a. The holder in due course of any bond, note or interest bearing coupon issued due to the malfeasance, misfeasance, or negligence of any officer of a municipality, school district or district corporation, whose cause of action thereon is determined by judgment, or who is privy to such action, may within three years after entry of judgment begin an action against such officer for the recovery of all damages suffered because of such malfeasance, misfeasance or negligence. b. A municipality, school district or district corporation which is required pursuant to a judgment to pay a bond, note or interest bearing coupon issued due to the malfeasance, misfeasance or negligence of any officer thereof, may within three years after such payment begin an action against such officer and recover the amount so paid with interest from the time of payment. c. An order of arrest and an execution against the person of the defendant may be issued in an action instituted pursuant to paragraph a or b of this section.
New York Legal Code