Section 574. Insolvency or bankruptcy

1. Priority of contributions.  In the
  event  of  the  dissolution,  insolvency, composition, or assignment for
  benefit of creditors of any employer, contributions then and  thereafter
  due  from  such  employer under this article, together with any interest
  and penalties thereon, shall (1) be on a parity with taxes  (other  than
  real  property taxes), together with any interest and penalties thereon,
  due the state of New York or any city thereof and (2) have priority over
  all other claims, except taxes due the United States and wages  due  for
  employment  performed  within  the three months preceding such event. In
  the event  of  an  employer's  adjudication  in  bankruptcy,  judicially
  confirmed  extension  proposal, composition, or reorganization under the
  federal bankruptcy act, contributions then and thereafter due under this
  article, together with any interest  and  penalties  thereon,  shall  be
  entitled to such priority as is provided in such act.
    2.  Discharge  in bankruptcy. If the commissioner was given due notice
  or  had  knowledge  of  the  bankruptcy  proceedings,  the  payment   of
  contributions  due,  together with interest and penalties thereon, which
  accrued on or before the date of the petition for bankruptcy  and  which
  remain  unpaid  upon  the  discharge  of the employer in bankruptcy by a
  court of competent jurisdiction, shall  not  be  enforced  unless  civil
  action  or  warrant proceedings are begun not later than two years after
  the date of such discharge  and  their  total  amount  is  two  thousand
  dollars or more.