(a) Creation of lien. Unless the court orders otherwise, an undertaking in an amount of more than one thousand dollars, which is not a deposit of legal tender of the United States or in face value of unregistered bonds of the United States or of the state, upon which natural persons are surety shall be secured by real property located in the state which shall be worth the amount specified in the undertaking exclusive of all encumbrances. Such undertaking shall create a lien on the real property when recorded in the individual surety bond liens docket in the office of the clerk or register of the county where the real property is located.
§ 2503.Undertaking of more than one thousand dollars; real property; lien
Article 25. Undertakings · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 2503 requires an individual-surety undertaking over one thousand dollars to be backed by New York real property worth the full amount, creates a lien once the surety's affidavit is recorded in the county's surety bond liens docket, and sets how that lien is released.
Full Text of CPLR 2503
(b) Affidavit of surety. The affidavit of the surety shall contain, in addition to the information required by subdivision (a) of section 2502:
1. a statement that the surety or sureties is or are the sole owner or owners of the real property offered as security; 2. a description of the property, sufficiently identified to establish the lien of the undertaking; 3. a statement of the total amount of the liens, unpaid taxes, and other encumbrances against each property offered; and 4. a statement of the assessed value of each property offered, its market value, and the value of the equity over and above all encumbrances, liens and unpaid taxes.
(c) Filing of affidavit; recording. A duplicate original of the affidavit required by this rule shall be filed in the office of the clerk or register of the county where the real property is located. The following information shall be entered on the individual surety bond liens docket in the office of the clerk or register of the county where the real property is located: 1. the names of the sureties listed in alphabetical order; 2. the amount of the undertaking; 3. a description of the real property or properties offered as security thereunder, sufficiently identified to clearly establish the lien of the undertaking; 4. the date of such recording; 5. the title of the action, proceeding or estate; and 6. the court in which the papers are filed.
(d) Release of lien. The clerk or register of the county where the property is located shall make an entry, which shall constitute a release of the lien for all purposes and as to all persons, upon 1. the filing of a consent acknowledged by the person for whose benefit the undertaking was given in the form required to entitle a deed to be recorded; or 2. the order of the court, discharging the surety, made upon motion with such notice to other persons as the court may direct.
Plain-English Summary
Once an undertaking's amount climbs past one thousand dollars and a natural person, rather than an insurance company, stands surety, CPLR 2503(a) requires the surety to back the promise with New York real property worth the full undertaking amount, clear of encumbrances, unless the court orders otherwise. Recording the undertaking in the county's individual surety bond liens docket creates a lien on that property, giving the beneficiary of the undertaking real security instead of a bare promise to pay.
Subdivision (b) tells the surety what the supporting affidavit needs beyond the information CPLR 2502(a) already requires: a statement that the surety solely owns the property offered, a description precise enough to fix the lien, a statement of every lien, unpaid tax, and other encumbrance against the property, and a statement of its assessed value, market value, and the equity remaining above all encumbrances. Subdivision (c) then walks through recording mechanics — a duplicate original affidavit filed with the county clerk or register, and a docket entry listing the sureties alphabetically, the undertaking amount, a property description, the recording date, the case title, and the court where the case is pending.
Subdivision (d) closes the loop on how the lien comes off the property: either the beneficiary of the undertaking files an acknowledged consent, in the form required for a recordable deed, or the court orders the surety discharged on a motion, with whatever notice to other interested persons the court directs. Either way, the clerk or register makes an entry releasing the lien for all purposes and as to everyone.
Frequently Asked Questions
When must a New York undertaking be secured by real property?
CPLR 2503(a) requires it whenever the undertaking exceeds one thousand dollars, is not a cash or government bond deposit, and has a natural person rather than an insurance company as surety, unless the court orders otherwise.
How does an undertaking create a lien on real property in New York?
The lien arises when the undertaking is recorded in the individual surety bond liens docket in the office of the county clerk or register where the real property is located.
What must the surety's affidavit say about the property offered as security?
It must state that the surety solely owns the property, describe it precisely enough to fix the lien, list every lien, unpaid tax, and encumbrance against it, and state its assessed value, market value, and the equity above all encumbrances.
How is a surety bond lien released in New York?
CPLR 2503(d) allows release either by filing an acknowledged consent from the person for whose benefit the undertaking was given, in the form required to record a deed, or by court order discharging the surety on motion.
Where is a surety bond lien recorded?
In the individual surety bond liens docket kept by the clerk or register of the county where the real property offered as security is located.
Advisory Committee Notes
This section is derived from CPA § 150-a, which was adopted in 1942. Practitioners in the corporate surety area testify to the salutary effect of that section and attribute the dearth of cases to its effectiveness.
The efficacy of former § 150-a is attributed not to its language, but rather to the interpretation of those who daily relied on it. Although permissive in language, it was interpreted as requiring that, in all cases, where individuals are surety on undertakings in an amount greater than one thousand dollars, real property must be offered as security.
Subd (a). On recommendation of the Joint Committee on the CPA, the Committee decided that an undertaking in excess of $1,000 upon which natural persons are surety need not be secured by real property if a deposit of cash or of those government bonds listed in CPLR § 2501 (2) is offered. The first sentence of subd (a) of this section embodies this exception. Provisions in the first sentences of subds 2 and 3 of CPA § 150-a which dealt with approval of undertakings have been omitted since the necessity for approval has generally been eliminated. See CPLR § 2506(b). Since the obligee may except to the sufficiency of sureties in the event that the provisions of the section are not strictly complied with to create the lien, judicial approval is unnecessary.
Subd (b) of this section incorporates the provisions of subd 2(c) of CPA § 150-a, and though the language has been modified, no change in meaning is intended.
The requirement of subd 2(f) of former § 150-a that the equity of the real property be equal to twice the penalty of the undertaking is eliminated. That provision was intended to protect the obligee against downward fluctuations in the value of the real property, or to provide for a margin of excess security in case of an increase in the value of property secured by the undertaking. In cases where greater security than the amount originally thought to be sufficient becomes necessary, CPLR § 2508 may be utilized to secure a new or additional undertaking.
The first clause in the second sentence of subd 3 of former § 150-a, which pertained to filing, is covered by CPLR § 2505, relating to filing of undertakings generally.
The substance of former § 150-a(5), relating to fees, is relocated in § 531 of the County Law.
It should be noted that the recording required under subd (a) of this section to secure the lien is separate from the filing of the undertaking required by CPLR § 2505.
Amendment History
Add, L 1962, ch 308, § 1, eff Sept 1, 1963; amd, L 1963, ch 532, § 15, eff Sept 1, 1963.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: surety bond real property lien New Yorkindividual surety bond liens dockethow to release a surety lien New YorkNew York undertaking secured by property