2014 New York Laws
RPA - Real Property Actions & Proceedings
Article 9 - (901 - 992) ACTION FOR PARTITION
963 - Payment of proceeds out of court where there are liens.

  963.  Payment  of  proceeds out of court where there are liens.  1.
  Where the proceeds of a sale are paid into court, in a case specified in
  section 962, the party may apply to the court  for  an  order  directing
  that the money, or such part as he claims, be paid to him, and the court
  shall  make  such  an  order  as  justice  requires.  The party shall by
  affidavit show the amount actually due on each incumbrance, and the name
  and residence of the owner of the incumbrance, as far as they are  known
  or  can  be  ascertained  with  due  diligence, and showing service of a
  notice of the application on each owner of an  incumbrance.  Service  of
  the  notice  within the state shall be personal, or by leaving it at the
  owner's residence with some person of suitable age  and  discretion,  at
  least  fourteen  days  previous  to the application. Service without the
  state, if personal, shall be made at least twenty days previous  to  the
  application.  If the owner of the incumbrance resides without the state,
  and the place  of  his  abode  cannot  be  ascertained  with  reasonable
  diligence,  notice  may  be  served  on  him  by  publishing  it in such
  newspaper or newspapers as the court may direct, once in each  week  for
  the four weeks immediately preceding the application.
2.  When  the  whole amount of the unsatisfied liens upon an undivided
  share has been ascertained, the court shall order  the  portion  of  the
  money  so  paid  into  court  on account of that share to be distributed
  among the creditors having the liens, according to the priority of  each
  of  them. Where the incumbrancer is not a party to the action, the clerk
  or other officer by whom a lien is paid off shall  procure  satisfaction
  to  be  acknowledged  or proved, as required by law, and shall cause the
  incumbrance to be duly satisfied or cancelled of record. The expense  of
  so  doing  shall  be  paid  out  of  the  portion  of the money in court
  belonging to the party by whom the incumbrance was payable.