§ 1349.Disposal of property

Article 13-A. Proceeds of Crime—forfeiture · Last amended 2019 · Last verified July 21, 2026

In one sentenceRequires every forfeiture judgment to address disposal of the forfeited property and lays out a strict statutory order of priority for distributing forfeiture proceeds through a county asset-forfeiture escrow fund, from lien and restitution claims through law-enforcement and prosecution funding.

Full Text of CPLR 1349

Text sizeJump to: (a) (b) (c) (d) (e) (f) (g) (h) (i)

1. Any judgment or order of forfeiture issued pursuant to this article shall include provisions for the disposal of the property found to have been forfeited.

2. If any other provision of law expressly governs the manner of disposition of property subject to the judgment or order of forfeiture, that provision of law shall be controlling, with the exception that, notwithstanding the provisions of any other law, all forfeited monies and proceeds from forfeited property shall be deposited into and disbursed from an asset forfeiture escrow fund established pursuant to section six-v of the general municipal law, which shall govern the maintenance of such monies and proceeds from forfeited property. Upon application by a claiming agent for reimbursement of moneys directly expended by a claiming agent in the underlying criminal investigation for the purchase of contraband which were converted into a non-monetary form or which have not been otherwise recovered, the court shall direct such reimbursement from money forfeited pursuant to this article. Upon application of the claiming agent, the court may direct that any vehicles, vessels or aircraft forfeited pursuant to this article be retained by the claiming agent for law enforcement purposes, unless the court determines that such property is subject to a perfected lien, in which case the court may not direct that the property be retained unless all such liens on the property to be retained have been satisfied or pursuant to the court’s order will be satisfied. In the absence of an application by the claiming agent, the claiming authority may apply to the court to retain such property for law enforcement purposes. Upon such application, the court may direct that such property be retained by the claiming authority for law enforcement purposes, unless the court determines that such property is subject to a perfected lien. If not so retained, the judgment or order shall direct the claiming authority to sell the property in accordance with article fifty-one of this chapter, and that the proceeds of such sale and any other moneys realized as a consequence of any forfeiture pursuant to this article shall be deposited to an asset forfeiture escrow fund established pursuant to section six-v of the general municipal law and shall be apportioned and paid in the following descending order of priority:

(a) Amounts ordered to be paid by the court in satisfaction of any lien or claim against property forfeited. A fine imposed pursuant to the penal law shall not be deemed to constitute a lien or claim for purposes of this section;

(b) Amounts ordered to be paid by the defendant in any other action or proceeding as restitution, reparations or damages to a victim of the crime, which crime constitutes the basis upon which forfeiture was effected under this article, to the extent such amounts remain unpaid;

(c) Amounts ordered to be paid by the defendant in any other action or proceeding as restitution, reparations or damages to a victim of any crime committed by the defendant even though such crime did not constitute the basis for forfeiture under this article, to the extent that such amounts remain unpaid;

(d) Amounts actually expended by a claiming authority or claiming agent, which amounts are substantiated by vouchers or other evidence, for the:

(i) maintenance and operation of real property attached pursuant to this article. Expenditures authorized by this subparagraph are limited to mortgage, tax and other financial obligations imposed by law and those other payments necessary to provide essential services and repairs to real property whose occupants are innocent of the criminal conduct which led to the attachment or forfeiture; and

(ii) proper storage, cleanup and disposal of hazardous substances or other materials, the disposal of which is governed by the environmental conservation law, when such storage, cleanup or disposal is required by circumstances attendant to either the commission of the crime or the forfeiture action, or any order entered pursuant thereto;

(e) In addition to amounts, if any, distributed pursuant to paragraph (d) of this subdivision, fifteen percent of all moneys realized through forfeiture to the claiming authority in satisfaction of actual costs and expenses incurred in the investigation, preparation and litigation of the forfeiture action, including that proportion of the salaries of the attorneys, clerical and investigative personnel devoted thereto, plus all costs and disbursements taxable under the provisions of this chapter;

(f) In addition to amounts, if any, distributed pursuant to paragraph (d) of this subdivision, five percent of all moneys realized through forfeiture to the claiming agent in satisfaction of actual costs incurred for protecting, maintaining and forfeiting the property including that proportion of the salaries of attorneys, clerical and investigative personnel devoted thereto;

(g) Forty percent of all moneys realized through forfeiture which are remaining after distributions pursuant to paragraphs (a) through (f) of this subdivision, to the chemical dependence service fund established pursuant to section ninety-seven-w of the state finance law;

(h) All moneys remaining after distributions pursuant to paragraphs (a) through (g) of this subdivision shall be distributed as follows:

(i) seventy-five percent of such moneys shall be deposited to a law enforcement purposes subaccount of the general fund of the state where the claiming agent is an agency of the state or the political subdivision or public authority of which the claiming agent is a part, to be used for law enforcement use in the investigation of penal law offenses or law enforcement assisted diversion;

(ii) the remaining twenty-five percent of such moneys shall be deposited to a prosecution services subaccount of the general fund of the state where the claiming authority is the attorney general or the political subdivision of which the claiming authority is a part, to be used for the prosecution of penal law offenses.

