2013 New York Consolidated Laws
LIE - Lien
Article 2 - (3 - 39-C) MECHANICS' LIENS
4-A - Insurance proceeds liable for demands.

 
    §  4-a.  Insurance  proceeds  liable for demands. Owner, contractor or
  subcontractor diverting proceeds, guilty of larceny. The proceeds of any
  insurance which by the terms of the policy are payable to the  owner  of
  real  property  improved, and actually received or to be received by him
  because of the destruction or removal by fire or other  casualty  of  an
  improvement  on  which  lienors  have performed labor or services or for
  which they have furnished materials, shall  after  the  owner  has  been
  reimbursed  therefrom  for  premiums  paid  by  him,  if  any,  for such
  insurance, be subject to liens provided by this act to the  same  extent
  and  in  the same order of priority as the real property would have been
  had such improvement not been so destroyed or removed.
    The proceeds of any insurance which by the terms  of  the  policy  are
  payable to a contractor or subcontractor, and actually received or to be
  received  by  him because of the destruction or removal by fire or other
  casualty of an improvement on which he has performed labor  or  services
  or for which he has furnished materials, shall, after such contractor or
  subcontractor has been reimbursed therefrom for premiums paid by him, if
  any,  for such insurance, be liable for the payment of demands for labor
  or services performed or materials furnished by his order and for  which
  he  is  liable,  in  the  same  manner  and under the same conditions as
  payments to him under his contract would have been had such  improvement
  not been so destroyed or removed.