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GENERAL PROVISIONS RELATING TO BONDS
Section 801. Amount; condition; number of sureties; obligees. 802. Approval and filing of bonds; designation of clerk. 803. Deposit of assets to reduce bond. 804. Bond required when assets deposited with bank or trust company serving as co-fiduciary. 805. Bond of administrator, temporary administrator or administrator c.t.a. 806. Bond of a testamentary trustee or executor acting as trustee. 807. Bond of a legal life tenant. 808. Liability of surety for assets received by principal in another fiduciary capacity. 809. Action or proceeding on bond; disposition of proceeds; summary determination in certain cases. 810. Application of article to fiduciaries heretofore appointed. 811. General conformity of bonds to CPLR. S 801. Amount; condition; number of sureties; obligees 1. Amount. Whenever a fiduciary or legal life tenant shall be required to file a bond, the amount thereof, except where the court has reduced it or dispensed therewith, shall be fixed as follows: (a) Executor, administrator, (a) Not Less Than: administrator c. t. a., i. Value of all personal administrator d. b. n., property receivable and temporary administrator. by the fiduciary. ii. Estimated gross rents of real property receivable by the fiduciary for 18 months. iii. Probable recovery in any cause of action prosecuted by the fiduciary. In fixing the amount of a bond under this paragraph the court must also take into consideration in the case of a successor executor, administrator, administrator c. t. a., or administrator d. b. n., how much of the estate, if any, has already been administered. No bond shall be required of any of the above mentioned fiduciaries if the value of the assets to be administered does not exceed the monetary amount defined as a small estate pursuant to subdivision one of section 1301 of this act. (b) Guardian of the property (b) Not less than: of an infant i. Value of all personal property receivable by the guardian. ii. Estimated gross rents of real property receivable by the guardian for three years. iii. Estimated gross income for three years from sources other than moneys or other assets committed to the guardian for administration. (c) i. Testamentary trustee, or (c) In such amount as executor required to hold, the court directs. manage or invest property for the benefit of another, ii. ancillary fiduciaries, iii. guardian of the person of an infant, iv. legal life tenant, or v. any case not provided for in this article where the filing of a bond is required. (d) In granting limited and restrictive letters pursuant to the provisions of 702 the court may dispense with a bond altogether or fix the amount at such sum as it may deem sufficient. (e) In addition to such powers as are conferred by CPLR 2508, the court may at any time increase or decrease the bond of a fiduciary or legal life tenant when good reason therefor appears. (f) In fixing the amount of a bond, the court may require evidence as to the character and value of the assets to be committed to the fiduciary and may examine the applicant or any other person under oath or take such other steps as it deems necessary. 2. Condition. Unless the court directs otherwise the condition of the bond shall be that the fiduciary will faithfully discharge his trust, obey all lawful decrees and orders touching the administration of the assets committed to him including but not limited to decrees or orders directing repayment of amounts allowed as advances on commissions and render a verified account of his administration whenever required to do so by the court. In the case of a legal life tenant the condition shall be that the principal account for and deliver to his successors in interest the property held as life tenant. 3. Sureties. The court may authorize or direct the execution and filing of a bond with a sole surety or with two or more sureties or it may dispense with sureties altogether when good reason therefor appears. 4. Obligees of bond. The bond of a fiduciary shall run to the people of the state for the security and benefit of the persons then or thereafter interested in the estate. S 802. Approval and filing of bonds; designation of clerk 1. All bonds must be approved by the court. The court may by order authorize one or more clerks or law assistants to approve bonds. Approval of a bond must be endorsed thereon and when so endorsed the bond must be filed in the court. 2. Each surety on a bond shall file an acknowledged instrument stating his domiciliary address and designating the chief clerk of court and his successors in office as a person upon whom any process of any court of the state may be served in any action or proceeding relating to the bond with like effect as if served personally upon the surety whenever the surety after due diligence cannot be found and served within the state of New York. 3. A corporate surety licensed to transact business in the state shall be deemed to have complied with the requirements of this section if it has filed or does file one acknowledged instrument which applies to all bonds of the corporate surety filed and approved after the date of the filing and which by its term is of indefinite duration and irrevocable. 4. The filing of a designation by a corporate surety shall have the same effect as if a separate designation had been filed with each bond to which it is a party.
