MN Legislature

Menu

Revisor of Statutes Menu

Authenticate

Pdf

Minnesota Session Laws - 1990, Regular Session

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1990 

                        CHAPTER 606-S.F.No. 1150 
           An act relating to creditors remedies; regulating 
          executions and garnishments; amending Minnesota 
          Statutes 1988, section 550.142; proposing coding for 
          new law in Minnesota Statutes, chapters 550 and 557; 
          proposing coding for new law as Minnesota Statutes, 
          chapter 551; repealing Minnesota Statutes 1988, 
          sections 550.041; 550.05; 550.14; 550.141; 571.41; 
          571.42; 571.43; 571.44; 571.45; 571.46; 571.471; 
          571.495; 571.50; 571.51; 571.52; 571.53; 571.54; 
          571.55; 571.56; 571.57; 571.58; 571.59; 571.60; 
          571.61; 571.62; 571.63; 571.64; 571.65; 571.66; 
          571.67; 571.68; and 571.69. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1

          SHERIFF'S LEVY ON PROPERTY, MONEY, OR INDEBTEDNESS 
    Section 1.  [550.051] [TERM OF WRIT OF EXECUTION; 
INVENTORY; SATISFACTION.] 
    Subdivision 1.  [TIME PERIODS.] The writ of execution 
expires 180 days after its issuance by the court administrator.  
A levy that is served with a writ of execution that has expired 
is void.  If the officer having the writ levies upon property or 
earnings before the expiration of 180 days, the officer may 
retain the writ until the officer sells the property or 
completes the levy upon earnings in the manner prescribed by 
law.  Upon a demand of the judgment creditor or the creditor's 
attorney within 180 days, the officer shall pay to the judgment 
creditor or the judgment creditor's attorney all money collected 
upon execution after deducting the officer's fees.  Upon 
expiration of the writ or full satisfaction of the judgment, if 
earlier, the officer shall make a full inventory of the property 
levied on and return it with the execution.  
    Subd. 2.  [SATISFACTION.] In case of satisfaction, either 
partial or in full, the officer shall return the writ to the 
court administrator originally issuing it and return a duplicate 
copy of it to the court administrator of the officer's own 
county, if execution is upon judgment transcripted from another 
county.  The court administrator to whom a duplicate is returned 
shall enter the record of the satisfaction upon the judgment 
docket and note in the margin that the entry is made upon 
"duplicate return."  If the writ of execution is being returned 
when the judgment has been wholly satisfied, the writ shall be 
filed with the court administrator within ten days after the 
final payment or within 30 days if the payment is by check or 
other noncertified funds.  If the writ of execution is being 
returned partially satisfied, the officer shall include a 
statement setting forth the dates and amounts of payments made 
upon the judgment after the most recent partial satisfaction 
filed, if any. 
    Sec. 2.  [550.135] [SHERIFF'S LEVY ON OTHER PERSONAL 
PROPERTY, MONEY, OR INDEBTEDNESS.] 
    Subdivision 1.  [SCOPE OF GENERAL AND SPECIFIC PROVISIONS.] 
General provisions relating to the sheriff's levy upon personal 
property not covered elsewhere in this chapter and upon money or 
indebtedness are set forth in this section.  Specific provisions 
relating to a sheriff's levy upon earnings are set forth in 
sections 550.136 and 550.142.  Specific provisions relating to a 
sheriff's levy upon funds at a financial institution are set 
forth in section 550.143.  Summary execution of judgment debts 
by an attorney for the judgment creditor is governed by chapter 
551.  
    Subd. 2.  [OTHER PERSONAL PROPERTY.] Other personal 
property shall be levied on by leaving a copy of the writ of 
execution and a notice specifying the property levied on, with 
the person holding it; or, if a debt, with the judgment debtor; 
or, if stock or interest in stock of a corporation, with its 
president, secretary, treasurer, cashier, officer, or managing 
agent.  
    Subd. 3.  [MONEY OR INDEBTEDNESS.] The sheriff may levy 
upon money or other indebtedness owed by a third party to the 
judgment debtor.  The sheriff may serve a copy of the writ of 
execution through a registered or certified letter or by 
personal service to the third party.  Upon receipt, unless 
governed by section 550.136 or 550.143, the third party shall 
remit to the sheriff as much of the amount due under section 
550.04 as the third party's own debt equals.  
    Subd. 4.  [PROPERTY NOT ATTACHABLE.] The following property 
is not subject to attachment by a writ of execution served 
pursuant to this chapter: 
    (1) any indebtedness or money due to the judgment debtor, 
unless at the time of the service of the writ of execution the 
same is due absolutely or does not depend upon any contingency; 
    (2) any judgment owing by the third party to the judgment 
debtor, if the third party or the third party's property is 
liable on an execution levy upon the judgment; 
    (3) any debt owing by the third party to the judgment 
debtor for which any negotiable instrument has been issued or 
endorsed by the third party; 
    (4) any indebtedness or money due to the judgment debtor 
where the judgment debtor is a bank, savings bank, trust 
company, credit union, savings and loan association, or 
industrial loan and thrift company with deposit liabilities; 
    (5) any indebtedness or money due to the judgment debtor 
with a cumulative value of less than $10; and 
    (6) any disposable earnings, indebtedness, or money that is 
exempt under Minnesota or federal law. 
    Subd. 5.  [THIRD PARTY FEE.] If the levy is upon earnings 
or upon funds at a financial institution, the third party shall 
be paid a $15 fee at the time of the service of the writ of 
execution.  Failure to pay the fee renders the levy void, and 
the third party shall take no action.  The $15 shall not be paid 
where the funds being levied on are being retained pursuant to a 
garnishment previously served in compliance with chapter 571.  
This fee may be recovered by the judgment creditor as an 
allowable cost.  The judgment creditor shall provide the $15 fee 
to the sheriff to be paid to the third party.  If a third party 
is required to appear and submit to oral examination, the third 
party shall be tendered, in advance of the examination, fees and 
mileage for attendance at the rate allowed by law to a witness.  
These fees may be recovered by the judgment creditor as an 
allowable disbursement.  In extraordinary cases, the third party 
may be allowed additional sums the court considers reasonable 
for attorney fees and other necessary expenses.  The court shall 
then determine which party bears the burden of this expense. 
    Subd. 6.  [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 
15 days after receipt of the writ of execution, unless governed 
by section 550.136 or 550.143, the third party shall make the 
required disclosure and remittance to the sheriff.  The 
remittance shall be as much of the amount due under section 
550.04 as the third party's own debt equals.  
    Subd. 7.  [ORAL DISCLOSURE.] Before or after the service of 
a written disclosure by a third party under subdivision 6, upon 
a showing by affidavit upon information and belief that an oral 
examination of the third party would provide a complete 
disclosure of relevant facts, any party to the execution 
proceedings may obtain an ex parte order requiring the third 
party, or a representative of the third party designated by name 
or by title, to appear for oral examination before the court or 
a referee appointed by the court.  Notice of the examination 
shall be given to all parties. 
    Subd. 8.  [SUPPLEMENTAL COMPLAINT.] If a third party holds 
property, money, earnings, or other indebtedness by a title that 
is void as to the judgment debtor's creditors, the property may 
be levied on although the judgment debtor would be barred from 
maintaining an action to recover the property, money, earnings, 
or other indebtedness.  In this and all other cases where the 
third party denies liability, the judgment creditor may move the 
court at any time before the third party is discharged, on 
notice to both the judgment debtor and the third party for an 
order making the third party a party to the supplemental action 
and granting the judgment creditor leave to file a supplemental 
complaint against the third party and the judgment debtor.  The 
supplemental complaint shall set forth the facts upon which the 
judgment creditor claims to charge the third party.  If probable 
cause is shown, the motion shall be granted.  The supplemental 
complaint shall be served upon the third party and the judgment 
debtor and any other parties.  The parties served shall answer 
or respond pursuant to the Minnesota Rules of Civil Procedure 
for the District Courts, and if they fail to do so, judgment by 
default may be entered against them. 
    Subd. 9.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
DISCLOSE OR REMIT.] Judgment may be entered against a third 
party who has been served with a writ of execution and fails to 
disclose or remit the levied funds as required in this chapter.  
Upon order to show cause served on the third party, and notice 
of motion supported by affidavit of facts and affidavit of 
service upon the judgment debtor, the court may render judgment 
against the third party for an amount not exceeding 110 percent 
of the amount claimed in the writ of execution.  The court upon 
good cause shown may remove the default and permit the third 
party to disclose or remit on just terms.  
    Subd. 10.  [FORMS.] No judgment creditor shall use a form 
that contains alterations or changes from the statutory forms 
that mislead judgment debtors as to their rights and the 
execution procedure generally.  If a court finds that a judgment 
creditor has used a misleading form, the judgment debtor shall 
be awarded actual damages, costs, reasonable attorney's fees 
resulting from additional proceedings, and an amount not to 
exceed $100.  All forms must be clearly legible and printed in 
not less than the equivalent of 10-point type.  A form that uses 
both sides of a sheet must clearly indicate on the front side 
that there is additional information on the back side of the 
sheet. 
    Subd. 11.  [THIRD PARTY GOOD FAITH REQUIREMENT.] The third 
party is not liable to the judgment debtor, judgment creditor, 
or other person for wrongful retention if the third party 
retains or remits disposable earnings, indebtedness, or money of 
the judgment debtor or any other person, pending the third 
party's disclosure or consistent with the disclosure the third 
party makes, if the third party has a good faith belief that the 
property retained or remitted is subject to the writ of 
execution.  In addition, the third party may, at any time before 
or after disclosure, proceed under Rule 67 of the Minnesota 
Rules of Civil Procedure for the District Courts to make deposit 
into court.  No third party is liable for damages if the third 
party complies with the provisions of this chapter. 
    Subd. 12.  [BAD FAITH CLAIM.] If, in a proceeding brought 
under section 550.143, subdivision 10, or a similar proceeding 
under this chapter to determine a claim of exemption, the claim 
of exemption is not upheld, and the court finds that it was 
asserted in bad faith, the judgment creditor shall be awarded 
actual damages, costs, reasonable attorney fees resulting from 
the additional proceedings, and an amount not to exceed $100.  
If the claim of exemption is upheld, and the court finds that 
the judgment creditor disregarded the claim of exemption in bad 
faith, the judgment debtor shall be awarded actual damages, 
costs, reasonable attorney fees resulting from the additional 
proceedings, and an amount not to exceed $100.  The underlying 
judgment shall be modified to reflect assessment of damages, 
costs, and attorney fees.  However, if the party in whose favor 
a penalty assessment is made is not actually indebted to that 
party's attorney for fees, the attorney's fee award shall be 
made directly to the attorney and if not paid, an appropriate 
judgment in favor of the attorney shall be entered.  Any action 
by a judgment creditor made in bad faith and in violation of 
this chapter renders the execution levy void and the judgment 
creditor liable to the judgment debtor named in the execution 
levy in the amount of $100, actual damages, and reasonable 
attorney's fees and costs. 
    Subd. 13.  [DISCHARGE OF A THIRD PARTY.] Subject to 
subdivisions 6 and 14, the third party, after disclosure, shall 
be discharged of any further obligation to the judgment creditor 
when one of the following conditions is met: 
    (a) The third party discloses that the third party is not 
indebted to the judgment debtor or does not possess any 
property, money, or earnings belonging to the judgment debtor 
that is attachable as defined in this chapter.  The disclosure 
is conclusive against the judgment creditor and discharges the 
third party from any further obligation to the judgment creditor 
other than to retain and remit all nonexempt disposable 
earnings, indebtedness, or money of the judgment debtor that was 
disclosed. 
    (b) The third party discloses that the third party is 
indebted to the judgment debtor as indicated on the execution 
disclosure form.  The disclosure is conclusive against the 
judgment creditor and discharges the third party from any 
further obligation to the judgment creditor other than to retain 
and remit all nonexempt disposable earnings, indebtedness, or 
money of the judgment debtor that was disclosed. 
    (c) The court may, upon motion of an interested person, 
discharge the third party as to any disposable earnings, money, 
property, or indebtedness in excess of the amount that may be 
required to satisfy the judgment creditor's claim. 
    Subd. 14.  [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 
third party is not discharged if: 
    (a) Within 20 days of the service of the third party's 
disclosure, an interested person serves a motion relating to the 
execution levy.  The hearing on the motion must be scheduled to 
be heard within 30 days of the service of the motion. 
    (b) The judgment creditor moves the court for leave to file 
a supplemental complaint against the third party, as provided 
for in subdivision 8, and the court upon proper showing, vacates 
the discharge of the third party. 
    Subd. 15.  [JOINDER AND INTERVENTION BY PERSONS IN 
INTEREST.] If it appears that a person, who is not a party to 
the action, has or claims an interest in any of the disposable 
earnings, other indebtedness, or money, the court shall permit 
that person to intervene or join in the execution proceeding 
under this chapter.  If that person does not appear, the court 
may summon that person to appear or order the claim barred.  The 
person so appearing or summoned shall be joined as a party and 
be bound by the judgment. 
    Subd. 16.  [APPEAL.] A party to an execution proceeding 
aggrieved by an order or final judgment may appeal as in other 
civil cases. 
    Sec. 3.  [550.136] [SHERIFF'S LEVY OF EARNINGS.] 
    Subdivision 1.  [PROCEDURE.] When earnings are levied upon 
by the sheriff, this section must be complied with, in addition 
to the general provisions specified in section 550.135.  
    Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
following terms have the meanings given them: 
    (a) "earnings" means: 
    (1) compensation paid or payable to an employee for 
personal service whether denominated as wages, salary, 
commissions, bonus, or otherwise, and includes periodic payments 
pursuant to a pension or retirement program; or 
    (2) compensation paid or payable to the producer for the 
sale of agricultural products; livestock or livestock products; 
milk or milk products; or fruit or other horticultural products 
produced when the producer is operating a family farm, a family 
farm corporation, or an authorized farm corporation, as defined 
in section 500.24, subdivision 2; 
    (b) "disposable earnings" means that part of the earnings 
of an individual remaining after the deduction from those 
earnings of amounts required by law to be withheld; 
    (c) "employee" means an individual who performs services 
subject to the right of the employer to control both what is 
done and how it is done; and 
    (d) "employer" means a person for whom an individual 
performs services as an employee. 
    Subd. 3.  [LIMITATION ON LEVY ON EARNINGS.] Unless the 
judgment is for child support, the maximum part of the aggregate 
disposable earnings of an individual for any pay period 
subjected to an execution levy may not exceed the lesser of: 
    (1) 25 percent of the judgment debtor's disposable 
earnings; or 
    (2) the amount by which the judgment debtor's disposable 
earnings exceed the following product:  40 times the federal 
minimum hourly wages prescribed by section 6(a)(1) of the Fair 
Labor Standards Act of 1938, United States Code, title 29, 
section 206(a)(1), in effect at the time the earnings are 
payable, times the number of work weeks in the pay period.  When 
a pay period consists of other than a whole number of work 
weeks, each day of that pay period in excess of the number of 
completed work weeks shall be counted as a fraction of a work 
week equal to the number of excess work days divided by the 
number of days in the normal work week. 
    If the judgment is for child support, the levy may not 
exceed: 
    (1) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (2) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received); 
    (3) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (4) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received). 
    No court may make, execute, or enforce an order or any 
process in violation of this section. 
    Subd. 4.  [MULTIPLE LEVIES ON EARNINGS.] Except as 
otherwise provided in this chapter or section 518.611, 
subdivision 6, the priority of multiple earnings execution 
levies is determined by the order in which the execution levies 
were served on the employer.  If the employer is served with two 
or more writs of execution at the same time on the same day, the 
writ of execution issued pursuant to the first judgment entered 
has priority.  If two or more execution levies are served on the 
same day and are based on judgments entered on the same day, 
then the employer shall select the priority of the earnings 
levies.  However, in all cases, the execution levies shall be 
effective no longer than 70 days from the date of the service of 
the writ of execution. 
    Subd. 5.  [EARNINGS ATTACHABLE.] Subject to the exemptions 
provided by sections 550.37 and 571.922, and any other 
applicable statute, the service of a writ of execution under 
this chapter attaches all unpaid nonexempt disposable earnings 
owing or to be owed by the third party and earned or to be 
earned by the judgment debtor before and within the pay period 
in which the writ of execution is served and within all 
subsequent pay periods whose paydays occur within the 70 days 
after the date of service of the writ of execution.  "Paydays" 
means the days upon which the third party pays earnings to the 
judgment debtor in the ordinary course of business.  If the 
judgment debtor has no regular paydays, paydays means the 15th 
day and the last day of each month.  If the levy attaches less 
than $10, the third party shall not retain and remit the sum.  
    Subd. 6.  [EARNINGS EXEMPTION NOTICE.] Before the first 
levy on earnings under this chapter, the judgment creditor shall 
serve upon the judgment debtor no less than ten days before the 
service of the writ of execution, a notice that the writ of 
execution may be served on the judgment debtor's employer.  The 
notice must:  (1) be substantially in the form set forth below; 
(2) be served personally, in the manner of a summons and 
complaint, or by first class mail to the last known address of 
the judgment debtor; (3) inform the judgment debtor that an 
execution levy may be served on the judgment debtor's employer 
in ten days, and that the judgment debtor may, within that time, 
cause to be served on the judgment creditor a signed statement 
under penalties of perjury asserting an entitlement to an 
exemption from execution; (4) inform the judgment debtor of the 
earnings exemptions contained in section 550.37, subdivision 14; 
and (5) advise the judgment debtor of the relief set forth in 
this chapter to which the debtor may be entitled if a judgment 
creditor in bad faith disregards a valid claim and the fee, 
costs, and penalty that may be assessed against a judgment 
debtor who in bad faith falsely claims an exemption or in bad 
faith takes action to frustrate the execution process.  The 
notice requirement of this subdivision does not apply to a levy 
on earnings being retained by an employer pursuant to a 
garnishment previously served in compliance with chapter 571.  
    The ten-day notice informing a judgment debtor that a writ 
of execution may be used to levy the earnings of an individual 
must be substantially in the following form: 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF .............         ........... JUDICIAL DISTRICT
.............(Judgment Creditor)
against
                                      EXECUTION EXEMPTION 
.............(Judgment Debtor)        NOTICE AND NOTICE OF 
and                                   INTENT TO LEVY ON EARNINGS 
                                      WITHIN TEN DAYS
.............(Third Party)
 THE STATE OF MINNESOTA 
 TO THE ABOVE-NAMED JUDGMENT DEBTOR 
    PLEASE TAKE NOTICE that a levy may be served upon your 
employer or other third parties, without any further court 
proceedings or notice to you, ten days or more from the date 
hereof.  Your earnings are completely exempt from execution levy 
if you are now a recipient of relief based on need, if you have 
been a recipient of relief within the last six months, or if you 
have been an inmate of a correctional institution in the last 
six months. 
    Relief based on need includes Aid to Families with 
Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA), 
Medical Assistance (MA), General Assistance (GA), General 
Assistance Medical Care (GAMC), Emergency General Assistance 
(EGA), Work Readiness, Minnesota Supplemental Aid (MSA), MSA 
Emergency Assistance (MSA-EA), Supplemental Security Income 
(SSI), and Energy Assistance. 
    If you wish to claim an exemption, you should fill out the 
appropriate form below, sign it, and send it to the judgment 
creditor's attorney. 
    You may wish to contact the attorney for the judgment 
creditor in order to arrange for a settlement of the debt or 
contact an attorney to advise you about exemptions or other 
rights. 
 PENALTIES
 (1) Be advised that even if you claim an exemption, an 
execution levy may still be served on your employer.  If 
your earnings are levied on after you claim an exemption, 
you may petition the court for a determination of your 
exemption.  If the court finds that the judgment creditor 
disregarded your claim of exemption in bad faith, you will 
be entitled to costs, reasonable attorney fees, actual 
damages, and an amount not to exceed $100. 
 (2) HOWEVER, BE WARNED if you claim an exemption, the 
judgment creditor can also petition the court for a 
determination of your exemption, and if the court finds 
that you claimed an exemption in bad faith, you will be 
assessed costs and reasonable attorney's fees plus an 
amount not to exceed $100. 
 (3) If after receipt of this notice, you in bad faith take 
action to frustrate the execution levy, thus requiring the 
judgment creditor to petition the court to resolve the 
problem, you will be liable to the judgment creditor for 
costs and reasonable attorney's fees plus an amount not to 
exceed $100. 
DATED:  ............           ........................
                               (Attorney for Judgment Creditor)
                               ........................
                               Address
                               ........................
                               Telephone
 JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
    I hereby claim that my earnings are exempt from execution 
because: 
 (1) I am presently a recipient of relief based on need. 
(Specify the program, case number, and the county from 
which relief is being received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (2) I am not now receiving relief based on need, but I have 
received relief based on need within the last six months. 
(Specify the program, case number, and the county from 
which relief has been received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (3) I have been an inmate of a correctional institution 
with the last six months.  (Specify the correctional 
institution and location.) 
...........................       ..........................
