2023 New York Laws › CVP - Civil Practice Law and Rules › Article 13-A - Proceeds of a Crime-Forfeiture › 1320 - Levy Upon Personal Property by Service of Order.

§  1320. Levy upon personal property by service of order. 1. Method of
  levy. The claiming agent shall levy upon any interest of  the  defendant
  in personal property, or upon any debt owed to the defendant, by serving
  a  copy  of  the  order  of  attachment  upon the garnishee, or upon the
  defendant if property to be levied upon is in the defendant's possession
  or custody, in the same manner as a summons  except  that  such  service
  shall  not  be  made  by  delivery  of  a copy to a person authorized to
  receive service of summons solely by a designation filed pursuant  to  a
  provision of law other than rule three hundred eighteen of this chapter.
2.  Effect  of  levy; prohibition of transfer. A levy by service of an
  order of attachment upon a person other than the defendant is  effective
  only  if,  at  the  time  of  service,  such  person  owes a debt to the
  defendant or such person is in the possession or custody of property  in
  which  such  person  knows or has reason to believe the defendant has an
  interest, or if the claiming authority has  stated  in  a  notice  which
  shall  be  served  with  the  order that a specified debt is owed by the
  person served to the defendant or that the defendant has an interest  in
  specified  property  in  the possession or custody of the person served.
  All property in which the defendant is known  or  believed  to  have  an
  interest then in and thereafter coming into the possession or custody of
  such  a  person, including any specified in the notice, and all debts of
  such person, including  any  specified  in  the  notice,  then  due  and
  thereafter  coming  due  to the defendant, shall be subject to the levy.
  Unless the court orders otherwise, the  person  served  with  the  order
  shall  forthwith transfer or deliver all such property, and pay all such
  debts upon maturity, up to the amount specified in order of  attachment,
  to  the  claiming agent and execute any document necessary to effect the
  payment,  transfer  or  delivery.    After  such  payment,  transfer  or
  delivery,  property  coming  into  the  possession  or  custody  of  the
  garnishee, or debt incurred by him or her, shall not be subject  to  the
  levy.  Until  such  payment,  transfer or delivery is made, or until the
  expiration of ninety days after the service of the order  of  attachment
  upon  him  or  her,  or  of  such  further  time  as  is provided by any
  subsequent order of the court served upon him or  her,  whichever  event
  first  occurs,  the  garnishee is prohibited to make or suffer any sale,
  assignment or transfer of, or any interference with any  such  property,
  or  pay  over or otherwise dispose of any such debt, to any person other
  than the claiming agent except upon direction of the claiming  agent  or
  pursuant  to an order of the court. A garnishee, however, may collect or
  redeem an instrument received by him or her for such purpose and  he  or
  she  may  sell  or transfer in good faith property held as collateral or
  otherwise pursuant to pledge thereof or at the direction of  any  person
  other than the defendant authorized to direct sale or transfer, provided
  that  the  proceeds  in  which the defendant has an interest be retained
  subject to the levy. A claiming authority  who  has  specified  personal
  property  or  debt to be levied upon in a notice served with an order of
  attachment shall be liable to the owner of the property or the person to
  whom the debt is owed, if other than  the  defendant,  for  any  damages
  sustained  by  reason  of  the  levy. In order to establish the claiming
  authority's liability, the owner of the property of the person  to  whom
  the  debt is owed must prove by a preponderance of the evidence that, in
  causing  the  levy  to  occur,  the  claiming  authority  acted  without
  reasonable cause and not in good faith.
3.  Seizure  by claiming agent; notice of satisfaction. Where property
  or debts have been levied upon by service of an order of attachment, the
  claiming agent shall take into  his  or  her  actual  custody  all  such
  property  capable  of  delivery  and  shall collect and receive all such
  debts. When the claiming agent has taken into his or her actual  custody

  property  or  debts  having  value  sufficient  to  satisfy  the  amount
  specified in the order of attachment, the claiming  agent  shall  notify
  the  defendant  and  each  person  upon whom the order of attachment was
  served that the order of attachment has been fully executed.
4.  Proceeding  to compel payment or delivery. Where property or debts
  have been levied upon by service of an order of attachment, the claiming
  authority may commence a special proceeding against the garnishee served
  with the order to compel  the  payment,  delivery  or  transfer  to  the
  claiming  agent  of  such  property  or  debts,  or to secure a judgment
  against the garnishee. Notice of petition shall also be served upon  the
  parties to the action and the claiming agent. A garnishee may assert any
  defense  or  counterclaim  which he or she may have asserted against the
  defendant. The court may permit any adverse claimant to intervene in the
  proceeding and may determine  his  or  her  rights  in  accordance  with
  section one thousand three hundred twenty-seven of this article.
5.  Failure  to proceed. At the expiration of ninety days after a levy
  is made by service of the order of attachment, or of such  further  time
  as  the  court,  upon  motion of the claiming authority on notice to the
  parties to the action, has provided, the levy shall be void except as to
  property or debts which the claiming agent has taken  into  his  or  her
  actual  custody, collected or received or as to which a proceeding under
  subdivision four hereof has been commenced.