N.Y. Civil Practice Law & Rules § 6214: Levy upon personal property by service of order

§ 6214. Levy upon personal property by service of order. (a) Method of

levy. The sheriff 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 318.

(b) 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 plaintiff 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 a 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 the order of attachment, to the

sheriff 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, 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 of such further time as

is provided by any subsequent order of the court served upon him,

whichever event first occurs, the garnishee is forbidden 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 sheriff, except upon direction of the sheriff or

pursuant to an order of the court. A garnishee, however, may collect or

redeem an instrument received by him for such purpose and he 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 plaintiff 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.

(c) Seizure by sheriff; notice of satisfaction. Where property or

debts have been levied upon by service of an order of attachment, the

sheriff shall take into his actual custody all such property capable of

delivery and shall collect and receive all such debts. When the sheriff

has taken into his actual custody property or debts having value

sufficient to satisfy the amount specified in the order of attachment,

the sheriff shall notify the defendant and each person upon whom the

order of attachment was served that the order of attachment has been

fully executed.

(d) Proceeding to compel payment or delivery. Where property or debts

have been levied upon by service of an order of attachment, the

plaintiff may commence a special proceeding against the garnishee served

with the order to compel the payment, delivery or transfer to the

sheriff 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 sheriff. A garnishee may interpose any defense or

counterclaim which he might have interposed against the defendant if

sued by him. The court may permit any adverse claimant to intervene in

the proceeding and may determine his rights in accordance with section

6221.

(e) 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 plaintiff on notice to the parties to

the action, has provided, the levy shall be void except as to property

or debts which the sheriff has taken into his actual custody, collected

or received or as to which a proceeding under subdivision (d) has been

commenced.