Correctional Institution          Location
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above-named judgment creditor or the judgment 
creditor's attorney only whether or not I am or have been a 
recipient of relief based on need or an inmate of a correctional 
institution within the last six months.  I have mailed or 
delivered a copy of this form to the judgment creditor or 
judgment creditor's attorney. 
...........................          .........................
                                     Debtor
                                     .........................
                                     Address
    Subd. 7.  [ADDITIONAL NOTICES.] If the execution levy has 
not been served within one year after service of the exemption 
notice, the judgment creditor or its attorney shall serve 
another notice upon the judgment debtor before serving the 
execution levy on the judgment debtor's employer.  If more than 
one year has passed since the service of the judgment creditor's 
most recent execution levy, the judgment creditor shall, no less 
than ten days before service of a subsequent execution levy, 
serve notice that another execution levy may be served.  
    Subd. 8.  [PROCEEDINGS IF NO EXEMPTION STATEMENT IS 
RECEIVED.] If no statement of exemption is received by the 
judgment creditor's attorney (or the creditor if not represented 
by an attorney) on an earnings levy within ten days after the 
service of the notice, the judgment creditor may proceed with 
the execution levy.  Failure of the judgment debtor to serve a 
statement does not constitute a waiver of any right the judgment 
debtor may have to an exemption.  If the statement of exemption 
is received by the judgment creditor, the judgment creditor may 
still cause a levy to be served subject to sanctions provided in 
section 550.143, subdivision 10.  
    Subd. 9.  [EXECUTION EARNINGS DISCLOSURE FORM AND 
WORKSHEET.] The judgment creditor shall provide to the sheriff 
for service upon the judgment debtor's employer an execution 
earnings disclosure form and an earnings disclosure worksheet 
with the writ of execution, that must be substantially in the 
form set forth below. 
STATE OF MINNESOTA                              DISTRICT COURT
COUNTY OF .............          ........... JUDICIAL DISTRICT
                                          FILE NO. ..... 
................ (Judgment Creditor)
against                                   EARNINGS 
................ (Judgment Debtor)        EXECUTION
and                                       DISCLOSURE
................ (Third Party)
 DEFINITIONS
    "EARNINGS":  For the purpose of execution, "earnings" means 
compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation, or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement.  
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of execution, "payday(s)" means 
the date(s) upon which the employer pays earnings to the debtor 
in the ordinary course of business.  If the judgment debtor has 
no regular payday, payday(s) means the 15th and the last day of 
each month.  
    THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING 
QUESTIONS:  
    (1) Do you now owe, or within 70 days from the date the 
execution levy was served on you, will you or may you owe money 
to the judgment debtor for earnings?  
                             .......         .......
                             Yes             No
    (2) Does the judgment debtor earn more than $... per week? 
(this amount is the federal minimum wage per week)  
                             .......         .......
                             Yes             No
 INSTRUCTIONS FOR COMPLETING THE 
EARNINGS DISCLOSURE 
    A.  If your answer to either questions 1 or 2 is "No," then 
you must sign the affirmation below and return this disclosure 
to the sheriff within 20 days after it was served on you, and 
you do not need to answer the remaining questions.  
    B.  If your answers to both questions 1 and 2 are "Yes," 
you must complete this form and the Earnings Disclosure 
Worksheet as follows:  
 For each payday that falls within 70 days from the date the 
execution levy was served on you, YOU MUST calculate the 
amount of earnings to be retained by completing steps 3 
through 11 on page 2, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 
 Each payday, you must retain the amount of earnings listed 
in column I on the Earnings Disclosure Worksheet.  
 You must pay the attached earnings and return this earnings 
disclosure form and the Earnings Disclosure Worksheet to 
the sheriff and deliver a copy of the disclosure and 
worksheet to the judgment debtor within ten days after the 
last payday that falls within the 70-day period.  If the 
judgment is wholly satisfied or if the judgment debtor's 
employment ends before the expiration of the 70-day period, 
your disclosure and remittance should be made within ten 
days after the last payday for which earnings were attached.
    For steps 3 through 11, "columns" refers to columns on the 
Earnings Disclosure Worksheet.  
    (3) COLUMN A.  Enter the date of judgment debtor's payday.  
    (4) COLUMN B.  Enter judgment debtor's gross earnings for 
each payday.  
    (5) COLUMN C.  Enter judgment debtor's disposable earnings 
for each payday.  
    (6) COLUMN D.  Enter 25 percent of disposable earnings.  
(Multiply column C by .25.)  
    (7) COLUMN E.  Enter here 40 times the hourly federal 
minimum wage ($...) times the number of work weeks included in 
each payday.  (Note:  if a payday includes days in excess of 
whole work weeks, the additional days should be counted as a 
fraction of a work week equal to the number of work days in 
excess of a whole work week divided by the number of work days 
in a normal work week.)  
    (8) COLUMN F.  Subtract the amount in column E from the 
amount in column C, and enter here.  
    (9) COLUMN G.  Enter here the lesser of the amount in 
column D and the amount in column F.  
    (10) COLUMN H.  Enter here any amount claimed by you as a 
setoff, defense, lien, or claim, or any amount claimed by any 
other person as an exemption or adverse interest which would 
reduce the amount of earnings owing to the judgment debtor.  
(Note:  Any indebtedness to you incurred within ten days prior 
to your receipt of the first execution levy on a debt may not be 
set off against the earnings otherwise subject to this levy.  
Any wage assignment made by the judgment debtor within ten days 
prior to your receipt of the first execution levy on a debt is 
void.) 
    You must also describe your claim(s) and the claims of 
others, if known, in the space provided below the worksheet and 
state the name(s) and address(es) of these persons.  
    Enter zero in column H if there are no claims by you or 
others which would reduce the amount of earnings owing to the 
judgment debtor.  
    (11) COLUMN I.  Subtract the amount in column H from the 
amount in column G and enter here.  This is the amount of 
earnings that you must remit for the payday for which the 
calculations were made.  
 AFFIRMATION
    I, ..................., (person signing Affirmation) am the 
third party/employer or I am authorized by the third 
party/employer to complete this earnings disclosure, and have 
done so truthfully and to the best of my knowledge.  
Dated:  ............                 ............................
                                     Signature
                                     ............................
                                     Title
                                     ............................
                                     Telephone Number
 EARNINGS DISCLOSURE WORKSHEET         ...................
                                             Debtor's Name
A                     B                      C
Payday                Gross                  Disposable
Date                  Earnings               Earnings
1. ........           $.......               $.........
2. ........           ........               ..........
3. ........           ........               ..........
4. ........           ........               ..........
5. ........           ........               ..........
6. ........           ........               ..........
7. ........           ........               ..........
8. ........           ........               ..........
9. ........           ........               ..........
10 ........           ........               ..........
D                     E                      F
25% of                40 X Min.              Column C
Column C              Wage                   minus
                                             Column E
1. ........           ........               ..........
2. ........           ........               ..........
3. ........           ........               ..........
4. ........           ........               ..........
5. ........           ........               ..........
6. ........           ........               ..........
7. ........           ........               ..........
8. ........           ........               ..........
9. ........           ........               ..........
10 ........           ........               ..........
 G                     H                      I
Lesser of             Setoff, Lien,          Column G
Column D              Adverse                minus
and                   Interest, or           Column H
Column F              Other Claims
1. ........           ........               ..........
2. ........           ........               ..........
3. ........           ........               ..........
4. ........           ........               ..........
5. ........           ........               ..........
6. ........           ........               ..........
7. ........           ........               ..........
8. ........           ........               ..........
9. ........           ........               ..........
10 ........           ........               ..........
                         TOTAL OF COLUMN I $............
    *If you entered any amount in column H for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others, you must both state the 
names and addresses of such persons, and the nature of their 
claim, if known.  
.................................................................
.................................................................
.................................................................
 AFFIRMATION 
    I, ................. (person signing Affirmation) am the 
third party or I am authorized by the third party to complete 
this earnings disclosure worksheet, and have done so truthfully 
and to the best of my knowledge.  
                                      .................
                                      Signature
Dated:            ...............     (...)............
                  Title               Phone Number
     Subd. 10.  [EXECUTION EARNINGS DISCLOSURE FORM AND 
WORKSHEET FOR CHILD SUPPORT JUDGMENTS.] The judgment creditor 
shall provide to the sheriff for service upon a child support 
judgment debtor's employer an execution earnings disclosure form 
and an earnings disclosure worksheet with the writ of execution, 
that must be substantially in the form set forth below. 
STATE OF MINNESOTA                              DISTRICT COURT
COUNTY OF .............          ........... JUDICIAL DISTRICT
                                          FILE NO. ..... 
................ (Judgment Creditor)
against                                   EARNINGS 
................ (Judgment Debtor)        EXECUTION
and                                       DISCLOSURE
................ (Third Party)
 DEFINITIONS
    "EARNINGS":  For the purpose of execution, "earnings" means 
compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation, or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement, workers' compensation, or unemployment 
compensation.  
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of execution, "payday(s)" means 
the date(s) upon which the employer pays earnings to the debtor 
in the ordinary course of business.  If the judgment debtor has 
no regular payday, payday(s) means the 15th and the last day of 
each month.  
    THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING QUESTION:
    (1) Do you now owe, or within 70 days from the date the 
execution levy was served on you, will you or may you owe money 
to the judgment debtor for earnings?  
                             .......         .......
                             Yes             No
 INSTRUCTIONS FOR COMPLETING THE 
EARNINGS DISCLOSURE 
    A.  If your answer to question 1 is "No," then you must 
sign the affirmation below and return this disclosure to the 
sheriff within 20 days after it was served on you, and you do 
not need to answer the remaining questions.  
    B.  If your answer to question 1 is "Yes," you must 
complete this form and the Earnings Disclosure Worksheet as 
follows:  
 For each payday that falls within 70 days from the date the 
execution levy was served on you, YOU MUST calculate the 
amount of earnings to be retained by completing steps 2 
through 8 on page 2, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 
 Each payday, you must retain the amount of earnings listed 
in column G on the Earnings Disclosure Worksheet.  
 You must pay the attached earnings and return this earnings 
disclosure form and the Earnings Disclosure Worksheet to 
the sheriff and deliver a copy of the disclosure and 
worksheet to the judgment debtor within ten days after the 
last payday that falls within the 70-day period.  If the 
judgment is wholly satisfied or if the judgment debtor's 
employment ends before the expiration of the 70-day period, 
your disclosure and remittance should be made within ten 
days after the last payday for which earnings were attached.
    For steps 2 through 8, "columns" refers to columns on the 
Earnings Disclosure Worksheet.  
    (2) COLUMN A.  Enter the date of judgment debtor's payday.  
    (3) COLUMN B.  Enter judgment debtor's gross earnings for 
each payday.  
    (4) COLUMN C.  Enter judgment debtor's disposable earnings 
for each payday.  
    (5) COLUMN D.  Enter either 50, 55, 60, or 65 percent of 
disposable earnings, based on which of the following 
descriptions fits the child support judgment debtor:  
    (a) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (b) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received); 
    (c) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (d) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received).  (Multiply column C by .50, .55, 
.60, or .65, as appropriate.)  
    (6) COLUMN E.  Subtract the amount in column D from the 
amount in column C, and enter here.  
    (7) COLUMN F.  Enter here any amount claimed by you as a 
setoff, defense, lien, or claim, or any amount claimed by any 
other person as an exemption or adverse interest that would 
reduce the amount of earnings owing to the judgment debtor.  
(Note:  Any indebtedness to you incurred within ten days prior 
to your receipt of the first execution levy may not be set off 
against the earnings otherwise subject to this levy.  Any wage 
assignment made by the judgment debtor within ten days prior to 
your receipt of the first execution levy is void.) 
    You must also describe your claim(s) and the claims of 
others, if known, in the space provided below the worksheet and 
state the name(s) and address(es) of these persons.  
    Enter zero in column F if there are no claims by you or 
others that would reduce the amount of earnings owing to the 
judgment debtor.  
    (8) COLUMN G.  Subtract the amount in column F from the 
amount in column E and enter here.  This is the amount of 
earnings that you must remit for the payday for which the 
calculations were made.  
 AFFIRMATION
    I, ..................., (person signing Affirmation) am the 
third party/employer or I am authorized by the third 
party/employer to complete this earnings disclosure, and have 
done so truthfully and to the best of my knowledge.  
Dated:  ............                 ............................
                                     Signature
                                     ............................
                                     Title
                                     ............................
                                     Telephone Number
 EARNINGS DISCLOSURE WORKSHEET         ...................
                                             Debtor's Name
A                      B                      C
Payday                 Gross                  Disposable
Date                   Earnings               Earnings
1.  ........           $.......               $.........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
D                      E                      F
Either 50, 55,         Column C               Setoff, Lien,
60, or 65% of          minus                  Adverse 
Column C               Column D               Interest, or 
                                              Other Claims 
1.  ........           ........               ..........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
                                               G
                                              Column E
                                              minus
                                              Column F
1.                                            ..........
2.                                            ..........
3.                                            ..........
4.                                            ..........
5.                                            ..........
6.                                            ..........
7.                                            ..........
8.                                            ..........
9.                                            ..........
10.                                           ..........
                         TOTAL OF COLUMN G $............
    *If you entered any amount in column F for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others, you must both state the 
names and addresses of such persons, and the nature of their 
claim, if known.  
.................................................................
.................................................................
.................................................................
 AFFIRMATION 
    I, ................. (person signing Affirmation) am the 
third party or I am authorized by the third party to complete 
this earnings disclosure worksheet, and have done so truthfully 
and to the best of my knowledge.  
                                      .................
                                      Signature
Dated:            ...............     (...)............
                  Title               Phone Number
    Subd. 11.  [POSTEXECUTION NOTICE TO JUDGMENT DEBTOR.] The 
judgment creditor shall serve by mail upon the judgment debtor 
not later than five days after service is made on the judgment 
debtor's employer, a copy of the writ of execution and copies of 
all other papers served on the judgment debtor's employer.  
    Subd. 12.  [THIRD PARTY DISCLOSURE AND REMITTANCE 
OBLIGATION.] If there are no attachable earnings, the third 
party shall serve the execution earnings disclosure form upon 
the sheriff within 20 days after service of the writ of 
execution.  However, if the judgment debtor has attachable 
earnings, the third party shall serve the execution earnings 
disclosure form and remit to the sheriff the attached earnings 
within ten days of the last payday to occur within the 70 days 
after the date of the service of the execution.  If the judgment 
is wholly satisfied or if the judgment debtor's employment ends 
before the expiration of the 70-day period, the disclosure and 
remittance should be made within ten days after the last payday 
for which earnings were attached.  The amount of the third 
party's execution earnings disclosure form and remittance need 
not exceed 110 percent of the amount of the judgment creditor's 
judgment that remains unpaid, after subtracting the total of 
setoffs, defenses, exemption, or other adverse interests.  If 
the disclosure is by a corporation, it shall be made by an 
officer or an authorized agent having knowledge of the facts.  
    Subd. 13.  [PENALTY FOR RETALIATION OR DISCHARGE.] (a) An 
employer shall not discharge or otherwise discipline an employee 
as a result of an earnings levy authorized by this chapter.  
    (b) If an employer violates this section, a court may order 
the reinstatement of an aggrieved party who demonstrates a 
violation of this section, and other relief the court considers 
appropriate.  The aggrieved party may bring a civil action 
within 90 days of the date of the prohibited action.  If an 
employer-employee relationship existed before the violation of 
this section, the employee shall recover twice the wages lost as 
a result of this violation.  
    (c) The rights guaranteed by this section are not subject 
to abridgment and may not be altered by employment contract. 
    Sec. 4.  Minnesota Statutes 1988, section 550.142, is 
amended to read: 
    550.142 [PUBLIC EMPLOYEES; WAGES, EXECUTION LEVY.] 
    The salary or wages earnings of any public employee or 
officer may be levied upon and disposed of on execution pursuant 
to sections 550.135 and 550.136.  Where the person judgment 
debtor is an officer, the writ shall be served upon the auditor, 
treasurer, or clerk of the subdivision or department of which 
the person judgment debtor is an officer.  Where the 
person judgment debtor is an employee other than an officer, the 
writ shall be served upon the person in charge of the office or 
department in which the employee works. 
    When payment has been made pursuant to levy, a copy of the 
writ of execution with certificate of satisfaction shall be 
delivered to the treasurer as a voucher for such payment. 
    Sec. 5.  [550.143] [LEVY ON FUNDS AT A FINANCIAL 
INSTITUTION.] 
    Subdivision 1.  [PROCEDURE.] When the sheriff is levying 
upon funds at a financial institution, this section must be 
complied with, in addition to the general provisions set forth 
in section 550.135.  
    Subd. 2.  [DISCLOSURE FORM.] Along with the writ of 
execution and the exemption notice described in subdivision 3, 
the sheriff shall serve upon the financial institution an 
execution disclosure form which must be substantially in the 
following form:  
STATE OF MINNESOTA                            DISTRICT COURT
COUNTY OF ..............          .........JUDICIAL DISTRICT 
............(Judgment Creditor)
against                               FINANCIAL INSTITUTIONS
............(Judgment Debtor)         EXECUTION
and                                   DISCLOSURE
............(Third Party)
    On the ..... day of ............., 19.., the time of 
service of execution herein, there was due and owing the 
judgment debtor from the third party the following:  
    (1) Money.  Enter on the line below any amounts due and 
owing the judgment debtor, except earnings, from the third party.
....................................................... 
    (2) Setoff.  Enter on the line below the amount of any 
setoff, defense, lien, or claim which the third party claims 
against the amount set forth on line (1).  State the facts by 
which such setoff, defense, lien, or claim is claimed.  (Any 
indebtedness to a third party incurred by the judgment debtor 
within ten days prior to the receipt of the first execution levy 
on a debt is void as to the judgment creditor.) 
.............................................. 
    (3) Exemption.  Enter on the line below any amounts or 
property claimed by the judgment debtor to be exempt from 
execution.  
.............................................. 
    (4) Adverse Interest.  Enter on the line below any amounts 
claimed by other persons by reason of ownership or interest in 
the judgment debtor's property.  
.............................................. 
    (5) Enter on the line below the total of lines (2), (3), 
and (4).  
................................................... 
    (6) Enter on the line below the difference obtained (never 
less than zero when line (5) is subtracted from the amount on 
line (1).)  
..................................................... 
    (7) Enter on the line below 110 percent of the amount of 
the judgment creditor's claim which remains unpaid.  
..................................................... 
    (8) Enter on the line below the lessor of line (6) and line 
(7).  You are hereby instructed to remit this amount only if it 
is $10 or more.  
..................................................... 
 AFFIRMATION 
    I, ....................... (person signing Affirmation) am 
the third party or I am authorized by the third party to 
complete this nonearnings disclosure, and have done so 
truthfully and to the best of my knowledge.  
Dated:  ................               ........................
                                       Signature
                                       ........................
                                       Title
                                       ........................
                                       Telephone Number
    Subd. 3.  [EXEMPTION NOTICE.] If the levy is on funds of a 
judgment debtor who is a natural person and if the funds to be 
levied are held on deposit at any financial institution, the 
judgment creditor or its attorney shall provide the sheriff with 
two copies of an exemption notice, which must be substantially 
in the form set forth below.  The sheriff shall serve both 
copies of the exemption notice on the financial institution, 
along with the writ of execution.  Failure of the sheriff to 
serve the exemption notices renders the levy void, and the 
financial institution shall take no action.  However, if this 
subdivision is being used to execute on funds that have 
previously been garnished in compliance with section 571.71, the 
judgment creditor is not required to serve additional exemption 
notices.  In that event, the execution levy shall only be 
effective as to the funds that were subject to the prior 
garnishment.  Upon receipt of the writ of execution and 
exemption notices, the financial institution shall retain as 
much of the amount due under section 550.04 as the financial 
institution has on deposit owing to the judgment debtor, but not 
more than 110 percent of the amount remaining due on the 
judgment.  
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ................       .......... JUDICIAL DISTRICT
.............(Judgment Creditor) 
.............(Judgment Debtor) 
TO:  Debtor                                  EXEMPTION NOTICE 
    An order for attachment, garnishment summons, or levy of 
execution (strike inapplicable language) has been served on 
............. (Bank or other financial institution where you 
have an account.)  
    Your account balance is $........  
    The amount being held is $........  
    However, all or a portion of the funds in your account will 
normally be exempt from creditors' claims if they are in one of 
the following categories:  
    (1) relief based on need.  This includes:  Aid to Families 
with Dependent Children (AFDC), AFDC-Emergency Assistance 
(AFDC-EA), Medical Assistance (MA), General Assistance (GA), 
General Assistance Medical Care (GAMC), Emergency General 
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
Income (SSI), and Energy Assistance; 
    (2) Social Security benefits (Old Age, Survivors, or 
Disability Insurance); 
    (3) unemployment compensation, workers' compensation, or 
veterans' benefits; 
    (4) an accident, disability, or retirement pension or 
annuity; 
    (5) life insurance proceeds; 
    (6) the earnings of your minor child; or 
    (7) money from a claim for damage or destruction of exempt 
property (such as household goods, farm tools, business 
equipment, a mobile home, or a car.)  
