1.1 	A bill for an act
1.2 	relating to creditors remedies; requiring creditors to
1.3 	arrange for hearings on exemption claims; amending
1.4 	Minnesota Statutes 2004, sections 551.05, subdivisions
1.5 	1a, 3, 4, by adding a subdivision; 571.912; 571.914,
1.6 	subdivisions 1, 2, 4; repealing Minnesota Statutes
1.7 	2004, sections 551.05, subdivisions 5, 6; 571.914,
1.8 	subdivision 3.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 551.05,
1.11 	subdivision 1a, is amended to read:
1.12 		Subd. 1a.Exemption notice.  If the writ of execution is
1.13 	being used by the attorney to levy funds of a judgment debtor
1.14 	who is a natural person and if the funds to be levied are held
1.15 	on deposit at any financial institution, the attorney for the
1.16 	judgment creditor shall serve with the writ of execution two
1.17 	copies of an exemption notice.  The notice must be substantially
1.18 	in the form set forth below.  Failure of the attorney for the
1.19 	judgment creditor to send the exemption notice renders the
1.20 	execution levy void, and the financial institution shall take no
1.21 	action.  However, if this subdivision is being used to execute
1.22 	on funds that have previously been garnished in compliance with
1.23 	section 571.71, the attorney for judgment creditor is not
1.24 	required to serve an additional exemption notice.  In that
1.25 	event, the execution levy shall only be effective as to the
1.26 	funds that were subject to the prior garnishment.  Upon receipt
1.27 	of the writ of execution and exemption notices, the financial
2.1 	institution shall retain as much of the amount due under section
2.2 	550.04 as the financial institution has on deposit owing to the
2.3 	judgment debtor, but not more than 100 percent of the amount
2.4 	remaining due on the judgment, or $10,000, whichever is less.
2.5 	The notice informing a judgment debtor that an execution
2.6 	levy has been used to attach funds of the judgment debtor to
2.7 	satisfy a claim must be substantially in the following form:
2.8 	
2.9 	STATE OF MINNESOTA                             DISTRICT COURT
2.10 	County of ................         .........JUDICIAL DISTRICT
2.11 	................(Judgment Creditor)
2.12 	................(Judgment Debtor)
2.13 	TO:  Judgment Debtor                 EXEMPTION NOTICE
2.14 	An order for attachment, garnishment summons, or levy of
2.15 	execution (strike inapplicable language) has been served on
2.16 	............. (bank or other financial institution where you
2.17 	have an account).
2.18 	Your account balance is $........
2.19 	The amount being held is $........
2.20 	However, all or a portion of the funds in your account will
2.21 	normally be exempt from creditors' claims if they are in one of
2.22 	the following categories:
2.23 	(1) relief based on need.  This includes the Minnesota
2.24 	Family Investment Program (MFIP), Work First Program, Medical
2.25 	Assistance (MA), General Assistance (GA), General Assistance
2.26 	Medical Care (GAMC), Emergency General Assistance (EGA),
2.27 	Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
2.28 	(MSA-EA), Supplemental Security Income (SSI), and Energy
2.29 	Assistance;
2.30 	(2) Social Security benefits (Old Age, Survivors, or
2.31 	Disability Insurance);
2.32 	(3) unemployment benefits, workers' compensation, or
2.33 	veterans' benefits;
2.34 	(4) an accident, disability, or retirement pension or
2.35 	annuity;
2.36 	(5) life insurance proceeds;
3.1 	(6) the earnings of your minor child and any child support
3.2 	paid to you; or
3.3 	(7) money from a claim for damage or destruction of exempt
3.4 	property (such as household goods, farm tools, business
3.5 	equipment, a mobile home, or a car).
3.6 	The following funds are also exempt:
3.7 	(8) all earnings of a person in category (1);
3.8 	(9) all earnings of a person who has received relief based
3.9 	on need, or who has been an inmate of a correctional
3.10 	institution, within the last six months;
3.11 	(10) 75 percent of every judgment debtor's after tax
3.12 	earnings; or
3.13 	(11) all of a judgment debtor's after tax earnings below 40
3.14 	times the federal minimum wage.
