New York Laws
Article 2 - Mechanics' Liens
5 - Liens Under Contracts for Public Improvements.

§ 5. Liens under contracts for public improvements. A person
performing labor for or furnishing materials to a contractor, his or her
subcontractor or legal representative, for the construction or
demolition of a public improvement pursuant to a contract by such
contractor with the state or a public corporation, and any trust fund to
which benefits and wage supplements are due or payable for the benefit
of such person performing labor, shall have a lien for the principal and
interest of the value or agreed price of such labor, including benefits
and wage supplements due or payable for the benefit of any person
performing labor, or materials upon the moneys of the state or of such
corporation applicable to the construction or demolition of such
improvement, to the extent of the amount due or to become due on such
contract, and under a judgment of the court of claims awarded to the
contractor for damages arising from the breach of such contract by the
state, or awarded for furnishing labor or materials not contemplated by
the provisions of said contract, upon filing a notice of lien as
prescribed in this article, except as hereinafter in this article
provided. Where no public fund has been established for the financing of
a public improvement with estimated cost in excess of two hundred fifty
thousand dollars, the chief financial officer of the public owner shall
require the private entity for whom the public improvement is being made
to post, or cause to be posted, a bond or other form of undertaking
guaranteeing prompt payment of moneys due to the contractor, his or her
subcontractors and to all persons furnishing labor or materials to the
contractor or his or her subcontractors in the prosecution of the work
on the public improvement.