Notwithstanding any provisions of the civil practice law and rules any such blanket undertaking entered into prior to January first, nineteen hundred eighty-three may contain a provision that no suit, action or proceeding of any kind to recover on account of loss under such blanket undertaking shall be brought after the expiration of three years from the cancellation of such blanket undertaking as an entirety. Any such blanket undertaking shall be approved as to its form, manner of execution and sufficiency of the surety and filed and the expense of procuring such surety paid in the same manner as provided in subdivision one of this section. The failure to execute such blanket undertaking in the form required by law, or the omission of the approval required by law, shall not affect the liability of the surety thereon.
N.Y. Pub. Off. Law § 11