3.15 	TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
3.16 	Categories (10) and (11):  20 days
3.17 	Categories (8) and (9):  60 days
3.18 	All others:  no time limit, as long as funds are traceable
3.19 	to the exempt source.  (In tracing funds, the first-in,
3.20 	first-out method is used.  This means money deposited first is
3.21 	spent first.)  The money being sought by the judgment creditor
3.22 	is being held in your account to give you a chance to claim an
3.23 	exemption.
3.24 	TO CLAIM AN EXEMPTION:
3.25 	Fill out, sign, and mail or deliver one copy of the
3.26 	attached exemption claim form to the institution which sent you
3.27 	this notice and mail or deliver one copy to the judgment
3.28 	creditor's attorney.  The address for the judgment creditor's
3.29 	attorney is set forth below.Both copies must be mailed or
3.30 	delivered on the same day.
3.31 	NOTE:  You may help resolve your claim faster if you send
3.32 	to the creditor's attorney written proof or documents that
3.33 	show why your money is exempt.  If you have questions
3.34 	regarding the documents to send as proof of an exemption,
3.35 	call the creditor's attorney.  If you do not send written
3.36 	proof and the creditor's attorney has questions about your
4.1 	exemption claim, the creditor's attorney may object to your
4.2 	claim which may result in a further delay in releasing your
4.3 	exempt funds.
4.4 	If they do not get the exemption claim back from you within
4.5 	14 days of the date they mailed or gave it to you, they will be
4.6 	free to turn the money over to the attorney for the judgment
4.7 	creditor.  If you are going to claim an exemption, do so as soon
4.8 	as possible, because your money may be held until it is decided.
4.9 	IF YOU CLAIM AN EXEMPTION:
4.10 	(1) nonexempt money can be turned over to the judgment
4.11 	creditor or sheriff;
4.12 	(2) the financial institution will keep holding the money
4.13 	claimed to be exempt; and
4.14 	(3) seven days after receiving your exemption claim, the
4.15 	financial institution will release the money to you unless
4.16 	before then it receives an objection to your exemption claim.
4.17 	IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
4.18 	The institution will hold the money until a court decides
4.19 	if your exemption claim is valid, BUT ONLY IF the institution
4.20 	gets a copy of your court motion papers asserting the exemption
4.21 	WITHIN TEN DAYS after the objection is personally served on you,
4.22 	or within 13 days from the date the objection is mailed to you.
4.23 	You may wish to consult an attorney at once if the judgment
4.24 	creditor objects to your exemption claim.
4.25 	MOTION TO DETERMINE EXEMPTION:
4.26 	At any time after your funds have been held, you may ask
4.27 	for a court decision on the validity of your exemption claim by
4.28 	filing a request for hearing which may be obtained at the office
4.29 	of the court administrator of the above court.
4.30 	PENALTIES:
4.31 	If you claim an exemption in bad faith, or if the judgment
4.32 	creditor wrongly objects to an exemption in bad faith, the court
4.33 	may order the person who acted in bad faith to pay costs, actual
4.34 	damages, attorney fees, and an additional amount of up to $100.
4.35 	.............................
4.36 	                               .............................
5.1 	                               .............................
5.2 	                               .............................
5.3 	                               Name and address of (Attorney
5.4 	                               for) Judgment Creditor
5.5 	EXEMPTION:
5.6 	(a) Amount of exemption claim.
5.7 	/ / I claim ALL the funds being held are exempt.
5.8 	/ / I claim SOME of the funds being held are exempt.
5.9 	The exempt amount is $............
5.10 	(b) Basis for exemption.
5.11 	Of the 11 categories listed above, I am in category number
5.12 	............  (If more than one category applies, you may fill
5.13 	in as many as apply.)  The source of the exempt funds is the
5.14 	following:
5.15 	.............................................................
5.16 	.............................................................
5.17 	.............................................................
5.18 	(If the source is a type of relief based on need, list the
5.19 	case number and county:
5.20 	case number:  ...............;
5.21 	county:  ....................)
5.22 	I hereby authorize any agency that has distributed relief
5.23 	to me or any correctional institution in which I was an inmate
5.24 	to disclose to the above named judgment creditor's attorney only
5.25 	whether or not I am or have been a recipient of relief based on
5.26 	need or an inmate of a correctional institute within the last
5.27 	six months.
5.28 	I have mailed or delivered a copy of the exemption notice
5.29 	to the judgment creditor's attorney at the address indicated
5.30 	above.
5.31 	.............................
