ARTICLE 17

SPECIAL PROCEEDING FOR DISPOSITION OF REAL PROPERTY
OF INFANT, INCOMPETENT OR CONSERVATEE
Section 1701. Definitions.
1711. Grounds.
1712. By whom maintainable.
1721. Notice of petition.
1722. Contents of petition.
1731. Infant, incompetent or conservatee a ward of court.
1741. Reference.
1742. Appraisal.
1743. Judgment.
1744. Security.
1745. Report and confirmation of agreement and of conveyance.
1746. When particular estates to be included in disposition.
1747. When reversionary estates to be included in sale.
1751. Sale contrary to will or conveyance prohibited.
1753. Effect of disposition.
1755. Proceeds of sale deemed real property.
1761. Distribution of proceeds of disposition.
1762. Distribution of proceeds to owner of particular or
reversionary estate.
1763. Distribution of proceeds upon release of inchoate right of
dower.
1764. Distribution of proceeds where there is an interest of an
infant not in being.
1765. Distribution of proceeds to guardian of infant, committee
of incompetent or conservator of conservatee.
1766. Distribution of proceeds on death of infant, incompetent
or conservatee.

S 1701. Definitions. As used in this article:
1. The term "incompetent person" means a person incompetent to manage
his affairs of whose property a committee has been appointed pursuant to
section 78.07 of the mental hygiene law.
2. The term "conservatee" means a person who has suffered substantial
impairment of his ability to care for his property or has become unable
to provide for himself or others dependent upon him for support for whom
a conservator of his property has been appointed, pursuant to section
77.01 of the mental hygiene law.
3. The term "interest in real property" includes any term, estate or
other interest in real property, vested or contingent, of an infant in
being, an incompetent person, or a conservatee including an inchoate
right of dower and a possibility of reverter, and also the contingent
interest of an infant not in being.
4. The term "possibility of reverter" means the possibility that upon
breach of a condition or termination of an estate by limitation the
right of re-entry will vest in, or real property will revert to, an
infant, incompetent person or conservatee or his heirs solely or in
common with others.
5. The term "dispose of" means to sell, convey, exchange, mortgage,
release or lease.
6. The term "guardian, committee or conservator" refers to the general
or testamentary guardian or guardian appointed by deed of the property
of the infant, or the committee of the property of the incompetent
person or patient appointed pursuant to the provisions of section 78.03
or 78.07 of the mental hygiene law, the conservator of the property of a
conservatee appointed pursuant to the provisions of article
seventy-seven of the mental hygiene law, or to the guardian of the
infant, incompetent person or conservatee appointed as prescribed by
this article.

S 1711. Grounds. In any of the following cases, a special proceeding
may be maintained to dispose of the real property or an interest in real
property of an infant, incompetent person or conservatee.
1. Where his personal property, together with the income of the real
property are insufficient for the payment of his debts or for the
maintenance and necessary education of himself and his family.
2. Where his interests require or will be substantially promoted by
disposition, because the real property or interest in real property is
exposed to waste or dilapidation, or is wholly or substantially
unproductive, or because funds are needed to preserve or to improve the
same, or because of other peculiar reasons or circumstances.
3. Where he is seized or possessed of the real property, or interest
in real property, by way of mortgage, or only in trust for another.
4. Where a valid contract for the sale or conveyance of the real
property or interest in real property has been made, but a conveyance
thereof cannot be made because the person in whom the title is vested is
an infant, an incompetent, or a conservatee.
5. Where his interest will be substantially promoted by releasing or
joining with others in releasing for a valuable consideration the
possibility of reverter.
6. Where his interest will be substantially promoted by the exchange
of a portion of his real property for lands adjacent to such real
property if such exchange would tend to improve the boundary line of
such real property.

