2006 New York Code - Distribution Of Proceeds Of Sale.

 
    §  1354.  Distribution of proceeds of sale. 1.  The officer conducting
  the sale shall pay, out of the proceeds, unless otherwise directed,  the
  expenses  of  the  sale,  and pay to the plaintiff, or his attorney, the
  amount of the debt, interest and costs, or so much as the proceeds  will
  pay  and  take  the  receipt  of the plaintiff, or his attorney, for the
  amount so paid, and file the same with his report of sale.
    2. The officer conducting the sale shall pay out of the  proceeds  all
  taxes,  assessments,  and  water rates which are liens upon the property
  sold, and redeem the property sold from  any  sales  for  unpaid  taxes,
  assessments or water rates which have not apparently become absolute. In
  any  city  having  a population of three hundred thousand or more or any
  city having a population between one hundred  twenty-five  thousand  and
  one  hundred  seventy-five  thousand,  such officer shall pay out of the
  proceeds any liens or incumbrances placed by a city agency upon the real
  property which have priority over  the  foreclosed  mortgage.  The  sums
  necessary  to make those payments and redemptions are deemed expenses of
  the sale. The provisions of this subdivision  shall  not  apply  to  any
  judgment in an action wherein any municipal corporation of this state is
  the plaintiff and the purchaser at the foreclosure sale thereunder.
    3.  The  officer  conducting  the  sale after fully complying with the
  provisions of subdivisions one and  two  of  this  section  and  if  the
  judgment  of  sale  has  so  directed  shall  pay  to  the holder of any
  subordinate mortgage or his attorney from the  then  remaining  proceeds
  the amount then due on such subordinate mortgage, or so much as the then
  remaining  proceeds  will pay and take the receipt of the holder, or his
  attorney for the amount so paid, and file the same with  his  report  of
  sale.
    4.   All surplus moneys arising from the sale shall be paid into court
  by the officer conducting the sale within five days after the same shall
  be received.