5.32 	                             DEBTOR
5.33 	DATED:  .............        .............................
5.34 	                             .............................
5.35 	                             .............................
5.36 	                             DEBTOR ADDRESS
6.1 	                             .............................
6.2 	                             DEBTOR TELEPHONE NUMBER

6.3 	Sec. 2. Minnesota Statutes 2004, section 551.05,
6.4 	subdivision 3, is amended to read:
6.5 		Subd. 3.Objection to exemption claim. Objection shall
6.6 	be interposed by mailing or delivering one copy of the written
6.7 	objection to the financial institution and one copy of the
6.8 	written objection to the judgment debtor along with a copy of
6.9 	the judgment debtor's claimed exemption form.  Both copies of an
6.10 	objection to an exemption claim shall be mailed or delivered on
6.11 	the same date.  The financial institution may rely on the date
6.12 	of mailing or delivery of a notice to it in computing any time
6.13 	periods in this section.  The written objection must be
6.14 	substantially in the form specified in subdivision 5.If a
6.15 	judgment creditor objects to a judgment debtor's exemption
6.16 	claim, the judgment creditor shall obtain from the court
6.17 	administrator or a designated motion calendar deputy a date and
6.18 	time for an evidentiary hearing on its objection.  The judgment
6.19 	creditor shall serve on the judgment debtor and financial
6.20 	institution, personally or by first class mail, a notice of
6.21 	hearing on creditor's objection to debtor's exemption claim in
6.22 	the form specified in subdivision 3a, on the same day that it
6.23 	obtains the hearing date.  The hearing date obtained by the
6.24 	judgment creditor must be no earlier than five business days and
6.25 	no later than ten business days from the date the judgment
6.26 	creditor requests and obtains the hearing date.  An order
6.27 	stating whether the judgment debtor's funds are exempt must be
6.28 	issued by the court within three days of the date of the hearing.

6.29 	Sec. 3. Minnesota Statutes 2004, section 551.05, is
6.30 	amended by adding a subdivision to read:
6.31 		Subd. 3a.Notice of hearing on judgment creditor's
6.32 	objection to judgment debtor's exemption claim. The judgment
6.33 	creditor's notice of hearing on its objection to the judgment
6.34 	debtor's exemption claim must be in substantially the following
6.35 	form:
6.36 	STATE OF MINNESOTA DISTRICT COURT
7.1 	County of .........................JUDICIAL DISTRICT
7.2 	.................(Judgment Creditor) NOTICE OF
7.3 	.................(Judgment Debtor) HEARING ON
7.4 	.................(Garnishee) (Third Party) JUDGMENT CREDITOR'S
7.5 	                                                  OBJECTION TO
7.6 	                                             JUDGMENT DEBTOR'S
7.7 	                                               EXEMPTION CLAIM 
7.8 	The judgment creditor objects to your claim for exemption
7.9 	from garnishment, levy of execution, order for attachment
7.10 	(strike inapplicable language) for the following reason(s):
7.11 	.................................
7.12 	.................................
7.13 	.................................
7.14 	A hearing will be held in this case on (Date) at (Time) at
7.15 	(Place) to resolve whether your funds at (Financial Institution)
7.16 	are exempt.  You have claimed that such funds are exempt because
7.17 	.................................................................
7.18 	.................................................................
7.19 	.................................................................
7.20 	..............................................................
7.21 	At the hearing, you will have to prove that your funds are
7.22 	exempt.  If you do not attend the hearing, the judge may order
7.23 	that your funds be released to the judgment creditor.  The judge
7.24 	will issue an order within three days of the hearing regarding
7.25 	whether your funds are exempt.
7.26 	Because the judgment creditor objected to your exemption
7.27 	claim, your financial institution will retain the funds you
7.28 	claim to be exempt until it receives:  (1) a written release
7.29 	from either the judgment creditor or you; or (2) an order from
7.30 	the court regarding whether your funds are exempt.
7.31 	Dated:  .......
7.32 	........................................
7.33 	                  Judgment Creditor or Creditor's Attorney
7.34 	                  ........................................
7.35 	                  .................................Address 
7.36 	(Note to both parties:  Bring with you to the hearing all
8.1 	documents and materials relevant to the exemption claim and
8.2 	objection.  Failure to do so could delay the court's decision.) 

