N.Y. Real Property Actions & Proceedings Law § 1341

§ 1341. Payment into court of amount due. Where an action is brought\nto foreclose a mortgage upon real property upon which any part of the\nprincipal or interest is due, and another portion of either is to become\ndue, and the defendant pays into court the amount due for principal and\ninterest and the costs of the action, together with the expenses of the\nproceedings to sell, if any, the court shall:\n 1. Dismiss the complaint without costs against plaintiff, if the\npayment is made before judgment directing sale; or\n 2. Stay all proceedings upon judgment, if the payment is made after\njudgment directing sale and before sale; but, upon a subsequent default\nin the payment of principal or interest, the court may make an order\ndirecting the enforcement of the judgment for the purpose of collecting\nthe sum then due.\n