N.Y. CVP Law § 6221

§ 6221. Proceedings to determine adverse claims. Prior to the\napplication of property or debt to the satisfaction of a judgment, any\ninterested person may commence a special proceeding against the\nplaintiff to determine the rights of adverse claimants to the property\nor debt. Service of process in such a proceeding shall be made by\nserving a notice of petition upon the sheriff and upon each party in the\nsame manner as a notice of motion. The proceeding may be commenced in\nthe county where the property was levied upon, or in the county where\nthe order of attachment is filed. The court may vacate or discharge the\nattachment, void the levy, direct the disposition of the property or\ndebt, direct that undertakings be provided or released, or direct that\ndamages be awarded. Where there appear to be disputed questions of fact,\nthe court shall order a separate trial, indicating the person who shall\nhave possession of the property pending a decision and the undertaking,\nif any, which such person shall give. If the court determines that the\nadverse claim was fraudulent, it may require the claimant to pay the\nplaintiff the reasonable expenses incurred in the proceeding, including\nreasonable attorney's fees, and any other damages suffered by reason of\nthe claim. The commencement of the proceeding shall not of itself\nsubject the adverse claimant to personal jurisdiction with respect to\nany matter other than the claim asserted in the proceeding.\n