§ 27 — When claimants entitled to ratable distribution

New York § 27

• Jurisdiction: New York
• Law PBO: Public Officers
• Art. 2-A: Actions On Official Bonds or Undertakings

Text

§ 27. When claimants entitled to ratable distribution. If the\naggregate amount of the liabilities, which might be recovered by actions\nupon an official bond or undertaking, as prescribed in this article,\nexceeds the sum for which the sureties are liable, the court must, upon\nthe application of a person who has obtained leave to prosecute the bond\nor undertaking, made upon notice to the plaintiff's attorney, in each\naction then pending upon such bond or undertaking, and in each\nuncollected judgment recovered thereupon, direct and provide for the\ndistribution of the money, collected out of the property of the\nsureties, among the persons in favor of whom the liabilities have\naccrued, in proportion to the amount which each one is entitled to\nrecover; to be ascertained by a reference, or in such other manner as\nthe court directs. For the purposes of the motion an order may be made\nby a judge, forbidding the payment to the plaintiff in any action, of\nthe sum collected or to be collected by virtue of a judgment therein.\nBut this section does not authorize the court to compel a plaintiff to\nrefund any money, collected and received by him, in good faith, before\nservice of notice of such an order.\n