    The following funds are also exempt: 
    (8) all earnings of a person in category (1); 
    (9) all earnings of a person who has received relief based 
on need, or who has been an inmate of a correctional 
institution, within the last six months; 
    (10) 75 percent of every debtor's after tax earnings; and 
    (11) all of a judgment debtor's after tax earnings below 40 
times the federal minimum wage. 
    TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
    Categories (10) and (11):  20 days 
    Categories (8) and (9):  60 days 
    All others:  no time limit, as long as funds are traceable 
to the exempt source.  (In tracing funds, the first-in, 
first-out method is used.  This means money deposited first is 
spent first.)  The money being sought by the judgment creditor 
is being held in your account to give you a chance to claim an 
exemption. 
    TO CLAIM AN EXEMPTION:  
    Fill out, sign, and mail or deliver one copy of the 
attached exemption claim form to the institution which sent you 
this notice and mail or deliver one copy to the judgment 
creditor's attorney.  In the event that there is no attorney for 
the judgment creditor, then the notice shall be sent directly to 
the judgment creditor.  The address for the judgment creditor's 
attorney or the judgment creditor is set forth below.  Both 
copies must be mailed or delivered on the same day. 
    If the financial institution does not get the exemption 
claim back from you within 14 days of the date they mailed or 
gave it to you, they will be free to turn the money over to the 
sheriff or the judgment creditor.  If you are going to claim an 
exemption, do so as soon as possible, because your money may be 
held until it is decided. 
    IF YOU CLAIM AN EXEMPTION:  
    (1) nonexempt money can be turned over to the judgment 
creditor or sheriff; 
    (2) the financial institution will keep holding the money 
claimed to be exempt; and 
    (3) seven days after receiving your exemption claim, the 
financial institution will release the money to you unless 
before then it receives an objection to your exemption claim.  
    IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
    the institution will hold the money until a court decides 
if your exemption claim is valid, BUT ONLY IF the institution 
gets a copy of your court motion papers asserting the exemption 
WITHIN TEN DAYS after the objection is mailed or given to you.  
You may wish to consult an attorney at once if the creditor 
objects to your exemption claim.  
    MOTION TO DETERMINE EXEMPTION:  
    At any time after your funds have been held, you may ask 
for a court decision on the validity of your exemption claim by 
filing a request for hearing which may be obtained at the office 
of the clerk of the above court. 
    PENALTIES:  
    If you claim an exemption in bad faith, or if the judgment 
creditor wrongly objects to an exemption in bad faith, the court 
may order the person who acted in bad faith to pay costs, actual 
damages, attorney fees, and an additional amount of up to $100.  
                              ............................. 
                              ............................. 
                              ............................. 
                              ............................. 
                              Name and address of (Attorney 
                              for) Judgment Creditor
    EXEMPTION:  
    (a) Amount of exemption claim.  
    / / I claim ALL the funds being held are exempt.  
    / / I claim SOME of the funds being held are exempt.  
         The exempt amount is $............  
    (b) Basis for exemption.  
    Of the 11 categories listed above, I am in category number 
............  (If more than one category applies, you may fill 
in as many as apply.)  The source of the exempt funds is the 
following:  
.............................................................
.............................................................
.............................................................
    (If the source is a type of relief based on need, list the 
case number and county:  
    case number:  ...............; 
    county:  ....................) 
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above named creditor or its attorney only 
whether or not I am or have been a recipient of relief based on 
need or an inmate of a correctional institute within the last 
six months.  
    I have mailed or delivered a copy of the exemption notice 
to the judgment creditor or judgment creditor's attorney if 
represented. 
                             .............................
                             DEBTOR
DATED:  .............        .............................
                             .............................
                             .............................
                             DEBTOR ADDRESS 
    Subd. 4.  [EFFECT OF EXEMPTION NOTICE.] Within two business 
days after receipt of the writ of execution and exemption 
notices, the financial institution shall serve upon the judgment 
debtor 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 debtor.  If no claim of 
exemption is received by the financial institution within 14 
days after the exemption notices are mailed to the judgment 
debtor, the funds remain subject to the execution levy and shall 
be remitted to the sheriff within seven 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.  In the event that there is no 
attorney for the judgment creditor, then the notice must be sent 
directly to the judgment creditor.  Failure of the judgment 
debtor to deliver the executed exemption notice 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 seven 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. 
    Subd. 5.  [OBJECTION TO EXEMPTION CLAIM.] Objection shall 
be interposed by mailing or delivering one copy of the written 
objection to the financial institution and one copy of the 
written objection to the judgment debtor along with a copy of 
the judgment debtor's claimed exemption form.  Both copies of an 
objection to an exemption claim shall be mailed or delivered on 
the same date.  The financial institution may rely on the date 
of mailing or delivery of a notice to it in computing any time 
periods in this section.  The written objection must be 
substantially in the form specified in subdivision 7.  
    Subd. 6.  [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 
MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 
from the judgment creditor or its attorney within the specified 
seven-day period, the financial institution shall retain the 
funds claimed to be exempt.  Unless the financial institution 
receives a request for hearing and notice of hearing from the 
judgment debtor asserting exemption rights within ten days after 
receipt of a written objection to the exemption, the funds 
remain subject to the execution levy as if no claim of exemption 
had been made and shall be remitted to the sheriff within seven 
days.  If a request for hearing and notice of hearing to 
determine the validity of a claim of exemption is received by 
the financial institution within the period provided, it shall 
retain the funds claimed to be exempt until otherwise ordered by 
the court.  
    Subd. 7.  [NOTICE OF OBJECTION.] (a) The written objection 
to the judgment debtor's claim of exemption must be in 
substantially the following form:  
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ...............         ..........JUDICIAL DISTRICT
...................(Judgment Creditor)        OBJECTION TO
...................(Judgment Debtor)          EXEMPTION CLAIM
...................(Garnishee) (Third Party)
    The judgment creditor objects to your claim for exemption 
from garnishment, levy of execution, order for attachment 
(strike inapplicable language) for the following reason(s):  
.................................................................
.................................................................
.................................................................
    Because of this objection, your financial institution will 
retain the funds you claimed to be exempt for an additional ten 
days.  If you wish to request a hearing on your exemption claim, 
you should do so within ten days of your receipt of this 
objection.  You may request a hearing by completing the attached 
form and filing it with the court administrator.  
    1.  The court administrator's office shall provide clerical 
assistance to help with the writing and filing of a Request for 
Hearing by any person not represented by counsel.  The court 
administrator may charge a fee of $1 for the filing of a Request 
for Hearing.  
    2.  Upon the filing of a Request for Hearing, the clerk 
shall schedule the matter for a hearing no later than five 
business days from the date of filing.  The court administrator 
shall forthwith send a completed copy of the request, including 
the hearing date, time and place to the adverse party and to the 
financial institution by first class mail.  
    3.  If it is possible that the financial institution might 
not receive the request mailed from the court administrator 
within ten days, then you may want to personally deliver a copy 
of the request to the financial institution after you have filed 
your request with the court.  
    4.  An order stating whether your funds are exempt shall be 
issued by the court within three days of the date of the hearing.
    If you do not file a Request for Hearing within ten days of 
the date you receive this objection, your financial institution 
may turn your funds over to your creditor. 
    If you file a Request for Hearing and your financial 
institution receives it within ten days of the date it received 
this objection, your financial institution will retain your 
funds claimed to be exempt until otherwise ordered by the court. 
                                   ............................
                                   Judgment Creditor or Attorney
    Subd. 8.  [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 
request for hearing accompanying the objection notice must be in 
substantially the following form: 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ........                  ........JUDICIAL DISTRICT
..................(Judgment Creditor)    REQUEST FOR HEARING
..................(Judgment Debtor)             AND
..................(Third Party)          NOTICE FOR HEARING
    I hereby request a hearing to resolve the exemption claim 
which has been made in this case regarding funds in the account 
of ............. (Judgment Debtor) at the ......... (Financial 
Institution). 
    I believe the property being held is exempt because 
.................................................................
.................................................................
Dated:...........................................................
                                          (JUDGMENT DEBTOR)
                                          ...................
                                          (ADDRESS)
                                          ...................
HEARING DATE:  ................    TIME:  ...................
HEARING PLACE:  ...............
    (Note to both parties:  Bring with you to the hearing all 
documents and materials relevant to the exemption claim and 
objection.  Failure to do so could delay the court's decision.) 
    Subd. 9.  [RELEASE OF FUNDS.] At any time during the 
procedure specified in this section, the judgment debtor or the 
judgment creditor may, by a writing dated after the service of 
the execution, direct the sheriff to release the funds in 
question to the other party.  Upon receipt of a release, the 
sheriff shall release the funds as directed. 
    Subd. 10.  [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIMS.] If 
in subsequent proceedings brought by the judgment debtor or the 
judgment creditor, the claim of exemption is not upheld, and the 
court finds that it was asserted in bad faith, the judgment 
creditor shall be awarded actual damages, costs, and reasonable 
attorney fees resulting from the additional proceedings, and an 
amount not to exceed $100.  If the claim of exemption is upheld, 
and the court finds that the judgment creditor disregarded the 
claim of exemption in bad faith, the judgment debtor shall be 
awarded costs, reasonable attorney fees, actual damages, and an 
amount not to exceed $100.  The underlying judgment must be 
modified to reflect assessment of damages, costs, and attorney 
fees.  However, if the party in whose favor a penalty assessment 
is made is not actually indebted to the party's attorney for 
fees, the attorney's fee award shall be made directly to the 
attorney and, if not paid, an appropriate judgment in favor of 
the attorney shall be entered.  Upon motion of any party in 
interest, on notice, the court shall determine the validity of 
any claim of exemption, and may make any order necessary to 
protect the rights of those interested.  No financial 
institution is liable for damages for complying with this 
section.  Both copies of an exemption claim or an objection to 
an exemption claim must be mailed or delivered on the same 
date.  The financial institution may rely on the date of mailing 
or delivery of a notice to it in computing any time periods in 
this section.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 5 are effective October 1, 1990, and apply to 
executions begun on or after that date. 

                               ARTICLE 2

                     ATTORNEY'S SUMMARY EXECUTIONS
    Section 1.  [551.01] [ATTORNEY'S SUMMARY EXECUTION OF 
JUDGMENT DEBTS; WHEN AUTHORIZED.] 
    An attorney for a judgment creditor may execute on a money 
judgment by levying on indebtedness owed to the judgment debtor 
by a third party, pursuant to this chapter.  The attorney for 
the judgment creditor must obtain a writ of execution issued 
under section 550.04 before the attorney can execute pursuant to 
this chapter.  No more than $5,000 may be recovered by a single 
execution levy pursuant to this section.  
    Sec. 2.  [551.02] [SCOPE OF GENERAL AND SPECIFIC 
PROVISIONS.] 
    General provisions and definitions relating to attorney's 
summary execution, as authorized in this chapter, are set forth 
in sections 551.03 and 551.04.  Specific provisions relating to 
attorney's summary execution on funds at a financial institution 
are set forth in section 551.05.  Specific provisions relating 
to attorney's summary execution of earnings are set forth in 
section 551.06.  When an attorney is levying against either 
funds at a financial institution or earnings, the specific 
provisions of section 551.05 or 551.06 must be complied with in 
addition to the general provisions set forth in sections 551.03 
and 551.04.  Provisions contained in the statutory forms are 
incorporated in this chapter and have the same force of law as 
any other provisions in this chapter. 
    Sec. 3.  [551.03] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
the terms defined in this section have the meanings given them.  
    Subd. 2.  [JUDGMENT CREDITOR.] "Judgment creditor" means a 
party who has a judgment for the recovery of money in the civil 
action whether that party is the plaintiff, defendant, or other 
party in the civil action and who is serving the execution levy. 
    Subd. 3.  [JUDGMENT DEBTOR.] "Judgment debtor" means a 
party against whom the judgment creditor has a judgment for the 
recovery of money in the civil action whether that party is the 
plaintiff, defendant, or other party in the civil action.  
    Subd. 4.  [THIRD PARTY.] "Third party" means the person or 
entity upon whom the execution levy is served. 
    Subd. 5.  [CLAIM.] "Claim" means the unpaid balance of the 
creditor's judgment against the judgment debtor, including all 
lawful interest and costs incurred.  
    Sec. 4.  [551.04] [GENERAL PROVISIONS.] 
    Subdivision 1.  [RULES OF CIVIL PROCEDURE.] Unless this 
chapter specifically provides otherwise, the Minnesota Rules of 
Civil Procedure for the District Courts shall apply in all 
proceedings under this chapter.  
    Subd. 2.  [PROPERTY ATTACHABLE.] Subject to the exemptions 
provided by subdivision 3 and section 550.37, and any other 
applicable statute, the service of a writ of execution under 
this chapter attaches: 
    (a) All unpaid nonexempt disposable earnings owing or to be 
owed by the third party and earned or to be earned by the 
judgment debtor within the pay period in which the writ of 
execution is served and within all subsequent pay periods whose 
paydays occur within the 70 days after the date of service of 
the writ of execution.  "Payday" means the day upon which the 
third party pays earnings to the judgment debtor in the ordinary 
course of business.  If the judgment debtor has no regular 
paydays, payday means the 15th day and the last day of each 
month. 
    (b) All other nonexempt indebtedness or money due or 
belonging to the judgment debtor and owing by the third party or 
in the possession or under the control of the third party at the 
time of service of the writ of execution, whether or not the 
same, has become payable.  The third party shall not be 
compelled to pay or deliver the same before the time specified 
by any agreement unless the agreement was fraudulently 
contracted to defeat an execution levy or other collection 
remedy. 
     Subd. 3.  [PROPERTY NOT ATTACHABLE.] The following property 
is not subject to attachment by a writ of execution served 
pursuant to this chapter: 
    (1) any indebtedness or money due to the judgment debtor, 
unless at the time of the service of the writ of execution the 
same is due absolutely or does not depend upon any contingency; 
    (2) any judgment owing by the third party to the judgment 
debtor, if the third party or the third party's property is 
liable on an execution levy upon the judgment; 
    (3) any debt owing by the third party to the judgment 
debtor for which any negotiable instrument has been issued or 
endorsed by the third party; 
    (4) any indebtedness or money due to the judgment debtor 
where the judgment debtor is a bank, savings bank, trust 
company, credit union, savings and loan association, or 
industrial loan and thrift company with deposit liabilities; 
    (5) any indebtedness or money due to the judgment debtor 
with a cumulative value of less than $10; and 
    (6) any disposable earnings, indebtedness, or money that is 
exempt under Minnesota or federal law. 
    Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
DISCLOSURE FORMS.] When levying upon money or earnings owed to 
the judgment debtor by a third party, the attorney for the 
judgment creditor shall serve a copy of the writ of execution 
upon the third party either by registered or certified mail, or 
by personal service.  Along with a copy of the writ of 
execution, the attorney shall serve upon the third party a 
notice of third party levy and disclosure form that must be 
substantially in the form set forth below.  If the levy is upon 
earnings, the attorney shall serve upon the third party the 
notice of third party levy and disclosure form as set forth in 
section 551.06, subdivision 9. 
STATE OF MINNESOTA                             DISTRICT COURT 
County of .............           ..........JUDICIAL DISTRICT
                                  File No. .................. 
..............(Judgment Creditor) 
against                                 NOTICE OF THIRD PARTY 
..............(Judgment Debtor)         LEVY AND DISCLOSURE 
and                                     (OTHER THAN EARNINGS)
..............(Third Party)
    PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
chapter 551, the undersigned, as attorney for the judgment 
creditor, hereby makes demand and levies execution upon all 
money due and owing by you (up to $5,000) to the judgment debtor 
for the amount of the judgment specified below.  A copy of the 
writ of execution issued by the court is enclosed.  The unpaid 
judgment balance is $.......  
    In responding to this levy, you are to complete the 
attached disclosure form and mail it to the undersigned attorney 
for the judgment creditor, together with your check payable to 
the above-named judgment creditor, for the nonexempt amount owed 
by you to the judgment debtor or for which you are obligated to 
the judgment debtor, within the time limits set forth in chapter 
551. 
    If you are a financial institution and the judgment debtor 
is a natural person, two exemption notices are also enclosed 
pursuant to Minnesota Statutes, section 551.02.  Only natural 
persons are entitled to exemptions under this statute. 
                         Attorney for the Judgment Creditor
                         Address 
                         (...........)
                         Phone number 
 DISCLOSURE
    On the ..... day of ............., 19.., the time of 
service of the execution levy herein, there was due and owing 
the judgment debtor from the third party the following:  
    (1) Money.  Enter on the line below any amounts due and 
owing the judgment debtor, except earnings, from the third party.
....................................................... 
    (2) Setoff.  Enter on the line below the amount of any 
setoff, defense, lien, or claim which the third party claims 
against the amount set forth on line (1).  State the facts by 
which such setoff, defense, lien, or claim is claimed.  (Any 
indebtedness to you incurred by the judgment debtor within ten 
days prior to the receipt of the first execution levy on a debt 
may not be claimed as a setoff, defense, lien, or claim against 
the amount set forth on line (1).) 
.............................................. 
    (3) Exemption.  Enter on the line below any amounts or 
property claimed by the judgment debtor to be exempt from 
execution.  
.............................................. 
    (4) Adverse Interest.  Enter on the line below any amounts 
claimed by other persons by reason of ownership or interest in 
the judgment debtor's property.  
.............................................. 
    (5) Enter on the line below the total of lines (2), (3), 
and (4).  
................................................... 
    (6) Enter on the line below the difference obtained (never 
less than zero when line (5) is subtracted from the amount on 
line (1).) 
..................................................... 
    (7) Enter on the line below 100 percent of the amount of 
the judgment creditor's claim which remains unpaid.  
..................................................... 
    (8) Enter on the line below the lessor of line (6) and line 
(7).  You are hereby instructed to remit this amount only if it 
is $10 or more.  
..................................................... 
 AFFIRMATION 
    I, ....................... (person signing Affirmation) am 
the third party or I am authorized by the third party to 
complete this nonearnings disclosure, and have done so 
truthfully and to the best of my knowledge.  
Dated:  ................                     ..................
                                             Signature
                                             ..................
                                             Title
                                             ..................
                                             Telephone Number
    Subd. 5.  [THIRD PARTY FEES.] If the levy is upon earnings 
or upon funds at a financial institution, the third party shall 
be paid a $15 fee at the time of the service of the writ of 
execution.  Failure to pay the fee renders the levy void, and 
the third party shall take no action.  The $15 shall not be paid 
where the funds being levied on are being held pursuant to a 
garnishment previously served in compliance with chapter 571.  
This fee may be recovered by the judgment creditor as an 
allowable disbursement.  If a third party is required to appear 
and submit to oral examination, the third party shall be 
tendered, in advance of the examination, fees and mileage for 
attendance at the rate allowed by law to a witness.  These fees 
may be recovered by the judgment creditor as an allowable 
disbursement.  In extraordinary cases, the third party may be 
allowed additional sums the court considers reasonable for 
attorney's fees and other necessary expenses.  The court shall 
then determine which party bears the burden of this expense. 
    Subd. 6.  [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 
15 days after receipt of the writ of execution, unless governed 
by section 551.05 or 551.06, the third party shall disclose and 
remit to the judgment creditor's attorney as much of the amount 
due under section 550.04, but not more than $5,000, as the third 
party's own debt equals to the judgment debtor.  The attorney 
for the judgment creditor shall proceed in all other respects 
like the sheriff making a similar execution levy.  No more than 
$5,000 may be recovered by a single execution levy pursuant to 
this section.  
    Subd. 7.  [ORAL DISCLOSURE.] Before or after the service of 
a written disclosure by a third party under subdivision 6, upon 
a showing by affidavit upon information and belief that an oral 
examination of the third party would provide a complete 
disclosure of relevant facts, any party to the execution 
proceedings may obtain an ex parte order requiring the third 
party, or a representative of the third party designated by name 
or by title, to appear for oral examination before the court or 
a referee appointed by the court.  Notice of the examination 
must be given to all parties. 
    Subd. 8.  [SUPPLEMENTAL COMPLAINT.] If a third party holds 
property, money, earnings, or other indebtedness by a title that 
is void as to the judgment debtor's creditors, the property may 
be levied on although the judgment debtor would be barred from 
maintaining an action to recover the property, money, earnings, 
or other indebtedness.  In this and all other cases where the 
third party denies liability, the judgment creditor may move the 
court at any time before the third party is discharged, on 
notice to both the judgment debtor and the third party for an 
order making the third party a party to the supplemental action 
and granting the judgment creditor leave to file a supplemental 
complaint against the third party and the judgment debtor.  The 
supplemental complaint shall set forth the facts upon which the 
judgment creditor claims to charge the third party.  If probable 
cause is shown, the motion shall be granted.  The supplemental 
complaint shall be served upon the third party and the judgment 
debtor and any other parties.  The parties served shall answer 
or respond pursuant to the Minnesota Rules of Civil Procedure 
for the District Courts, and if they fail to do so, judgment by 
default may be entered against them. 
    Subd. 9.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
DISCLOSE OR REMIT.] Judgment may be entered against a third 
party who has been served with a writ of execution and fails to 
disclose or remit the levied funds as required in this chapter.  
