New York Laws
Article 3 - Enforcement of Liens on Real Property
56 - Preference Over Contractors.

§ 56. Preference over contractors. When a laborer, subcontractor or
material man shall perform labor or furnish materials for an improvement
of real property or for a public improvement, for which he is entitled
to a mechanic's lien, the amount due to him shall be paid out of the
proceeds of the sale of such property or out of the moneys of the state
or public corporation applicable to the construction or demolition of
the public improvement, under any judgment rendered pursuant to this
article, before any part of such proceeds is paid to the person for whom
he has performed such labor or furnished such materials. If several
notices of lien are filed for the same claim, as where the contractor
has filed a notice of lien, for the services of his workmen, and the
workmen have also filed notices of lien, the judgment shall provide for
but one payment of the claim which shall be paid to the parties entitled
thereto. Payment voluntarily made upon any claim filed as a lien shall
not impair or diminish the lien of any person except the person to whom
the payment was made.

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