R 2607.Payment of property paid into court
Article 26. Property Paid Into Court · Last amended 1971 · Last verified July 21, 2026
Full Text of CPLR 2607
Plain-English Summary
The default rule is strict: no property paid into court, and no income it earns, gets paid out except under a court order that names the specific person to be paid. CPLR 2607 carves out one narrow exception — if the property or its income, including interest, comes to fifty dollars or less, the county treasurer can pay it directly to the person entitled to it or that person's authorized attorney, without waiting for a court order.
When a court does order a full balance, a distributive share, or other property paid out, the order also has to cover any accrued income belonging to that recipient, so a party isn't left chasing a separate order for interest that built up along the way.
The mechanics that follow are procedural but exact. A certified copy of the payment order goes to the county treasurer or other custodian, who then draws a draft payable to the entitled party, identifying the case and the date of the order. That certified copy, plus the draft when money is involved, must reach the depository before any property moves. If the order calls for periodic payments, one filed copy is enough to authorize every later draft made under it, so the paperwork doesn't have to be repeated each time. And where a county treasurer is the one paying out, the clerk of the court must certify that the copy delivered matches the original order on file.
Frequently Asked Questions
Can a county treasurer release court-held funds without a judge's order?
Only for amounts of fifty dollars or less, including interest. Above that, CPLR 2607 requires a court order naming the person to be paid.
What is the small-sum exception under CPLR 2607?
If the property or income paid into court, including interest, totals fifty dollars or less, the county treasurer may pay it directly to the entitled person or their authorized attorney without a court order.
Does an order releasing court funds have to include accrued interest?
Yes. When a court orders the whole balance, a distributive share, or other property paid out, the order must also direct payment of any accrued income belonging to that recipient.
What paperwork does a custodian need before releasing property paid into court?
A certified copy of the court's order directing payment, and for money, a draft payable to the entitled party identifying the case and the order's date, both of which must reach the depository before payment.
How are periodic payments handled once a court orders payment out of court?
If the order directs periodic payments, filing one copy of the order is enough to authorize every subsequent draft made under it, so no new filing is needed each time.
Advisory Committee Notes
This rule is derived from the last sentence of CPA § 136 and the first sentence of CPA § 137, and the last four sentences of RCP 32 and 33. The first sentence of the new rule embraces the first sentence of former § 137, and through the inclusion of the words “or income from such property,” that portion of the fourth sentence of former rule 32 which dealt with interest and accumulation on money. The term “property” in the new rule includes all the items enumerated in former § 137. The words “paid out” have been substituted for “surrender” for the sake of clarity and consistency.
There has been some question raised as to how much the inability of the county treasurer to “surrender” property without an order limits his right to sell mortgages and other securities. See 5 Carmody-Wait, Cyclopedia of New York Practice 361–62 (1953). The use of the phrase “pay out” throughout this article to mean removal from the supervision of the court, should clarify the situation and indicate that this rule is not intended to hamper the treasurer in the exercise of his discretion in the management of property paid into court. See State Finance Law § 182. The purpose of this rule is to prevent the removal of such property from the custody of the court upon claims unlawfully made. County of Tompkins v Ingersoll, 81 App Div 344, 81 NY Supp 242 (3d Dept 1903), affd 177 NY 543, 69 NE 1132 (1904).
The words “directing such disposition” appearing at the end of the first sentence of former § 137 have been omitted as unnecessary, since the fourth sentence of former rule 32 has been embodied in the proposed rule by the phrase “directing payment to a specified person.” The second sentence of the new rule is the last sentence of former § 136 with no substantial changes, except for the insertion of the words “or remaining balance” in three places.
The third, fourth, and fifth sentences of the new section are a restatement of the fifth and sixth sentences of former rule 32. The word “property” has been substituted for “money” and is meant to include property held in storage. The third sentence of the new rule also embodies former rule 33 with no change in substance. Where the custodian— e.g., the County Treasurer—and the depository—e.g., a bank—are different persons two certified copies of the order are required. If, as in the case of property placed in storage, the custodian and depository are the same person, only one certified copy of the order is required.
The last sentence of the new rule corresponds to the last sentence of former rule 32 and makes only minor changes in language.
Authorization for the county treasurer to pay out property less than fifty dollars in value without court order has been added to conform to a 1959 amendment to CPA § 137. Laws 1959, c. 707.
The phrase “or his authorized attorney” has been added at the end of the first sentence for purposes of clarification.
Amendment History
Formerly § 2607, add, L 1962, ch 308, § 1; amd, L 1962, ch 318, § 9; L 1971, ch 154, § 1, eff April 21, 1971.