8.3 	Sec. 4. Minnesota Statutes 2004, section 551.05,
8.4 	subdivision 4, is amended to read:
8.5 		Subd. 4.Duties of financial institution if objection is
8.6 	made to exemption claim.  Upon receipt of a written objection
8.7 	from the judgment creditor within the specified seven-day
8.8 	period, the financial institution shall retain the funds claimed
8.9 	to be exempt. Unless the financial institution receives a
8.10 	request for hearing and notice of hearing from the judgment
8.11 	debtor asserting exemption rights within ten days after receipt
8.12 	of a written objection to the exemption,The funds remain
8.13 	subject to the execution levy as if no claim of exemption had
8.14 	been made and shall be remitted to the judgment creditor's
8.15 	attorney within seven days.  If a request for hearing and notice
8.16 	of hearing to determine the validity of a claim of exemption is
8.17 	received by the financial institution within the period
8.18 	provided, it shall retain the funds claimed to be exempt until
8.19 	otherwise ordered by the court. The financial institution shall
8.20 	retain the funds claimed to be exempt until it receives:  (1) a
8.21 	written release from either the judgment creditor or judgment
8.22 	debtor; or (2) an order stating whether the funds are exempt.

8.23 	Sec. 5. Minnesota Statutes 2004, section 571.912, is
8.24 	amended to read:
8.25 	571.912 FORM OF EXEMPTION NOTICE.
8.26 	The notice informing a debtor that an order for attachment,
8.27 	garnishment summons, or levy by execution has been used to
8.28 	attach funds of the debtor to satisfy a claim must be
8.29 	substantially in the following form:
8.30 	STATE OF MINNESOTA                            DISTRICT COURT
8.31 	COUNTY OF ................         ........JUDICIAL DISTRICT
8.32 	........................(Creditor)
8.33 	........................(Debtor)
8.34 	TO:  Debtor                                EXEMPTION NOTICE
8.35 	An order for attachment, garnishment summons, or levy of
8.36 	execution (strike inapplicable language) has been served on
9.1 	............ (bank or other financial institution)
9.2 	............... where you have an account.
9.3 	Your account balance is $.............
9.4 	The amount being held is $............
9.5 	However, all or a portion of the funds in your account will
9.6 	normally be exempt from creditors' claims if they are in one of
9.7 	the following categories:
9.8 	(1) relief based on need.  This includes the Minnesota
9.9 	Family Investment Program (MFIP), Emergency Assistance (EA),
9.10 	Work First Program, Medical Assistance (MA), General Assistance
9.11 	(GA), General Assistance Medical Care (GAMC), Emergency General
9.12 	Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA
9.13 	Emergency Assistance (MSA-EA), Supplemental Security Income
9.14 	(SSI), and Energy Assistance;
9.15 	(2) Social Security benefits (Old Age, Survivors, or
9.16 	Disability Insurance);
9.17 	(3) unemployment benefits, workers' compensation, or
9.18 	veterans' benefits;
9.19 	(4) an accident, disability, or retirement pension or
9.20 	annuity;
9.21 	(5) life insurance proceeds;
9.22 	(6) the earnings of your minor child and any child support
9.23 	paid to you; or
9.24 	(7) money from a claim for damage or destruction of exempt
9.25 	property (such as household goods, farm tools, business
9.26 	equipment, a mobile home, or a car).
9.27 	The following funds are also exempt:
9.28 	(8) all earnings of a person in category (1);
9.29 	(9) all earnings of a person who has received relief based
9.30 	on need, or who has been an inmate of a correctional
9.31 	institution, within the last six months;
9.32 	(10) 75 percent of every debtor's after tax earnings; and
9.33 	(11) all of a debtor's after tax earnings below 40 times
9.34 	the federal minimum wage.
9.35 	TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
9.36 	Categories (10) and (11):  20 days
10.1 	Categories (8) and (9):  60 days
10.2 	All others:  no time limit, as long as funds are traceable
10.3 	to the exempt source.  (In tracing funds, the first-in,
10.4 	first-out method is used.  This means money deposited first is
10.5 	spent first.)  The money being sought by the creditor is being
10.6 	held in your account to give you a chance to claim an exemption.
