HF 4585

as introduced - 91st Legislature (2019 - 2020) Posted on 04/28/2020 11:02am

A bill for an act
relating to consumer protection; exempting certain federal pandemic relief payments
from creditor processes; amending Minnesota Statutes 2018, section 550.37,
subdivision 20, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 550.37, subdivision 20, is amended to read:

Subd. 20.

Traceable funds.

The exemption of funds from creditors' claims, provided
by subdivisions 9, 10, 11, 15, deleted text begin and deleted text end 24, new text begin and 27, new text end shall not be affected by the subsequent deposit
of the funds in a bank or any other financial institution, whether in a single or joint account,
if the funds are traceable to their exempt source. In tracing the funds, the first-in first-out
method of accounting shall be used. The burden of establishing that funds are exempt rests
upon the debtor. No bank or other financial institution shall be liable for damages for
complying with process duly issued out of any court for the collection of a debt even if the
funds affected by the process are subsequently determined to have been exempt.

Sec. 2.

Minnesota Statutes 2018, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 27. new text end

new text begin CARES Act payments. new text end

new text begin A debtor's right to receive a payment from or a
payment under the Coronavirus Aid, Relief, and Economic Security Act, Public Law 116-136,
is not liable to attachment, execution, levy, or any other legal process.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end