Where multiple claiming agents participated in the forfeiture action, funds available pursuant to subparagraph (i) of this paragraph shall be disbursed to the appropriate law enforcement purposes subaccounts in accordance with the terms of a written agreement reflecting the participation of each claiming agent entered into by the participating claiming agents.

3. All moneys distributed to the claiming agent and the claiming authority pursuant to paragraph (h) of subdivision two of this section shall be used to enhance law enforcement efforts and not in supplantation of ordinary budgetary costs including salaries of personnel, and expenses of the claiming authority or claiming agent during the fiscal year in which this section takes effect.

4. The claiming authority shall report the disposal of property and collection of assets pursuant to this section to the office of victim services, the state division of criminal justice services and the state division of substance abuse services.

5. Monies and proceeds from the sale of property realized as a consequence of any forfeiture distributed to the claiming agent or claiming authority of any county, town, city, or village of which the claiming agent or claiming authority is a part, shall be deposited to an asset forfeiture escrow fund established pursuant to section six-v of the general municipal law.

End

Plain-English Summary

Section 1349 is the section that decides who gets paid once property is forfeited. It starts with a baseline requirement: any judgment or order of forfeiture must include provisions for disposing of the property found forfeited, so a case cannot end with a forfeiture finding but no plan for what happens to the property next.

Money and sale proceeds route through an asset forfeiture escrow fund set up under the general municipal law, and the statute lays out a strict, descending order of priority for paying out of that fund. Liens and claims against the forfeited property get satisfied first (a criminal fine does not count as a lien for this purpose), followed by restitution owed to victims of the crime that triggered the forfeiture, and then restitution owed to victims of any other crime by the same defendant. Next come the claiming authority's and claiming agent's substantiated out-of-pocket costs -- things like the mortgage, taxes, and essential repairs on real property held under attachment, or the cost of safely handling hazardous materials tied to the crime or the case.

After those priority claims, the claiming authority keeps fifteen percent of the proceeds toward its investigation and litigation costs, and the claiming agent keeps five percent toward the costs of protecting and forfeiting the property. Forty percent of what remains goes to the state's chemical dependence service fund. Everything left after that splits again: seventy-five percent to a law-enforcement subaccount for the agency that did the work, and twenty-five percent to a prosecution-services subaccount for the office that brought the case. Where more than one agency worked the forfeiture, they divide the law-enforcement share under a written agreement among themselves.

The statute keeps a close watch on how the money gets used afterward. Funds distributed to the claiming authority or claiming agent have to enhance law enforcement efforts, not replace the ordinary budget those offices would otherwise receive, and every claiming authority has to report its disposal of forfeited property to the office of victim services and the state's criminal-justice and substance-abuse agencies. The court can also let a claiming agent keep a forfeited vehicle, vessel, or aircraft for law-enforcement use instead of selling it, as long as any perfected liens on that property get satisfied first.

Frequently Asked Questions

Who gets paid first from the proceeds of a forfeited property in New York?

Anyone holding a valid lien or claim against the property, followed by restitution owed to victims of the crime that led to the forfeiture -- a criminal fine does not count as a lien for this priority.

Can crime victims collect restitution before the claiming authority takes its share?

Yes, restitution owed to victims of the underlying crime, and then to victims of any other crime by the same defendant, is paid ahead of the claiming authority's fifteen-percent litigation-cost share and the claiming agent's five-percent share.

Can the police keep a car or boat instead of selling it after forfeiture?

Yes, the court can let the claiming agent retain a forfeited vehicle, vessel, or aircraft for law-enforcement use, unless it is subject to a perfected lien that has not been satisfied.

What percentage of forfeiture proceeds goes to the prosecutor's office?

After the priority claims and cost shares are paid, twenty-five percent of what remains goes to a prosecution-services subaccount for the claiming authority that brought the case, with seventy-five percent going to a law-enforcement subaccount.

Where does forfeited money get held while a case works through the priority scheme?

In an asset forfeiture escrow fund established under the general municipal law, which governs the money and property until it is disbursed under section 1349's priority order.

Can forfeiture proceeds be used to cover a police department's regular budget?

No, the statute requires that money distributed to a claiming agent or claiming authority enhance law enforcement efforts and not replace the ordinary budgetary costs, including salaries, those offices already receive.

Amendment History

Add, L 1990, ch 655, § 13, eff Nov 1, 1990; amd, L 2004, ch 398, § 2, eff Aug 17, 2004; L 2010, ch 56, § 48 (Part A-1), eff June 22, 2010; L 2018, ch 206, § 1, effective August 24, 2018; L 2019, ch 55, §§ 4, 5 (Part PP), effective October 9, 2019.

Source & verification. Provision text, History, and Advisory Committee Notes are reproduced verbatim from the Consolidated Laws of New York. Last verified July 21, 2026. · Official source

Also known as: CPLR 1349 disposal of forfeited propertyasset forfeiture escrow fund New Yorkforfeiture proceeds distribution prioritywho gets forfeited money NYpolice keep forfeited vehicle CPLR