Upon order to show cause served on the third party and notice of 
motion supported by affidavit of facts and affidavit of service 
upon both the judgment debtor and third party, the court may 
render judgment against the third party for an amount not 
exceeding 100 percent of the amount claimed in the execution or 
$5,000, whichever is less.  Judgment against the third party 
pursuant to this section shall not bar the judgment creditor 
from further remedies under this chapter as a result of any 
subsequent defaults by the third party.  The court upon good 
cause shown may remove the default and permit the third party to 
disclose or remit on just terms.  
    Subd. 10.  [COSTS; SATISFACTION.] Except as provided for in 
subdivision 5, neither the judgment creditor nor its attorney 
shall be allowed costs from any party other than the judgment 
creditor for a levy in accordance with this section.  Upon 
expiration, the attorney making the execution shall endorse on 
the writ partial satisfaction by amount or the total 
satisfaction and return the original writ of execution to the 
court administrator of that court, pursuant to section 550.051, 
subdivision 2, for filing without charge.  
    Subd. 11.  [FORMS.] No judgment creditor shall use a form 
that contains alterations or changes from the statutory forms 
that mislead judgment debtors as to their rights and the 
execution procedure generally.  If a court finds that a judgment 
creditor has used a misleading form, the judgment debtor shall 
be awarded actual damages, costs, reasonable attorney's fees 
resulting from additional proceedings, and an amount not to 
exceed $100.  All forms must be clearly legible and printed in 
not less than the equivalent of 10-point type.  A form that uses 
both sides of a sheet must clearly indicate on the front side 
that there is additional information on the back side of the 
sheet.  
    Subd. 12.  [THIRD PARTY GOOD FAITH REQUIREMENT.] The third 
party is not liable to the judgment debtor, judgment creditor, 
or other person for wrongful retention if the third party 
retains or remits disposable earnings, indebtedness, or money of 
the judgment debtor or any other person, pending the third 
party's disclosure or consistent with the disclosure the third 
party makes, if the third party has a good faith belief that the 
property retained or remitted is subject to the execution.  In 
addition, the third party may, at any time before or after 
disclosure, proceed under Rule 67 of the Minnesota Rules of 
Civil Procedure for the District Courts to make deposit into 
court.  No third party is liable for damages if the third party 
complies with the provisions of this chapter. 
    Subd. 13.  [BAD FAITH CLAIM.] If, in a proceeding brought 
under section 551.05, subdivision 8, or a similar proceeding 
under this chapter to determine a claim of exemption, the claim 
of exemption is not upheld, and the court finds that it was 
asserted in bad faith, the judgment creditor shall be awarded 
actual damages, costs, reasonable attorney's fees resulting from 
the additional proceedings, and an amount not to exceed $100.  
If the claim of exemption is upheld, and the court finds that 
the judgment creditor disregarded the claim of exemption in bad 
faith, the judgment debtor shall be awarded actual damages, 
costs, reasonable attorney's fees resulting from the additional 
proceedings, and an amount not to exceed $100.  The underlying 
judgment shall be modified to reflect assessment of damages, 
costs, and attorney's fees.  However, if the party in whose 
favor a penalty assessment is made is not actually indebted to 
that party's attorney for fees, the attorney's fee award shall 
be made directly to the attorney, and if not paid, an 
appropriate judgment in favor of the attorney shall be entered.  
Any action by a judgment creditor made in bad faith and in 
violation of this chapter renders the execution levy void and 
the judgment creditor liable to the judgment debtor named in the 
execution levy in the amount of $100, actual damages, and 
reasonable attorney's fees and costs. 
    Subd. 14.  [DISCHARGE OF A THIRD PARTY.] Subject to 
subdivisions 6 and 15, the third party, after disclosure, shall 
be discharged of any further obligation to the judgment creditor 
earnings when one of the following conditions is met: 
    (a) The third party discloses that the third party is not 
indebted to the judgment debtor or does not possess any 
earnings, property, money, or indebtedness belonging to the 
judgment debtor that is attachable as defined in subdivision 2.  
The disclosure is conclusive against the judgment creditor and 
discharges the third party from any further obligation to the 
judgment creditor other than to retain and remit all nonexempt 
disposable earnings, property, indebtedness, or money of the 
judgment debtor which was disclosed. 
    (b) The third party discloses that the third party is 
indebted to the judgment debtor as indicated on the execution 
disclosure form.  The disclosure is conclusive against the 
judgment creditor and discharges the third party from any 
further obligation to the judgment creditor other than to retain 
and remit all nonexempt disposable earnings, property, 
indebtedness, or money of the judgment debtor that was disclosed.
    (c) The court may, upon motion of an interested person, 
discharge the third party as to any disposable earnings, money, 
property, or indebtedness in excess of the amount that may be 
required to satisfy the judgment creditor's claim. 
    Subd. 15.  [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 
third party is not discharged if: 
    (a) Within 20 days of the service of the third party's 
disclosure, an interested person serves a motion relating to the 
execution levy.  The hearing on the motion must be scheduled to 
be heard within 30 days of the service of the motion. 
    (b) The judgment creditor moves the court for leave to file 
a supplemental complaint against the third party, as provided 
for in subdivision 8, and the court upon proper showing vacates 
the discharge of the third party. 
    Subd. 16.  [JOINDER AND INTERVENTION BY PERSONS IN 
INTEREST.] If it appears that a person, who is not a party to 
the action, has or claims an interest in any of the disposable 
earnings, other indebtedness, or money, the court shall permit 
that person to intervene or join in the execution proceeding 
under this chapter.  If that person does not appear, the court 
may summon that person to appear or order the claim barred.  The 
person so appearing or summoned shall be joined as a party and 
be bound by the judgment. 
     Subd. 17.  [APPEAL.] A party to an execution proceeding 
aggrieved by an order or final judgment may appeal as in other 
civil cases. 
    Sec. 5.  [551.05] [ATTORNEY'S SUMMARY EXECUTION UPON FUNDS 
AT A FINANCIAL INSTITUTION.] 
    When levying upon funds at a financial institution, this 
section must be complied with, in addition to the general 
provisions specified in section 551.04. 
    Subdivision 1.  [EXEMPTION NOTICE.] If the writ of 
execution is being used by the attorney to levy funds of a 
judgment debtor who is a natural person and if the funds to be 
levied are held on deposit at any financial institution, the 
attorney for the judgment creditor shall serve with the writ of 
execution two copies of an exemption notice.  The notice must be 
substantially in the form set forth below.  Failure of the 
attorney for the judgment creditor to send the exemption notice 
renders the execution levy void, and the financial institution 
shall take no action.  However, if this subdivision is being 
used to execute on funds that have previously been garnished in 
compliance with section 571.71, the attorney for judgment 
creditor is not required to serve an additional exemption 
notice.  In that event, the execution levy shall only be 
effective as to the funds that were subject to the prior 
garnishment.  Upon receipt of the writ of execution and 
exemption notices, the financial institution shall retain as 
much of the amount due under section 550.04 as the financial 
institution has on deposit owing to the judgment debtor, but not 
more than 100 percent of the amount remaining due on the 
judgment, or $5,000, whichever is less.  
    The notice informing a judgment debtor that an execution 
levy has been used to attach funds of the judgment debtor to 
satisfy a claim, must be substantially in the following form: 
STATE OF MINNESOTA                             DISTRICT COURT 
County of ................         .........JUDICIAL DISTRICT 
................(Judgment Creditor)
................(Judgment Debtor) 
TO:  Judgment Debtor                 EXEMPTION NOTICE 
    An order for attachment, garnishment summons, or levy of 
execution (strike inapplicable language) has been served on 
............. (Bank or other financial institution where you 
have an account.)  
    Your account balance is $........  
    The amount being held is $........  
    However, all or a portion of the funds, in your account 
will normally be exempt from creditors' claims if they are in 
one of the following categories:  
    (1) relief based on need.  This includes:  Aid to Families 
with Dependent Children (AFDC), AFDC-Emergency Assistance 
(AFDC-EA), Medical Assistance (MA), General Assistance (GA), 
General Assistance Medical Care (GAMC), Emergency General 
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
Income (SSI), and Energy Assistance; 
    (2) Social Security benefits (Old Age, Survivors, or 
Disability Insurance); 
    (3) unemployment compensation, workers' compensation, or 
veterans' benefits; 
    (4) an accident, disability, or retirement pension or 
annuity; 
    (5) life insurance proceeds; 
    (6) the earnings of your minor child; or 
    (7) money from a claim for damage or destruction of exempt 
or property (such as household goods, farm tools, business 
equipment, a mobile home, or a car.)  
    The following funds are also exempt: 
    (8) all earnings of a person in category (1); 
    (9) all earnings of a person who has received relief based 
on need, or who has been an inmate of a correctional 
institution, within the last six months; 
    (10) 75 percent of every judgment debtor's after tax 
earnings; or 
    (11) all of a judgment debtor's after tax earnings below 40 
times the federal minimum wage.  
    TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
    Categories (10) and (11):  20 days 
    Categories (8) and (9):  60 days 
    All others:  no time limit, as long as funds are traceable 
to the exempt source.  (In tracing funds, the first-in, 
first-out method is used.  This means money deposited first is 
spent first.)  The money being sought by the judgment creditor 
is being held in your account to give you a chance to claim an 
exemption. 
    TO CLAIM AN EXEMPTION:  
    Fill out, sign, and mail or deliver one copy of the 
attached exemption claim form to the institution which sent you 
this notice and mail or deliver one copy to the judgment 
creditor's attorney.  The address for the judgment creditor's 
attorney is set forth below.  Both copies must be mailed or 
delivered on the same day.  
    If they do not get the exemption claim back from you within 
14 days of the date they mailed or gave it to you, they will be 
free to turn the money over to the attorney for the judgment 
creditor.  If you are going to claim an exemption, do so as soon 
as possible, because your money may be held until it is decided. 
    IF YOU CLAIM AN EXEMPTION:  
    (1) nonexempt money can be turned over to the judgment 
creditor or sheriff; 
    (2) the financial institution will keep holding the money 
claimed to be exempt; and 
    (3) seven days after receiving your exemption claim, the 
financial institution will release the money to you unless 
before then it receives an objection to your exemption claim.  
    IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
    the institution will hold the money until a court decides 
if your exemption claim is valid, BUT ONLY IF the institution 
gets a copy of your court motion papers asserting the exemption 
WITHIN TEN DAYS after the objection is mailed or given to you.  
You may wish to consult an attorney at once if the judgment 
creditor objects to your exemption claim.  
    MOTION TO DETERMINE EXEMPTION:  
    At any time after your funds have been held, you may ask 
for a court decision on the validity of your exemption claim by 
filing a request for hearing which may be obtained at the office 
of the clerk of the above court. 
    PENALTIES:  
    If you claim an exemption in bad faith, or if the judgment 
creditor wrongly objects to an exemption in bad faith, the court 
may order the person who acted in bad faith to pay costs, actual 
damages, attorney fees, and an additional amount of up to $100.  
                               ............................. 
                               ............................. 
                               ............................. 
                               ............................. 
                               Name and address of (Attorney 
                               for) Judgment Creditor 
    EXEMPTION:  
    (a) Amount of exemption claim.  
    / / I claim ALL the funds being held are exempt.  
    / / I claim SOME of the funds being held are exempt.  
         The exempt amount is $............  
    (b) Basis for exemption.  
    Of the 11 categories listed above, I am in category number 
............  (If more than one category applies, you may fill 
in as many as apply.)  The source of the exempt funds is the 
following:  
.............................................................
.............................................................
.............................................................
    (If the source is a type of relief based on need, list the 
case number and county:  
    case number:  ...............; 
    county:  ....................) 
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above named judgment creditor's attorney only 
whether or not I am or have been a recipient of relief based on 
need or an inmate of a correctional institute within the last 
six months.  
    I have mailed or delivered a copy of the exemption notice 
to the judgment creditor's attorney.  
                             .............................
                             DEBTOR
DATED:  .............        .............................
                             .............................
                             .............................
                             DEBTOR ADDRESS 
    Subd. 2.  [EFFECT OF EXEMPTION NOTICE.] Within two business 
days after receipt of the execution levy and exemption notices, 
the financial institution shall serve upon the judgment debtor 
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 debtor.  If no claim of exemption is 
received by the financial institution within 14 days after the 
exemption notices are mailed to the judgment debtor, the funds 
remain subject to the execution levy and shall be remitted to 
the judgment creditor's attorney within seven 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.  Failure of the judgment debtor to deliver 
the executed exemption notice 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 seven 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. 
    Subd. 3.  [OBJECTION TO EXEMPTION CLAIM.] Objection shall 
be interposed by mailing or delivering one copy of the written 
objection to the financial institution and one copy of the 
written objection to the judgment debtor along with a copy of 
the judgment debtor's claimed exemption form.  Both copies of an 
objection to an exemption claim shall be mailed or delivered on 
the same date.  The financial institution may rely on the date 
of mailing or delivery of a notice to it in computing any time 
periods in this section.  The written objection must be 
substantially in the form specified in subdivision 5.  
    Subd. 4.  [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 
MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 
from the judgment creditor within the specified seven-day 
period, the financial institution shall retain the funds claimed 
to be exempt.  Unless the financial institution receives a 
request for hearing and notice of hearing from the judgment 
debtor asserting exemption rights within ten days after receipt 
of a written objection to the exemption, the funds remain 
subject to the execution levy as if no claim of exemption had 
been made and shall be remitted to the judgment creditor's 
attorney within seven days.  If a request for hearing and notice 
of hearing to determine the validity of a claim of exemption is 
received by the financial institution within the period 
provided, it shall retain the funds claimed to be exempt until 
otherwise ordered by the court.  
    Subd. 5.  [NOTICE OF OBJECTION.] (a) The written objection 
to the judgment debtor's claim of exemption must be in 
substantially the following form:  
STATE OF MINNESOTA                              DISTRICT COURT
County of ...............          ..........JUDICIAL DISTRICT
.................(Judgment Creditor)         OBJECTION TO
.................(Judgment Debtor)           EXEMPTION CLAIM 
.................(Garnishee) (Third Party)
    The judgment creditor objects to your claim for exemption 
from garnishment, levy of execution, order for attachment 
(strike inapplicable language) for the following reason(s):  
.................................................................
.................................................................
.................................................................
    Because of this objection, your financial institution will 
retain the funds you claimed to be exempt for an additional ten 
days.  If you wish to request a hearing on your exemption claim, 
you should do so within ten days of your receipt of this 
objection.  You may request a hearing by completing the attached 
form and filing it with the court administrator.  
    1.  The court administrator's office shall provide clerical 
assistance to help with the writing and filing of a Request for 
Hearing by any person not represented by counsel.  The court 
administrator may charge a fee of $1 for the filing of a Request 
for Hearing.  
    2.  Upon the filing of a Request for Hearing, the clerk 
shall schedule the matter for a hearing no later than five 
business days from the date of filing.  The court administrator 
shall forthwith send a completed copy of the request, including 
the hearing date, time and place to the adverse party and to the 
financial institution by first class mail.  
    3.  If it is possible that the financial institution might 
not receive the request mailed from the court administrator 
within ten days, then you may want to personally deliver a copy 
of the request to the financial institution after you have filed 
your request with the court.  
    4.  An order stating whether your funds are exempt shall be 
issued by the court within three days of the date of the hearing.
    If you do not file a Request for Hearing within ten days of 
the date you receive this objection, your financial institution 
may turn your funds over to your judgment creditor. 
    If you file a Request for Hearing and your financial 
institution receives it within ten days of the date it received 
this objection, your financial institution will retain your 
funds claimed to be exempt until otherwise ordered by the court. 
                                .............................. 
                                Attorney for Judgment Creditor 
    Subd. 6.  [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 
request for hearing accompanying the objection notice must be in 
substantially the following form: 
STATE OF MINNESOTA                           DISTRICT COURT
County of ........               .........JUDICIAL DISTRICT
..................(Judgment Creditor)   REQUEST FOR HEARING
..................(Judgment Debtor)   AND NOTICE FOR HEARING
..................(Garnishee)(Third Party)
    I hereby request a hearing to resolve the exemption claim 
which has been made in this case regarding funds in the account 
of ............. (Judgment Debtor) at the ......... (Financial 
Institution). 
    I believe the property being held is exempt because 
.................................................................
.................................................................
Dated:  ...............                   .......................
                                          (JUDGMENT DEBTOR)
                                          .......................
                                          (ADDRESS) 
                                          .......................
HEARING DATE:  ................    TIME:  ...................
HEARING PLACE:  ...............
    (Note to both parties:  Bring with you to the hearing all 
documents and materials relevant to the exemption claim and 
objection.  Failure to do so could delay the court's decision.) 
    Subd. 7.  [RELEASE OF FUNDS.] At any time during the 
procedure specified in this section, the judgment debtor or the 
attorney for the judgment creditor may, by a writing dated after 
the service of the writ of execution, direct the financial 
institution to release the funds in question to the other 
party.  Upon receipt of a release, the financial institution 
shall release the funds as directed. 
    Subd. 8.  [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIMS.] If in 
subsequent proceedings brought by the judgment debtor or the 
judgment creditor, the claim of exemption is not upheld, and the 
court finds that it was asserted in bad faith, the judgment 
creditor shall be awarded actual damages, costs, and reasonable 
attorney fees resulting from the additional proceedings, and an 
amount not to exceed $100.  If the claim of exemption is upheld, 
and the court finds that the judgment creditor disregarded the 
claim of exemption in bad faith, the judgment debtor shall be 
awarded costs, reasonable attorney fees, actual damages, and an 
amount not to exceed $100.  The underlying judgment must be 
modified to reflect assessment of damages, costs, and attorney 
fees.  However, if the party in whose favor a penalty assessment 
is made is not actually indebted to the party's attorney for 
fees, the attorney's fee award shall be made directly to the 
attorney and if not paid, an appropriate judgment in favor of 
the attorney shall be entered.  Upon motion of any party in 
interest, on notice, the court shall determine the validity of 
any claim of exemption, and may make any order necessary to 
protect the rights of those interested.  No financial 
institution is liable for damages for complying with this 
section.  Both copies of an exemption claim or an objection to 
an exemption claim must be mailed or delivered on the same 
date.  The financial institution may rely on the date of mailing 
or delivery of a notice to it in computing any time periods in 
this section.  
    Sec. 6.  [551.06] [ATTORNEY'S SUMMARY EXECUTION UPON 
EARNINGS.] 
    Subdivision 1.  [PROCEDURE.] When earnings are levied upon 
this section must be complied with, in addition to the general 
provisions specified in section 551.04.  
    Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
following terms have the meanings given them: 
    (a) "earnings" means: 
    (1) compensation paid or payable to an employee for 
personal service whether denominated as wages, salary, 
commissions, bonus, or otherwise, and includes periodic payments 
pursuant to a pension or retirement program; or 
    (2) compensation paid or payable to the producer for the 
sale of agricultural products; livestock or livestock products; 
milk or milk products; or fruit or other horticultural products 
produced when the producer is operating a family farm, a family 
farm corporation, or an authorized farm corporation, as defined 
in section 500.24, subdivision 2; 
    (b) "disposable earnings" means that part of the earnings 
of an individual remaining after the deduction from those 
earnings of amounts required by law to be withheld; 
    (c) "employee" means an individual who performs services 
subject to the right of the employer to control both what is 
done and how it is done; and 
    (d) "employer" means a person for whom an individual 
performs services as an employee. 
    Subd. 3.  [LIMITATION ON LEVY ON EARNINGS.] Unless the 
judgment is for child support, the maximum part of the aggregate 
disposable earnings of an individual for any pay period 
subjected to an execution levy may not exceed the lesser of: 
    (1) 25 percent of the judgment debtor's disposable 
earnings; or 
    (2) the amount by which the judgment debtor's disposable 
earnings exceed the following product:  40 times the federal 
minimum hourly wages prescribed by section 6(a)(1) of the Fair 
Labor Standards Act of 1938, United States Code, title 29, 
section 206(a)(1), in effect at the time the earnings are 
payable, times the number of work weeks in the pay period.  When 
a pay period consists of other than a whole number of work 
weeks, each day of that pay period in excess of the number of 
completed work weeks shall be counted as a fraction of a work 
week equal to the number of excess work days divided by the 
number of days in the normal work week. 
    If the judgment is for child support, the levy may not 
exceed: 
    (1) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (2) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received); 
    (3) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (4) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received). 
    No court may make, execute, or enforce an order or any 
process in violation of this section. 
    Subd. 4.  [MULTIPLE LEVIES ON EARNINGS.] Except as 
otherwise provided in this chapter or section 518.611, 
subdivision 6, the priority of multiple earnings execution 
levies is determined by the order in which the execution levies 
were served on the employer.  If the employer is served with two 
or more writs of execution at the same time on the same day, the 
writ of execution issued pursuant to the first judgment entered 
has priority.  If two or more execution levies are served on the 
same day, and are based on judgments entered on the same day, 
then the employer shall select the priority of the earnings 
levies.  However, in all cases, the execution levies shall be 
effective no longer than 70 days from the date of the service of 
the writ of execution. 
