N.Y. Tax Law § 422
The tax commission may require any distributor to file with the department of taxation and finance a bond issued by a surety company approved by the superintendent of financial services as to solvency and responsibility and authorized to transact business in the state or other security acceptable to the tax commission, in such amount as the tax commission may fix, to secure the payment of any sums due from such distributor pursuant to this article. The tax commission may require that such a bond or other security be filed before a distributor is registered, or at any time when in its judgment the same is necessary as a protection to the revenues under this article. If securities are deposited as security under this subdivision, such securities shall be kept in the joint custody of the comptroller and the commissioner of taxation and finance and may be sold by the tax commission if it becomes necessary so to do in order to recover any sums due from such distributor pursuant to this article; but no such sale shall be had until after such distributor shall have had opportunity to litigate the validity of any tax if it elects so to do. Upon any such sale, the surplus, if any, above the sums due under this article, shall be returned to such distributor.
N.Y. Tax Law § 422