New York Civil Practice
Law & Rules
NYCPLR Article 26
PROPERTY PAID INTO COURT
2601. Payment of money or securities into court.
(a) Discharge of party paying money into court.
(b) Delivery of money and securities to county
treasurer; commissioner of finance of city of New
York.
(c) Title to funds paid into court.
(d) Subsequent control of money or securities paid into
court.
2602. Payment into court of property other than money or
securities; deposit with warehouse or safe deposit
company.
2603. Cost of administration of property paid into court.
2604. Calculation of gross sum in lieu of income.
2605. Duties of depositories.
2606. Obtaining order for payment out of court.
2607. Payment of property paid into court.
2608. Liability of custodian.
2609. Deposit by referee appointed to sell property.
S 2601. Payment of money or securities into court. (a) Discharge of
party paying money into court. A party paying money into court pursuant
to the direction of the court is discharged thereby from all further
liability to the extent of the money so paid in.
(b) Delivery of money and securities to county treasurer; commissioner
of finance of city of New York. All moneys and securities paid into
court shall be delivered either by the party making the payment into
court or when an officer other than the county treasurer first receives
them, by that officer, to the county treasurer of the county where the
action is triable or to such other county treasurer as the court
specially directs. Where money or securities are received by an officer
other than the county treasurer, he shall deliver them to the county
treasurer within two days after he receives them. The commissioner of
finance of the city of New York shall be considered the treasurer of
each of the counties included within the city.
(c) Title to funds paid into court. Title for the benefit of
interested parties is vested in the county treasurer to whom any
security is transferred pursuant to this article. Any security
purchased by the county treasurer as an investment of money paid into
court shall be purchased in the name of his office. He may bring an
action upon or in relation to a security in his official or
representative character.
(d) Subsequent control of money or securities paid into court. A court
may direct that money or securities in the custody of a county treasurer
pursuant to this section be transferred or invested as it deems proper.
S 2602. Payment into court of property other than money or securities;
deposit with warehouse or safe deposit company. Property paid into
court, other than money or securities, shall not be delivered to the
county treasurer. The court may direct that such property be deposited
in a warehouse or safe deposit company upon the filing of a bond for the
cost of such storage by the party paying the property into court or the
party who requested such disposition, as the court may provide. It may
make such other or subsequent disposition as it deems proper.
S 2603. Cost of administration of property paid into court. A party
entitled to the income of any property paid into court shall be charged
with the expense of administering such property and of receiving and
paying over the income thereof.
S 2604. Calculation of gross sum in lieu of income. A gross sum
payable to a party in lieu of the income of a sum of money paid into
court for his benefit shall be calculated according to article four of
the real property actions and proceedings law.
Rule 2605. Duties of depositories. When property paid into court is
deposited with any depository, the entry of such deposit in the books of
the depository shall contain a short reference to the title of the cause
or matter in relation to which the deposit is made and shall specify the
time from which any interest or accumulation on the deposit, if any, is
to commence. On or before the first day of February in each year, such
depository shall transmit to the appellate division of the supreme court
in the department in which the depository is situated a statement
describing the property in its custody, including interest or
accumulation, if any, to the credit of each cause or matter on the last
preceding first day of January.
Rule 2606. Obtaining order for payment out of court. Unless otherwise
directed by the judgment or order under which the property was paid into
court, an order for the payment of property out of court shall be made
only:
1. on motion with notice to all parties who have appeared or filed a
notice of claim to such property; or
2. by special proceeding. In either case the petition shall be
accompanied by a copy of the judgment, order or other paper under which
the property was paid into court, together with a certificate of the
county treasurer or other depository of the property, showing the
present condition and amount thereof, and stating separately, in the
case of money, the amount of principal and interest.
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Article 26, Continued . . .
Rule 2607. Payment of property paid into court. No property paid into
court, or income from such property, shall be paid out except upon order
of the court directing payment to a specified person, except that if the
property so paid into court, or the income from such property, inclusive
of interest, does not exceed fifty dollars, a county treasurer may pay
the same, without a court order, to the person entitled thereto or his
authorized attorney. When the whole or remaining balance of all payments
of money into court in an action, or the whole or remaining balance of a
distributive share thereof, or any security or other property, is
directed to be paid out of court, the order must direct the payment of
all accrued income belonging to the party to whom such money or
distributive share or remaining balance thereof, or security or other
property is paid. A certified copy of the order directing payment shall
be delivered to the county treasurer or other custodian of the property.
The custodian, in the case of money, shall draw a draft payable to the
order of the party entitled thereto specifying the title of the cause or
matter on account of which the draft is made and the date of the order
authorizing the draft. A certified copy of the order, accompanied by a
draft in the case of money, shall be delivered to the depository of the
property before it shall pay out any property. If an order directs that
periodic payments be made, the filing of one copy of the order shall be
sufficient to authorize the payment of subsequent drafts in pursuance
thereof. Any other provision of law to the contrary notwithstanding, if
an order directing payment by the county treasurer is made by the court,
the copy of the order to be delivered to the county treasurer and the
depository as herein provided shall be certified by the clerk of the
court to be a true copy of the original of such order on file in his
office.
S 2608. Liability of custodian. No liability shall attach to a
custodian of property paid into court because of a payment made by him
in good faith in accordance with the direction of an order of the court
or as provided in rule 2607.
Rule 2609. Deposit by referee appointed to sell property. Money
received by a referee appointed to sell property shall be deposited
forthwith by the referee, in his name as referee, in a bank or trust
company authorized to transact business in this state, or with the chief
fiscal officer or county treasurer of the county in which the action or
proceeding is pending, as the court shall designate. Such moneys when
paid to the chief fiscal officer of the county or county treasurer shall
not be withdrawn except as directed by the judgment or order under which
the deposit is made, or by an order under rule 2606.
NYCPLR Article 27
DISPOSITION OF PROPERTY IN LITIGATION
2701. When court may order disposition of property.
2702. Sale of property.
2703. Enforcement of order directing disposition of property.
S 2701. When court may order disposition of property. The court, upon
motion or on its own initiative, with such notice as it deems proper,
may order personal property capable of delivery which is the subject of
the action, paid into court, or delivered to such person as it may
direct, with such security as the court shall direct, and subject to its
further direction if:
1. a party has such property in his possession, custody or control as
trustee for another party or where it belongs or is due to another
party; or
2. a party has such property in his possession, custody or control and
it belongs or is due to another party, where special circumstances make
it desirable that payment or delivery to such other party should be
withheld; or
3. the ownership of such property will depend on the outcome of a
pending action and no party is willing to accept possession or custody
of it during the pendency of the action.
S 2702. Sale of property. On motion of any party, the court may order
the sale, in such manner and on such terms as it deems proper, of any
personal property capable of delivery which is the subject of the action
if it shall appear likely that its value will be substantially decreased
during the pendency of the action. Any party to the action may purchase
such property at a judicially-directed sale held pursuant to this
section without prejudice to his claim.
S 2703. Enforcement of order directing disposition of property. Where
the court has directed disposition of personal property capable of
delivery and the direction is disobeyed, the court by order, in addition
to punishing the disobedience as a contempt, may require the sheriff to
take and dispose of the property in accordance with its direction.