N.Y. County Law § 906

§ 906. Liability of city of New York for loss of court and trust\nfunds. The city of New York shall be responsible for all property or\nmoneys deposited with the commissioner of finance by virtue of any\njudgment, decree or order of a court of record in this state provided,\nhowever, that the city shall not be held liable for any loss due to the\ndepreciated value of an investment legal at the time of its purchase and\nwhich continued to be a legal investment during the period of the trust.\nAn action to recover any loss to or of such fund may be brought against\nthe city by any party aggrieved or by the state comptroller in a court\nof competent jurisdiction.\n