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S 803. Deposit of assets to reduce bond 1. Whenever a bond or new surety may be required, if the value of the estate is so great or for other sufficient reasons the court deems it inexpedient to require security in the full amount prescribed by law it may direct that all or part of the assets of the estate be delivered subject to further order of the court to the county treasurer or other proper fiscal officer, the clerk of the court or a trust company, bank or safe deposit company or otherwise restrict the authority of the fiduciary. The court may thereupon fix the amount of the bond taking into consideration the value of the remainder only of the estate. 2. The assets so deposited shall not be withdrawn from the custody of the depositary and no person other than the proper fiscal officer of such county, city or depositary shall receive or collect any principal or income or other benefits derived from such assets without order of the court. S 804. Bond required when assets deposited with bank or trust company serving as co-fiduciary When a bank or trust company is a fiduciary and is nominated to serve or is serving with one or more individual fiduciaries the court may make an order directing the deposit of assets with the bank or trust company upon such terms and upon the giving of such bond by the individual fiduciaries as it deems advisable. S 805. Bond of administrator, temporary administrator or administrator c. t. a. 1. Before letters are issued to an administrator, temporary administrator or administrator c. t. a. he shall execute and file a bond provided, however, that where the person or persons about to be appointed is or are entitled to the whole estate or where acknowledged consents that a bond be dispensed with or fixed at a reduced amount are executed and filed by all persons interested in the estate the court may dispense with a bond or fix the amount at such sum as will adequately protect the right of all creditors. If such consent be filed by some but not all of the persons interested in the estate, such consent must also specifically release any claim under the bond required and the court may fix the amount at such sum as will adequately protect the rights of all creditors and of the non-consenting persons interested. 2. The court may require that the amount of creditors` claims be ascertained by a notice to creditors which shall be published once a week for 4 consecutive weeks in such newspapers as the court may select and which shall direct the creditors to file their claims in writing with the clerk of court on or before a day fixed therein, which shall be at least 30 days after the day of first publication. 3. Before an administrator shall receive the proceeds of a disposition of real property pursuant to the provisions of EPTL 11-1.1 he shall file a further bond in the amount of the proceeds unless it be dispensed with as above provided or unless his existing bond is sufficient to cover the proceeds. S 806. Bond of a testamentary trustee or executor acting as trustee Whenever a testamentary trustee is appointed by will or order of the court or an executor is appointed who is required to hold, manage or invest real or personal property for the benefit of another, he shall unless the will provides otherwise, execute and file a bond. S 807. Bond of a legal life tenant Whenever a legal life tenant is entitled to the possession or control of property under a will, he shall if the court so directs execute and file a bond unless the will expressly provides otherwise. S 808. Liability of surety for assets received by principal in another fiduciary capacity 1. A fiduciary is liable for money or other personal property of the estate which was in his hands or under his control when his letters were issued or when he began to serve as lifetime trustee in whatever capacity it was received by him or came under his control. 2. Where the money or property was received by him or came under his control by virtue of letters previously issued to him or his previous appointment as lifetime trustee in the same or another capacity an action to recover the money or damages for failure to deliver the property may be maintained upon both bonds, but as between the sureties upon the bond given upon the issue of the prior letters or upon his prior appointment and those upon the bond given upon the issue of the subsequent letters or upon his subsequent appointment the latter are liable over to the former. S 809. Action or proceeding on bond; disposition of proceeds; summary determination in certain cases 1. When permitted. An action or proceeding on a fiduciary`s bond may be brought in either of the following cases if leave of the court by motion on notice to the surety is granted: (a) by a person having a judgment or decree against the fiduciary which remains unsatisfied after the expiration of 10 days from date of entry; (b) by the fiduciary`s successor or if the fiduciary has died, been removed, or his letters have been revoked and if no successor has been appointed, by any aggrieved person, for the recovery of any money or property received by the fiduciary and not duly administered by him or for an injury to the estate caused by his act or omission. 2. Disposition of proceeds. The decree or judgment in the action or proceeding on the bond shall provide for the disposition of any proceeds that may be recovered in the action or proceeding. 3. Summary determination in certain cases. Where a decree has been made directing payment by a fiduciary and payment has not been made within 10 days after date of entry, any person in whose favor the decree was rendered may as an alternative to an action or proceeding on the bond as provided in subdivision 1 seek a summary determination of the surety`s liability in the court making the decree. Process shall issue to the surety and such other persons as the court may direct. Upon the return of process the court may conduct such proceedings and make such decree or order as justice shall require. S 810. Application of article to fiduciaries heretofore appointed The provisions of this article shall apply to fiduciaries heretofore appointed and to trusts created before this act takes effect except that its provisions shall not affect in any manner the liability of sureties on bonds theretofore executed. S 811. General conformity of bonds to CPLR The provisions of this article shall govern bonds in this court but to the extent consistent with such provisions and as to matters of detail not provided for herein the provisions of CPLR article 25 shall also apply.