If a character has been arrested for more then 3 weeks he will get the option to turn his character into an NPC and recreate as a new character. The NPC will have the same handle and race as the character had. Any assets will follow the same rules as when a character is killed.
The button to drop your character will appear in the members area next to your character image three weeks after you have been arrested.
The waiting time after dropping a character is one week.”
Is the resultant NPC ownable by players? Or is it an unownable part of the SWC universe? And where does a dropped-character-NPC go?
The NPC that is created is NPC owned - though its possible its owned by the player that did the arresting. Its remains where the player was until it is arrested and moved by another player.
If you were arrested and NPC'ed as a result of the three week arrest rule, then ownership of the NPC goes to the arrester.
If you were not arrested, but were NPC'ed by divine intervention (Asims) then your character becomes NPC controlled.
SO there's your question, and the way you would need to be able to get your old character. Although that might be some odd version of the "Cannot have anything you owned in a past life" rule, as you did own the character.
The first RP justification that popped into my head,
was that the 'family friend' that took Dado under
his wing in the big city during his skills training,
was asked by Dado's parents to rescue Dado from
arrest, and negotiate his release, when they first
heard that their son was in trouble. :)
(The back-story was written when I first created
this character.)