    Subd. 5.  [EARNINGS ATTACHABLE.] Subject to the exemptions 
provided by sections 550.37 and 551.06, subdivision 3, and any 
other applicable statute, the service of a writ of execution 
under this chapter attaches all unpaid nonexempt disposable 
earnings owing or to be owed by the third party and earned or to 
be earned by the judgment debtor before and within the pay 
period in which the writ of execution is served and within all 
subsequent pay periods whose paydays occur within the 70 days 
after the date of service of the writ of execution.  "Paydays" 
means the days upon which the third party pays earnings to the 
judgment debtor in the ordinary course of business.  If the 
judgment debtor has no regular paydays, paydays means the 15th 
day and the last day of each month.  If the levy attaches less 
than $10, the third party shall not retain and remit the sum.  
    Subd. 6.  [EARNINGS EXEMPTION NOTICE.] Before the first 
levy on earnings, the attorney for the judgment creditor shall 
serve upon the judgment debtor no less than ten days before the 
service of the writ of execution, a notice that the writ of 
execution may be served on the judgment debtor's employer.  The 
notice must:  (1) be substantially in the form set forth below; 
(2) be served personally, in the manner of a summons and 
complaint, or by first class mail to the last known address of 
the judgment debtor; (3) inform the judgment debtor that an 
execution levy may be served on the judgment debtor's employer 
in ten days, and that the judgment debtor may, within that time, 
cause to be served on the judgment creditor's attorney a signed 
statement under penalties of perjury asserting an entitlement to 
an exemption from execution; (4) inform the judgment debtor of 
the earnings exemptions contained in section 550.37, subdivision 
14; and (5) advise the judgment debtor of the relief set forth 
in this chapter to which the judgment debtor may be entitled if 
a judgment creditor in bad faith disregards a valid claim and 
the fee, costs, and penalty that may be assessed against a 
judgment debtor who in bad faith falsely claims an exemption or 
in bad faith takes action to frustrate the execution process.  
The notice requirement of this subdivision does not apply to a 
levy on earnings being held by an employer pursuant to a 
garnishment summons served in compliance with chapter 571.  
    The ten-day notice informing a judgment debtor that a writ 
of execution may be used to levy the earnings of an individual 
must be substantially in the following form: 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF .............         ........... JUDICIAL DISTRICT
............(Judgment Creditor)
against
                                   EXECUTION EXEMPTION 
                                   NOTICE AND NOTICE OF 
............(Judgment Debtor)      INTENT TO LEVY ON EARNINGS 
and                                WITHIN TEN DAYS 
............(Third Party)
 THE STATE OF MINNESOTA 
 TO THE ABOVE-NAMED JUDGMENT DEBTOR 
    PLEASE TAKE NOTICE that a levy may be served upon your 
employer or other third parties, without any further court 
proceedings or notice to you, ten days or more from the date 
hereof.  Your earnings are completely exempt from execution levy 
if you are now a recipient of relief based on need, if you have 
been a recipient of relief within the last six months, or if you 
have been an inmate of a correctional institution in the last 
six months. 
    Relief based on need includes Aid to Families with 
Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA), 
Medical Assistance (MA), General Assistance (GA), General 
Assistance Medical Care (GAMC), Emergency General Assistance 
(EGA), Work Readiness, Minnesota Supplemental Aid (MSA), MSA 
Emergency Assistance (MSA-EA), Supplemental Security Income 
(SSI), and Energy Assistance. 
    If you wish to claim an exemption, you should fill out the 
appropriate form below, sign it, and send it to the judgment 
creditor's attorney. 
    You may wish to contact the attorney for the judgment 
creditor in order to arrange for a settlement of the debt or 
contact an attorney to advise you about exemptions or other 
rights. 
 PENALTIES
 (1) Be advised that even if you claim an exemption, an 
execution levy may still be served on your employer.  If 
your earnings are levied on after you claim an exemption, 
you may petition the court for a determination of your 
exemption.  If the court finds that the judgment creditor 
disregarded your claim of exemption in bad faith, you will 
be entitled to costs, reasonable attorney fees, actual 
damages, and an amount not to exceed $100. 
 (2) HOWEVER, BE WARNED if you claim an exemption, the 
judgment creditor can also petition the court for a 
determination of your exemption, and if the court finds 
that you claimed an exemption in bad faith, you will be 
assessed costs and reasonable attorney's fees plus an 
amount not to exceed $100. 
 (3) If after receipt of this notice, you in bad faith take 
action to frustrate the execution levy, thus requiring the 
judgment creditor to petition the court to resolve the 
problem, you will be liable to the judgment creditor for 
costs and reasonable attorney's fees plus an amount not to 
exceed $100. 
DATED:  ............           ........................
                               (Attorney for Judgment Creditor)
                               ........................
                               Address
                               ........................
                               Telephone
 JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
    I hereby claim that my earnings are exempt from execution 
because: 
 (1) I am presently a recipient of relief based on need. 
(Specify the program, case number, and the county from 
which relief is being received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (2) I am not now receiving relief based on need, but I have 
received relief based on need within the last six months. 
(Specify the program, case number, and the county from 
which relief has been received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (3) I have been an inmate of a correctional institution 
with the last six months.  (Specify the correctional 
institution and location.) 
...........................       ..........................
Correctional Institution          Location
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above-named judgment creditor or the judgment 
creditor's attorney only whether or not I am or have been a 
recipient of relief based on need or an inmate of a correctional 
institution within the last six months.  I have mailed or 
delivered a copy of this form to the creditor or creditor's 
attorney. 
DATE: .....................          .........................
                                     Judgment Debtor
                                     .........................
                                     Address
    Subd. 7.  [ADDITIONAL NOTICES.] If the execution levy has 
not been served within one year after service of the exemption 
notice, the judgment creditor's attorney shall serve another 
notice upon the judgment debtor before serving the execution 
levy on the judgment debtor's employer.  If more than one year 
has passed since the service of the judgment creditor's most 
recent execution levy, the judgment creditor shall, no less than 
ten days before service of a subsequent execution levy, serve 
notice that another execution levy may be served.  
    Subd. 8.  [PROCEEDINGS IF NO EXEMPTION STATEMENT IS 
RECEIVED.] If no statement of exemption is received by the 
attorney for the judgment creditor on an earnings levy within 
ten days from the service of the notice, the attorney for the 
judgment creditor may proceed with the execution levy.  Failure 
of the judgment debtor to serve a statement does not constitute 
a waiver of any right the judgment debtor may have to an 
exemption.  If the statement of exemption is received by the 
attorney for the judgment creditor, the attorney may still cause 
a levy to be served subject to sanctions provided in section 
551.05, subdivision 8.  
    Subd. 9.  [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 
WORKSHEET.] The attorney for the judgment creditor shall serve 
upon the judgment debtor's employer a notice of levy on earnings 
and an execution earnings disclosure form and an earnings 
disclosure worksheet with the writ of execution, that must be 
substantially in the form set forth below.  
STATE OF MINNESOTA                            DISTRICT COURT
COUNTY OF ................       ......... JUDICIAL DISTRICT
                                          FILE NO. ..... 
............(Judgment Creditor)
against                                   NOTICE OF LEVY ON 
                                       EARNINGS AND DISCLOSURE 
............(Judgment Debtor) 
and 
............(Third Party)
    PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
sections 551.04 and 551.06, the undersigned, as attorney for the 
judgment creditor, hereby makes demand and levies execution upon 
all earnings due and owing by you (up to $5,000) to the judgment 
debtor for the amount of the judgment specified below.  A copy 
of the writ of execution issued by the court is enclosed.  The 
unpaid judgment balance is $.....  
    This levy attaches all unpaid nonexempt disposable earnings 
owing or to be owed by you and earned or to be earned by the 
judgment debtor before and within the pay period in which the 
writ of execution is served and within all subsequent pay 
periods whose paydays occur within the 70 days after the service 
of this levy. 
    In responding to this levy, you are to complete the 
attached disclosure form and worksheet and mail it to the 
undersigned attorney for the judgment creditor, together with 
your check payable to the above-named judgment creditor, for the 
nonexempt amount owed by you to the judgment debtor or for which 
you are obligated to the judgment debtor, within the time limits 
set forth in the aforementioned statutes. 
                          .................................. 
                          Attorney for the Judgment Creditor 
                          .................................. 
                          Address 
                          .................................. 
                          .................................. 
                          ...(...).......................... 
                          Phone Number 
 DISCLOSURE 
 DEFINITIONS
    "EARNINGS":  For the purpose of execution, "earnings" means 
compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation, or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement.  
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of execution, "payday(s)" means 
the date(s) upon which the employer pays earnings to the 
judgment debtor in the ordinary course of business.  If the 
judgment debtor has no regular payday, payday(s) means the 15th 
and the last day of each month.  
    THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING 
QUESTIONS:  
    1. Do you now owe, or within 70 days from the date the 
execution levy was served on you, will you or may you owe money 
to the judgment debtor for earnings?  
                         Yes .......      No .......
    2. Does the judgment debtor earn more than $... per week?  
(This amount is the federal minimum wage per week.) 
                         Yes .......      No .......
 INSTRUCTIONS FOR COMPLETING THE 
EARNINGS DISCLOSURE 
    A.  If your answer to either questions 1 or 2 is "No," then 
you must sign the affirmation on page 2 and return this 
disclosure to the judgment creditor's attorney within 20 days 
after it was served on you, and you do not need to answer the 
remaining questions.  
    B.  If your answers to both questions 1 and 2 are "Yes," 
you must complete this form and the Earnings Disclosure 
Worksheet as follows:  
 For each payday that falls within 70 days from the date the 
execution levy was served on you, YOU MUST calculate the 
amount of earnings to be retained by completing steps 3 
through 11 on page 2, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE.  
 Each payday, you must retain the amount of earnings listed 
in column I on the Earnings Disclosure Worksheet.  
 You must pay the attached earnings and return this Earnings 
Disclosure Form and the Earnings Disclosure Worksheet to 
the judgment creditor's attorney and deliver a copy to the 
judgment debtor within ten days after the last payday that 
falls within the 70-day period. 
 If the judgment is wholly satisfied or if the judgment 
debtor's employment ends before the expiration of the 
70-day period, your disclosure and remittance should be 
made within ten days after the last payday for which 
earnings were attached. 
For steps 3 through 11, "columns" refers to columns on the 
Earnings Disclosure Worksheet.  
     3.  COLUMN A.  Enter the date of judgment debtor's 
                    payday.                        
     4.  COLUMN B.  Enter judgment debtor's gross earnings 
                    for each payday. 
     5.  COLUMN C.  Enter judgment debtor's disposable earnings 
                    for each payday. 
     6.  COLUMN D.  Enter 25 percent of disposable earnings.
                    (Multiply Column C by .25.) 
     7.  COLUMN E.  Enter here 40 times the hourly federal 
                    minimum wage ($...) times the number 
                    of work weeks included in each payday. 
                    (Note:  If a pay period includes days
                    in excess of whole work weeks, the additional
                    days should be counted as a fraction of a
                    work week equal to the number of work days in
                    excess of a whole work week divided by the
                    number of work days in a normal work week.)
     8.  COLUMN F.  Subtract the amount in Column E from the
                    amount in Column C, and enter here.
     9.  COLUMN G.  Enter here the lesser of the amount in
                    Column D and the amount in Column F.
    10.  COLUMN H.  Enter here any amount claimed by you as a
                    setoff, defense, lien, or claim, or any
                    amount claimed by any other person as an
                    exemption or adverse interest which would
                    reduce the amount of earnings owing to the
                    judgment debtor.  (Note:  Any indebtedness
                    to you incurred within ten days prior to your
                    receipt of the first execution levy on a debt
                    may not be set off against the earnings
                    otherwise subject to this levy.  Any wage
                    assignment made by the judgment debtor
                    within ten days prior to your receipt of
                    the first execution levy on a debt is void.)
                    You must also describe your claim(s) and the
                    claims of others, if known, in the space 
                    provided below the worksheet and state the
                    name(s) and address(es) of these persons.
                    Enter zero in Column H if there are no
                    claims by you or others which would reduce
                    the amount of earnings owing to the judgment
                    debtor. 
    11.  COLUMN I.  Subtract the amount in Column H from the 
                    amount in Column G and enter here.  This is
                    the amount of earnings that you must retain 
                    for the payday for which the calculations
                    were made.  The total of all amounts entered
                    in Column I is the amount to be remitted
                    to the attorney for the judgment creditor.
 AFFIRMATION 
    I, ..................., (person signing Affirmation) am the 
third party/employer or I am authorized by the third 
party/employer to complete this earnings disclosure, and have 
done so truthfully and to the best of my knowledge.  
Dated:  ............        ........................
                            Signature
                            ........................
                            Title
                            ........................
                            Telephone Number
 EARNINGS DISCLOSURE WORKSHEET  
 ...................
 Judgment Debtor's Name
            A                  B                     C
          Payday             Gross                 Disposable
          Date               Earnings              Earnings
1.  .................   $.................   $.................
2.  .................   ..................   ..................
3.  .................   ..................   ..................
4.  .................   ..................   ..................
5.  .................   ..................   ..................
6.  .................   ..................   ..................
7.  .................   ..................   ..................
8.  .................   ..................   ..................
9.  .................   ..................   ..................
10. .................   ..................   ..................
           D                    E                  F
         25% of              40 X Min.            Column C
         Column C            Wage                 minus
                                                  Column E
1.  .................   ..................   .................
2.  .................   ..................   .................
3.  .................   ..................   .................
4.  .................   ..................   .................
5.  .................   ..................   .................
6.  .................   ..................   .................
7.  .................   ..................   .................
8.  .................   ..................   .................
9.  .................   ..................   .................
10. .................   ..................   .................
           G                     H                   I
        Lesser of           Setoff, Lien,         Column G
        Column D            Adverse               minus
        and                 Interest, or          Column H
        Column F            Other Claims
1.  .................   ..................   .................
2.  .................   ..................   .................
3.  .................   ..................   .................
4.  .................   ..................   .................
5.  .................   ..................   .................
6.  .................   ..................   .................
7.  .................   ..................   .................
8.  .................   ..................   .................
9.  .................   ..................   .................
10. .................   ..................   .................
                        TOTAL OF COLUMN I    $................
    *If you entered any amount in Column H for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others, you must both state the 
names and addresses of these persons, and the nature of their 
claim, if known.  
.................................................................
.................................................................
..... ...........................................................
 AFFIRMATION 
    I, ................. (person signing Affirmation) am the 
third party or I am authorized by the third party to complete 
this earnings disclosure worksheet, and have done so truthfully 
and to the best of my knowledge.  
                                      .................
                                      Title
Dated:  ........  ...............     (...)............
                  Signature           Phone Number 
     Subd. 10.  [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 
WORKSHEET FOR CHILD SUPPORT JUDGMENT.] The attorney for the 
judgment creditor shall serve upon the judgment debtor's 
employer a notice of levy on earnings and an execution earnings 
disclosure form and an earnings disclosure worksheet with the 
writ of execution, that must be substantially in the form set 
forth below.  
STATE OF MINNESOTA                            DISTRICT COURT
COUNTY OF ................       ......... JUDICIAL DISTRICT
                                          FILE NO. ..... 
............(Judgment Creditor)
against                                   NOTICE OF LEVY ON 
                                       EARNINGS AND DISCLOSURE 
............(Judgment Debtor) 
and 
............(Third Party)
    PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
sections 551.04 and 551.06, the undersigned, as attorney for the 
judgment creditor, hereby makes demand and levies execution upon 
all earnings due and owing by you (up to $5,000) to the judgment 
debtor for the amount of the judgment specified below.  A copy 
of the writ of execution issued by the court is enclosed.  The 
unpaid judgment balance is $.....  
    This levy attaches all unpaid nonexempt disposable earnings 
owing or to be owed by you and earned or to be earned by the 
judgment debtor before and within the pay period in which the 
writ of execution is served and within all subsequent pay 
periods whose paydays occur within the 70 days after the service 
of this levy. 
    In responding to this levy, you are to complete the 
attached disclosure form and worksheet and mail it to the 
undersigned attorney for the judgment creditor, together with 
your check payable to the above-named judgment creditor, for the 
nonexempt amount owed by you to the judgment debtor or for which 
you are obligated to the judgment debtor, within the time limits 
set forth in the aforementioned statutes. 
                          .................................. 
                          Attorney for the Judgment Creditor 
                          .................................. 
                          Address 
                          .................................. 
                          .................................. 
                          ...(...).......................... 
                          Phone Number 
 DISCLOSURE 
 DEFINITIONS
    "EARNINGS":  For the purpose of execution, "earnings" means 
compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation, or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement, workers' compensation, or unemployment 
compensation.  
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of execution, "payday(s)" means 
the date(s) upon which the employer pays earnings to the debtor 
in the ordinary course of business.  If the judgment debtor has 
no regular payday, payday(s) means the 15th and the last day of 
each month.  
    THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING QUESTION:
    (1) Do you now owe, or within 70 days from the date the 
execution levy was served on you, will you or may you owe money 
to the judgment debtor for earnings?  
                             .......         .......
                             Yes             No
 INSTRUCTIONS FOR COMPLETING THE 
EARNINGS DISCLOSURE 
    A.  If your answer to question 1 is "No," then you must 
sign the affirmation below and return this disclosure to the 
judgment creditor's attorney within 20 days after it was served 
on you, and you do not need to answer the remaining questions.  
    B.  If your answer to question 1 is "Yes," you must 
complete this form and the Earnings Disclosure Worksheet as 
follows:  
 For each payday that falls within 70 days from the date the 
execution levy was served on you, YOU MUST calculate the 
amount of earnings to be retained by completing steps 2 
through 8 on page 2, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 
 Each payday, you must retain the amount of earnings listed 
in column G on the Earnings Disclosure Worksheet.  
 You must pay the attached earnings and return this earnings 
disclosure form and the Earnings Disclosure Worksheet to 
the judgment creditor's attorney and deliver a copy of the 
disclosure and worksheet to the judgment debtor within ten 
days after the last payday that falls within the 70-day 
period.  If the judgment is wholly satisfied or if the 
judgment debtor's employment ends before the expiration of 
the 70-day period, your disclosure and remittance should be 
made within ten days after the last payday for which 
earnings were attached. 
    For steps 2 through 8, "columns" refers to columns on the 
Earnings Disclosure Worksheet.  
    (2) COLUMN A.  Enter the date of judgment debtor's payday.  
    (3) COLUMN B.  Enter judgment debtor's gross earnings for 
each payday.  
    (4) COLUMN C.  Enter judgment debtor's disposable earnings 
for each payday.  
    (5) COLUMN D.  Enter either 50, 55, 60, or 65 percent of 
disposable earnings, based on which of the following 
descriptions fits the child support judgment debtor:  
    (a) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (b) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received); 
    (c) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (d) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received).  (Multiply column C by .50, .55, 
.60, or .65, as appropriate.)  
    (6) COLUMN E.  Subtract the amount in column D from the 
amount in column C, and enter here.  
    (7) COLUMN F.  Enter here any amount claimed by you as a 
setoff, defense, lien, or claim, or any amount claimed by any 
other person as an exemption or adverse interest that would 
reduce the amount of earnings owing to the judgment debtor.  
(Note:  Any indebtedness to you incurred within ten days prior 
to your receipt of the first execution levy on a debt may not be 
set off against the earnings otherwise subject to this levy.  
Any wage assignment made by the judgment debtor within ten days 
prior to your receipt of the first execution levy on a debt is 
void.) 
    You must also describe your claim(s) and the claims of 
others, if known, in the space provided below the worksheet and 
state the name(s) and address(es) of these persons.  
    Enter zero in column F if there are no claims by you or 
others that would reduce the amount of earnings owing to the 
judgment debtor.  
    (8) COLUMN G.  Subtract the amount in column F from the 
amount in column E and enter here.  This is the amount of 
earnings that you must remit for the payday for which the 
calculations were made.  
 AFFIRMATION
    I, ..................., (person signing Affirmation) am the 
third party/employer or I am authorized by the third 
party/employer to complete this earnings disclosure, and have 
done so truthfully and to the best of my knowledge.  
Dated:  ............                 ............................
                                     Signature
                                     ............................
                                     Title
                                     ............................
                                     Telephone Number
 EARNINGS DISCLOSURE WORKSHEET         ...................
                                             Debtor's Name
A                      B                      C
Payday                 Gross                  Disposable
Date                   Earnings               Earnings
1.  ........           $.......               $.........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
D                      E                      F
Either 50, 55,         Column C               Setoff, Lien,
60, or 65% of          minus                  Adverse 
Column C               Column D               Interest, or 
                                              Other Claims 
1.  ........           ........               ..........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
                                               G
                                              Column E
                                              minus
                                              Column F
1.                                            ..........
2.                                            ..........
3.                                            ..........
4.                                            ..........
5.                                            ..........
6.                                            ..........
7.                                            ..........
8.                                            ..........
9.                                            ..........
10.                                           ..........
                         TOTAL OF COLUMN G $............
    *If you entered any amount in column F for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others, you must both state the 
names and addresses of such persons, and the nature of their 
claim, if known.  
