N.Y. Debtor & Creditor Law § 36

§ 36. Exempt security not credited. When any creditor has legal or\nequitable security upon assets which are exempt from process for the\nsatisfaction of unsecured debts and are duly claimed as exempt by the\ninsolvent debtor, the value of such security shall not be credited upon\nthe claim. Amounts realized by the creditor from such security after\nliquidation proceedings are begun shall be disregarded in computing\ndividends, unless the dividend so computed exceeds the sum actually\nowing upon the claim, in which event only the amount owing shall be\npaid.\n