S 1712. By whom maintainable. The special proceeding may be maintained
by the general or testamentary guardian of the property of the infant,
by the committee of the property of the incompetent person or the
conservator of the property of the conservatee, or by any relative or
other person in behalf of the infant, incompetent person, or conservatee
or by an infant of the age of fourteen years or over in his own behalf.
The special proceeding may be maintained, in a case specified in
subdivisions 3 and 4 of section 1711, by a person entitled to the
conveyance; and, also, in a case specified in subdivision 4 of that
section, by the executor or administrator of the person who made the
contract, or of a person who died seized or possessed of the real
property or interest in real property, or by an heir or devisee of
either of those persons, to whom the real property or interest in real
property has descended or was devised. Where the proceeding is in behalf
of an infant of the age of fourteen years or over the infant shall join
therein.

S 1721. Notice of petition. Notice of petition shall be given, in the
discretion of the court, to such persons and in such manner as the court
may direct. If the proceeding affects the interest of an incompetent
person or of a conservatee, notice shall be given to either the
committee of property or the conservator of property, and if the
incompetent person or conservatee has been committed to a state
institution and is an inmate thereof, also to the attorney-general and
to the director having jurisdiction over the institution where the
incompetent or conservatee is confined. If the proceeding affects the
interest of an infant who has a general or testamentary guardian of the
property, notice shall be given to such guardian.

S 1722. Contents of petition. The petition shall state:
1. The name, age and residence of the infant, incompetent person or
conservatee.
2. The grounds of the proceeding.
3. A description of the real property or interest to be disposed of
and of the incumbrance, if any, thereon.
4. The name and residence of the guardian of the infant, committee of
the incompetent person or conservator of the conservatee and, where a
guardian ad litem is to be appointed, the name and residence of the
person proposed as the guardian ad litem, the relationship he bears to
the infant, incompetent person, or conservatee and the security proposed
to be given.
5. In a proceeding pursuant to subdivision four of section seventeen
hundred eleven of this article, that the contract was made after the
advertisement of the real property for sale for a period of four
successive weeks by a notice of sale posted conspicuously on the
premises, and by publication of a notice of sale in the manner
prescribed by section two hundred thirty-one of this chapter for
publication of a notice of sale of real property made in pursuance of a
judgment, provided, however, that the court may, upon cause shown,
shorten such time or dispense with such advertisement.

S 1731. Infant, incompetent or conservatee a ward of court. From the
time of the filing of a petition, by or in behalf of an infant,
incompetent person or conservatee, praying for an order to dispose of
his real property, or interest in real property, the infant, incompetent
person or conservatee is considered a ward of the court with respect to
that real property or interest and the income and proceeds thereof. The
court shall have power to make such orders as may be necessary to
further justice and to protect and conserve the rights and interests of
the infant, incompetent person or conservatee.

S 1741. Reference. 1. The court may appoint a referee to receive
evidence and report his opinion thereon.
2. The referee`s report shall include conclusions as to: what, if any,
form, terms and conditions of disposition of the real property or
interest would be beneficial to the infant, incompetent person or
conservatee, and the reasons therefor; whether the infant, incompetent
person or conservatee is in absolute need of some and what portion of
the proceeds of such disposition, for a purpose specified in the
petition, in addition to what he might earn by his own exertions; the
value of the property or interest to be disposed of, specifically, as to
each separate lot or parcel, with the incumbrances, if any, thereon, and
whether there is any person entitled to dower or a life estate, or
estate for years.

S 1742. Appraisal. When the court deems it necessary for the
protection of the interests of the infant, incompetent person or
conservatee, it may appoint a competent, disinterested person as
appraiser, who after taking an oath fairly to appraise the real
property, shall go upon the premises, and make an appraisal of the
property and report the result thereof to the court. The fee of the
appraiser shall be fixed by the court and be included in the costs of
the proceedings. A transcript of the proof and the report of the referee
or appraiser, if any, shall be filed with the final order.

S 1743. Judgment. The judgment may direct that the real property, or
interest in real property, or a part thereof, be disposed of by the
guardian, committee or conservator and contain directions respecting the
time, manner and conditions of the disposition.