.................................................................
.................................................................
.................................................................
 AFFIRMATION 
    I, ................. (person signing Affirmation) am the 
third party or I am authorized by the third party to complete 
this earnings disclosure worksheet, and have done so truthfully 
and to the best of my knowledge.  
                                      .................
                                      Signature
Dated:            ...............     (...)............
                  Title               Phone Number
    Subd. 11.  [POSTEXECUTION NOTICE TO JUDGMENT DEBTOR.] The 
attorney for the judgment creditor shall serve by mail upon the 
judgment debtor not later than five days after service is made 
on the judgment debtor's employer, a copy of the writ of 
execution and copies of all other papers served on the judgment 
debtor's employer.  
    Subd. 12.  [THIRD PARTY DISCLOSURE AND REMITTANCE 
OBLIGATION.] If there are no attachable earnings, the third 
party shall serve the execution earnings disclosure form upon 
the attorney for the judgment creditor within 20 days after 
service of the writ of execution.  However, if the judgment 
debtor has attachable earnings, the third party shall serve the 
execution earnings disclosure form upon both the attorney for 
the judgment creditor and the judgment debtor and remit to the 
attorney for the judgment creditor the attached earnings within 
ten days of the last payday to occur within the 70 days after 
the date of the service of the writ of execution.  If the 
judgment is wholly satisfied or if the judgment debtor's 
employment ends before the expiration of the 70-day period, the 
disclosure and remittance should be made within ten days after 
the last payday for which earnings were attached.  The amount of 
the third party's execution earnings disclosure form and 
remittance need not exceed 100 percent of the amount of the 
judgment creditor's judgment that remains unpaid, after 
subtracting the total of setoffs, defenses, exemption, or other 
adverse interests.  If the disclosure is by a corporation, it 
shall be made by an officer or an authorized agent having 
knowledge of the facts.  
    Subd. 13.  [PENALTY FOR RETALIATION FOR EXECUTION.] (a) An 
employer shall not discharge or otherwise discipline an employee 
as a result of an earnings levy authorized by this chapter.  
    (b) If an employer violates this section, a court may order 
the reinstatement of an aggrieved party who demonstrates a 
violation of this section, and other relief the court considers 
appropriate.  The aggrieved party may bring a civil action 
within 90 days of the date of the prohibited action.  If an 
employer-employee relationship existed before the violation of 
this section, the employee shall recover twice the wages lost as 
a result of this violation.  
    (c) The rights guaranteed by this section are not subject 
to abridgment and may not be altered by employment contract. 
    Subd. 14.  [PUBLIC EMPLOYEES, LEVY ON EARNINGS.] The salary 
or earnings of any public employee or officer may be levied upon 
pursuant to this chapter.  Where the person is an officer, the 
writ shall be served upon the auditor, treasurer, or clerk of 
the subdivision or department of which the person is an 
officer.  Where the person is an employee other than an officer, 
the writ must be served upon the person in charge of the office 
or department in which the employee works.  
    When payment has been made pursuant to levy, a copy of the 
execution with certificate of satisfaction shall be delivered to 
the treasurer as a voucher for such payment. 
    Sec. 7.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective October 1, 1990, and apply to 
attorney's summary executions begun on or after that date. 

                               ARTICLE 3 

                              GARNISHMENTS
    Section 1.  [571.71] [GARNISHMENT: WHEN AUTHORIZED.] 
    As an ancillary proceeding to a civil action for the 
recovery of money, a creditor may issue a garnishment summons as 
provided in this chapter against any third party in the 
following instances: 
    (1) at the time the civil action is commenced or at any 
time after the commencement of the civil action, but before the 
entry of a judgment, if the court orders the issuance of the 
garnishment summons pursuant to section 571.93; 
    (2) at any time 40 days or more after service of the 
summons and complaint upon the debtor in the civil action when a 
judgment by default could have, but has not, been entered 
pursuant to Rule 55.01(a) of the Minnesota Rules of Civil 
Procedure for the District Courts.  No filing of a pleading or 
other documents by the creditor is required to issue a 
garnishment summons under this clause; however, the creditor 
must comply with the service requirement of section 571.72, 
subdivision 4; or 
    (3) at any time after entry of a money judgment in the 
civil action. 
    Sec. 2.  [571.711] [SCOPE OF GENERAL AND SPECIFIC 
PROVISIONS.] 
    General provisions and definitions relating to all 
garnishment proceedings, as authorized in this chapter, are set 
forth in sections 571.71 to 571.90.  Specific provisions 
relating to garnishments involving financial institutions are 
set forth in sections 571.911 to 571.915.  Specific provisions 
relating to the garnishment of earnings are set forth in 
sections 571.92 to 571.927.  When a garnishment summons is 
issued against either earnings or funds in a financial 
institution, the applicable provisions cited in this chapter 
must be complied with in addition to the general provisions and 
definitions relating to all garnishment proceedings.  Provisions 
contained in the statutory forms are incorporated in this 
chapter and have the same force of law as any other provision in 
this chapter. 
    Sec. 3.  [571.712] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
the terms defined in this section have the meanings given them. 
    Subd. 2.  (a) "Creditor" means the party who has a claim 
for the recovery of money in the civil action whether that party 
is the plaintiff, defendant, or other party in the civil action 
and who is issuing or requesting the issuance of a garnishment 
summons. 
    (b) "Debtor" means a party against whom the creditor has a 
claim for the recovery of money in the civil action whether that 
party is the plaintiff, defendant, or other party in the civil 
action. 
    (c) "Garnishee" means the third party upon whom the 
garnishment summons is served. 
    (d) "Claim" means the unpaid balance of the creditor's 
judgment against the debtor or, in a prejudgment garnishment 
proceeding, the unpaid balance of the creditor's claim against 
the debtor and all lawful interest and costs and disbursements 
paid or incurred in the civil action or in the garnishment 
proceedings. 
    Subd. 3.  [DESIGNATION OF PARTIES.] Each pleading or other 
document in the ancillary proceeding of garnishment must 
designate each party as creditor or debtor or garnishee. 
    Sec. 4.  [571.72] [GENERAL GARNISHMENT PROVISIONS.] 
    Subdivision 1.  [RULES OF CIVIL PROCEDURE.] Unless this 
chapter specifically provides otherwise, the Rules of Civil 
Procedure for the District Courts shall apply in all proceedings 
under this chapter. 
    Subd. 2.  [SERVICE OF A GARNISHMENT SUMMONS.] To enforce a 
claim asserted in a civil action venued in a court of record, a 
garnishment summons may be issued by a creditor and served upon 
the garnishee in the same manner as other summons in that court 
of record, except that service may not be made by publication.  
Service of a garnishment summons on the garnishee may also be 
made by certified mail, return receipt requested.  The effective 
date of service by certified mail is the time of receipt by the 
garnishee.  A single garnishment summons may be addressed to two 
or more garnishees but must state whether each is summoned 
separately or jointly. 
    The garnishment summons must state: 
    (1) the full name of the debtor, the debtor's last known 
mailing address, and the amount of the claim that remains 
unpaid; 
    (2) the date of the entry of judgment against the debtor or 
that the debtor is in default pursuant to Rule 55.01 of the 
Minnesota Rules of Civil Procedure for the District Courts.  
Where there is a prejudgment garnishment pursuant to section 
571.93, the garnishment summons must include a copy of the court 
order; 
    (3) if the garnishment is on any indebtedness, money, or 
property other than earnings, the garnishee shall serve upon the 
creditor and upon the debtor within 20 days after service of the 
garnishment summons, a written disclosure, of the garnishee's 
indebtedness, money, or other property owing to the debtor and 
answers to all written interrogatories that are served with the 
garnishment summons.  The garnishment summons shall also state 
that if the garnishment is on earnings and the debtor has 
garnishable earnings, the garnishee shall serve the disclosure 
within ten days of the last payday to occur within the 70 days 
after the date of service of the garnishment summons; 
    (4) that the creditor shall not require disclosure of the 
disposable earnings, indebtedness, money, or property of debtor 
in the garnishee's possession or under the garnishee's control 
in excess of 110 percent of the amount of the claim that remains 
unpaid; 
    (5) that the garnishee shall retain disposable earnings, 
indebtedness, money, or property of the debtor in the 
garnishee's possession or under the garnishee's control not in 
excess of 110 percent of the amount of the claim that remains 
unpaid, until the creditor causes a writ of execution to be 
served upon the garnishee, until the debtor authorizes release 
to the creditor, until the creditor authorizes release to the 
debtor, upon court order, or by operation of law; 
    (6) that after the expiration of the period of time 
specified in section 571.79 from the date of service of the 
garnishment summons, the garnishee's retention obligation 
automatically expires; 
     (7) that an assignment of wages made by the debtor within 
ten days before the service of the first garnishment summons on 
a debt is void and that any indebtedness to the garnishee 
incurred with ten days before the service of the first 
garnishment summons on a debt may not be set off against amounts 
otherwise subject to the garnishment. 
    Subd. 3.  [REPRESENTATION BY AN ATTORNEY.] Whenever a 
creditor is represented by an attorney, a responsive pleading or 
document from the garnishee or debtor under this chapter must be 
served on the creditor's attorney. 
    Subd. 4.  [SERVICE OF GARNISHMENT SUMMONS ON DEBTOR.] A 
copy of the garnishment summons and copies of all other papers 
served on the garnishee must be served by mail at the last known 
mailing address of the debtor not later than five days after the 
service is made upon the garnishee.  The first time a 
garnishment summons is served on the debtor pursuant to section 
571.71, clause (2), the creditor shall also serve a copy of the 
affidavit of service of the original summons and complaint.  
Service of the garnishment documents on the debtor is effective 
upon mailing. 
    Subd. 5.  [GARNISHMENT DISCLOSURE FORM.] The creditor shall 
serve with the garnishment summons the applicable garnishment 
disclosure form substantially in the form set forth in section 
571.75.  The creditor may also serve written interrogatories 
with the garnishment summons. 
    Subd. 6.  [BAD FAITH CLAIM.] If, in a proceeding brought 
under section 571.91, or a similar proceeding under this chapter 
to determine a claim of exemption, the claim of exemption is not 
upheld, and the court finds that it was asserted in bad faith, 
the creditor shall be awarded actual damages, costs, reasonable 
attorney fees resulting from the additional proceedings, and an 
amount not to exceed $100.  If the claim of exemption is upheld, 
and the court finds that the creditor disregarded the claim of 
exemption in bad faith, the debtor shall be awarded actual 
damages, costs, reasonable attorney fees resulting from the 
additional proceedings, and an amount not to exceed $100.  The 
underlying judgment shall be modified to reflect assessment of 
damages, costs, and attorney fees.  However, if the party in 
whose favor a penalty assessment is made is not actually 
indebted to that party's attorney for fees, the attorney's fee 
award shall be made directly to the attorney and if not paid an 
appropriate judgment in favor of the attorney shall be entered.  
    Subd. 7.  [FORMS.] No creditor shall use a form that 
contains alterations or changes from the statutory forms that 
mislead debtors as to their rights and the garnishment procedure 
generally.  If a court finds that a creditor has used a 
misleading form, the debtor shall be awarded actual damages, 
costs, reasonable attorney's fees resulting from additional 
proceedings, and an amount not to exceed $100.  All forms must 
be clearly legible and printed in not less than the equivalent 
of 10-point type.  A form that uses both sides of a sheet must 
clearly indicate on the front side that there is additional 
information on the back side of the sheet. 
    Subd. 8.  [EXEMPTION NOTICE.] In every garnishment where 
the debtor is a natural person, the debtor shall be provided 
with a garnishment exemption notice.  If the creditor is 
garnishing earnings, the earnings exemption notice provided in 
section 571.924 must be served ten or more days before the 
service of the first garnishment summons.  If the creditor is 
garnishing funds in a financial institution, the exemption 
notice provided in section 571.912 must be served with the 
garnishment summons.  In all other cases, the exemption notice 
must be in the following form and served on the debtor with a 
copy of the garnishment summons. 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ..................    ............JUDICIAL DISTRICT
.................(Creditor)
against
.................(Debtor)                    EXEMPTION NOTICE
and
.................(Garnishee)
    A Garnishment Summons is being served upon you.  Some of 
your property may be exempt and cannot be garnished.  The 
following is a list of some of the more common exemptions.  It 
is not complete and is subject to section 550.37 of the 
Minnesota Statutes and other state and federal laws.  The dollar 
amounts contained in this list are subject to the provisions of 
section 550.37, subdivision 4a, at the time of garnishment.  If 
you have questions about an exemption, you should obtain legal 
advice. 
    (1) a homestead or the proceeds from the sale of a 
homestead; 
    (2) household furniture, appliances, phonographs, radios, 
and televisions up to a total current value of $5,850; 
    (3) a manufactured (mobile) home used as your home; 
    (4) one motor vehicle currently worth less than $2,600 
after deducting any security interest; 
    (5) farm machinery used by an individual principally 
engaged in farming, or tools, machines, or office furniture used 
in your business or trade.  This exemption is limited to 
$13,000; 
    (6) relief based on need.  This includes: 
    (i) Aid to Families with Dependent Children (AFDC); 
    (ii) AFDC-Emergency Assistance (AFDC-EA); 
    (iii) Medical Assistance (MA); 
    (iv) General Assistance (GA); 
    (v) General Assistance Medical Care (GAMC); 
    (vi) Emergency General Assistance (EGA); 
    (vii) Work Readiness, Minnesota Supplemental AID (MSA); 
    (viii) MSA-Emergency Assistance (MSA-EA); 
    (ix) Supplemental Security Income (SSI); and 
    (x) Energy Assistance; 
    (7) social security benefits; 
    (8) unemployment compensation, workers' compensation, or 
veteran's benefits; 
    (9) an accident, disability, or retirement pension or 
annuity; 
    (10) life insurance proceeds; 
    (11) earnings of your minor child; and 
    (12) money from a claim for damage or destruction of exempt 
property (such as household goods, farm tools, business 
equipment, a manufactured (mobile) home, or a car.) 
    Subd. 9.  [MOTION TO DETERMINE OBJECTIONS.] Upon motion of 
any party in interest, on notice, the court shall determine the 
validity of any claim of exemption and may make any order 
necessary to protect the rights of those interested. 
    Sec. 5.  [571.73] [PROPERTY ATTACHABLE BY GARNISHMENT; GOOD 
FAITH REQUIREMENT.] 
    Subdivision 1.  [RETENTION OBLIGATION.] Except as provided 
in subdivision 4 and section 571.79, service of the garnishment 
summons upon the garnishee shall obligate the garnishee to 
retain possession and control of the disposable earnings, 
indebtedness, money, and property of the debtor specified in 
subdivision 3, except that the garnishee shall not retain 
possession and control of disposable earnings, indebtedness, 
money, or property of the debtor in the garnishee's possession 
or under the garnishee's control in excess of 110 percent of the 
amount claimed by the creditor in the garnishment summons. 
    Subd. 2.  [GARNISHEE GOOD FAITH REQUIREMENT.] The garnishee 
is not liable to the debtor, creditor, or other person for 
wrongful retention if the garnishee retains disposable earnings, 
indebtedness, money, or property of the debtor or any other 
person, pending the garnishee's disclosure or consistent with 
the disclosure the garnishee makes, if the garnishee has a good 
faith belief that the property retained is subject to the 
garnishment summons.  In addition, the garnishee may, at any 
time before or after disclosure, proceed under Rule 67 of the 
Minnesota Rules of Civil Procedure for the District Courts to 
make deposit into court.  No garnishee is liable for damages if 
the garnishee complies with the provisions of this chapter. 
    Subd. 3.  [PROPERTY ATTACHABLE.] Subject to the exemptions 
provided by sections 550.37 and 571.922 and any other applicable 
statute, the service of a garnishment summons under this chapter 
attaches: 
    (1) all unpaid nonexempt disposable earnings owed or to be 
owed by the garnishee and earned or to be earned by the debtor 
within the pay period in which the garnishment summons is served 
and within all subsequent pay periods whose paydays occur within 
the 70 days after the date of service of the garnishment 
summons.  "Payday" means the day upon which the garnishee pays 
earnings to the debtor in the ordinary course of business.  If 
the debtor has no regular paydays, "payday" means the 15th day 
and the last day of each month; 
    (2) all other nonexempt indebtedness, money or other 
property due or belonging to the debtor and owing by the 
garnishee or in the possession or under the control of the 
garnishee at the time of service of the garnishment summons, 
whether or not the same has become payable.  The garnishee shall 
not be compelled to pay or deliver the same before the time 
specified by any agreement unless the agreement was fraudulently 
contracted to defeat a garnishment or other collection remedy; 
and 
    (3) all other nonexempt intangible or tangible personal 
property of the debtor in the possession or under the control of 
the garnishee at the time of service of the garnishment summons, 
including property of any kind due from or in the hands of an 
executor, administrator, personal representative, receiver, or 
trustee, and all written evidences of indebtedness whether or 
not negotiable or not yet underdue or overdue. 
    Subd. 4.  [PROPERTY NOT ATTACHABLE.] The following property 
is not subject to attachment by garnishment: 
    (1) any indebtedness, money, or other property due to the 
debtor, unless at the time of the garnishment summons the same 
is due absolutely or does not depend upon any contingency; 
    (2) any judgment in favor of the debtor against the 
garnishee, if the garnishee or the garnishee's property is 
liable on an execution levy upon the judgment; 
    (3) any debt owed by the garnishee to the debtor for which 
any negotiable instrument has been issued or endorsed by the 
garnishee; 
    (4) any indebtedness, money, or other property due to the 
debtor where the debtor is a bank, savings bank, trust company, 
credit union, savings and loan association, or industrial loan 
and thrift companies with deposit liabilities; 
    (5) any indebtedness, money, or other property due to the 
debtor with a cumulative value of less than $10; and 
    (6) any disposable earnings, indebtedness, money, or 
property that is exempt under Minnesota or federal law. 
    Sec. 6.  [571.74] [GARNISHMENT SUMMONS AND NOTICE TO 
DEBTOR.] 
    The garnishment summons and notice to debtor must be 
substantially in the following form.  The notice to debtor must 
be in no smaller than 14-point type.  
                     GARNISHMENT SUMMONS 
STATE OF MINNESOTA                            DISTRICT COURT
COUNTY OF .................      ..........JUDICIAL DISTRICT
.......................(Creditor)
.......................(Debtor)       UNPAID BALANCE........
.......................(Debtor's Address)
.......................(Garnishee)
 GARNISHMENT SUMMONS
The State of Minnesota 
To the Garnishee named above: 
    You are hereby summoned and required to serve upon the 
creditor's attorney (or the creditor if not represented by an 
attorney) and on the debtor within 20 days after service of this 
garnishment summons upon you, a written disclosure, of the 
indebtedness, money, or other property that you owe to the 
debtor and answers to all written interrogatories that are 
served with the garnishment summons.  However, if the 
garnishment is on earnings and the debtor has garnishable 
earnings, you shall serve the completed disclosure form on the 
creditor's attorney, or the creditor if not represented by an 
attorney, within ten days of the last payday to occur within the 
70 days after the date of the service of this garnishment 
summons.  "Payday" means the day which you pay earnings in the 
ordinary course of business.  If the debtor has no regular 
paydays, "payday" means the 15th day and the last day of each 
month. 
    Your disclosure need not exceed 110 percent of the amount 
of the creditor's claim that remains unpaid. 
    You shall retain garnishable earnings, other indebtedness, 
money, or other property in your possession in an amount not to 
exceed 110 percent of the creditor's claim until such time as 
the creditor causes a writ of execution to be served upon you, 
until the debtor authorizes you in writing to release the 
property to the creditor, or until the expiration of ...... days 
from the date of service of this garnishment summons upon you, 
at which time you shall return the disposable earnings, other 
indebtedness, money, or other property to the debtor. 
EARNINGS 
    In the event you are summoned as a garnishee because you 
owe "earnings" (as defined on the Earnings Garnishment 
Disclosure form attached to this Garnishment Summons, if 
applicable) to the debtor, then you are required to serve upon 
the creditor's attorney, or the creditor if not represented by 
an attorney, a written earnings disclosure form within the time 
limit set forth above. 
    In the case of earnings you are further required to retain 
in your possession all unpaid nonexempt disposable earnings owed 
or to be owed by you and earned or to be earned to the debtor 
within the pay period in which this garnishment summons in 
served and within all subsequent pay periods whose paydays 
(defined above) occur within the 70 days after the date of 
service of this garnishment summons. 
     Any assignment of earnings made by the debtor to any party 
within ten days before the receipt of the first garnishment on a 
debt is void.  Any indebtedness to you incurred by the debtor 
within the ten days before the receipt of the first garnishment 
on a debt may not be set off against amounts otherwise subject 
to the garnishment. 
    You are prohibited by law from discharging or disciplining 
the debtor because the debtor's earnings have been subject to 
garnishment. 
