New York Consolidated Laws, Lien Law - LIE § 104. Action on undertaking

The undertaking may be prosecuted by action in any court having jurisdiction thereof, at any time within three months after its delivery, but not afterward.  If, in such action it is found that any sum is due the plaintiff which was a subsisting lien upon the vessel at the time the notice of lien was filed, the plaintiff shall have judgment for the recovery of the same with the costs and disbursements of the action and the costs of the proceedings for the seizing of the vessel and shall have execution therefor.  If it is found in such action that no such lien existed, judgment shall be rendered against the plaintiff for the costs and disbursements of the action and the costs of the proceedings, including the amount paid the sheriff in the discharge of the vessel from the warrant.