N.Y. Real Property Actions & Proceedings Law § 1761

§ 1761. Distribution of proceeds of disposition. 1. After the\ndisposition of real property as provided in this article, the court\nshall direct the distribution of the proceeds.\n 2. The court shall direct the payment from the proceeds of all debts,\nin equal proportion, without giving a preference to a debt founded upon\na specialty or upon which judgment has been taken.\n 3. The court shall direct the investment of any portion of the\nproceeds belonging to the infant, incompetent person or conservatee\nwhich is not needed for the payment of debts, or the safe keeping, or\nthe immediate maintenance and education of himself or his family, or for\nthe preservation or improvement of his real property or his interest in\nreal property.\n 4. The court shall require a report, under oath, of the disposition\nand investment of the proceeds to be made as soon as practicable, and\nmust compel periodical accounts to be rendered thereafter by each person\nwho is intrusted with the proceeds or any part thereof.\n