The IAS Court properly declined to dismiss the amended complaint for failure to state a cause of action, where plaintiffs, as secured creditors, sought to recover monetary damages for the alleged wrongful payment by defendant insurer of certain fire loss insurance proceeds to the named insured. The amended complaint, liberally construed ( Morone v. Morone, 50 N.Y.2d 481, 484), states a viable cause of action for conversion, premised upon the receipt by defendant insurer of either actual notice ( Rosario-Paolo, Inc. v. C M Pizza Rest., 84 N.Y.2d 379) or constructive notice of plaintiffs' perfected security interest in the insurance proceeds (UCC 9-306; First Natl. Bank v Merchant's Mut. Ins. Co., 49 N.Y.2d 725, revg on dissenting opn below 65 A.D.2d 59, 61-62; Sanchez v. United States, 696 F.2d 213; McGraw-Edison Credit Corp. v. Allstate Ins. Co., 62 A.D.2d 872, 878). We have considered defendant's remaining arguments and find them to be without merit.
Concur — Milonas, J.P., Rosenberger, Wallach, Ross and Tom, JJ.