    This Garnishment Summons includes: 
    (check applicable box) 
.....  Earnings garnishment
       (see attached Earnings Disclosure Form)
.....  Nonearnings garnishment
       (see attached Nonearnings Disclosure Form)
.....  Both Earnings and Nonearnings garnishment
       (see both attached Earning and Nonearnings
       Disclosure Form)
 NOTICE TO DEBTOR
    A Garnishment Summons, Earnings Garnishment Disclosure 
form, Nonwage Garnishment Disclosure form, Garnishment Exemption 
Notices and/or written Interrogatories (strike out if not 
applicable), copies of which are hereby served on you were 
served upon the Garnishee by delivering copies to the 
Garnishee.  The Garnishee was paid $15. 
Dated:  ...............    ...............................
                           Attorney for Creditor
                           (or creditor)
                           ...............................
                           Address
                           ...............................
                           ...............................
                           ...............................
                           Telephone
                           ...............................
                           Attorney I.D. No.
    Sec. 7.  [571.75] [GARNISHEE DISCLOSURE.] 
    Subdivision 1.  [GARNISHEE TO DISCLOSE.] The garnishee 
shall serve on both the creditor and the debtor, within 20 days 
after service of the garnishment summons, a written disclosure 
of the garnishee's indebtedness, money, or other property owing 
to the debtor.  However, if the garnishment is on earnings and 
the debtor has garnishable earnings, the garnishee shall serve 
the disclosure and earnings disclosure worksheet within ten days 
after the last payday to occur within the 70 days after the date 
of the service of this garnishment summons.  "Payday" means the 
day upon which the garnishee pays earnings to the debtor in the 
ordinary course of business.  If the debtor has no regular 
paydays, "payday" means the 15th day and the last day of each 
month.  The amount of the garnishee's disclosure need not exceed 
110 percent of the amount of the creditor's claim that remains 
unpaid, after subtracting the total of setoffs, defenses, 
exemptions, ownership claims, or other interests.  The answers 
to the garnishment disclosure form may be served personally or 
by first class mail.  If the disclosure is by a corporation, it 
shall be made by an officer, managing agent, or other authorized 
person having knowledge of the facts. 
    Subd. 2.  [CONTENTS OF DISCLOSURE.] The disclosure must 
state: 
    (a) If an earnings garnishment disclosure, the amount of 
disposable earnings earned by the debtor within the debtor's pay 
periods as specified in section 571.921. 
    (b) If a nonearnings garnishment disclosure, a description 
of any personal property or any instrument or papers relating to 
this property belonging to the judgment debtor or in which the 
debtor is interested or other indebtedness of the garnishee to 
the debtor. 
    (c) If the garnishee asserts any setoff, defense, claim, or 
lien on disposable earnings, other indebtedness, money, or 
property, the garnishee shall disclose the amount and the facts 
concerning the same. 
    (d) Whether the debtor asserts any exemption, or any other 
objection, known to the garnishee against the right of the 
creditor to garnish the disposable earnings, other indebtedness, 
money, or property disclosed. 
    (e) If other persons assert claims to any disposable 
earnings, other indebtedness, money, or property disclosed, the 
garnishee shall disclose the names and addresses of these 
claimants and, so far as known by the garnishee, the nature of 
their claims. 
    (f) The garnishment disclosure forms and earnings 
disclosure worksheet must be the same or substantially similar 
to the following forms.  If the garnishment affects earnings of 
the debtor, the creditor shall use the earnings garnishment 
disclosure form.  If the garnishment affects any indebtedness, 
money, or property of the debtor, other than earnings, the 
creditor shall use the nonearnings garnishment disclosure form.  
Nothing contained in this paragraph limits the simultaneous use 
of the earnings and nonearnings garnishment disclosure forms. 
 EARNINGS DISCLOSURE FORM AND WORKSHEET
STATE OF MINNESOTA                                 DISTRICT COURT
COUNTY OF ..................             ...... JUDICIAL DISTRICT
.................(Creditor)
.................(Debtor)                             GARNISHMENT
.................(Garnishee)                  EARNINGS DISCLOSURE
DEFINITIONS
   "EARNINGS":  For the purpose of garnishment, "earnings" 
means compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement. 
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of garnishment, "payday(s)" 
means the date(s) upon which the employer pays earnings to the 
debtor in the ordinary course of business.  If the debtor has no 
regular payday, payday(s) means the fifteenth and the last day 
of each month. 
    THE GARNISHEE MUST ANSWER THE FOLLOWING QUESTIONS: 
    1.  Do you now owe, or within 70 days from the date the 
garnishment summons was served on you, will you or do you expect 
to owe money to the debtor for earnings? 
                      Yes .......    No ........
    2.  Does the debtor earn more than $........ per week?  
(This amount is the federal minimum wage per week.) 
                      Yes .......    No ........
INSTRUCTIONS FOR COMPLETING THE
EARNINGS DISCLOSURE
    A.  If your answer to either questions 1 or 2 is "No," then 
you must sign the affirmation on Page 2 and return this 
disclosure to the creditor's attorney (or the creditor if not 
represented by an attorney) within 20 days after it was served 
on you, and you do not need to answer the remaining questions. 
    B.  If your answers to both questions 1 and 2 are "Yes," 
you must complete this form and the Earnings Disclosure 
Worksheet as follows: 
 For each payday that falls within 70 days from the date the 
garnishment summons was served on you, YOU MUST calculate 
the amount of earnings to be retained by completing Steps 3 
through 11, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE.  
 Each payday, you must retain the amount of earnings listed 
in Column I on the Earnings Disclosure Worksheet. 
 You must return this Earnings Disclosure Form and the 
Earnings Disclosure Worksheet to the creditor's attorney 
(or the creditor if not represented by an attorney) and 
deliver a copy to the debtor within ten days after the last 
payday that falls within the 70-day period. 
 If the claim is wholly satisfied or if the debtor's 
employment ends before the expiration of the 70-day period, 
your disclosure should be made within ten days after the 
last payday for which earnings were attached. 
For Steps 3 through 11, "Columns" refers to columns on the 
Earnings Disclosure Worksheet. 
    3.  COLUMN A.  Enter the date of debtor's 
                   payday.
    4.  COLUMN B.  Enter debtor's gross earnings for 
                   each payday.
    5.  COLUMN C.  Enter debtor's disposable earnings 
                   for each payday.
    6.  COLUMN D.  Enter 25 percent of disposable earnings.
                   (Multiply Column C by .25.)
    7.  COLUMN E.  Enter here 40 times the hourly federal
                   minimum wage ($....) times the number
                   of work weeks included in each payday.  (Note:
                   If a pay period includes days in excess of 
                   whole work weeks, the additional days should 
                   be counted as a fraction of a work week equal
                   to the number of work days in excess of a 
                   whole work week divided by the number of work
                   days in a normal work week.)
    8.  COLUMN F.  Subtract the amount in Column E from the
                   amount in Column C, and enter here.
    9.  COLUMN G.  Enter here the lesser of the amount in
                   Column D and the amount in Column F.
   10.  COLUMN H.  Enter here any amount claimed by you as a
                   setoff, defense, lien, or claim, or any
                   amount claimed by any other person as an
                   exemption or adverse interest which would
                   reduce the amount of earnings owing to the
                   debtor.  (Note:  Any indebtedness to you 
                   incurred by the debtor within the ten
                   days before the receipt of the first 
                   garnishment on a debt may not be set
                   off against amounts otherwise subject to
                   the garnishment.  Any assignment of earnings
                   made by the debtor to any party within ten
                   days before the receipt of the first
                   garnishment on a debt is void.)

                   You must also describe your claim(s) and the
                   claims of others, if known, in the space
                   provided below the worksheet and state the
                   name(s) and address(es) of these persons.
                   Enter zero in Column H if there are no
                   claims by you or others which would reduce
                   the amount of earnings owing to the debtor. 
   11.  COLUMN I.  Subtract the amount in Column H from the
                   amount in Column G and enter here.  This is
                   the amount of earnings that you must retain
                   for the payday for which the calculations
                   were made. 
AFFIRMATION
    I, ......................, (person signing Affirmation) am 
the garnishee or I am authorized by the garnishee to complete 
this earnings disclosure, and have done so truthfully and to the 
best of my knowledge. 
Dated:  ..................    ................................
                              Signature
                              ................................
                              Title 
                              ................................ 
                              Telephone Number 
 EARNINGS DISCLOSURE WORKSHEET 
 ............................. 
 Debtor's Name 
             A                  B                  C  
           Payday             Gross            Disposable 
           Date               Earnings         Earnings  
1.   .................   .................   ................. 
2.   .................   .................   ................. 
3.   .................   .................   ................. 
4.   .................   .................   ................. 
5.   .................   .................   ................. 
6.   .................   .................   ................. 
7.   .................   .................   ................. 
8.   .................   .................   ................. 
9.   .................   .................   ................. 
10.  .................   .................   ................. 
             D                   E                 F 
           25% of              40 X Min.        Column C 
           Column C            Wage             minus 
                                                Column E 
1.   .................   .................   ................ 
2.   .................   .................   ................ 
3.   .................   .................   ................ 
4.   .................   .................   ................ 
5.   .................   .................   ................ 
6.   .................   .................   ................ 
7.   .................   .................   ................ 
8.   .................   .................   ................ 
9.   .................   .................   ................ 
10.  .................   .................   ................ 
             G                  H                  I 
          Lesser of        setoff, Lien,       Column G 
          Column D         Adverse              minus  
          and              Interest, or         Column H 
          Column F         Other Claims   
1.   .................   .................   ................. 
2.   .................   .................   ................. 
3.   .................   .................   ................. 
4.   .................   .................   ................. 
5.   .................   .................   ................. 
6.   .................   .................   ................. 
7.   .................   .................   ................. 
8.   .................   .................   ................. 
9.   .................   .................   ................. 
10.  .................   .................   ................. 
                         TOTAL OF COLUMN I   $................ 
    *If you entered any amount in Column H for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others you must both state the 
names and addresses of these persons, and the nature of their 
claim, if known. 
........................................................... 
.......................................................... 
.......................................................... 
AFFIRMATION 
    I, ........................ (person signing Affirmation) am 
the third party or I am authorized by the third party to 
complete this earnings disclosure worksheet, and have done so 
truthfully and to the best of my knowledge. 
Dated:  ............................... 
Signature .............................  
Title ................................. 
Telephone Number (...)................. 
  EARNINGS DISCLOSURE FORM AND WORKSHEET
FOR CHILD SUPPORT DEBTOR
STATE OF MINNESOTA                                 DISTRICT COURT
COUNTY OF ..................             ...... JUDICIAL DISTRICT
.................(Creditor)
.................(Debtor)                             GARNISHMENT
.................(Garnishee)                  EARNINGS DISCLOSURE
 DEFINITIONS
    "EARNINGS":  For the purpose of execution, "earnings" means 
compensation paid or payable to an employee for personal 
services or compensation paid or payable to the producer for the 
sale of agricultural products; milk or milk products; or fruit 
or other horticultural products produced when the producer is 
operating a family farm, a family farm corporation, or an 
authorized farm corporation, as defined in section 500.24, 
subdivision 2, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to 
a pension or retirement, workers' compensation, or unemployment 
compensation.  
    "DISPOSABLE EARNINGS":  Means that part of the earnings of 
an individual remaining after the deduction from those earnings 
of amounts required by law to be withheld.  (Amounts required by 
law to be withheld do not include items such as health 
insurance, charitable contributions, or other voluntary wage 
deductions.) 
    "PAYDAY":  For the purpose of execution, "payday(s)" means 
the date(s) upon which the employer pays earnings to the debtor 
in the ordinary course of business.  If the judgment debtor has 
no regular payday, payday(s) means the 15th and the last day of 
each month.  
    THE GARNISHEE MUST ANSWER THE FOLLOWING QUESTION: 
    (1) Do you now owe, or within 70 days from the date the 
execution levy was served on you, will you or may you owe money 
to the debtor for earnings?  
                             .......         .......
                             Yes             No
 INSTRUCTIONS FOR COMPLETING THE 
EARNINGS DISCLOSURE 
    A.  If your answer to question 1 is "No," then you must 
sign the affirmation below and return this disclosure to the 
creditor's attorney (or the creditor if not represented by an 
attorney) within 20 days after it was served on you, and you do 
not need to answer the remaining questions.  
    B.  If your answer to question 1 is "Yes," you must 
complete this form and the Earnings Disclosure Worksheet as 
follows:  
 For each payday that falls within 70 days from the date the 
garnishment summons was served on you, YOU MUST calculate 
the amount of earnings to be retained by completing steps 2 
through 8 on page 2, and enter the amounts on the Earnings 
Disclosure Worksheet.  UPON REQUEST, THE EMPLOYER MUST 
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 
 Each payday, you must retain the amount of earnings listed 
in column G on the Earnings Disclosure Worksheet.  
 You must pay the attached earnings and return this earnings 
disclosure form and the Earnings Disclosure Worksheet to 
the creditor's attorney (or the creditor if not represented 
by an attorney) and deliver a copy to the debtor within ten 
days after the last payday that falls within the 70-day 
period.  If the claim is wholly satisfied or if the 
debtor's employment ends before the expiration of the 
70-day period, your disclosure should be made within ten 
days after the last payday for which earnings were attached.
    For steps 2 through 8, "columns" refers to columns on the 
Earnings Disclosure Worksheet.  
    (2) COLUMN A.  Enter the date of debtor's payday.  
    (3) COLUMN B.  Enter debtor's gross earnings for each 
payday.  
    (4) COLUMN C.  Enter debtor's disposable earnings for each 
payday.  
    (5) COLUMN D.  Enter either 50, 55, 60, or 65 percent of 
disposable earnings, based on which of the following 
descriptions fits the child support judgment debtor:  
    (a) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (b) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received); 
    (c) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (d) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
execution levy is received).  (Multiply column C by .50, .55, 
.60, or .65, as appropriate.)  
    (6) COLUMN E.  Subtract the amount in column D from the 
amount in column C, and enter here.  
    (7) COLUMN F.  Enter here any amount claimed by you as a 
setoff, defense, lien, or claim, or any amount claimed by any 
other person as an exemption or adverse interest that would 
reduce the amount of earnings owing to the debtor.  (Note:  Any 
assignment of earnings made by the debtor to any party within 
ten days before the receipt of the first garnishment on a debt 
is void.  Any indebtedness to you incurred by the debtor within 
the ten days before the receipt of the first garnishment on a 
debt may not be set off against amounts otherwise subject to the 
garnishment.) 
    You must also describe your claim(s) and the claims of 
others, if known, in the space provided below the worksheet and 
state the name(s) and address(es) of these persons.  
    Enter zero in column F if there are no claims by you or 
others that would reduce the amount of earnings owing to the 
judgment debtor.  
    (8) COLUMN G.  Subtract the amount in column F from the 
amount in column E and enter here.  This is the amount of 
earnings that you must remit for the payday for which the 
calculations were made.  
 AFFIRMATION
    I, ..................., (person signing Affirmation) am the 
garnishee or I am authorized by the garnishee to complete this 
earnings disclosure, and have done so truthfully and to the best 
of my knowledge.  
Dated:  ............                 ............................
                                     Signature
                                     ............................
                                     Title
                                     ............................
                                     Telephone Number
 EARNINGS DISCLOSURE WORKSHEET         ...................
                                             Debtor's Name
A                      B                      C
Payday                 Gross                  Disposable
Date                   Earnings               Earnings
1.  ........           $.......               $.........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
D                      E                      F
Either 50, 55,         Column C               Setoff, Lien,
60, or 65% of          minus                  Adverse 
Column C               Column D               Interest, or 
                                              Other Claims 
1.  ........           ........               ..........
2.  ........           ........               ..........
3.  ........           ........               ..........
4.  ........           ........               ..........
5.  ........           ........               ..........
6.  ........           ........               ..........
7.  ........           ........               ..........
8.  ........           ........               ..........
9.  ........           ........               ..........
10. ........           ........               ..........
                                               G
                                              Column E
                                              minus
                                              Column F
1.                                            ..........
2.                                            ..........
3.                                            ..........
4.                                            ..........
5.                                            ..........
6.                                            ..........
7.                                            ..........
8.                                            ..........
9.                                            ..........
10.                                           ..........
                         TOTAL OF COLUMN G $............
    *If you entered any amount in column F for any payday(s), 
you must describe below either your claims, or the claims of 
others.  For amounts claimed by others, you must both state the 
names and addresses of such persons, and the nature of their 
claim, if known.  
.................................................................
.................................................................
.................................................................
 AFFIRMATION 
    I, ................. (person signing Affirmation) am the 
third party or I am authorized by the third party to complete 
this earnings disclosure worksheet, and have done so truthfully 
and to the best of my knowledge.  
                                      .................
                                      Signature
Dated:            ...............     (...)............
                  Title               Phone Number
 NONEARNINGS DISCLOSURE FORM 
STATE OF MINNESOTA                            DISTRICT COURT
COUNTY OF ............              ...... JUDICIAL DISTRICT
...................(Creditor)
against 
...................(Debtor)           NONEARNINGS DISCLOSURE
and 
...................(Garnishee) 
    On the .... day of ........., 19.., the time of service of 
garnishment summons herein, there was due and owing the debtor 
from the garnishee the following: 
    (1) Money.  Enter on the line below any amounts due and 
owing the debtor, except earnings, from the garnishee. 
.......................................................  
    (2) Property.  Describe on the line below any personal 
property, instruments, or papers belonging to the debtor and in 
the possession of the garnishee. 
....................................................... 
    (3) Setoff.  Enter on the line below the amount of any 
setoff, defense, lien, or claim which the garnishee claims 
against the amount set forth on lines (1) and (2) above.  State 
the facts by which the setoff, defense, lien, or claim is 
claimed.  (Any indebtedness to a garnishee incurred by the 
debtor within the ten days before the receipt of the first 
garnishment on a debt may not be set off against amounts 
otherwise subject to the garnishment.) 
....................................................... 
    (4) Exemption.  Enter on the line below any amounts or 
property claimed by the debtor to be exempt from execution.  
........................................................ 
    (5) Adverse Interest.  Enter on the line below any amounts 
claimed by other persons by reason of ownership or interest in 
the debtor's property. 
....................................................... 
    (6) Enter on the line below the total of lines (4), (5), 
and (6). 
....................................................... 
    (7) Enter on the line below the difference obtained (never 
less than zero) when line (6) is subtracted from the sum of 
lines (1) and (2). 
........................................................ 
    (8) Enter on the line below 110 percent of the amount of 
the creditor's claim which remains unpaid. 
....................................................... 
    (9) Enter on the line below the lessor of line (8) and line 
(9).  Retain this amount only if it is $10 or more. 
....................................................... 
 AFFIRMATION 
    I, ..................... (person signing Affirmation) am 
the garnishee or I am authorized by the garnishee to complete 
this nonearnings garnishment disclosure, and have done so 
truthfully and to the best of my knowledge. 
Dated:  ............                .............................
                                    Signature
                                    .............................
                                    Title
                                    .............................
                                    Telephone Number 
    Subd. 3.  [ORAL DISCLOSURE.] Before or after the service of 
a written disclosure by a garnishee under subdivision 1, upon a 
showing by affidavit upon information and belief that an oral 
examination of the garnishee would provide a complete disclosure 
of relevant facts, any party to the garnishment proceedings may 
obtain an ex parte order requiring the garnishee, or a 
representative of the garnishee designated by name or by title, 
to appear for oral examination before the court or a referee 
appointed by the court.  Notice of the examination must be given 
to all parties. 
    Subd. 4.  [SUPPLEMENTAL COMPLAINT.] If a garnishee holds 
property, money, or other indebtedness by a title that is void 
as to the debtor's creditors, the property may be garnished 
although the debtor would be barred from maintaining an action 
to recover the property, money, or indebtedness.  In this and 
all other cases where the garnishee denies liability, the 
creditor may move the court at any time before the garnishee is 
discharged, on notice to both the debtor and the garnishee for 
an order making the garnishee a party to the civil action and 
granting the creditor leave to file a supplemental complaint 
against the garnishee and the debtor.  The supplemental 
complaint shall set forth the facts upon which the creditor 
claims to charge the garnishee.  If probable cause is shown, the 
motion shall be granted.  The supplemental complaint shall be 
served upon the garnishee and the debtor and any other parties.  
The parties served shall answer or respond pursuant to the 
Minnesota Rules of Civil Procedure for the District Courts, and 
if they fail to do so, judgment by default may be rendered 
against them pursuant to section 571.82. 
    Sec. 8.  [571.76] [GARNISHEE FEES.] 
    A garnishee shall be paid a $15 fee by the creditor at the 
time of service of a garnishment summons.  Failure to pay the 
fee renders the garnishment void, and the garnishee shall take 
no action. If a garnishee is required to appear and submit to 
oral examination the garnishee shall be tendered, in advance of 
the examination, fees and mileage for attendance at the rate 
allowed by law to a witness.  These fees may be recovered by the 
creditor as an allowable disbursement.  In extraordinary cases, 
the garnishee may be allowed additional sums the court considers 
reasonable for attorneys fees and other necessary expenses.  The 
court shall then determine which party bears the burden of this 
expense.  If specific articles of personal property are 
garnished, the garnishee is not required to deliver the property 
to any person until payment of the garnishee's reasonable 
charges for storage. 
