New York Laws
Article 9 - Action for Partition
963 - Payment of Proceeds Out of Court Where There Are Liens.

§ 963. Payment of proceeds out of court where there are liens. 1.
Where the proceeds of a sale are paid into court, in a case specified in
section 962, the party may apply to the court for an order directing
that the money, or such part as he claims, be paid to him, and the court
shall make such an order as justice requires. The party shall by
affidavit show the amount actually due on each incumbrance, and the name
and residence of the owner of the incumbrance, as far as they are known
or can be ascertained with due diligence, and showing service of a
notice of the application on each owner of an incumbrance. Service of
the notice within the state shall be personal, or by leaving it at the
owner's residence with some person of suitable age and discretion, at
least fourteen days previous to the application. Service without the
state, if personal, shall be made at least twenty days previous to the
application. If the owner of the incumbrance resides without the state,
and the place of his abode cannot be ascertained with reasonable
diligence, notice may be served on him by publishing it in such
newspaper or newspapers as the court may direct, once in each week for
the four weeks immediately preceding the application.

2. When the whole amount of the unsatisfied liens upon an undivided
share has been ascertained, the court shall order the portion of the
money so paid into court on account of that share to be distributed
among the creditors having the liens, according to the priority of each
of them. Where the incumbrancer is not a party to the action, the clerk
or other officer by whom a lien is paid off shall procure satisfaction
to be acknowledged or proved, as required by law, and shall cause the
incumbrance to be duly satisfied or cancelled of record. The expense of
so doing shall be paid out of the portion of the money in court
belonging to the party by whom the incumbrance was payable.