2013 New York Consolidated Laws
CVP - Civil Practice Law & Rules
Article 52 - (5201 - 5253) ENFORCEMENT OF MONEY JUDGMENTS
5239 - Proceeding to determine adverse claims.

 
    §   5239.  Proceeding  to  determine  adverse  claims.  Prior  to  the
  application of property  or  debt  by  a  sheriff  or  receiver  to  the
  satisfaction of a judgment, any interested person may commence a special
  proceeding  against  the  judgment  creditor or other person with whom a
  dispute exists to determine rights in the property or debt.  Service  of
  process  in  such  a  proceeding shall be made by service of a notice of
  petition upon the respondent, the sheriff or receiver,  and  such  other
  person  as  the court directs, 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  a court or county specified in subdivision (a) of
  section 5221. The court may vacate the  execution  or  order,  void  the
  levy,  direct  the  disposition  of the property or debt, 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  any
  claim asserted was fraudulent, it may require the claimant to pay to any
  party  adversely  affected  thereby  the reasonable expenses incurred by
  such party in the proceeding, including reasonable attorneys' fees,  and
  any  other damages suffered by reason of the claim. The court may permit
  any interested person to intervene in the proceeding.