(a) Discharge of party paying money into court. A party paying money into court pursuant to the direction of the court is discharged thereby from all further liability to the extent of the money so paid in.
§ 2601.Payment of money or securities into court
Article 26. Property Paid Into Court · Last amended 1978 · Last verified July 21, 2026
In one sentenceCPLR 2601 discharges a party from further liability once it pays money or securities into court under a court's direction, routes those funds to the county treasurer for safekeeping, and leaves their later handling to the court.
Full Text of CPLR 2601
(b) Delivery of money and securities to county treasurer; commissioner of finance of city of New York. All moneys and securities paid into court shall be delivered either by the party making the payment into court or when an officer other than the county treasurer first receives them, by that officer, to the county treasurer of the county where the action is triable or to such other county treasurer as the court specially directs. Where money or securities are received by an officer other than the county treasurer, he shall deliver them to the county treasurer within two days after he receives them. The commissioner of finance of the city of New York shall be considered the treasurer of each of the counties included within the city.
(c) Title to funds paid into court. Title for the benefit of interested parties is vested in the county treasurer to whom any security is transferred pursuant to this article. Any security purchased by the county treasurer as an investment of money paid into court shall be purchased in the name of his office. He may bring an action upon or in relation to a security in his official or representative character.
(d) Subsequent control of money or securities paid into court. A court may direct that money or securities in the custody of a county treasurer pursuant to this section be transferred or invested as it deems proper.
Plain-English Summary
Sometimes a court orders a party to hand over money or securities rather than hold onto them while a case plays out — an insurer facing competing claims, a garnishee unsure who to pay, a stakeholder caught between rival owners. CPLR 2601 tells that party what happens once it complies: paying into court under the court's direction wipes out its liability for that money, up to the amount paid. It can walk away from the dispute over those funds.
The money itself doesn't sit with the judge. Whoever first receives it — the party or an officer of the court — must forward it to the county treasurer of the county where the case is triable within two days, unless the court names a different county treasurer. In New York City, the commissioner of finance serves as treasurer for every county inside the five boroughs, so the funds land at one office regardless of which county courthouse the case is in.
Title to the money or securities then vests in the treasurer, held for the benefit of whoever the court ultimately says is entitled to it. If the treasurer invests the funds by buying securities, the purchase is made in the treasurer's own official name, and the treasurer can sue or be sued over that security in that capacity. None of this locks the arrangement in place: the court can direct that the money or securities be transferred or reinvested whenever it thinks that's warranted, right up until it orders the funds paid out.
Frequently Asked Questions
What does it mean to pay money into court in New York?
It means a party turns over disputed money or securities to the court's custody rather than holding them, usually because a court has ordered it. Once the payment is made as directed, CPLR 2601 releases that party from further liability for the amount paid in.
Who holds money paid into court under CPLR 2601?
The county treasurer of the county where the case is triable holds it, not the judge or the clerk personally. In New York City, the commissioner of finance acts as treasurer for all five counties.
Am I free of liability once I pay money into court?
Yes, to the extent of what you paid in. CPLR 2601(a) discharges the paying party from all further liability for that money once it's delivered under the court's direction.
How fast must an officer forward money paid into court to the treasurer?
If an officer other than the county treasurer first receives the money or securities, that officer must deliver them to the county treasurer within two days of receiving them.
Can a court change how money paid into court is invested later?
Yes. CPLR 2601(d) lets the court direct that money or securities already in the treasurer's custody be transferred or invested differently whenever the court considers it appropriate.
Does CPLR 2601 cover physical property like jewelry or documents?
No. Section 2601 covers only money and securities. Other kinds of property paid into court are handled under CPLR 2602 instead.
Advisory Committee Notes
Subd (a) of this section is derived from CPA § 133 with no change in substance. The word “bringing” has been changed to “paying” for the sake of consistency. Cf. CPA § 134.
Subd (b) of this section embodies part of CPA §§ 134, 134-a, 136 and 137. The words “transferred or deposited” in the first sentence of former § 134 has been omitted as unnecessary. The phrase “must be paid or transferred” in that sentence has been changed to “shall be delivered” to avoid confusion between the concept of paying money into court and the subsequent disposition of such money. The clause “either directly or by an officer required by law first to receive it” has been changed to “by the party making the payment into court, or when an officer other than the county treasurer first receives them, by that officer.” This change was made for the sake of clarity, and to take into consideration a situation in which an officer might receive property before the county treasurer although not required by law to do so. This situation might arise for example, if a court order to pay property into court is not obeyed, and a sheriff subsequently seizes the property to enforce the order. The words “delivered to” in the second sentence of former § 134 have been changed to “received by” to maintain the distinction between delivery of property to a custodian and any other disposition of such property. The last sentence of this subdivision is derived from the portion of CPA §§ 134, 134-a, 136 and 137 which specifically referred to the treasurer of the city of New York, and serves to eliminate repetition throughout the title.
Subd (c) of this section is based on CPA § 135 and the last sentence of § 134. The words “or other officer, or guardian, committee, or other trustee” of CPA § 135 have been eliminated to bring the rule up-to-date. Section 745 of the code of civil procedure, from which CPA § 134 was derived, gave the court power to specially direct that money paid into court should be placed in the custody of someone other than the county treasurer. This discretion was abolished in 1908 (NY Laws 1908, c. 183), and no such discretion was provided for in the CPA or in this subdivision. Section 747 of the code of civil procedure gave the Supreme Court power to direct that money paid into court be transferred to “a general or special guardian, committee, or other trustee. . . .” Although § 747 of the code was completely eliminated in 1892 (NY Laws 1892, c. 651), the corresponding language in § 749 was left untouched, and was eventually incorporated verbatim into CPA § 135. Under subd (b) of this section all money paid into court must initially be turned over to the county treasurer. The words “is taken” and “is transferred, delivered, made, or given, pursuant to law” have been replaced by the phrase “transferred pursuant to this article,” which includes a direct payment of securities to the treasurer, or the purchase by him of securities with money paid into court. See notes to subd (d) of this section. The phrase “for the purpose of the trust” has been replaced by “for the benefit of interested parties.” There was neither a trust nor a trustee referred to in article 14 of the CPA and though the county treasurer did function as a fiduciary, it seemed likely that the use of the term is another remnant of § 747 of the code of civil procedure.
The last sentence of former § 134 is covered by the second sentence of this subdivision. The word “taken” has been replaced with the word “purchased” in this subdivision for the sake of clarity. The word “security” has been used in place of enumerations of security instruments throughout the article.
Subd (d) of this section is based on the first two sentences of CPA § 136. The second sentence of former § 136, which required an order based “upon proper and sufficient evidence satisfactory to the court,” has been omitted as unnecessary, as has the phrase “in any action or proceeding brought therein” in the first sentence. Instead of enumerating the ways in which the court may specifically control funds paid into court, the court has been given the power to order such funds “transferred or invested as it deems proper.” In the absence of any specific direction of the court, the county treasurer may, at his own discretion, either deposit or invest all funds or moneys paid into court. State Finance Law § 182.
Amendment History
Add, L 1962, ch 308, § 1, eff Sept 1, 1963; amd, L 1964, ch 576, § 93; L 1969, ch 407, § 115; L 1978, ch 655, § 30, eff July 25, 1978.
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: money paid into court New Yorkdischarge of party paying money into courtcounty treasurer court funds NYpaying disputed money into courtCPLR article 26 property paid into court