N.Y. Local Finance Law § 166.00

§ 166.00 Action against municipal officers. a. The holder in due\ncourse of any bond, note or interest bearing coupon issued due to the\nmalfeasance, misfeasance, or negligence of any officer of a\nmunicipality, school district or district corporation, whose cause of\naction thereon is determined by judgment, or who is privy to such\naction, may within three years after entry of judgment begin an action\nagainst such officer for the recovery of all damages suffered because of\nsuch malfeasance, misfeasance or negligence.\n b. A municipality, school district or district corporation which is\nrequired pursuant to a judgment to pay a bond, note or interest bearing\ncoupon issued due to the malfeasance, misfeasance or negligence of any\nofficer thereof, may within three years after such payment begin an\naction against such officer and recover the amount so paid with interest\nfrom the time of payment.\n c. An order of arrest and an execution against the person of the\ndefendant may be issued in an action instituted pursuant to paragraph a\nor b of this section.\n