§ 1320. Levy upon personal property by service of order. 1. Method of
levy. The claiming agent 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 three hundred eighteen of this chapter.

2. 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 claiming authority 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 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 order of attachment,
to the claiming agent 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 or her, 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 her, or of such further time as is provided by any
subsequent order of the court served upon him or her, whichever event
first 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 other
than the claiming agent except upon direction of the claiming agent or
pursuant to an order of the court. A garnishee, however, may collect or
redeem an instrument received by him or her for such purpose and he or
she 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 claiming authority 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. In order to establish the claiming
authority's liability, the owner of the property of the person to whom
the debt is owed must prove by a preponderance of the evidence that, in
causing the levy to occur, the claiming authority acted without
reasonable cause and not in good faith.

3. Seizure by claiming agent; notice of satisfaction. Where property
or debts have been levied upon by service of an order of attachment, the
claiming agent shall take into his or her actual custody all such
property capable of delivery and shall collect and receive all such
debts. When the claiming agent has taken into his or her actual custody
property or debts having value sufficient to satisfy the amount
specified in the order of attachment, the claiming agent shall notify
the defendant and each person upon whom the order of attachment was
served that the order of attachment has been fully executed.

4. Proceeding to compel payment or delivery. Where property or debts
have been levied upon by service of an order of attachment, the claiming
authority may commence a special proceeding against the garnishee served
with the order to compel the payment, delivery or transfer to the
claiming agent 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 claiming agent. A garnishee may assert any
defense or counterclaim which he or she may have asserted against the
defendant. The court may permit any adverse claimant to intervene in the
proceeding and may determine his or her rights in accordance with
section one thousand three hundred twenty-seven of this article.

5. 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 claiming authority on notice to the
parties to the action, has provided, the levy shall be void except as to
property or debts which the claiming agent has taken into his or her
actual custody, collected or received or as to which a proceeding under
subdivision four hereof has been commenced.