8.01-502.1 - Serving notice of lien on financial institution.
§ 8.01-502.1. Serving notice of lien on financial institution.
A. No judgment creditor or attorney for a judgment creditor shall have anotice of lien served on a financial institution under § 8.01-502 unless suchjudgment creditor or attorney has a reasonable basis for believing that thejudgment debtor is entitled to a payment from such institution. The fact thata financial institution is doing business in a geographic area where thejudgment debtor resides, works or has a place of business is not, by itself,a reasonable basis for believing that the judgment debtor is entitled to apayment from a financial institution. Any person violating this section shallbe liable to a financial institution for the sum of $100 for each notice oflien wrongfully served on such institution. In any action at law to recoveran amount due hereunder, the judgment creditor or attorney for the judgmentcreditor causing the notice of lien to be served on the financial institutionshall have the burden of showing a reasonable basis for believing that thejudgment debtor was entitled to a payment from such institution.
B. Any judgment creditor serving a notice of lien on a financial institutionshall, within five business days of such service, mail to the judgment debtorat his last known address a copy of the notice of lien along with a notice ofexemptions and claim for exemption form in accordance with § 8.01-512.4. Thejudgment creditor or attorney for the judgment creditor shall file acertification with the court affirming that he has mailed the judgment debtorthese notices. In the event that the judgment creditor fails to comply withthe requirements of this subsection, he shall be liable to the judgmentdebtor for no more than $100 in damages, unless he proves by a preponderanceof the evidence that the failure was not willful.
C. A financial institution served with a valid notice of lien shall provide awritten response to the judgment creditor or attorney for the judgmentcreditor within twenty-one days after being served with such notice of lienindicating the amount of money held by the financial institution pursuant tothe notice of lien.
(1997, c. 750; 1999, c. 48; 2010, c. 673.)