Section 63-C. Action by the people for illegal receipt or disposition of public funds or other property

1. Where any money, funds,  credits,  or
  other  property, held or owned by the state, or held or owned officially
  or otherwise for  or  in  behalf  of  a  governmental  or  other  public
  interest, by a domestic, municipal, or other public corporation, or by a
  board,  officer, custodian, agency, or agent of the state, or of a city,
  county, town, village or other  division,  subdivision,  department,  or
  portion  of  the  state,  has  heretofore been, or is hereafter, without
  right obtained, received,  converted,  or  disposed  of,  an  action  to
  recover  the  same,  or  to recover damages or other compensation for so
  obtaining, receiving, paying, converting, or disposing of the  same,  or
  both,  may  be  maintained  by  the  state in any court of the state, or
  before any court or tribunal of the  United  States,  or  of  any  other
  state,  or  of  any  territory  of  the United States, or of any foreign
  country, having jurisdiction thereof, although a right of action for the
  same cause exists by law in some other public authority, and whether  an
  action  therefor  in  favor  of the latter is or is not pending when the
  action in favor of the state is commenced.   The attorney-general  shall
  commence  an action, suit or other judicial proceeding, as prescribed in
  this section, whenever he deems it for the interests of the state so  to
  do; or whenever he is so directed, in writing, by the governor.
    2.  Upon  the  commencement  by the state of any action, suit or other
  judicial proceeding, as prescribed in this section, the entire cause  of
  action,  including  the  title  to  the  money, funds, credits, or other
  property, with respect to which the suit or action is  brought,  and  to
  the  damages  or  other  compensation  recoverable  for  the  obtaining,
  receipt, payment, conversion or disposition thereof, if  not  previously
  so vested, is transferred to and becomes absolutely vested in the state.
    3.  Any court of the state in which an action is brought by the state,
  as prescribed in  this  section,  may  direct,  by  the  final  judgment
  therein,  or  by  a  subsequent  order,  that any money, funds, damages,
  credits, or other property, recovered by or  awarded  to  the  plaintiff
  therein,  which,  if  that  action  had not been brought, would not have
  vested in the state, be disposed of, as  justice  requires,  in  such  a
  manner  as to reinstate the lawful custody thereof, or to apply the same
  or the proceeds thereof to the objects and purposes for which they  were
  authorized  to  be  raised  or  procured;  after  paying  into the state
  treasury out of the proceeds of the recovery all  expenses  incurred  by
  the state in the action.
    4.  Any  corporation,  board, officer, custodian, agency, or agent, in
  behalf  of  any  city,  county,  town,  village,  or   other   division,
  subdivision,  department, or portion of the state, which was not a party
  to an action, brought as prescribed in this section, and which claims to
  be entitled to the custody or disposition of any of  the  money,  funds,
  damages,  credits,  or  other  property, recovered by, or awarded to the
  plaintiff, by the final judgment in the action, or any of  the  proceeds
  thereof,  and  not  disposed  of as prescribed in subdivision three, may
  bring a special proceeding against  the  attorney-general  at  any  time
  after  the actual collection of the money and its payment into the state
  treasury, or the actual receipt of the property by  the  state,  in  the
  supreme  court,  county  of  Albany, seeking disposition of the money or
  other property.