N.Y. Uniform Commercial Code Law § 3-804: Lost, Destroyed or Stolen Instruments

Section 3--804. Lost, Destroyed or Stolen Instruments.

The owner of an instrument which is lost, whether by destruction,

theft or otherwise, may maintain an action in his own name and recover

from any party liable thereon upon due proof of his ownership, the facts

which prevent his production of the instrument and its terms. The court

shall require security, in an amount fixed by the court not less than

twice the amount allegedly unpaid on the instrument, indemnifying the

defendant, his heirs, personal representatives, successors and assigns

against loss, including costs and expenses, by reason of further claims

on the instrument, but this provision does not apply where an action is

prosecuted or defended by the state or by a public officer in its

behalf.