S 1744. Security. 1. Before the guardian, committee or conservator
executes and delivers the deed, mortgage, release or lease pursuant to
the judgment or receives any portion of the proceeds arising from the
transaction, he shall give security for the faithful performance of his
trust, for the paying over and investing of and accounting for all
moneys received by the guardian, committee or conservator in the special
proceeding and for the observance of the provisions of law and the
directions of the court in relation to the trust. Such security shall
have the same force and effect as if it had been filed before the
guardian, committee or conservator acted on behalf of the infant,
incompetent person or conservatee and the application to the court was
made in the proceeding.
2. The court may, by order, dispense wholly or in part with the giving
of security if the sureties on the undertaking, if any, theretofore
filed by the general or testamentary guardian of the property of the
infant, the committee of the property of the incompetent person, or
conservator of the property of the conservatee as well as such guardian,
committee, or conservator consent to its extension to cover the special
proceeding, and the court deems such extended undertaking sufficient to
protect the interests of the infant, incompetent person or conservatee
in such proceeding. The consent shall be in writing and shall be filed
with the order dispensing with the giving of security.

S 1745. Report and confirmation of agreement and of conveyance. 1.
Before disposition of the property can be made pursuant to the judgment,
the guardian, committee or conservator must enter into an agreement
therefor, subject to the approval of the court, and must report the
agreement to the court under oath. Such agreement may be made either
before or after the commencement of the proceeding, and if made and
reported prior to the entry of the judgment, such judgment may include a
confirmation thereof.
2. Upon the confirmation of the agreement, either by the judgment or
by a subsequent order, the guardian, committee or conservator shall
execute and deliver a deed, mortgage, release or lease as directed by
such judgment or order.
3. Where the judgment directs the execution of a conveyance in the
first instance for the purpose of fulfilling a contract, or because the
property is held by way of mortgage, or in trust only, the guardian,
committee or conservator executing the conveyance shall report the
conveyance to the court under oath.

S 1746. When particular estates to be included in disposition. When
the real property, or interest in real property, directed to be sold is
subject, absolutely or contingently, to a right of dower or an estate
for life, or for years, in the whole or any part thereof, the person
having the prior right or estate may manifest in writing his consent,
either to receive from the proceeds of the sale a gross sum to be fixed
according to the principles of law applicable to annuities, in
satisfaction of his right or estate, or to have a proportionate share of
the proceeds of the sale invested, and the interest thereof paid to him,
from the time of the investment or of the commencement of his right or
estate, as justice requires, until the determination of his right or
estate. Upon filing the consent with the clerk, the judgment, in the
discretion of the court, may direct a sale of the entire property to
which the right or estate attaches.

S 1747. When reversionary estates to be included in sale. When the
interest of the infant, incompetent person or conservatee, consists of a
right of dower or an estate for life, or for years, the judgment may
authorize the guardian, committee or conservator to join, with the
person or persons holding the reversionary estate, in a conveyance of
the property to which the interest attaches, so as to release the right
of dower, or fully convey the particular estate, on receiving from the
proceeds of the sale a gross sum in satisfaction of that interest, or a
proportionate part of the proceeds, to be invested until the
determination of the particular estate.

S 1751. Sale contrary to will or conveyance prohibited. Real property,
or an interest in real property, shall not be disposed of, as prescribed
in this article, contrary to the provisions of a will by which it was
devised, or of a conveyance or other instrument by which it was
transferred, to the infant, incompetent person or conservatee.

