6.1-125.3 - (Repealed effective October 1, 2010) Ownership during lifetime; garnishment, attachment or levy.
§ 6.1-125.3. (Repealed effective October 1, 2010) Ownership during lifetime;garnishment, attachment or levy.
A. A joint account belongs, during the lifetimes of all parties, to theparties in proportion to the net contributions by each to the sums ondeposit, except that a joint account between persons married to each othershall belong to them equally, and unless, in either case, there is clear andconvincing evidence of a different intent.
B. A P.O.D. account belongs to the original payee during his lifetime and notto the P.O.D. payee or payees; if two or more parties are named as originalpayees, during their lifetimes rights as between them are governed bysubsection A of this section.
C. Unless a contrary intent is manifested by the terms of the account or thedeposit agreement or there is other clear and convincing evidence of anirrevocable trust, a trust account belongs beneficially and absolutely to thetrustee during his lifetime, and if two or more parties are named as trusteeon the account, during their lifetimes beneficial rights as between them aregoverned by subsection A of this section. If there is an irrevocable trust,the account belongs beneficially to the beneficiary.
D. Upon an order of garnishment, attachment or other levy addressed to aparty to a joint account as mentioned in subsection A, or a trust account asmentioned in subsection C, the financial institution shall file an answersetting forth the form of account, whether it has funds responsive to theprocess, and such information as it has as to the names and addresses of theparties to the account. The financial institution shall by first-class mailsend a copy of such answer to the petitioning creditor or counsel of record.From the time of service of such garnishment, attachment or levy, thefinancial institution shall hold the amount subject to such garnishment,attachment or levy, or such lesser amount or sum as it may have, which amountshall be set forth in its answer. It shall not permit any person to drawagainst such amount whether by check against such account or otherwise. Ifthe petitioning creditor shall desire to pursue the question of ownership ofsuch funds held subject to the claim of two or more parties to the depositaccount, it shall provide the clerk with a copy of the documents originallyserved on the original defendants or judgment defendants and request theclerk to issue a summons accompanied by such copy with a copy of the noticeat the end of this subsection. Upon payment of the appropriate fees, theclerk shall issue such summons to be served on such other party having aninterest or apparent interest in such account. Service on a party to theaccount made at the address on record at the financial institution shall bepresumed to be proper service for the purposes of this section. In addition,a copy of such summons and notice will be issued and served on or mailed toboth the financial institution and the original defendant or judgment debtor. If such summons is received either by certified or registered mail oracknowledged in writing within twenty-one days on or by such financialinstitution, it shall continue to hold such funds pending further order ofthe court. If such financial institution shall not within twenty-one daysfrom the filing of such answer be served with or acknowledge such an order,it may treat the garnishment, attachment or levy, insofar as it relates tosuch joint or trust accounts, as terminated on the twenty-second day andbeing of no further force or effect. The court shall allow the financialinstitution its reasonable expenses in responding to discovery of its recordsand may condition any such discovery upon prepayment of such expenses. Thenotice to the co-depositor described in this subsection shall containsubstantially the following information: "Attached is a copy of thedocuments served on a financial institution to cause it to withhold moneyfrom an account in which you may have an interest. If you wish to protectyour interests, you or your attorney should take appropriate legal actionpromptly."
E. Orders to withhold and deliver issued by the Department of Social Servicesshall be complied with as provided in §§ 63.2-1929 and 63.2-1931.
(1979, c. 407; 1982, c. 302; 1983, c. 531; 1987, c. 296; 1988, cc. 368, 547;1990, c. 950.)