A receiver, assignee, guardian, trustee, committee, conservator or person appointed under section one hundred eleven of the real property law or under section twenty of the personal property law, required by law to give an undertaking as such, may include as a part of his necessary expenses such reasonable sum, not exceeding one per cent per annum upon the amount of such undertaking paid his surety thereon, as the court appointing him shall allow.
§ 8006.Premiums on undertakings by fiduciaries
Article 80. Fees · Last amended 1981 · Last verified July 21, 2026
In one sentenceCPLR 8006 lets a fiduciary required to post an undertaking count the premium paid to a surety as a necessary expense, up to one percent per year of the undertaking's amount, as approved by the appointing court.
Full Text of CPLR 8006
Plain-English Summary
Certain fiduciaries, receivers, assignees, guardians, trustees, committees, conservators, and persons appointed under specific Real Property Law and Personal Property Law provisions, have to post an undertaking before they can act. That undertaking is not free; the fiduciary pays a surety a premium to back it. CPLR 8006 lets the fiduciary treat that premium as part of the necessary expenses of the position, subject to a cap of one percent per year of the amount of the undertaking, and subject to the appointing court's approval of the sum claimed.
The section is grouped with the other fee provisions of Article 80 for convenience, even though it deals with an expense rather than a fee paid for services rendered. Read together with the surrounding sections on receiver and trustee compensation, it fills a gap: those sections cover what a fiduciary earns for doing the job, while this one covers a real cost the fiduciary has to lay out just to be allowed to serve.
Frequently Asked Questions
What does CPLR 8006 do?
It allows a fiduciary who must post an undertaking, such as a receiver, guardian, trustee, committee, or conservator, to claim the premium paid to the surety as a necessary expense, capped at one percent per year of the undertaking's amount.
Who can claim the undertaking premium as an expense under CPLR 8006?
A receiver, assignee, guardian, trustee, committee, conservator, or a person appointed under the specific Real Property Law or Personal Property Law provisions the section names, when that person is required by law to post an undertaking.
Is there a limit on how much premium a fiduciary can claim under CPLR 8006?
Yes. The reasonable sum allowed cannot exceed one percent per year of the amount of the undertaking, and the appointing court must approve the sum.
Is the undertaking premium treated as a fee for the fiduciary's services?
No. CPLR 8006 treats it as a necessary expense of serving as the fiduciary, distinct from the commission or compensation the fiduciary earns for the work itself.
Why is CPLR 8006 grouped with the fee provisions of Article 80?
The section deals with an expense rather than a fee, but it was kept alongside the fee provisions for convenience since it relates closely to the compensation and cost questions those sections address.
Does the court have to approve the premium amount before a fiduciary can be reimbursed?
Yes. The statute conditions the allowance on approval by the court that appointed the fiduciary.
Advisory Committee Notes
This is CPA § 1549 with minor changes in language. Although the section relates to expenses, and not to fees, it has been retained with the fee provisions for convenience. The reference in the section to appointees under the Real Property Law and Personal Property Law relates to persons who replace the last surviving trustee. The term “undertaking” has been substituted for “bond” to conform to usage in the new CPLR. See introduction to article 25. For the same reason, the phrase, “or judge” has been deleted. See § 2211. CPA § 1549 was derived from the last sentence of § 3320 of the Code of Civil Procedure. Because the first two sentences of the latter section were in CPA § 1547, the reference to “such” court or judge in CPA § 1549 was not clear and it has been clarified in this section. Although CPA § 1549 was almost identical to § 286 of the Surrogate’s Court Act, it was so short that no economy would be gained by utilizing a reference to the latter.
Amendment History
Add, L 1962, ch 308, § 1; amd, L 1981, ch 115, § 28, eff May 18, 1981.
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: fiduciary undertaking premium New Yorkreceiver bond premium reimbursementtrustee surety bond expense CPLRguardian undertaking cost