N.Y. Retirement & Social Security Law § 111-a: Bonds required in certain cases

§ 111-a. Bonds required in certain cases. a. In any case where, by

order of a court of competent jurisdiction, the retirement system is

required to pay over a benefit which is payable in installments and

which is predicated upon the life of a beneficiary, to a payee other

than the recipient who ordinarily would have taken the benefit pursuant

to the provisions of this article, such payee must file a bond. The bond

shall be in favor of the comptroller as administrative head of the

retirement system and shall indemnify him against loss by reason of

excess payments to such payee, after benefits have ceased to become

payable for any reason whatsoever.

The amount of the bond shall be fixed by the court in a sum not less

than the total amount such payee is expected to take for a period of two

years. The bond with at least two sureties must be approved by the

court. It must be filed with the clerk of the court and a certified copy

thereof served upon the comptroller. Before the bond shall be approved

there shall be filed in the court by every surety an acknowledged

instrument wherein the surety designates the clerk of the court and his

successors in office as a person upon whom service of any process

issuing from the court may be made in like manner and with like effect

as if served personally upon the surety, whenever such surety after the

exercise of due diligence cannot be found and served within the state of

New York.

Insofar as they are consistent with this article, the provisions of

law relating to bonds and undertakings in a civil action in the supreme

court shall apply to bonds required by this subdivision.

b. Notwithstanding any provisions to the contrary in subdivision a of

this section, if the retirement system is required to pay over a benefit

which is payable in installments and which is predicated upon the life

of a beneficiary, to a payee other than the recipient who ordinarily

would have taken the benefit pursuant to the provisions of this chapter,

such payee shall not be required to file a bond or any other undertaking

where such payment is required by order of a court of competent

jurisdiction as the result of an action or proceeding for equitable

distribution, alimony, maintenance or child support pursuant to article

three-A or thirteen of the domestic relations law, article four of the

family court act, title six-A or six-B of article three of the social

services law, section fifty-two hundred forty-two of the civil practice

law and rules, or by an income execution issued pursuant to section

fifty-two hundred forty-one of the civil practice law and rules.

Upon the payment of such benefit, the retirement system shall be

relieved and held harmless from any and all liability for any claim of

excess payment which exists at the time with reference to such benefit

or may thereafter be made on account of such benefit.