N.Y. Debtor & Creditor Law § 251

§ 251. Authority for committee or conservator to compromise claims. A\ncourt exercising jurisdiction over the property of a person with a\nmental illness, or conservatee may, upon the application of the\ncommittee of the property of such incompetent person or the conservator\nof the conservatee, and for good and sufficient cause shown, and upon\nsuch terms as it may direct, authorize the committee or conservator to\nsell, compromise or compound any claim or debt belonging to the estate\nof the incompetent person or conservatee. But such authority shall not\nprevent any party interested in the trust estate, from showing upon the\nfinal accounting of such committee or conservator that such debt or\nclaim was fraudulently or negligently sold, compounded or compromised.\nThe sale of any debt or claim heretofore made in good faith by any such\ncommittee or conservator, shall be valid, subject, however, to the\napproval of the court, and the committee or conservator shall be charged\nwith and liable for, as a part of the trust fund, any sum which might or\nought to have been collected by him.\n