N.Y. Canal Law § 34

§ 34. Exemption of materials or equipment from execution. All\nmaterials or equipment furnished or partly procured on a defaulted\ncontract with the corporation, shall be exempt from execution, but the\ncorporation shall pay the moneys due for such material or equipment to\nany judgment creditor of the contractor under whose execution such\nmaterials or equipment might otherwise have been sold, on production to\nit of due proof that such execution would have so attached, and such\npayments shall be valid payments on the contract.\n