New York Laws
Article 74 - Rehabilitation, Liquidation, Conservation and Dissolution of Insurers
7413 - Priority of Preferred Claims, Special Deposit Claims and Secured Claims.

(b) In a delinquency proceeding against an insurer domiciled in a
reciprocal state, claims owing to residents of this state shall be
preferred if like claims are preferred by the laws of that state.
(c) The owners of special deposit claims against an insurer for which
a receiver is appointed in this or any other state shall be given
priority against their several special deposits in accordance with the
provisions of the statutes governing the creation and maintenance of
such deposits. If there is a deficiency in any such deposit so that the
claims secured thereby are not fully discharged therefrom, the claimants
may share in the general assets, but such sharing shall be deferred
until general creditors, and also claimants against other special
deposits who have received smaller percentages from their respective
special deposits, have been paid percentages of their claims equal to
the percentage paid from the special deposit.
(d) The owner of a secured claim against an insurer for which a
receiver has been appointed in this or any other state may surrender his
security and file his claim as a general creditor, or the claim may be
discharged by resort to the security, in which case the deficiency, if
any, shall be treated as a claim against the general assets of the
insurer on the same basis as claims of unsecured creditors. If the
amount of the deficiency has been adjudicated in ancillary proceedings
as provided in this act, or if it has been adjudicated by a court of
competent jurisdiction in proceedings in which the domiciliary receiver
has had notice and opportunity to be heard, such amount shall be
conclusive; otherwise the amount shall be determined in the delinquency
proceeding in the domiciliary state.