ARTICLE 9
PAYMENT OF DEBTS OF INCOMPETENT PERSON OR CONSERVATEE
Section 250. Notice to creditors of incompetent person or conservatee. 251. Authority for committee or conservator to compromise claims. 252. Payment by committee or conservator of claims. 253. Citation to attend judicial settlement of accounts of committee or conservator. 254. Service of citation. 255. Proceedings on return of citation. S 250. Notice to creditors of incompetent person or conservatee. A court exercising jurisdiction over the property of an incompetent person or conservatee may, upon the petition of a committee of the property of such incompetent person or of the conservator of the property of such conservatee, authorize him to advertise for creditors and other persons interested in such estate, to present to him their claims with the vouchers thereof, duly verified, and naming a post-office address at which papers may be served on them by mail, as hereinafter provided, on or before a day to be specified in such advertisement, not less than thirty days from the last publication thereof, which advertisement or notice shall be published in two newspapers to be designated by the court as most likely to give notice to the persons to be served, not less than once a week for four successive weeks, and a copy of such notice securely inclosed in a post-paid wrapper, shall be deposited in the post-office in the village or city where such committee or conservator resides, addressed to each person interested in the estate of such incompetent person or conservatee who shall appear from the books or papers of such incompetent person or conservatee to be interested in said estate, or who shall be known to said committee or conservator to be so interested, at the proper post-office address of such interested person, so far as said committee or conservator shall be able to ascertain the same, at least thirty days prior to the time limited in such notice for presentation of such claims. S 251. Authority for committee or conservator to compromise claims. A court exercising jurisdiction over the property of a mentally ill person, mentally retarded person, alcohol abuser or conservatee may, upon the application of the committee of the property of such incompetent person or the conservator of the conservatee, and for good and sufficient cause shown, and upon such terms as it may direct, authorize the committee or conservator to sell, compromise or compound any claim or debt belonging to the estate of the incompetent person or conservatee. But such authority shall not prevent any party interested in the trust estate, from showing upon the final accounting of such committee or conservator that such debt or claim was fraudulently or negligently sold, compounded or compromised. The sale of any debt or claim heretofore made in good faith by any such committee or conservator, shall be valid, subject, however, to the approval of the court, and the committee or conservator shall be charged with and liable for, as a part of the trust fund, any sum which might or ought to have been collected by him. Sec. 252. Payment by committee or conservator of claims. A committee of the property of a person, incompetent by reason of mental illness, mental retardation or alcohol abuse, to manage his affairs, or a conservator of the property of a conservatee, may, under direction of the court exercising jurisdiction of such estate, after payment of the expenses, disbursements and commissions of such trust, apply so much of the funds and property of said estate remaining in his hands as such committee or conservator, as may be necessary to pay and discharge the proper claims of creditors who have presented claims pursuant to the notice in this article provided for, to the payment of such claims, and if the property so remaining be insufficient to pay such claims in full, then the committee or conservator may distribute the same according to law among the creditors who have presented and proved their claims as in this article provided, and such payment, when so made in good faith and under direction of such court, shall relieve such committee or conservator and his sureties from liability to creditors who have failed to present their claims as in this article provided.
Debtor Creditor Law
NY Insurance Law
NY Partnership Law
NY Corporation Law
NY General Business Law
S 253. Citation to attend judicial settlement of accounts of committee or conservator. A citation may be issued by the court to all parties interested in the estate of such incompetent person or conservatee, as creditors or otherwise, requiring them to appear in court on some day therein to be specified, to make proof of their several claims if they be creditors, and to show cause why a settlement of accounts and proceedings of the committee or conservator up to the date of such hearing should not be had, and if no cause be shown, to attend the settlement of such account. All such citations must be returnable in court, and said court when not otherwise engaged shall always be open for proceedings under this article. Such citations may be issued on petition of such committee or conservator, or of one or more of his sureties, or of a creditor of such incompetent person or conservatee, or other person interested in said estate; and when issued on a petition of a committee, conservator, or his surety, it may be issued at any time after the appointment of such committee or conservator, in any other case, after lapse of one year from the appointment of such committee or conservator, or upon his removal or resignation. A citation issued on petition of a creditor may be addressed to and served on the committee or conservator alone, but on or after the return of such citation, the committee or conservator may have a general citation issued to all parties interested. S 254. Service of citation. A citation to the persons interested must be served on all parties, other than the petitioner, who are interested in the fund, including sureties of the committee or conservator; but the court may, in its discretion, dispense with the service on such incompetent person or conservatee, and, if the time limited by due advertisement for presentation of claims has expired before the issue of citation, creditors who have not duly presented their claims need not be served. The court may, by order, direct such citation to be served on creditors who have presented claims accompanied by post-office address, as provided in section two hundred and fifty, by depositing a copy of the same at least twenty days prior to the return day thereof in the post-office at the place where such committee or conservator, resides, duly inclosed and directed to each of such creditors at the post-office address specified by him as provided in section two hundred and fifty, with the postage prepaid, and publishing such citation once in each week for at least four weeks prior to such return day in one or more newspapers to be designated by the court as most likely to give notice to such creditors. A citation personally served within the county where such incompetent person or conservatee resided at the time of his becoming incompetent or incapable of managing his affairs, or an adjoining county, must be served at least eight days before the return thereof; if in any other county, at least fifteen days before the return thereof. The court may direct service to be made by publication, when it is satisfied by affidavit or verified petition, either that the person to be served is unknown or that his residence can not, after diligent inquiry, be ascertained, or that he can not, after due diligence, be found within the state. The order for such service must direct service of the citation upon such person to be made by publication thereof in one newspaper to be designated by the court as most likely to give notice to the person to be served once a week for four weeks, and that a copy of the citation be forthwith deposited in the post-office duly inclosed and directed to each person so served at his last known place of residence or post-office address, and the postage paid thereon, at least thirty days before the return day thereof. When publication has been ordered, personal service without the state made, if within the United States, at least thirty days, or without the United States, at least forty days before the return day, is equivalent to publication and mailing. Personal service on minors, incompetent persons and conservatees shall be made as prescribed by law for service of citations issued by surrogates for final accounting, and personal service on one or two or more creditors, claiming as co-partners or otherwise as joint creditors shall be equivalent to personal services on all, and voluntary appearance either in person or by attorney shall be equivalent to personal service, and such appearance may be made by any one claiming an interest, though not served, and such person shall thereupon become a party to the proceeding. S 255. Proceedings on return of citation. Upon the return of such citation properly served, such court shall have the powers in relation to such estates, claims, property and committee, which devolve on courts, by virtue of section twenty-one, in relation to assignments and assignees for benefit of creditors and such assigned estates.