N.Y.C. Admin. Code § 7-206: § 7-206 Illegal claims; power of board of estimate to pay or compromise on equitable grounds.

The board of estimate may inquire into, hear and determine any claim against the city or any agency when the comptroller, or in the case of a claim against the board of education, the comptroller and the board of education, certifies in writing that such claim is illegal or invalid, but that it is equitable and proper that such claim be paid in whole or in part. If, upon such inquiry, the board of estimate, by a unanimous vote, determines that benefits have been received by the city or any agency and that public interests will best be served by payment or compromise thereof, it may authorize payment of such claim, and such claim shall thereupon be paid in such amount as the board shall determine to be just, in full satisfaction thereof, provided that the claimant shall execute a release, upon any such payment, in such form as shall be approved by the corporation counsel. The provisions of this section shall not authorize the audit or payment of any claim barred by the statute of limitations, nor any claim for services performed under an appointment in violation of any provision of the civil service law.