10.7 	TO CLAIM AN EXEMPTION:
10.8 	Fill out, sign, and mail or deliver one copy of the
10.9 	attached exemption claim form to the institution which sent you
10.10 	this notice and mail or deliver one copy to the creditor's
10.11 	attorney.  In the event that there is no attorney for the
10.12 	creditor, then such notice shall be sent directly to the
10.13 	creditor.  The address for the creditor's attorney or the
10.14 	creditor is set forth below.Both copies must be mailed or
10.15 	delivered on the same day.
10.16 	NOTE:  You may help resolve your claim faster if you send
10.17 	to the creditor's attorney written proof or documents that
10.18 	show why your money is exempt.  If you have questions
10.19 	regarding the documents to send as proof of an exemption,
10.20 	call the creditor's attorney.  If you do not send written
10.21 	proof and the creditor's attorney has questions about your
10.22 	exemption claim, the creditor's attorney may object to your
10.23 	claim which may result in a further delay in releasing your
10.24 	exempt funds.
10.25 	If they do not get the exemption claim back from you within
10.26 	14 days of the date they mailed or gave it to you, they will be
10.27 	free to turn the money over to the sheriff or the creditor.  If
10.28 	you are going to claim an exemption, do so as soon as possible,
10.29 	because your money may be held until it is decided.
10.30 	IF YOU CLAIM AN EXEMPTION:
10.31 	(1) nonexempt money can be turned over to the creditor or
10.32 	sheriff;
10.33 	(2) the financial institution will keep holding the money
10.34 	claimed to be exempt; and
10.35 	(3) seven days after receiving your exemption claim, the
10.36 	financial institution will release the money to you unless
11.1 	before then it receives an objection to your exemption claim.
11.2 	IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
11.3 	The institution will hold the money until a court decides
11.4 	if your exemption claim is valid, BUT ONLY IF the institution
11.5 	gets a copy of your court motion papers asserting the exemption
11.6 	WITHIN TEN DAYS after the objection is personally served on you,
11.7 	or within 13 days from the date the objection is mailed to you.
11.8 	You may wish to consult an attorney at once if the creditor
11.9 	objects to your exemption claim.
11.10 	MOTION TO DETERMINE EXEMPTION:
11.11 	At any time after your funds have been held, you may ask
11.12 	for a court decision on the validity of your exemption claim by
11.13 	filing a request for hearing which may be obtained at the office
11.14 	of the court administrator of the above court.
11.15 	PENALTIES:
11.16 	If you claim an exemption in bad faith, or if the creditor
11.17 	wrongly objects to an exemption in bad faith, the court may
11.18 	order the person who acted in bad faith to pay costs, actual
11.19 	damages, attorney fees, and an additional amount of up to $100.
11.20 	.............................
11.21 	                              .............................
11.22 	                              .............................
11.23 	                              .............................
11.24 	                              Name and address of (Attorney
11.25 	                              for) Judgment Creditor
11.26 	EXEMPTION:
11.27 	(If you claim an exemption complete the following):
11.28 	(a) Amount of exemption claim.
11.29 	/ / I claim ALL the funds being held are exempt.
11.30 	/ / I claim SOME of the funds being held are exempt.
11.31 	The exempt amount is $............
11.32 	(b) Basis for exemption.
11.33 	Of the eleven categories listed above, I am in category
11.34 	number ............  (If more than one category applies, you may
11.35 	fill in as many as apply.)  The source of the exempt funds is
11.36 	the following:
12.1 	.............................................................
12.2 	.............................................................
12.3 	.............................................................
12.4 	(If the source is a type of relief based on need, list the
12.5 	case number and county:
12.6 	case number:  ...............;
12.7 	county:  ....................)
12.8 	I hereby authorize any agency that has distributed relief
12.9 	to me or any correctional institution in which I was an inmate
12.10 	to disclose to the above named creditor or its attorney only
12.11 	whether or not I am or have been a recipient of relief based on
12.12 	need or an inmate of a correctional institute within the last
12.13 	six months.
12.14 	I have mailed or delivered a copy of the exemption notice
12.15 	to the creditor's attorney at the address indicated above.
12.16 	DATED:  .............        .............................
12.17 	                             DEBTOR
12.18 	                             .............................
12.19 	                             DEBTOR ADDRESS
12.20 	                             .............................