S 1753. Effect of disposition. A deed, mortgage, release or lease
made in good faith, as prescribed in this article, upon an application
in behalf of an infant, incompetent person or conservatee, has the same
validity and effect as if executed by the person in whose behalf it was
executed, and as if the infant were of full age or the incompetent
person or conservatee were of sound mind and competent to manage his
affairs. It shall be valid and effectual to vest in any purchaser an
interest of an infant not in being at the time of the said sale, and any
mortgage so executed shall be a valid lien and charge upon the
contingent interest of an infant not in being at the time of the
execution and delivery of the same. A release of an inchoate right to
dower as authorized by this article shall have the same effect as if the
wife had joined with the husband in a deed or conveyance of the property
affected thereby and had duly acknowledged the same in the manner
required by law to pass the estate of married women. The failure to
conduct the proceeding strictly in accordance with the provisions of
this article shall not invalidate the disposition if the interests of
the infant, incompetent person or conservatee have not been prejudiced.

S 1755. Proceeds of sale deemed real property. A sale of real
property, or of an interest in real property other than a possibility of
reverter, of an infant or incompetent person, does not give to the
infant or incompetent person any other or greater interest in the
proceeds of the sale than he had in the property or interest sold.
Those proceeds are deemed property of the same nature as the estate or
interest sold until the infant arrives at full age or the incompetency
is removed. The proceeds of the release of a possibility of reverter
shall be deemed and treated as if they were proceeds of real property of
which the infant was seized and possessed. If the incompetent person
dies after the sale, having specifically devised the property sold, the
provisions of section thirty-six of the decedent estate law shall apply
to the devise.

S 1761. Distribution of proceeds of disposition. 1. After the
disposition of real property as provided in this article, the court
shall direct the distribution of the proceeds.
2. The court shall direct the payment from the proceeds of all debts,
in equal proportion, without giving a preference to a debt founded upon
a specialty or upon which judgment has been taken.
3. The court shall direct the investment of any portion of the
proceeds belonging to the infant, incompetent person or conservatee
which is not needed for the payment of debts, or the safe keeping, or
the immediate maintenance and education of himself or his family, or for
the preservation or improvement of his real property or his interest in
real property.
4. The court shall require a report, under oath, of the disposition
and investment of the proceeds to be made as soon as practicable, and
must compel periodical accounts to be rendered thereafter by each person
who is intrusted with the proceeds or any part thereof.

S 1762. Distribution of proceeds to owner of particular or
reversionary estate. 1. When real property has been disposed of so as to
include a particular reversionary estate, as provided in sections 1746
and 1747, the court shall direct that the value of such estate be paid
from the proceeds of disposition.
2. The manner of payment may be either in a gross sum or by the
investment of a just proportion of the proceeds until the termination of
the prior estate or the commencement of a future estate.
3. If a prior estate has been included, income from the invested
proceeds shall be paid to the owner of such estate. But no such payment
shall be made nor shall any gross sum be paid to such owner until an
effectual release of the right or estate of the person so consenting,
executed to the satisfaction of the court, and duly acknowledged or
proved, and certified, in like manner as a deed to be recorded, has been
filed with the clerk.
4. If a future estate has been included, the invested proceeds shall
be paid to the owner of such estate at the time of the commencement
thereof.

