New York Laws
Article 13 - Action to Foreclose a Mortgage
1362 - Payment of Surplus Out of Court.

§ 1362. Payment of surplus out of court. 1. Upon confirmation of the
report of sale, or upon such proceedings as are provided in section
1361, the court shall order the payment of the surplus proceeds of sale
out of court to such persons as are entitled thereto.

2. If the property sold has included a right to dower, whether
inchoate or consummate, a tendency by curtesy, or any other estate for
life or years, the owner of such particular estate in the real property
sold is entitled to receive from the surplus, in satisfaction of his
estate or interest, either a sum in gross or the earnings of a sum
invested for his benefit. The determination as to whether a sum in gross
or the earnings of a sum invested shall be awarded to the owner of such
particular estate shall be governed by the provisions of section 968
with respect to the proceeds of a sale in partition.

3. If real property or an interest in real property which is liable to
be disposed of as prescribed in article thirteen of the surrogate's
court act, be sold to satisfy a mortgage or other lien thereon, which
mortgage or lien accrued during the decedent's lifetime, the surplus
money shall be paid in to the surrogate's court having jurisdiction to
issue letters testamentary or of administration upon the estate of the
decedent, in the following cases: (a) If eighteen months have not
elapsed since the date when letters testamentary or of administration
were first issued. (b) If a proceeding for a judicial settlement of the
accounts of such executor or administrator has been commenced within
eighteen months from the date of the issue of such letters and is still
pending. (c) If no such letters have been issued and two years have not
elapsed since the death of the decedent.