6.2-606 - (Effective October 1, 2010) Ownership during lifetime; garnishment, attachment, or levy.
§ 6.2-606. (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 any P.O.D. payee. If two or more parties are named as original payees,during their lifetimes rights as between them are governed by subsection A.
C. Unless (i) a contrary intent is manifested by the terms of the account orthe deposit agreement or (ii) there is other clear and convincing evidence ofan irrevocable trust, a trust account belongs beneficially and absolutely tothe trustee during his lifetime. If two or more parties are named as trusteeon the account, during their lifetimes beneficial rights as between them aregoverned by subsection A. If there is an irrevocable trust, the accountbelongs 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:
1. File an answer setting forth the form of account, whether it has fundsresponsive to the process, and such information as it has as to the names andaddresses of the parties to the account;
2. Send a copy of such answer by first class mail to the petitioning creditoror counsel of record;
3. From the time of service of such garnishment, attachment or levy, hold theamount subject to such garnishment, attachment or levy, or such lesser amountor sum as it may have, which amount shall be set forth in its answer; and
4. Not permit any person to draw against such amount whether by check againstsuch account or otherwise.
E. If the petitioning creditor shall desire to pursue the question ofownership of such funds held subject to the claim of two or more parties tothe deposit account, it shall (i) provide the clerk of the court that issuedthe order of garnishment, attachment, or other levy with a copy of thedocuments originally served on the original defendants or judgment defendantsand (ii) request the clerk to issue a summons accompanied by such copy with acopy of a notice to co-depositors containing substantially the followinginformation: "Attached is a copy of the documents served on a financialinstitution to cause it to withhold money from an account in which you mayhave an interest. If you wish to protect your interests, you or your attorneyshould take appropriate legal action promptly."
F. Upon payment of the appropriate fees, the clerk shall issue such summonsto be served on any other party having an interest or apparent interest insuch account. Service on a party to the account made at the address on recordat the financial institution shall be presumed to be proper service for thepurposes of this section. In addition, a copy of such summons and noticeshall be issued and served on or mailed to both the financial institution andthe original defendant or judgment debtor. If such summons is received eitherby certified or registered mail or acknowledged in writing within 21 days onor by such financial institution, it shall continue to hold such fundspending further order of the court. If such financial institution is notserved with, or does not acknowledge, such an order within 21 days from thefiling of such answer, it may treat the garnishment, attachment or levy,insofar as it relates to such joint or trust accounts, as terminated on thetwenty-second day and being of no further force or effect.
G. The court shall allow the financial institution its reasonable expenses inresponding to discovery of its records and may condition any such discoveryupon prepayment of such expenses.
H. 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, § 6.1-125.3; 1982, c. 302; 1983, c. 531; 1987, c. 296; 1988,cc. 368, 547; 1990, c. 950; 2010, c. 794.)