If the bond given by the clerk of the court of appeals, before entering upon his duties, as prescribed by law, is forfeited by a breach of its condition, the court of appeals must, by order, direct an action to be brought thereon. The money recovered must be applied, under the direction of the court of appeals, to indemnify the persons aggrieved by the breach, in proportion to their respective losses, and to make good any other loss, occasioned by the breach.
New York Legal Code