New York Laws
Article 7 - Motor Vehicle Safety Responsibility Act
335 - Security and Proof Required Following Accident.

(b) Such security, where ordered, shall be in such form and in such
amount as the commissioner may require, but in no case in excess of the
amount of proof required by section three hundred forty-one of this
article. The commissioner may reduce the amount of security ordered in
any case within six months after the date of the accident, if, in his
judgment, the amount ordered is too large. In case the security
originally ordered has been deposited, the excess deposited over the
reduced amount ordered shall be returned to the depositor or his
personal representative forthwith, notwithstanding the provisions of
subdivision (c) of this section.
(c) Security furnished in compliance with the requirements of this
section shall be placed by the commissioner in the custody of the
commissioner of taxation and finance and shall be applicable only to the
payment of a judgment against the depositor for damages arising out of
the accident in question in an action at law begun not later than one
year after the date of such accident or, upon assignment of the
depositor, made not later than one year after the date of such accident,
to the settlement of a claim arising out of such accident, or upon
assignment of the depositor, made after the expiration of one year after
the date of such accident, to the settlement of an action at law begun
not later than one year after the date of such accident. All of such
payments made out of the deposited security shall be made as follows:
Payment shall first be made to each of the judgment creditors and to
each of the claimants who have agreed to settle their claims, whose
damages were evaluated by the commissioner, in an amount not greater
than the amount fixed in their respective evaluations. Whenever the
commissioner shall be given evidence, satisfactory to him, that the
amounts of all claims for damages against the depositor arising out of
such accident are fixed, either by judgment or settlement agreement,
payment shall be made out of any balance remaining after the first
distribution to each of those persons whose judgments or settlement
amounts have not been fully paid but whose damages were evaluated by the
commissioner, in proportion to the amounts of their respective
evaluations unless there is sufficient to make payment in full; and any
balance remaining after the first and second distributions are completed
shall be paid to those judgment creditors and those claimants who have
agreed to settle their claims but whose damages were not evaluated, in
proportion to the amounts of their respective judgments or settlement
amounts unless there is sufficient to make payment in full. Such
deposit, or any balance thereof, shall be returned to the depositor or
his personal representative whenever after the expiration of such year,

the commissioner shall be given evidence, satisfactory to him, that
there is no such action pending and no such judgment unsatisfied or
whenever, before the expiration of such year, the commissioner shall be
given evidence, satisfactory to him, that there is no such judgment
unsatisfied and that there is no existing cause of action against the
depositor for damages arising out of such accident.
(c-1) After security, furnished in compliance with the requirements of
this section, has remained on deposit for five years, the commissioner
shall make a determination as to whether the deposit, or any balance
thereof, is returnable to the depositor or the person entitled thereto.
In the event that such deposit, or any balance thereof, is determined to
be returnable, but remains unclaimed by the depositor or the person
entitled thereto for a period of one year following the date of such
determination, such unclaimed deposit, or any balance thereof, shall be
deemed abandoned property subject to the provisions of the abandoned
property law.
(d) The provisions of subdivision (a) of this section shall not apply
to the owner of a motor vehicle operated by one having obtained
possession or control thereof without the expressed or implied consent
of such owner, to a police officer or member of the state police who is
compelled to assume the custody and operation of a motor vehicle of
another because such motor vehicle was (1) stolen from or lost by the
owner, (2) abandoned, either by the owner or any other person with or
without the owner's consent, (3) is being operated by a person disabled
so as not to be able to operate it properly, or (4) is being operated by
an intoxicated person; or to either the owner or operator of a motor
vehicle involved in an accident wherein no damage or injury was caused
to other than the person or property of such owner or operator.
(e) In lieu of deposit of security when required pursuant to the
provisions of this section the commissioner may accept a written
agreement, executed and acknowledged by the person required to deposit
security and any person who has sustained bodily injury, including
death, or damage to his property, or his legal representative, providing
for the payment of an agreed amount in installments, with respect to the
claims of such person for injuries or damages resulting from the
accident. In the event of default in payment of any installment under
such agreement, then upon notice of such default the commissioner shall
forthwith suspend the license and registration certificates and
registration plates of the person in default until release has been
filed with the commissioner indicating that the entire agreed amount has
been paid. But in no case shall such agreement be used in lieu of proof
of maintenance of financial responsibility in the future required
pursuant to the provisions of this section.