2012 New York Consolidated Laws
PBO - Public Officers
Article 2-A - (20 - 28) ACTIONS ON OFFICIAL BONDS OR UNDERTAKINGS
27 - When claimants entitled to ratable distribution.

 
    § 27. When  claimants  entitled  to  ratable  distribution.    If  the
  aggregate amount of the liabilities, which might be recovered by actions
  upon an official bond or undertaking, as  prescribed  in  this  article,
  exceeds  the sum for which the sureties are liable, the court must, upon
  the application of a person who has obtained leave to prosecute the bond
  or undertaking, made upon notice to the plaintiff's  attorney,  in  each
  action  then  pending  upon  such  bond  or  undertaking,  and  in  each
  uncollected judgment recovered thereupon, direct  and  provide  for  the
  distribution  of  the  money,  collected  out  of  the  property  of the
  sureties, among the persons  in  favor  of  whom  the  liabilities  have
  accrued,  in  proportion  to  the  amount  which each one is entitled to
  recover; to be ascertained by a reference, or in such  other  manner  as
  the  court  directs. For the purposes of the motion an order may be made
  by a judge, forbidding the payment to the plaintiff in  any  action,  of
  the  sum  collected  or to be collected by virtue of a judgment therein.
  But this section does not authorize the court to compel a  plaintiff  to
  refund  any  money, collected and received by him, in good faith, before
  service of notice of such an order.