S 1763. Distribution of proceeds upon release of inchoate right of
dower. Where an inchoate right of dower is released as prescribed in
this article and such release is to accompany a sale by the husband of
the property to which the inchoate right of dower attaches, the court
shall make an order requiring one-third of the amount realized on the
sale of the property to which the inchoate right of dower attached to be
invested by the guardian, committee or conservator, or paid into the
court to be held for the benefit of the husband during his life and upon
his death for the benefit of the wife during her life, or the court may
direct said amounts to be paid to the husband upon his giving an
undertaking in the amount of at least double the amount so received for
such release, conditioned for the repayment as the court shall direct by
his executors or administrators of such amount upon the death of the
husband, or the court may ascertain the sum in gross representing the
present value of such inchoate right of dower and direct the payment of
that sum to the guardian, committee or conservator for the wife. Where
an inchoate right of dower is released as prescribed in this article,
and, at the time of the commencement of the proceeding, the property to
which the inchoate right of dower attaches has already been sold by the
husband, and the wife has not joined in the conveyance or otherwise
released her inchoate right of dower, the court shall make an order
that, as the consideration for the release, or as part of the
consideration therefor, there be paid to the guardian, committee, or
conservator or into the court an amount to be fixed by the court as
equal to one-third of the fair market value of the property, to be
invested by the guardian, committee or conservator or held by the court
for the benefit of the person making such payment during the life of the
husband, and upon his death for the benefit of the wife during her life,
and upon her death to be returned to the person making such payment or
to his executors, administrators or assigns; or in lieu of such payment,
the court may allow an undertaking to be given in the amount of at least
double the amount so fixed as equal to one-third of the fair market
value of the property, conditioned for the payment as the court shall
direct, upon the death of the husband leaving the wife surviving, of the
said sum so fixed as equal to one-third of the fair value of the
property, to be held for the benefit of the wife during her life and
upon her death to be returned to the person giving such undertaking or
to his executors, administrators or assigns; or, in lieu of such payment
or undertaking, the court may ascertain the sum in gross representing
the present value of such inchoate right of dower in the fair market
value of the property and direct the payment of that sum to the
guardian, committee or conservator for the wife.

S 1764. Distribution of proceeds where there is an interest of an
infant not in being. In case by any contingency, infants not in being
may thereafter become possessed of any interest in the real property
disposed of, the court, in case of a sale, shall cause the proceeds of
the sale, after paying the costs and expenses of the same, to be placed
at interest for the benefit of the persons who are or who ultimately may
be entitled to the same, and shall not authorize the distribution of the
same in advance of said contingency, except upon a petition of some
person entitled thereto and upon filing an undertaking in such amount as
the court shall direct, conditioned that in case of any contingency by
which any infant not then in being shall thereafter become entitled to
any of the proceeds of the sale, that said petitioner will pay to said
person or persons his or their proportionate share of the money so paid
over to said petitioner. In the case of the mortgaging of said real
estate, the proceeds of the same, after paying costs and expenses, shall
be paid out and disbursed under the direction of the court only for the
purpose of paying lawful charges thereon, or repairing, improving,
building upon or otherwise enhancing in value any real estate so
mortgaged as aforesaid.

S 1765. Distribution of proceeds to guardian of infant, committee of
incompetent or conservator of conservatee. 1. Proceeds or income of
proceeds invested as provided in subdivision 3 of section 1761 may be
paid on order of court on such undertaking as it may require.
2. If the proceeds do not exceed one thousand dollars, the court may
direct that the same be paid to the father or mother of the infant, or
to some competent person with whom the infant resides, or who has some
interest in his welfare, for the use and benefit of such infant.
3. In the case of an infant residing without the state, and having in
the state or country where he resides a general guardian or person duly
appointed under the laws of such state or country to the control, and
entitled by the laws of such state or country to the custody, of the
money of said infant, the court, upon satisfactory proof of such facts
and of the sufficiency of the security given by such general guardian or
person in such state or country, by the certificate of a judge of a
court of record of such state or country, or otherwise, may direct that
the portion of such infant arising upon a sale pursuant to this article
shall be paid over to such general guardian or person.

S 1766. Distribution of proceeds on death of infant, incompetent or
conservatee. If the infant should die before arriving at full age, or
the incompetent person should die before the incompetency is removed, or
the conservatee should die before the conservatorship is terminated not
leaving any personal property, or not leaving sufficient personal
property to pay funeral expenses and expenses that may be necessary or
necessarily incurred, then in each case, the proceeds of disposition of
real property are to be deemed personal property so far as may be
necessary to pay the funeral and other necessary expenses. The proceeds
are to be paid, upon order of the surrogate`s court or court having
jurisdiction of the estate of the deceased, to an administrator
appointed by the surrogate to administer upon decedent`s estate, and
after paying all funeral expenses and expenses of administration and any
indebtedness, the remainder, if any there be, upon the order of the
surrogate, shall be paid into the hands of the trustee who held the
same, to be distributed as the law directs.