New York Real Property Actions & Proceedings Law
Distribution of Proceeds of Disposition
1. After the disposition of real property as provided in this article, the court shall direct the distribution of the proceeds.
2. The court shall direct the payment from the proceeds of all debts, in equal proportion, without giving a preference to a debt founded upon a specialty or upon which judgment has been taken.
3. The court shall direct the investment of any portion of the proceeds belonging to the infant, incompetent person or conservatee which is not needed for the payment of debts, or the safe keeping, or the immediate maintenance and education of himself or his family, or for the preservation or improvement of his real property or his interest in real property.
4. The court shall require a report, under oath, of the disposition and investment of the proceeds to be made as soon as practicable, and must compel periodical accounts to be rendered thereafter by each person who is intrusted with the proceeds or any part thereof.