N.Y. UCC Law § 3-804

Section 3--804. Lost, Destroyed or Stolen Instruments.\n The owner of an instrument which is lost, whether by destruction,\ntheft or otherwise, may maintain an action in his own name and recover\nfrom any party liable thereon upon due proof of his ownership, the facts\nwhich prevent his production of the instrument and its terms. The court\nshall require security, in an amount fixed by the court not less than\ntwice the amount allegedly unpaid on the instrument, indemnifying the\ndefendant, his heirs, personal representatives, successors and assigns\nagainst loss, including costs and expenses, by reason of further claims\non the instrument, but this provision does not apply where an action is\nprosecuted or defended by the state or by a public officer in its\nbehalf.\n