N.Y. Real Property Actions & Proceedings Law § 1616: Application to compensation arising out of appropriation of real property by the state

§ 1616. Application to compensation arising out of appropriation of

real property by the state. 1. The procedure authorized by sections 1601

through 1614 as to a sale of real property, covering all created

interests as mentioned therein and qualified in section 1615, shall, so

far as practicable, apply also to an application concerning payment of

compensation arising out of any appropriation by the state of real

property or of any interest therein, for public purpose, in the same

manner that such procedure would apply, but for such appropriation, to

an application thereunder for an order directing that the real property

in question, or a part thereof, be sold.

2. For the purpose, however, of the relief sought under the provisions

of this section, all references in this and in any of the above

enumerated sections to a trustee or a trust shall be construed as

relating only to a trust estate created by an instrument other than a

will and under which the trustee has no valid power of sale over the

subject property. Where, however, a valid power of sale is given the

trustee under such instrument, he is hereby authorized to execute the

transaction in the same manner a testamentary trustee may do under

section two hundred fifty-c of the surrogate's court act, and which

execution, including all releases given thereunder by such

nontestamentary trustee, shall in similar scope be binding and

conclusive on all persons and interests as covered thereby in said last

mentioned section.

3. In the case of any such appropriation where relief is sought under

this section, the relevant proof to be taken and the hearing and

examination to be had before final order under the provisions of section

1609 shall be as to whether the compensation offered by the state, or

any agency or department thereof, by way of a provisionally executed

agreement of adjustment or otherwise, for the total value of such

appropriated property or interest and of all legal damages caused by

such appropriation, represents the fair market value of such property or

interest and just compensation therefor and for all legal damages caused

by such appropriation, including the damages, if any, sustained by the

entry upon, use or occupation of, or injury to, said property by the

state prior to completion of appropriation. If the court is satisfied as

to the adequacy of said offer, it shall, in the final order in the

proceeding, authorize the applicant if acting as trustee, and, if not,

then a referee to be appointed thereunder to execute the authorized

transaction, to enter into or adopt any such agreement of adjustment

with, and in form submitted by, the state or any agency or department

thereof for the total compensation so offered; and on report under oath

to the court by such trustee or referee of any such agreement of

adjustment so undertaken by either of them, if it appears to the court

to conform in all particulars to the final order authorizing the

transaction, an order shall be made approving and confirming such

agreement of adjustment and directing such trustee or referee, upon

consummation thereof, in behalf of all persons in interest as to the

property affected by said appropriation, or as to the proceeds to be

derived therefrom in said transaction, who shall have become bound by

said proceeding under the provisions of section 1614 to execute and

deliver to the state and/or any agency or department thereof, a release

of all claims on the part of such persons in interest with respect to

the total compensation offered as aforementioned, together with any and

all other documents and instruments which may be required by the state

or any agency or department thereof to give full effect to such release,

and which release and attendant documents and instruments shall, upon

such execution and delivery thereof, become and remain binding and

conclusive on all of the aforesaid persons in interest.

4. Said order of confirmation shall, in the discretion of the court,

provide for payment out of said total compensation of reasonable

disbursements and of such allowances as to the court may seem proper, in

the manner and respectively to the participants and persons mentioned in

section 1613, and shall also authorize said trustee or referee to

receive the net proceeds therefrom after such payment and to apply,

safeguard, manage and distribute said remaining fund as directed in said

order of confirmation and in accordance with the relevant provisions of

section 1613.