N.Y. Real Property Actions & Proceedings Law § 1762: Distribution of proceeds to owner of particular or reversionary estate

§ 1762. Distribution of proceeds to owner of particular or

reversionary estate. 1. When real property has been disposed of so as to

include a particular reversionary estate, as provided in sections 1746

and 1747, the court shall direct that the value of such estate be paid

from the proceeds of disposition.

2. The manner of payment may be either in a gross sum or by the

investment of a just proportion of the proceeds until the termination of

the prior estate or the commencement of a future estate.

3. If a prior estate has been included, income from the invested

proceeds shall be paid to the owner of such estate. But no such payment

shall be made nor shall any gross sum be paid to such owner until an

effectual release of the right or estate of the person so consenting,

executed to the satisfaction of the court, and duly acknowledged or

proved, and certified, in like manner as a deed to be recorded, has been

filed with the clerk.

4. If a future estate has been included, the invested proceeds shall

be paid to the owner of such estate at the time of the commencement

thereof.