shall be paid in to the surrogate's court having jurisdiction to

issue letters testamentary or of administration upon the estate of the

decedent, in the following cases: (a) If eighteen months have not

elapsed since the date when letters testamentary or of administration

were first issued. (b) If a proceeding for a judicial settlement of the

accounts of such executor or administrator has been commenced within

eighteen months from the date of the issue of such letters and is still

pending. (c) If no such letters have been issued and two years have not

elapsed since the death of the decedent.