Application to Compensation Arising Out of Appropriation of Real Property by the State.

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§ 1616. Application to compensation arising out of appropriation of real property by the state. 1. The procedure authorized by sections 1601 through 1614 as to a sale of real property, covering all created interests as mentioned therein and qualified in section 1615, shall, so far as practicable, apply also to an application concerning payment of compensation arising out of any appropriation by the state of real property or of any interest therein, for public purpose, in the same manner that such procedure would apply, but for such appropriation, to an application thereunder for an order directing that the real property in question, or a part thereof, be sold.

2. For the purpose, however, of the relief sought under the provisions of this section, all references in this and in any of the above enumerated sections to a trustee or a trust shall be construed as relating only to a trust estate created by an instrument other than a will and under which the trustee has no valid power of sale over the subject property. Where, however, a valid power of sale is given the trustee under such instrument, he is hereby authorized to execute the transaction in the same manner a testamentary trustee may do under section two hundred fifty-c of the surrogate's court act, and which execution, including all releases given thereunder by such nontestamentary trustee, shall in similar scope be binding and conclusive on all persons and interests as covered thereby in said last mentioned section.

3. In the case of any such appropriation where relief is sought under this section, the relevant proof to be taken and the hearing and examination to be had before final order under the provisions of section 1609 shall be as to whether the compensation offered by the state, or any agency or department thereof, by way of a provisionally executed agreement of adjustment or otherwise, for the total value of such appropriated property or interest and of all legal damages caused by such appropriation, represents the fair market value of such property or interest and just compensation therefor and for all legal damages caused by such appropriation, including the damages, if any, sustained by the entry upon, use or occupation of, or injury to, said property by the state prior to completion of appropriation. If the court is satisfied as to the adequacy of said offer, it shall, in the final order in the proceeding, authorize the applicant if acting as trustee, and, if not, then a referee to be appointed thereunder to execute the authorized transaction, to enter into or adopt any such agreement of adjustment with, and in form submitted by, the state or any agency or department thereof for the total compensation so offered; and on report under oath to the court by such trustee or referee of any such agreement of adjustment so undertaken by either of them, if it appears to the court to conform in all particulars to the final order authorizing the transaction, an order shall be made approving and confirming such agreement of adjustment and directing such trustee or referee, upon consummation thereof, in behalf of all persons in interest as to the property affected by said appropriation, or as to the proceeds to be derived therefrom in said transaction, who shall have become bound by said proceeding under the provisions of section 1614 to execute and deliver to the state and/or any agency or department thereof, a release of all claims on the part of such persons in interest with respect to the total compensation offered as aforementioned, together with any and all other documents and instruments which may be required by the state or any agency or department thereof to give full effect to such release, and which release and attendant documents and instruments shall, upon such execution and delivery thereof, become and remain binding and conclusive on all of the aforesaid persons in interest.

4. Said order of confirmation shall, in the discretion of the court, provide for payment out of said total compensation of reasonable disbursements and of such allowances as to the court may seem proper, in the manner and respectively to the participants and persons mentioned in section 1613, and shall also authorize said trustee or referee to receive the net proceeds therefrom after such payment and to apply, safeguard, manage and distribute said remaining fund as directed in said order of confirmation and in accordance with the relevant provisions of section 1613.



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