2013 New York Consolidated Laws
LIE - Lien
Article 2 - (3 - 39-C) MECHANICS' LIENS
20 - Discharge of lien after notice of lien filed by payment of money into court.

 
    § 20. Discharge of lien after notice of lien filed by payment of money
  into  court.  A  lien  specified  in this article, other than a lien for
  performing labor or furnishing materials for a public  improvement,  may
  be  discharged  after  the notice of lien is filed at any time before an
  action is commenced to foreclose  such  lien,  by  depositing  with  the
  county  clerk,  in  whose  office  the notice of lien is filed, a sum of
  money equal to the amount claimed in such notice, with interest  to  the
  time  of  such  deposit.  After  such  deposit  is  made and the lien is
  discharged the county treasurer or any other officer with whom the money
  is deposited shall, within ten days thereafter, send a notice by mail to
  the lienor, at the address given in the lien, that such  lien  has  been
  discharged  by  deposit. After action to foreclose the lien is commenced
  it may be discharged by a payment into court of such sum of  money,  as,
  in  the  judgment  of  the court or a judge or justice thereof, after at
  least five days' notice to all  the  parties  to  the  action,  will  be
  sufficient  to  pay  any judgment which may be recovered in such action.
  Upon any such payment, the county clerk shall forthwith enter  upon  the
  lien  docket and against the lien for the discharge of which such moneys
  were paid, the words "discharged by payment. " A deposit of  money  made
  as  prescribed  in  this section shall be repaid to the party making the
  deposit, or his successor, upon the discharge of the liens  against  the
  property pursuant to law. All deposits of money made as provided in this
  section  shall  be considered as paid into court and shall be subject to
  the provisions of law relative to the payment of money  into  court  and
  the  surrender  of  such  money  by order of the court. An order for the
  surrender of such moneys to the lienor or depositor may be made  by  any
  court  of  record  having  jurisdiction  of the parties. If no action is
  brought in a court of record to enforce such lien,  such  order  may  be
  made by any judge of a court of record. If application for such order is
  made  by  lienor  it shall be on notice to the depositor; if made by the
  depositor then on notice to the lienor.