N.Y. ISC Law § 7413

§ 7413. Priority of preferred claims, special deposit claims and\nsecured claims. (a) In a delinquency proceeding against an insurer\ndomiciled in this state, claims owing to residents of ancillary states\nshall be preferred claims if like claims are preferred under the laws of\nthis state. All such claims whether owing to residents or non-residents\nshall be given equal priority of payment from general assets regardless\nof where such assets are located.\n (b) In a delinquency proceeding against an insurer domiciled in a\nreciprocal state, claims owing to residents of this state shall be\npreferred if like claims are preferred by the laws of that state.\n (c) The owners of special deposit claims against an insurer for which\na receiver is appointed in this or any other state shall be given\npriority against their several special deposits in accordance with the\nprovisions of the statutes governing the creation and maintenance of\nsuch deposits. If there is a deficiency in any such deposit so that the\nclaims secured thereby are not fully discharged therefrom, the claimants\nmay share in the general assets, but such sharing shall be deferred\nuntil general creditors, and also claimants against other special\ndeposits who have received smaller percentages from their respective\nspecial deposits, have been paid percentages of their claims equal to\nthe percentage paid from the special deposit.\n (d) The owner of a secured claim against an insurer for which a\nreceiver has been appointed in this or any other state may surrender his\nsecurity and file his claim as a general creditor, or the claim may be\ndischarged by resort to the security, in which case the deficiency, if\nany, shall be treated as a claim against the general assets of the\ninsurer on the same basis as claims of unsecured creditors. If the\namount of the deficiency has been adjudicated in ancillary proceedings\nas provided in this act, or if it has been adjudicated by a court of\ncompetent jurisdiction in proceedings in which the domiciliary receiver\nhas had notice and opportunity to be heard, such amount shall be\nconclusive; otherwise the amount shall be determined in the delinquency\nproceeding in the domiciliary state.\n