12.21 	                             DEBTOR TELEPHONE NUMBER

12.22 	Sec. 6. Minnesota Statutes 2004, section 571.914,
12.23 	subdivision 1, is amended to read:
12.24 		Subdivision 1.Objections. An objection shall be
12.25 	interposed by mailing or delivering one copy of the written
12.26 	objection to the financial institution and one copy of the
12.27 	written objection to the debtor.  A Request for Hearing and
12.28 	Notice of Hearing form must accompany each copy of the written
12.29 	objection.
12.30 	Both copies of an objection to an exemption claim must be
12.31 	mailed or delivered on the same date.  The financial institution
12.32 	may rely on the date of mailing or delivery of a notice to it in
12.33 	computing any time periods in this section.
12.34 	The written objection, and Request for Hearing and Notice
12.35 	of Hearing, must be substantially in the forms set out in
12.36 	subdivisions 2 and 3.
13.1 	The court shall provide clerical assistance to help with
13.2 	the writing and filing of a Request for Hearing by any person
13.3 	not represented by counsel.  The court administrator may charge
13.4 	a fee of $1 for the filing of a Request for Hearing.  Upon the
13.5 	filing of a Request for Hearing, the court administrator shall
13.6 	schedule the matter for hearing no later than five business days
13.7 	from the date of filing.  The court administrator shall
13.8 	immediately send a completed copy of the request, including the
13.9 	hearing date, time, and place to the adverse party and to the
13.10 	financial institution by first class mail.
13.11 	An order stating whether the debtor's funds are exempt
13.12 	shall be issued by the court within three days of the date of
13.13 	the hearing.
13.14 	If a creditor objects to a debtor's exemption claim, the
13.15 	creditor shall obtain from the court administrator or a
13.16 	designated motion calendar deputy a date and time for an
13.17 	evidentiary hearing on its objection.  The creditor shall serve
13.18 	on the debtor and garnishee, personally or by first class mail,
13.19 	a notice of hearing on creditor's objection to debtor's
13.20 	exemption claim in the form specified in subdivision 2, on the
13.21 	same day that it obtains the hearing date.  The hearing date
13.22 	obtained by the creditor must be no earlier than five business
13.23 	days and no later than ten business days from the date the
13.24 	creditor requests and obtains the hearing date.  An order
13.25 	stating whether the debtor's funds are exempt must be issued by
13.26 	the court within three days of the date of the hearing.

13.27 	Sec. 7. Minnesota Statutes 2004, section 571.914,
13.28 	subdivision 2, is amended to read:
13.29 		Subd. 2.Notice of hearing on creditor's objection to
13.30 	debtor's exemption claim. (a) The written objection to the
13.31 	debtor must be in substantially the following form:
13.32 	STATE OF MINNESOTA                             DISTRICT COURT
13.33 	COUNTY OF ....................    ..........JUDICIAL DISTRICT
13.34 	....................(Creditor)
13.35 	....................(Debtor)             CREDITOR'S OBJECTION
13.36 	....................(Garnishee)            TO EXEMPTION CLAIM 
14.1 	The creditor objects to your claim for exemption from
14.2 	garnishment, levy of execution, order for attachment (strike
14.3 	inapplicable language) for the following reason(s):
14.4 	.................................................................
14.5 	.................................................................
14.6 	.................................................................
14.7 	Because of this objection, your financial institution will
14.8 	retain the funds you claimed to be exempt for an additional ten
14.9 	days.  If you wish to request a hearing on your exemption claim,
14.10 	you need to do so within ten days from the date the objection
14.11 	was personally served on you, or within 13 days of the date the
14.12 	objection was mailed to you.  You may request a hearing by
14.13 	completing the attached form and filing it with the court
14.14 	administrator.
14.15 	1.  The court shall provide clerical assistance to help
14.16 	with the writing and filing of a Request for Hearing by any
14.17 	person not represented by counsel.  The court administrator may
14.18 	charge a fee of $1 for the filing of a Request for Hearing.
14.19 	2.  Upon the filing of a Request for Hearing, the clerk
14.20 	shall schedule the matter for a hearing no later than five
14.21 	business days from the date of filing.  The court administrator
14.22 	shall forthwith send a completed copy of the request, including
14.23 	the hearing date, time, and place to the adverse party and to
14.24 	the financial institution by first class mail.
