A party entitled to the income of any property paid into court shall be charged with the expense of administering such property and of receiving and paying over the income thereof.
§ 2603.Cost of administration of property paid into court
Article 26. Property Paid Into Court · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 2603 puts the cost of administering property paid into court on the party who receives its income, so whoever benefits from the arrangement covers the expense of managing it and collecting and distributing that income.
Full Text of CPLR 2603
Plain-English Summary
Property paid into court doesn't manage itself. Someone has to track it, collect whatever income it generates, and pay that income out to the right person. CPLR 2603 answers who foots the bill for that work: the party entitled to the income.
The logic is direct. That party is the one who gains from having the property held and administered on their behalf, so the cost of running that arrangement falls to them rather than to the court system or the county. It's a small rule, but it keeps the expense of custody tied to the person who benefits from it.
Frequently Asked Questions
Who pays the cost of administering funds held in a New York court?
The party entitled to the income from that property pays those costs under CPLR 2603, since that party is the one benefiting from the arrangement.
Does CPLR 2603 cover the cost of collecting interest on court-held funds?
Yes. The section charges the party entitled to income with the expense of both administering the property and receiving and paying over its income, which includes interest.
Can a beneficiary avoid paying administration costs on property paid into court?
No. CPLR 2603 makes the charge automatic for whoever is entitled to the income, rather than something the court weighs case by case.
Does CPLR 2603 apply to physical property as well as money?
The section refers broadly to property paid into court, so it applies whenever that property generates income the recipient is charged for administering.
Why does New York charge the beneficiary instead of the court for these costs?
Because the beneficiary is the one who gains from having the property held and its income collected, the statute puts the cost of that service on the person it serves.
Advisory Committee Notes
This section is based on the first sentence of RCP 30. The phrase “yearly interest” has been omitted since the term “income” adequately covers interest. The words “and invested in permanent securities” have been omitted. There is no need to limit to any specific investments the responsibility of the beneficiary for the payment of expenses. If any such expenses are incurred it is reasonable to expect the person entitled to the income to absorb the costs. The word “sum” has been replaced by “property” to broaden the scope of the former section, and the phrase “expense of investing” has been changed to “expense of administering” for the same purpose.
Amendment History
Add, L 1962, ch 308, § 1, 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: cost of administering property paid into courtwho pays administration fees court deposit NYexpense of income from court fundsproperty held in court New York fees