N.Y. Debtor & Creditor Law § 194

§ 194. Provision for pending actions. If, at the time any dividend is\nmade, any action or proceeding be pending against the trustees, in which\na demand against such debtor may be established, the trustees may retain\nin their hands, the proportion which would belong to such demand if\nestablished, and the necessary costs and expenses of such action or\nproceeding, to be applied according to the event of such proceeding or\naction, or to be distributed in a second or other dividend.\n