N.Y. Real Property Actions & Proceedings Law § 913: Inquiry as to creditors

§ 913. Inquiry as to creditors. 1. Before an interlocutory judgment

for the sale of real property is rendered the court shall ascertain, by

reference or otherwise, whether there is any creditor not a party who

has a lien on the undivided share or interest of any party. A search

certified by the clerk or by the clerk and register of the county where

the property is situated that there is no such outstanding lien is

sufficient proof of the absence of such creditor.

2. Where a reference is directed, the referee shall cause a notice to

be published once in each week for four successive weeks in such

newspaper published in the county wherein the place of trial is

designated as shall be designated by the court directing said reference,

and also, where the court so directs, in a newspaper published in each

county wherein the property is situated, requiring each person not a

party to the action who, at the date of the order, had a lien upon any

undivided share or interest in the property, to appear before the

referee at a specified place and on or before a specified day to prove

his lien and the true amount due or to become due to him by reason

thereof. The referee shall report to the court with all convenient speed

the name of each creditor whose lien is satisfactorily proved before

him, the nature and extent of the lien, the date thereof and the amount

due or to become due thereupon.