N.Y. CPLR § 1320

NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only CPLR § 1320 Levy upon personal property by service of order. 1 § 1320. Levy upon personal property by service of order. 1. Method oflevy. The claiming agent shall levy upon any interest of the defendantin personal property, or upon any debt owed to the defendant, by servinga copy of the order of attachment upon the garnishee, or upon thedefendant if property to be levied upon is in the defendant's possessionor custody, in the same manner as a summons except that such serviceshall not be made by delivery of a copy to a person authorized toreceive service of summons solely by a designation filed pursuant to aprovision of law other than rule three hundred eighteen of this chapter.2. Effect of levy; prohibition of transfer. A levy by service of anorder of attachment upon a person other than the defendant is effectiveonly if, at the time of service, such person owes a debt to thedefendant or such person is in the possession or custody of property inwhich such person knows or has reason to believe the defendant has aninterest, or if the claiming authority has stated in a notice whichshall be served with the order that a specified debt is owed by theperson served to the defendant or that the defendant has an interest inspecified property in the possession or custody of the person served.All property in which the defendant is known or believed to have aninterest then in and thereafter coming into the possession or custody ofsuch a person, including any specified in the notice, and all debts ofsuch person, including any specified in the notice, then due andthereafter coming due to the defendant, shall be subject to the levy.Unless the court orders otherwise, the person served with the ordershall forthwith transfer or deliver all such property, and pay all suchdebts upon mat fendant, shall be subject to the levy.Unless the court orders otherwise, the person served with the ordershall forthwith transfer or deliver all such property, and pay all suchdebts upon maturity, up to the amount specified in order of attachment,to the claiming agent and execute any document necessary to effect thepayment, transfer or delivery. After such payment, transfer ordelivery, property coming into the possession or custody of thegarnishee, or debt incurred by him or her, shall not be subject to thelevy. Until such payment, transfer or delivery is made, or until theexpiration of ninety days after the service of the order of attachmentupon him or her, or of such further time as is provided by anysubsequent order of the court served upon him or her, whichever eventfirst 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 otherthan the claiming agent except upon direction of the claiming agent orpursuant to an order of the court. A garnishee, however, may collect orredeem an instrument received by him or her for such purpose and he orshe may sell or transfer in good faith property held as collateral orotherwise pursuant to pledge thereof or at the direction of any personother than the defendant authorized to direct sale or transfer, providedthat the proceeds in which the defendant has an interest be retainedsubject to the levy. A claiming authority who has specified personalproperty or debt to be levied upon in a notice served with an order ofattachment shall be liable to the owner of the property or the person towhom the debt is owed, if other than the defendant, for any damagessustained by reason of the levy. In order to establish the claimingauthority's liability, the owner of the property of the person to whomthe debt is owed r than the defendant, for any damagessustained by reason of the levy. In order to establish the claimingauthority's liability, the owner of the property of the person to whomthe debt is owed must prove by a preponderance of the evidence that, incausing the levy to occur, the claiming authority acted withoutreasonable cause and not in good faith.3. Seizure by claiming agent; notice of satisfaction. Where propertyor debts have been levied upon by service of an order of attachment, theclaiming agent shall take into his or her actual custody all suchproperty capable of delivery and shall collect and receive all suchdebts. When the claiming agent has taken into his or her actual custodyproperty or debts having value sufficient to satisfy the amountspecified in the order of attachment, the claiming agent shall notifythe defendant and each person upon whom the order of attachment wasserved that the order of attachment has been fully executed.4. Proceeding to compel payment or delivery. Where property or debtshave been levied upon by service of an order of attachment, the claimingauthority may commence a special proceeding against the garnishee servedwith the order to compel the payment, delivery or transfer to theclaiming agent of such property or debts, or to secure a --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only judgmentagainst the garnishee. Notice of petition shall also be served upon theparties to the action and the claiming agent. A garnishee may assert anydefense or counterclaim which he or she may have asserted against thedefendant. The court may permit any adverse claimant to intervene in theproceeding and may determine his or her rights in accordance withsection one thousand three hundred twenty-seven of this article.5. Failure to proceed. At the expiration of ninety days after a levyis made by service of the order of atta ights in accordance withsection one thousand three hundred twenty-seven of this article.5. Failure to proceed. At the expiration of ninety days after a levyis made by service of the order of attachment, or of such further timeas the court, upon motion of the claiming authority on notice to theparties to the action, has provided, the levy shall be void except as toproperty or debts which the claiming agent has taken into his or heractual custody, collected or received or as to which a proceeding undersubdivision four hereof has been commenced. CPLR § 1320 Page 2