N.Y. UCC Law § 4-214

Section 4--214. Insolvency and Preference.\n (1) Any item in or coming into the possession of a payor or collecting\nbank which suspends payment and which item is not finally paid shall be\nreturned by the receiver, trustee or agent in charge of the closed bank\nto the presenting bank or the closed bank's customer.\n (2) If a payor bank finally pays an item and suspends payments without\nmaking a settlement for the item with its customer or the presenting\nbank which settlement is or becomes final, the owner of the item has a\npreferred claim against the payor bank.\n (3) If a payor bank gives or a collecting bank gives or receives a\nprovisional settlement for an item and thereafter suspends payments, the\nsuspension does not prevent or interfere with the settlement becoming\nfinal if such finality occurs automatically upon the lapse of certain\ntime or the happening of certain events (subsection (3) of Section\n4--211, subsections (1) (d), (2) and (3) of Section 4--213).\n (4) If a collecting bank receives from subsequent parties settlement\nfor an item which settlement is or becomes final and suspends payments\nwithout making a settlement for the item with its customer which is or\nbecomes final, the owner of the item has a preferred claim against such\ncollecting bank.\n