N.Y. Debtor & Creditor Law § 190

§ 190. Preference of debts owing by debtor as trustee. In making such\ndistribution, the trustees shall first pay all debts that may be owing\nby the debtor as guardian, executor, administrator or trustee; and if\nthere be not sufficient to pay all debts of the character above\nspecified, then a distribution shall be made among them, in proportion\nto their amounts respectively.\n