Section 254. Disposition of lost property

Except as provided in section two
  hundred  fifty-six  of  this  chapter,  lost property deposited with the
  police, and the money constituting proceeds of  lost  property  sold  as
  provided   in  subdivision  five  of  section  two  hundred  fifty-three
  remaining after deduction of expenses  as  therein  provided,  shall  be
  disposed of as follows:
    1.  It  shall  be  delivered  to  the  owner, upon his demand and upon
  payment of all reasonable expenses incurred in connection therewith,  if
  no  written  notice  of  any other claim to the property has been served
  upon the police having custody, and the time  specified  in  subdivision
  seven of section two hundred fifty-three of this chapter has not expired
  or, if such period has expired, no demand has been made by the finder or
  a  person  entitled  to  assert  the  right of the finder as provided in
  section two hundred fifty-six of this chapter.
    2. If at the end of the  period  specified  in  subdivision  seven  of
  section  two  hundred  fifty-three  of  this  chapter  the owner has not
  claimed the property, it shall be delivered to  the  finder,  or  person
  entitled  to  assert the rights of the finder as provided in section two
  hundred fifty-six of this chapter, upon his demand  therefor,  and  upon
  payment of all reasonable expenses incurred in connection therewith.
    3.  If at the end of ten days after expiration of the period specified
  in subdivision seven of section two hundred fifty-three, the  owner  has
  not  claimed  it,  and no demand has been made by the finder or a person
  entitled to assert the right of the finder as provided  in  section  two
  hundred fifty-six of this chapter, property consisting of money shall be
  paid  as provided in section two hundred fifty-eight of this chapter and
  other property shall be sold at public auction and the proceeds shall be
  paid as provided in such section two hundred  fifty-eight.    Where  the
  property was deposited with the state police, such sale shall be held in
  accordance with rules of the comptroller.