N.Y. GBS Law § 394-A

§ 394-a. Proof of lost negotiable paper. 1. Where, upon the trial of\nan action, it appears that a negotiable instrument within article three\nof the uniform commercial code, upon which the action or a counterclaim\ninterposed in the action is founded, was lost while it belonged to the\nparty claiming the amount due thereupon, he may prove the contents\nthereof by parol or other secondary evidence and may recover or set off\nthe amount due thereupon as if it was produced.\n 2. For that purpose, he must give to the adverse party a written\nundertaking, in a sum fixed by the judge or the referee, not less than\ntwice the amount of the note or bill, with at least two sureties,\napproved by the judge or the referee, to the effect that he will\nindemnify the adverse party, his heirs and personal representatives,\nagainst any claim by any other person, on account of the note or bill,\nand against all costs and expenses, by reason of such a claim.\n 3. But where an action is prosecuted or defended by the state, or by a\npublic officer in its behalf, the state or the public officer may prove\nthe contents of a lost negotiable instrument within article three of the\nuniform commercial code, by parol or other secondary evidence, and may\nrecover or set off the amount due thereupon, without giving any security\nto the adverse party notwithstanding section 3--804 of such code.\n