§ 428 — Action against assurance fund

New York § 428

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 12: Registering Title to Real Property

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§ 428. Action against assurance fund. Any allowed claim for\nindemnity shall be paid in the same manner as other claims against the\ncounty. In the city of New York a claim shall be passed upon and\napproved by the city register and by the corporation counsel of the city\nbefore payment is allowed. The rejection of a claim by the proper\ncounty officials (or in the city of New York by the city register and\ncorporation counsel) shall not preclude the claimant from bringing an\naction to recover such claim. No claim or judgment on a claim for\nindemnity shall be binding on the county or on the county treasurer (in\nNew York city the commissioner of finance) for an amount exceeding the\namount credited to the assurance fund. If the amount credited to the\nassurance fund is insufficient to pay the claim or judgment in full, the\nunpaid balance shall bear interest at the legal rate and shall be paid\nout of the first moneys coming into said assurance fund or the county or\ncity general fund after the assurance fund has been terminated pursuant\nto section four hundred twenty-six of this article. If any right of\naction against any person for damages for negligence or other cause, or\nunder any covenant or contract of warranty or guaranty or otherwise,\nexists in favor of the person to whom indemnity is paid, the county\ntreasurer (in New York city the commissioner of finance) shall be deemed\nto be subrogated to such right and may bring an action to recover\nthereunder. Any amounts recovered by the county treasurer (in New York\ncity the commissioner of finance) under such an action shall be credited\nto the account of the assurance fund. Until the assurance fund provided\nas aforesaid shall have been exhausted, payment for any such losses or\ndamages shall be made out of such fund.\n