14.25 	3.  If it is possible that the financial institution might
14.26 	not receive the request mailed from the court administrator
14.27 	within ten days, then you may want to personally deliver a copy
14.28 	of the request to the financial institution after you have filed
14.29 	your request with the court.
14.30 	4.  An order stating whether your funds are exempt shall be
14.31 	issued by the court within three days of the date of the hearing.
14.32 	If you do not file a Request for Hearing within ten days of
14.33 	the date the objection was personally served on you, or within
14.34 	13 days from the date the objection was mailed to you, your
14.35 	financial institution may turn your funds over to your creditor.
14.36 	If you file a Request for Hearing and your financial
15.1 	institution receives it within ten days of the date it received
15.2 	this objection, your financial institution will retain your
15.3 	funds claimed to be exempt until otherwise ordered by the court,
15.4 	or until the garnishment lapses pursuant to Minnesota Statutes,
15.5 	section 571.79.
15.6 	..................................
15.7 	                          (CREDITOR OR CREDITOR'S ATTORNEY.) 
15.8 	The creditor's notice of hearing on its objection to the
15.9 	debtor's exemption claim must be in substantially the following
15.10 	form:
15.11 	STATE OF MINNESOTA DISTRICT COURT
15.12 	COUNTY OF ..............................JUDICIAL DISTRICT
15.13 	....................(Creditor) NOTICE OF HEARING ON
15.14 	....................(Debtor) CREDITOR'S OBJECTION
15.15 	....................(Garnishee)(Third Party) TO DEBTOR'S
15.16 	                                              EXEMPTION CLAIM 
15.17 	The creditor objects to your claim for exemption from
15.18 	garnishment, levy of execution, order for attachment (strike
15.19 	inapplicable language) for the following reason(s):
15.20 	.................................................................
15.21 	.................................................................
15.22 	.................................................................
15.23 	A hearing will be held in this case on (Date) at (Time) at
15.24 	(Place) to resolve whether your funds at (Financial Institution)
15.25 	are exempt.  You have claimed that such funds are exempt
15.26 	because..........................................................
15.27 	.................................................................
15.28 	.................................................................
15.29 	At the hearing, you will have to prove that your funds are
15.30 	exempt.  If you do not attend the hearing, the judge may order
15.31 	that your funds be released to the judgment creditor.  The judge
15.32 	will issue an order within three days of the hearing regarding
15.33 	whether your funds are exempt.
15.34 	Because the creditor objected to your exemption claim, your
15.35 	financial institution will retain the funds you claim to be
15.36 	exempt until it receives:  (1) a written release from either the
16.1 	creditor or you; or (2) an order from the court regarding
16.2 	whether your funds are exempt.
16.3 	Dated:................
16.4 	........................................
16.5 	                  Judgment Creditor or Creditor's Attorney
16.6 	                  ........................................
16.7 	                  .................................Address 
16.8 	(Note to both parties:  Bring with you to the hearing all
16.9 	documents and materials relevant to the exemption claim and
16.10 	objection.  Failure to do so could delay the court's decision.) 

16.11 	Sec. 8. Minnesota Statutes 2004, section 571.914,
16.12 	subdivision 4, is amended to read:
16.13 		Subd. 4.Duties of financial institution if objection is
16.14 	made to exemption claim.  Upon receipt of a written objection
16.15 	from the creditor within the specified seven-day period, the
16.16 	financial institution shall retain the funds claimed to be
16.17 	exempt. Unless the financial institution receives a request for
16.18 	hearing from the debtor asserting exemption rights within ten
16.19 	days after receipt of the written objection to the exemption,
16.20 	The funds remain subject to the garnishment summons as if no
16.21 	claim of exemption had been made. If a notice of motion and
16.22 	motion to determine the validity of a claim of exemption is
16.23 	received by the financial institution within the period
16.24 	provided, the financial institution shall retain the funds
16.25 	claimed to be exempt until otherwise ordered by the court, or
16.26 	until the garnishment lapses pursuant to section 571.79.The
16.27 	financial institution shall retain the funds claimed to be
16.28 	exempt until it receives:  (1) a written release from either the
16.29 	creditor or debtor; or (2) an order stating whether the funds
16.30 	are exempt.

16.31 	Sec. 9. REPEALER.
 16.32 	Minnesota Statutes 2004, sections 551.05, subdivisions 5
16.33 	and 6, and 571.914, subdivision 3, are repealed.