N.Y. RPA Law § 963

§ 963. Payment of proceeds out of court where there are liens. 1.\nWhere the proceeds of a sale are paid into court, in a case specified in\nsection 962, the party may apply to the court for an order directing\nthat the money, or such part as he claims, be paid to him, and the court\nshall make such an order as justice requires. The party shall by\naffidavit show the amount actually due on each incumbrance, and the name\nand residence of the owner of the incumbrance, as far as they are known\nor can be ascertained with due diligence, and showing service of a\nnotice of the application on each owner of an incumbrance. Service of\nthe notice within the state shall be personal, or by leaving it at the\nowner's residence with some person of suitable age and discretion, at\nleast fourteen days previous to the application. Service without the\nstate, if personal, shall be made at least twenty days previous to the\napplication. If the owner of the incumbrance resides without the state,\nand the place of his abode cannot be ascertained with reasonable\ndiligence, notice may be served on him by publishing it in such\nnewspaper or newspapers as the court may direct, once in each week for\nthe four weeks immediately preceding the application.\n 2. When the whole amount of the unsatisfied liens upon an undivided\nshare has been ascertained, the court shall order the portion of the\nmoney so paid into court on account of that share to be distributed\namong the creditors having the liens, according to the priority of each\nof them. Where the incumbrancer is not a party to the action, the clerk\nor other officer by whom a lien is paid off shall procure satisfaction\nto be acknowledged or proved, as required by law, and shall cause the\nincumbrance to be duly satisfied or cancelled of record. The expense of\nso doing shall be paid out of the portion of the money in court\nbelonging to the party by whom the incumbrance was payable.\n