N.Y. Nav. Law § 69
Whenever the inspector shall find after investigation or have reasonable cause to believe that any public vessel is being operated in contravention of the provisions of this article, or is being operated by an unlicensed person by and with the consent of the owner, he may seize and impound such vessel until the termination of the action against the owner to recover the penalty therefor and thereafter until the penalty imposed by the court or justice has been paid. Such seizure and impoundment of any public vessel by the inspector shall be at the owner's risk. Within fifteen days after the entry of judgment by the court or justice, the inspector may, unless the judgment be sooner paid and in lieu of proceeding by body execution, sell the public vessel so impounded at public sale upon notice to the owner. Notice of the sale, specifying the date, place and hour of the sale shall be served upon the owner of the public vessel personally or by registered mail addressed to him at his last known post-office address, and published not less than ten days before the sale. The publication of notice of sale shall be made in a newspaper or newspapers designated by the commissioner having general circulation in the county where the public vessel was seized and impounded. The proceeds of sale shall first be applied in payment of the judgment and expenses of sale and the remainder shall be paid to the owner of the public vessel or other person lawfully entitled thereto. If the commissioner is unable to determine by reasonable investigation the person or persons entitled to the remainder of the proceeds of sale, he may deposit the same with the supreme court in the third judicial district for final determination thereon.
N.Y. Nav. Law § 69