2012 New York Consolidated Laws
CVP - Civil Practice Law & Rules
Article 13-A - (1310 - 1352) PROCEEDS OF A CRIME-FORFEITURE
1327 - Proceedings to determine adverse claims.

 
    §  1327.  Proceedings  to  determine  adverse  claims.    Prior to the
  application of property or debt to the satisfaction of a  judgment,  any
  person,  other  than  a  party to the action, who has an interest in the
  property subject to forfeiture may commence a special proceeding against
  the claiming authority to determine the rights of adverse  claimants  to
  the  property  or  debt,  and in such proceeding shall serve a notice of
  petition upon the claiming agent and upon each party in the same  manner
  as  a  notice  of  motion. The proceeding may be commenced in the county
  where the property was levied upon, or in the county where the order  of
  attachment  is  filed. The court may vacate or discharge the attachment,
  void the levy, direct the disposition of the property  or  debt,  direct
  that  undertakings  be  provided  or released, or direct that damages be
  awarded.  Where there appear to be disputed questions of fact, the court
  shall order a separate trial,  indicating  the  person  who  shall  have
  possession  of  the  property pending a decision and the undertaking, if
  any, which such person shall give. If  the  court  determines  that  the
  adverse  claim  was  fraudulent  or  made  without  any reasonable basis
  whatsoever, it may require the claimant to pay  the  claiming  authority
  the reasonable expenses incurred in the proceeding, including reasonable
  attorney's  fees, and any other damages suffered by reason of the claim.
  The commencement of the proceeding  shall  not  of  itself  subject  the
  adverse  claimant  to  personal  jurisdiction with respect to any matter
  other than the claim asserted in the proceeding.