61-3506. Garnishment of funds held by financial institution.
61-3506
61-3506. Garnishment of funds held by financialinstitution.(a) Thewritten direction of a party seeking an order of garnishmentattaching funds, creditsor indebtedness held by a bank, savings and loan association, credit union orfinance companyshall state the amount to be withheld, which shall be 110% of the amount of thejudgmentcreditor's claim, in the case of prejudgment garnishment, or 110% of the amountof thecurrent balance due under the judgment, in the case of postjudgmentgarnishment. Thegarnishee, without prior agreement, may withhold and retain to defray thegarnishee's costs,an administrative fee of $10 for each order of garnishment that attaches funds,credits orindebtedness. Such administrative fee shall be in addition to the amountrequired to bewithheld under the order for garnishment, except that if the amount required tobe withheldunder the order for garnishment is greater than the amount of the funds,credits orindebtedness held by a bank, savings and loan association, credit union orfinance company,the fee shall be deducted from the amount withheld.
(b) All orders of garnishment issued in this state for the purpose ofattaching funds, creditsor indebtedness held by a bank, savings and loan association, credit union orfinance companyshall include the judgment debtor's address and tax identification number, ifknown, and shallspecify the amount of funds, credits or indebtedness to be withheld by thegarnishee, which shall be 110% of the amount of the judgment creditor's claimor 110% of the amount of thecurrent balance due under the judgment, as stated in the written direction ofthe party seekingthe order.
(c) The forms provided by law for an order of garnishment attaching funds,credits orindebtedness held by a bank, savings and loan association, credit union orfinance companyshall include the following statement:
"If you hold any funds, credits or indebtedness belonging to or owing thejudgment debtor,the amount to be withheld by you pursuant to this order ofgarnishment is notto exceed $______________________________."
(amount stated in direction)
(d) (1) The forms provided by law for the answer to an order of garnishmentattaching funds,credits or indebtedness held by a bank, savings and loan association, creditunion or financecompany shall include the following statement:
"The amount of the funds, credits or indebtedness belonging to orowing the judgment debtor which I shall hold shall not exceed$_______________________."
(amount stated in order)
(2) The answer shall further include information that such account is ownedin joint tenancywith one or more individuals who are not subject to the garnishment, ifapplicable.
(e) If an order of garnishment attaches funds, credits or indebtedness heldby a bank, savingsand loan association, credit union or finance company and the garnishee holdsfunds or creditsor is indebted to the judgment debtor in two or more accounts, the garnisheemay withholdpayment of the amount attached from any one or more of such accounts.
(f) If an order of garnishment attaches funds, credits or indebtedness heldby a bank, savingsand loan association, credit union or finance company and the garnishee holdsfunds or creditsor is indebted to the judgment debtor in an account which judgment debtor ownsin jointtenancy with one or more individuals who are not subject to the garnishment,the garnisheeshall withhold the entire amount sought by the garnishment. Neither thegarnishor nor thegarnishee shall be liable to the joint owners if the ownership of the funds islater proven notto be the judgment debtor's.
(g) No party shall seek an order of garnishment attaching funds, credits orindebtedness heldby a bank, savings and loan association, savings bank, credit union or financecompany excepton good faith belief of the party seeking garnishment that the party to beserved with thegarnishment order has, or will have, assets of the judgment debtor. Except asprovidedfurther, not more than two garnishments shall be issued by a party seeking anorder ofgarnishment applicable to the same claim or claims and against the samejudgment debtor inany 30-day period. A judge may order an exception to this subsection in anycase in which theparty seeking the garnishment shall in person or by attorney: (1) Certify thatthe garnishmentis not for the purpose of harassment of the debtor, and (2) state factsdemonstrating to thesatisfaction of the judge that there is reason to believe that the garnisheehas property orcredits of the debtor which are not exempt from execution.
History: L. 2000, ch. 161, § 51; Jan. 1, 2001.