Money received by a referee appointed to sell property shall be deposited forthwith by the referee, in his name as referee, in a bank or trust company authorized to transact business in this state, or with the chief fiscal officer or county treasurer of the county in which the action or proceeding is pending, as the court shall designate. Such moneys when paid to the chief fiscal officer of the county or county treasurer shall not be withdrawn except as directed by the judgment or order under which the deposit is made, or by an order under rule 2606.
R 2609.Deposit by referee appointed to sell property
Article 26. Property Paid Into Court · Last amended 1976 · Last verified July 21, 2026
In one sentenceCPLR 2609 requires a referee appointed to sell property under a court's authority to deposit the proceeds right away in a bank or trust company, or with the county's chief fiscal officer or treasurer, and bars withdrawing them except as the judgment, order, or a CPLR 2606 order allows.
Full Text of CPLR 2609
Plain-English Summary
Court-appointed referees sell property in all kinds of proceedings, foreclosures among them, and CPLR 2609 controls what happens to the money the moment the sale closes. The referee must deposit it forthwith — without delay — in the referee's own name as referee, either in a bank or trust company authorized to do business in New York or with the chief fiscal officer or county treasurer of the county where the case is pending, whichever the court designates.
Once deposited with a chief fiscal officer or county treasurer, the money can't be withdrawn on the referee's say-so. It comes out only as the judgment or order under which it was deposited directs, or under an order obtained through the CPLR 2606 procedure for releasing property held in court. The referee's role ends at safekeeping; the court controls the release.
Frequently Asked Questions
What must a referee do with money from a court-ordered sale of property?
The referee must deposit it forthwith, in the referee's own name as referee, in an authorized bank or trust company or with the chief fiscal officer or county treasurer, as the court designates.
Can a referee hold sale proceeds in a personal bank account?
No. CPLR 2609 requires the deposit to be made in the referee's name as referee, not as a personal account, and only at an institution or office the court designates.
How quickly must a referee deposit proceeds from a judicial sale?
The statute requires the deposit forthwith, meaning without delay once the referee receives the money.
Who can withdraw money a referee deposited under CPLR 2609?
Withdrawal is limited to what the judgment or order under which the deposit was made directs, or to an order obtained under the CPLR 2606 procedure for releasing court-held property.
Does CPLR 2609 apply to foreclosure sale proceeds?
It applies to money received by any referee appointed to sell property, which includes proceeds from a foreclosure sale conducted under a court's appointment.
Advisory Committee Notes
This rule is based upon RCP 173, which was derived from part of rule 79 of the old general rules of practice. The requirement of designation of the depository by the court did not appear in rule 79 of the old general rules of practice. Its location in the first sentence of former rule 173 seemed anomalous: the rule seemed to require such designation only if there was a depository in the city or town where the referee resided; otherwise the referee might use a depository in an adjoining city or town without court designation or might deposit the funds with the county treasurer. It has been revised to allow the court to designate whether the deposit shall be made with the county treasurer or in a depository and to designate the depository.
Amendment History
Formerly § 2609, add, L 1962, ch 308, § 1; amd, L 1962, ch 318, § 11; L 1974, ch 90, § 1; L 1976, ch 86, § 1, eff March 30, 1976.
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: referee deposit sale proceeds NYjudicial sale referee bank depositforeclosure referee funds court orderreferee appointed to sell property deposit rules