Minnesota Legislature
HF 1576
as introduced - 87th Legislature (2011 - 2012) Posted on 04/26/2011 09:56am
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 04/26/2011 |
Current Version - as introduced
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A bill for an act
relating to creditors remedies; requiring a financial institution to provide notice to
all named account holders after receipt of execution levy, garnishment summons,
or writ of execution; amending Minnesota Statutes 2010, sections 550.143,
subdivision 4; 551.05, subdivision 2; 571.913.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 550.143, subdivision 4, is amended to read:
Subd. 4.
Effect of exemption notice.
Within two business days after receipt of
the writ of execution, notice, instructions, and two copies of the exemption notice, the
financial institution shall serve upon the judgment debtor new text begin and all joint account owners new text end the
notice, instructions, and two copies of the exemption notice. The financial institution shall
serve these forms by first class mail to the last known address of the judgment debtornew text begin and
all joint account ownersnew text end . If no claim of exemption is received by the financial institution
within 14 days after the notice, instructions, and exemption notices are mailed to the
judgment debtornew text begin and all joint account ownersnew text end , the funds remain subject to the execution
levy and shall be remitted to the sheriff within six business days. If the judgment debtor
elects to claim an exemption, the judgment debtor shall complete the exemption notice,
sign it under penalty of perjury, and deliver one copy to the financial institution and one
copy to the attorney for the judgment creditor within 14 days of the date postmarked on
the correspondence mailed to the debtor containing the exemption notices. The judgment
debtor is also required to include copies of bank statements for the prior 60 days with the
exemption notice delivered to the attorney for the judgment creditor. In the event that
there is no attorney for the judgment creditor, then the notice and bank statements must
be sent directly to the judgment creditor. Failure of the judgment debtor to deliver the
executed exemption notice or copies of the required bank statements for the prior 60 days
does not constitute a waiver of any claimed right to an exemption. Upon timely receipt
of a claim of exemption, funds not claimed to be exempt by the debtor remain subject to
the execution levy. All money claimed to be exempt shall be released to the judgment
debtor upon the expiration of six business days after the date postmarked on the envelope
containing the executed exemption notice mailed to the financial institution, or the date
of personal delivery of the executed exemption notice to the financial institution, unless
within that time the judgment creditor interposes an objection to the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to levies on or after that date.
new text end
Sec. 2.
Minnesota Statutes 2010, section 551.05, subdivision 2, is amended to read:
Subd. 2.
Effect of exemption notice.
Within two business days after receipt of the
execution levy and the notice, instructions, and two copies of the exemption notices, the
financial institution shall serve upon the judgment debtor new text begin and all joint account owners new text end the
notice, instructions, and two copies of the exemption notice. The financial institution shall
serve the notice by first class mail to the last known address of the judgment debtornew text begin and
all joint account ownersnew text end . If no claim of exemption is received by the financial institution
within 14 days after the exemption notices are mailed to the judgment debtornew text begin and all joint
account ownersnew text end , the funds remain subject to the execution levy and shall be remitted to
the judgment creditor's attorney within six business days. If the judgment debtor elects
to claim an exemption, the judgment debtor shall complete the exemption notice, sign it
under penalty of perjury, and deliver one copy to the financial institution and one copy
to the attorney for the judgment creditor within 14 days of the date postmarked on the
correspondence mailed to the judgment debtor containing the exemption notices. The
debtor is also required to include copies of bank statements for the prior 60 days with the
exemption notice. In the event that there is no attorney for the judgment creditor, the
notice must be sent directly to the judgment creditor. Failure of the judgment debtor to
deliver the executed exemption notice or copies of the required bank statements for the
prior 60 days does not constitute a waiver of any claimed right to an exemption. Upon
timely receipt of a claim of exemption, funds not claimed to be exempt by the judgment
debtor remain subject to the execution levy. All money claimed to be exempt shall be
released to the judgment debtor upon the expiration of six business days after the date
postmarked on the envelope containing the executed exemption notice mailed to the
financial institution, or the date of personal delivery of the executed exemption notice to
the financial institution, unless within that time the attorney for the judgment creditor
interposes an objection to the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to levies on or after that date.
new text end
Sec. 3.
Minnesota Statutes 2010, section 571.913, is amended to read:
571.913 EFFECT OF EXEMPTION NOTICE.
Within two business days after receipt of the garnishment summons, the notice,
instructions, and two copies of the exemption notice, the financial institution shall serve
upon the debtor new text begin and all joint account owners new text end the notice, instructions, and two copies
of the exemption notice. The financial institution shall serve these forms by first class
mail to the last known address of the debtornew text begin and all joint account ownersnew text end . If no claim of
exemption is received by the financial institution within 14 days after the exemption
notices are mailed to the debtornew text begin and all joint account ownersnew text end , the funds remain subject to
the garnishment summons. If the debtor elects to claim an exemption, the debtor shall
complete the exemption notices, sign them under penalty of perjury, and deliver one copy
to the financial institution and one copy to the attorney for the creditor within 14 days of
the date postmarked on the correspondence mailed to the debtor containing the exemption
notices. The debtor is also required to include copies of bank statements for the prior 60
days with the exemption notice delivered to the attorney for the creditor. In the event that
there is no attorney for the creditor, then the notice and the bank statements must be sent
directly to the creditor. Failure of the debtor to deliver the executed exemption notice or
copies of the required bank statements for the prior 60 days does not constitute a waiver
of a claimed right to an exemption. Upon timely receipt of a claim of exemption, funds
not claimed to be exempt by the debtor remain subject to the garnishment summons.
All money claimed to be exempt shall be released to the debtor upon the expiration of
six business days after the date postmarked on the envelope containing the executed
exemption notice mailed to the financial institution, or the date of personal delivery of the
executed exemption notice to the financial institution, unless within that time the creditor
interposes an objection to the exemption.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to garnishments on or after that date.
new text end