(b) Property which requires special care may be kept by the police in public or private facilities which the police deem appropriate for the purpose of preserving it.

(c) Any property may be sold by the police at public auction when the expenses reasonably incurred in dealing with it, including expenses of taking of custody, transportation, storage and appraisal, any special expense incurred in giving notice, and any other special expense attributable to administration of this article with respect to the particular property, amount to more than one-half the amount reasonably estimated as the net sum likely to be realized by sale at public auction.

(d) If property is sold as provided in this subdivision the proceeds remaining after deducting the amount of reasonable expenses of the sale and reasonable expenses of dealing with the property prior to the sale, including any items of expense mentioned in paragraph (c), shall be dealt with as lost property having the value of the property sold. 6. Subject to subdivision three of section two hundred fifty-six of this chapter and to section thirteen hundred ten or other applicable section of the abandoned property law, instruments shall be retained in the custody of the police with whom they were deposited until delivered to the person entitled thereto as provided in section two hundred fifty-five of this chapter. 7. Except as provided in subdivision three of section two hundred fifty-six of this chapter, lost property, and the proceeds of sale pursuant to subdivision five of this section remaining after deduction of expenses as provided in that subdivision, shall be kept in the custody of the police for the following periods, unless sooner delivered to the owner as provided in section two hundred fifty-four: Property having a value of less than one hundred dollars or proceeds of property having such value, three months; property having a value of one hundred dollars or more but less than five hundred dollars or proceeds of property having such value, six months; property having a value of five hundred dollars or more but less than five thousand dollars or proceeds of property having such value, one year; property having a value of five thousand dollars or more or proceeds of property having such value, three years. 8. Three months before the expiration of the period applicable to the property in question, as specified in subdivision seven of this section, if the property has not been delivered to the owner as provided in section two hundred fifty-four, the police shall give notice to the owner, if known, and to any person they have reason to believe has an interest in the property, if the address or a former address of such owner or person is known, and to all persons who have made claim to the property, and to the finder and any person who has filed notice asserting the right of the finder as provided in section two hundred fifty-six. Such notice shall be in writing and shall be served personally or sent by certified mail to the last known address of the person to whom it is sent and shall state, in substance: (a) that if within three months after the date of personal service or mailing of the notice the owner does not claim the property, and if at the end of such three months no action is pending to determine rights to such property, written notice of which action was served upon the police having custody of the property, the property will be delivered to the finder or, if he establish his right, to a person entitled to assert the right of the finder as provided in section two hundred fifty-six; and (b) that if at the expiration of three months and ten days after the date of the personal service or mailing of the notice, the owner has not claimed the property and the finder, or a person entitled to assert the right of the finder as provided in section two hundred fifty-six, has not demanded delivery of it, and no action is pending to determine rights to such property, notice of which was served upon the police having custody of the property, it will be sold at public auction; and (c) in the case of property in the custody of the state police, that the proceeds of the sale will be deposited in the abandoned property fund of the state and in the case of property in the custody of other police that the proceeds will become the property of the city, county, town or village.