    Sec. 9.  [571.77] [SALARY OF PUBLIC SERVANTS.] 
    The salary or wages of an official or employee of a county, 
town, city, or school district, or any department of these 
bodies, is subject to garnishment.  The garnishment summons 
shall be served upon the auditor, treasurer, or clerk of the 
body, or head of the department of the body of which that person 
is an official or employee.  The disclosure shall be made by the 
officer or person so served, or by some person designated by 
that person having knowledge of the facts.  If payment is made 
by the county, town, city, or school district, or any department 
of these bodies pursuant to a judgment against it as garnishee, 
a certified copy of the judgment with a certificate of 
satisfaction to the extent of the payment endorsed on it shall 
be delivered to the treasurer as a voucher for the payment. 
    Sec. 10.  [571.78] [DUTIES OF A GARNISHEE.] 
    A garnishee shall: 
    (1) complete the garnishment disclosure form and return it 
to the creditor, and serve a copy on the debtor as required by 
section 571.75; 
    (2) retain nonexempt disposable earnings, indebtedness, 
money, or other property belonging to the debtor up to 110 
percent of the amount claimed in the garnishment summons, as 
required by section 571.73, except as limited by section 
571.922; 
    (3)(a) remit and deliver the garnished nonexempt disposable 
earnings, indebtedness, money, or other property to the creditor 
upon levy, written authorization of the debtor, court order, or 
operation of law.  However, the garnishee shall not be compelled 
to deliver the nonexempt earnings, indebtedness, money, or other 
property at any time or place other than as stipulated in the 
contract between the garnishee and the debtor; or 
    (b) return the garnished nonexempt disposable earnings, 
indebtedness, money, or other property to the debtor when the 
garnishment retention period expires as set forth in section 
571.79. 
    Sec. 11.  [571.79] [DISCHARGE OF A GARNISHEE.] 
    Subject to sections 571.78 and 571.80, the garnishee, after 
disclosure, shall be discharged of any further obligation to the 
creditor when one of the following conditions are met: 
    (a) The garnishee discloses that the garnishee is not 
indebted to the debtor or does not possess any money or other 
property belonging to the debtor that is attachable as defined 
in section 571.73, subdivision 3.  The disclosure is conclusive 
against the creditor and discharges the garnishee from any 
further obligation to the creditor other than to retain all 
nonexempt disposable earnings, indebtedness, money, and property 
of the debtor which was disclosed. 
    (b) The garnishee discloses that the garnishee is indebted 
to the debtor as indicated on the garnishment disclosure form.  
The disclosure is conclusive against the creditor and discharges 
the garnishee from any further obligation to the creditor other 
than to retain all nonexempt disposable earnings, indebtedness, 
money and property of the debtor that was disclosed.  
    (c) If the garnishee was served with a garnishment summons 
before entry of judgment against the debtor by the creditor in 
the civil action, 270 days after the garnishment summons is 
served the garnishee is discharged and the garnishee shall 
return any disposable earnings, indebtedness, money and property 
to the debtor.  
    (d) If the garnishee was served with a garnishment summons 
after entry of judgment against the debtor by the creditor in 
the civil action, 180 days after the garnishment summons is 
served the garnishee is discharged and the garnishee shall 
return any disposable earnings, other indebtedness, money and 
property to the debtor.  
    (e) If the garnished indebtedness, money, or other property 
is destroyed without any negligence of the garnishee, the 
garnishee is discharged of any liability to the creditor for 
nondelivery of the garnished indebtedness, money and other 
property.  
    (f) The court may, upon motion of an interested person, 
discharge the garnishee as to any disposable earnings, other 
indebtedness, money, and property in excess of the amount that 
may be required to satisfy the creditor's claim.  
    Sec. 12.  [571.80] [EXCEPTIONS TO DISCHARGE OF A 
GARNISHEE.] 
    The garnishee is not discharged if:  
    (a) Within 20 days of the service of the garnishee's 
disclosure, an interested person serves a motion relating to the 
garnishment.  The hearing on the motion must be scheduled to be 
heard within 30 days of the service of the motion.  
    (b) The creditor moves the court for leave to file a 
supplemental complaint against the garnishee, as provided for in 
section 571.75, subdivision 4, and the court upon proper 
showing, vacates the discharge of the garnishee.  
    Sec. 13.  [571.81] [GARNISHMENT LIEN; PRIORITIES OF 
CREDITORS.] 
    Subdivision 1.  [GARNISHMENT LIEN.] From the time of 
service of a garnishment summons upon a garnishee, either before 
or after judgment, the creditor has a perfected lien upon all 
disposable earnings, indebtedness, money, or other property of 
the debtor that is attached by garnishment pursuant to section 
571.73, subdivision 3.  
    Subd. 2.  [PRIORITIES OF CREDITORS.] Except as provided in 
this subdivision or in section 518.611, subdivision 6, a 
perfected lien by garnishment is subordinate to a preexisting 
voluntary or involuntary transfer, setoff, security interest, 
lien, or other encumbrance that is perfected, but a lien 
perfected by garnishment is superior to such interests 
subsequently perfected.  Priorities of creditors relating to 
multiple wage garnishments are set forth in section 571.923.  An 
assignment of earnings made by the debtor to any party within 
ten days before the receipt of the first garnishment on a debt 
is void.  Any indebtedness to you incurred by the debtor within 
the ten days before the receipt of the first garnishment on a 
debt may not be set off against amounts otherwise subject to the 
garnishment. 
    Subd. 3.  [CONTINUITY OF GARNISHMENT LIEN.] When a lien by 
garnishment is perfected in disposable earnings, indebtedness, 
money or property, neither that lien nor the date and priority 
of that lien is lost for any purpose when the creditor:  (1) 
obtains the debtor's assignment of the same to the creditor; (2) 
levies execution upon the same or against the garnishee whether 
or not a release of garnishment accompanies the levy; or (3) 
obtains a court-ordered sale of the same. 
    Sec. 14.  [571.82] [JUDGMENT AGAINST GARNISHEE.] 
    Subdivision 1.  [JUDGMENT UPON FAILURE TO DISCLOSE.] If a 
garnishee fails to serve a disclosure as required in this 
chapter, the court may render judgment against the garnishee, 
upon motion by the creditor, for an amount not exceeding the 
creditor's claim against the debtor or 110 percent of the amount 
claimed in the garnishment summons, whichever is less.  The 
motion shall be supported by an affidavit of the facts and shall 
be served upon both the debtor and the garnishee.  The court 
upon good cause shown may remove the default and permit the 
garnishee to disclose on just terms.  
    Subd. 2.  [LIMITATION OF LIABILITY.] Judgment against a 
garnishee shall be rendered, if at all, for the amount due to 
the debtor, or as much as may be necessary to satisfy the 
creditor's claim against the debtor, with costs taxed and 
allowed in the proceeding against the garnishee but not to 
exceed 110 percent of the amount claimed in the garnishment 
summons.  This judgment discharges the garnishee from all claims 
of all parties named in the process in and to the property or 
money paid, delivered, or accounted for by the garnishee by 
force of the judgment. 
    Sec. 15.  [571.83] [JOINDER AND INTERVENTION BY PERSONS IN 
INTEREST.] 
    If it appears that a person, who is not a party to the 
action, has or claims an interest in any of the disposable 
earnings, other indebtedness, money, or other property, the 
court shall permit that person to intervene or join in the 
garnishment proceeding.  If that person does not appear, the 
court may summon that person to appear or order the claim 
barred.  The person so appearing or summoned shall be joined as 
a party and be bound by the judgment. 
    Sec. 16.  [571.84] [VALUATION AND DISPOSITION OF PROPERTY 
IN HANDS OF THE GARNISHEE.] 
    On motion of a person in interest the court may:  (1) 
determine the value of property of the debtor in the hands of 
the garnishee; (2) make an order relative to the keeping, 
delivery, or sale of the property that is necessary to protect 
the rights of those interested; or (3) require the property to 
be delivered to a receiver or other person appointed by the 
court.  If the garnishee refuses or neglects to comply with an 
order of the court, the garnishee may be held in contempt of 
court, and is also liable to the creditor for the value of the 
property, less the amount of a lien.  
    Sec. 17.  [571.85] [LIEN OF GARNISHEE.] 
    If it appears that the garnishee has a security interest or 
lien on the indebtedness or property, the creditor, on motion, 
may be permitted to pay the amount of the lien or security 
interest, and the amount that is paid shall be repaid to the 
creditor, with interest, out of the proceeds from the sale of 
the indebtedness or property.  The garnishee may sell the 
property to satisfy the lien, if a sale is authorized by the 
contract between the debtor and garnishee, at any time before 
the payment or tender.  
    Sec. 18.  [571.86] [DISCHARGE NOT A BAR.] 
    If a person summoned as a garnishee is discharged pursuant 
to section 571.79, or released by the creditor, the discharge is 
no bar to an action brought against the garnishee by the debtor 
or other claimants.  
    Sec. 19.  [571.87] [TRANSFER TO ANOTHER COURT.] 
    In case of a change in venue or removal to a United States 
District Court, whether before or after full disclosure, the 
garnishment proceeding must be changed to the county or court to 
which the action is transferred.  Written notice of the 
transfer, specifying the court to which the transfer is made 
shall be served by the creditor on the garnishee.  The transfer 
carries with it all pending proceedings and any disclosure made 
in those proceedings.  
    Sec. 20.  [571.88] [APPEAL.] 
    A party to a garnishment proceeding aggrieved by an order 
or final judgment may appeal as in other civil cases.  
    Sec. 21.  [571.90] [PENALTY IN CERTAIN GARNISHMENT 
PROCEEDINGS.] 
    A creditor who serves or causes to be served a garnishment 
summons before entry of judgment in the main action, except when 
garnishment before entry of judgment is permitted under this 
chapter, is liable to the debtor named in the garnishment 
proceedings in the amount of $100, plus actual damages, plus 
reasonable attorney's fees and costs.  Any action by a creditor 
made in bad faith and in violation of this chapter renders the 
garnishment void and the creditor liable to the debtor named in 
the garnishment in the amount of $100, actual damages, and 
reasonable attorney's fees and costs.  
    Sec. 22.  [571.91] [GARNISHMENT OF FUNDS AT A FINANCIAL 
INSTITUTION.] 
    Sections 571.911 to 571.915 relate to the garnishment of 
funds at a financial institution. 
    Sec. 23.  [571.911] [EXEMPTION NOTICE; DUTY OF FINANCIAL 
INSTITUTION.] 
    If the garnishment summons is used to garnish funds of a 
debtor who is a natural person and if the funds to be garnished 
are held on deposit at a financial institution, the creditor 
shall serve with the garnishee summons two copies of an 
exemption notice.  The notice must be substantially in the form 
set forth in section 571.912.  Failure of the creditor to send 
the exemption notice renders the garnishment void, and the 
financial institution shall take no action.  Upon receipt of the 
garnishment summons and exemption notices, the financial 
institution shall retain as much of the amount under section 
571.73 as the financial institution has on deposit owing to the 
debtor, but not more than 110 percent of the creditor's claim.  
    Sec. 24.  [571.912] [FORM OF EXEMPTION NOTICE.] 
    The notice informing a debtor that an order for attachment, 
garnishment summons, or levy by execution has been used to 
attach funds of the debtor to satisfy a claim must be 
substantially in the following form:  
STATE OF MINNESOTA                            DISTRICT COURT 
COUNTY OF ................         ........JUDICIAL DISTRICT
........................(Creditor)
........................(Debtor)
TO:  Debtor                                EXEMPTION NOTICE
    An order for attachment, garnishment summons, or levy of 
execution (strike inapplicable language) has been served on 
............ (Bank or other financial institution) 
............... where you have an account.  
    Your account balance is $.............  
    The amount being held is $............  
    However, all or a portion of the funds, in your account 
will normally be exempt from creditors' claims if they are in 
one of the following categories: 
    (1) relief based on need.  This includes:  Aid to Families 
with Dependent Children (AFDC), AFDC-Emergency Assistance 
(AFDC-EA), Medical Assistance (MA), General Assistance (GA), 
General Assistance Medical Care (GAMC), Emergency General 
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
Income (SSI), and Energy Assistance; 
    (2) Social Security benefits (Old Age, Survivors, or 
Disability Insurance); 
    (3) unemployment compensation, workers' compensation, or 
veterans' benefits; 
    (4) an accident, disability, or retirement pension or 
annuity; 
    (5) life insurance proceeds; 
    (6) the earnings of your minor child; or 
    (7) money from a claim for damage or destruction of exempt 
property (such as household goods, farm tools, business 
equipment, a mobile home, or a car.)  
    The following funds are also exempt: 
    (8) all earnings of a person in category (1); 
    (9) all earnings of a person who has received relief based 
on need, or who has been an inmate of a correctional 
institution, within the last six months; 
    (10) 75 percent of every debtor's after tax earnings; and 
    (11) all of a debtor's after tax earnings below 40 times 
the federal minimum wage. 
    TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  
    Categories (10) and (11):  20 days 
    Categories (8) and (9):  60 days 
    All others:  no time limit, as long as funds are traceable 
to the exempt source.  (In tracing funds, the first-in, 
first-out method is used.  This means money deposited first is 
spent first.)  The money being sought by the creditor is being 
held in your account to give you a chance to claim an exemption. 
    TO CLAIM AN EXEMPTION:  
    Fill out, sign, and mail or deliver one copy of the 
attached exemption claim form to the institution which sent you 
this notice and mail or deliver one copy to the creditor's 
attorney.  In the event that there is no attorney for the 
creditor, then such notice shall be sent directly to the 
creditor.  The address for the creditor's attorney or the 
creditor is set forth below.  Both copies must be mailed or 
delivered on the same day.  
    If they do not get the exemption claim back from you within 
14 days of the date they mailed or gave it to you, they will be 
free to turn the money over to the sheriff or the creditor.  If 
you are going to claim an exemption, do so as soon as possible, 
because your money may be held until it is decided. 
    IF YOU CLAIM AN EXEMPTION:  
    (1) nonexempt money can be turned over to the creditor or 
sheriff; 
    (2) the financial institution will keep holding the money 
claimed to be exempt; and 
    (3) seven days after receiving your exemption claim, the 
financial institution will release the money to you unless 
before then it receives an objection to your exemption claim.  
    IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 
    the institution will hold the money until a court decides 
if your exemption claim is valid, BUT ONLY IF the institution 
gets a copy of your court motion papers asserting the exemption 
WITHIN TEN DAYS after the objection is mailed or given to you.  
You may wish to consult an attorney at once if the creditor 
objects to your exemption claim.  
    MOTION TO DETERMINE EXEMPTION:  
    At any time after your funds have been held, you may ask 
for a court decision on the validity of your exemption claim by 
filing a request for hearing which may be obtained at the office 
of the clerk of the above court. 
    PENALTIES:  
    If you claim an exemption in bad faith, or if the creditor 
wrongly objects to an exemption in bad faith, the court may 
order the person who acted in bad faith to pay costs, actual 
damages, attorney fees, and an additional amount of up to $100.  
                              .............................
                              .............................
                              ............................. 
                              ............................. 
                              Name and address of (Attorney
                              for) Judgment Creditor
    EXEMPTION:  
    (If you claim an exemption complete the following): 
    (a) Amount of exemption claim.  
    / / I claim ALL the funds being held are exempt.  
    / / I claim SOME of the funds being held are exempt.  
         The exempt amount is $............  
    (b) Basis for exemption.  
    Of the eleven categories listed above, I am in category 
number ............  (If more than one category applies, you may 
fill in as many as apply.)  The source of the exempt funds is 
the following:  
.............................................................
.............................................................
.............................................................
    (If the source is a type of relief based on need, list the 
case number and county:  
    case number:  ...............; 
    county:  ....................) 
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above named creditor or its attorney only 
whether or not I am or have been a recipient of relief based on 
need or an inmate of a correctional institute within the last 
six months.  
    I have mailed or delivered a copy of the exemption notice 
to the creditor's attorney.  
DATED:  .............        .............................
                             DEBTOR 
                             .............................
                             DEBTOR ADDRESS 
    Sec. 25.  [571.913] [EFFECT OF EXEMPTION NOTICE.] 
    Within two business days after receipt of the garnishment 
summons and exemption notices, the financial institution shall 
serve upon the debtor two copies of the exemption notice.  The 
financial institution shall serve the notice by first class mail 
to the last known address of the debtor.  If no claim of 
exemption is received by the financial institution within 14 
days after the exemption notices are mailed to the debtor, the 
funds remain subject to the garnishment summons.  If the debtor 
elects to claim an exemption, the 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 creditor within 14 days of the date postmarked 
on the correspondence mailed to the debtor containing the 
exemption notices.  In the event that there is no attorney for 
the creditor, then the notice must be sent directly to the 
creditor.  Failure of the debtor to deliver the executed 
exemption notice 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 seven days 
after the date postmarked 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.  
    Sec. 26.  [571.914] [OBJECTION TO EXEMPTION CLAIM.] 
    Subdivision 1.  [OBJECTIONS.] An objection shall be 
interposed by mailing or delivering one copy of the written 
objection to the financial institution and one copy of the 
written objection to the debtor.  A Request for Hearing and 
Notice of Hearing form must accompany each copy of the written 
objection. 
    Both copies of an objection to an exemption claim must be 
mailed or delivered on the same date.  The financial institution 
may rely on the date of mailing or delivery of a notice to it in 
computing any time periods in this section.  
    The written objection, and Request for Hearing and Notice 
of Hearing, must be substantially in the forms set out in 
subdivisions 2 and 3.  
    The court shall provide clerical assistance to help with 
the writing and filing of a Request for Hearing by any person 
not represented by counsel.  The court administrator may charge 
a fee of $1 for the filing of a Request for Hearing.  Upon the 
filing of a Request for Hearing, the clerk shall schedule the 
matter for hearing no later than five business days from the 
date of filing.  The court administrator shall immediately send 
a completed copy of the request, including the hearing date, 
time, and place to the adverse party and to the financial 
institution by first class mail. 
    An order stating whether the debtor's funds are exempt 
shall be issued by the court within three days of the date of 
the hearing. 
    Subd. 2.  [NOTICE OF OBJECTION.] (a) The written objection 
to the debtor must be in substantially the following form:  
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ....................    ..........JUDICIAL DISTRICT
....................(Creditor) 
....................(Debtor)             CREDITOR'S OBJECTION
....................(Garnishee)            TO EXEMPTION CLAIM
    The creditor objects to your claim for exemption from 
garnishment, levy of execution, order for attachment (strike 
inapplicable language) for the following reason(s):  
.................................................................
.................................................................
.................................................................
    Because of this objection, your financial institution will 
retain the funds you claimed to be exempt for an additional ten 
days.  If you wish to request a hearing on your exemption claim, 
you should do so within ten days of your receipt of this 
objection.  You may request a hearing by completing the attached 
form and filing it with the court administrator.  
    1.  The court shall provide clerical assistance to help 
with the writing and filing of a Request for Hearing by any 
person not represented by counsel.  The court administrator may 
charge a fee of $1 for the filing of a Request for Hearing.  
    2.  Upon the filing of a Request for Hearing, the clerk 
shall schedule the matter for a hearing no later than five 
business days from the date of filing.  The court administrator 
shall forthwith send a completed copy of the request, including 
the hearing date, time and place to the adverse party and to the 
financial institution by first class mail.  
    3.  If it is possible that the financial institution might 
not receive the request mailed from the court administrator 
within ten days, then you may want to personally deliver a copy 
of the request to the financial institution after you have filed 
your request with the court.  
    4.  An order stating whether your funds are exempt shall be 
issued by the court within three days of the date of the hearing.
    If you do not file a Request for Hearing within ten days of 
the date you receive this objection, your financial institution 
may turn your funds over to your creditor. 
    If you file a Request for Hearing and your financial 
institution receives it within ten days of the date it received 
this objection, your financial institution will retain your 
funds claimed to be exempt until otherwise ordered by the court, 
or until the garnishment lapses pursuant to Minnesota Statutes, 
section 571.79. 
                          ..................................
                          (CREDITOR OR CREDITOR'S ATTORNEY.) 
    Subd. 3.  [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 
request for hearing accompanying the objection notice must be in 
substantially the following form: 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF ....................      ........JUDICIAL DISTRICT
....................(Creditor)
....................(Debtor)              REQUEST FOR HEARING
                                       AND NOTICE FOR HEARING
....................(Garnishee)
    I hereby request a hearing to resolve the exemption claim 
which has been made in this case regarding funds in the account 
of ............. (Debtor) at the ......... (Financial 
Institution). 
    I believe the property being held is exempt because 
.................................................................
.................................................................
Dated:...........................................................
                                          (DEBTOR)
                                          ...................
                                          (ADDRESS)
                                          ...................
HEARING DATE:  ................    TIME:  ...................
HEARING PLACE:  ...............
    (Note to both parties:  Bring with you to the hearing all 
documents and materials relevant to the exemption claim.  
Failure to do so could delay the court's decision.) 
    Subd. 4.  [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 
MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 
from the creditor within the specified seven-day period, the 
financial institution shall retain the funds claimed to be 
exempt.  Unless the financial institution receives a request for 
hearing from the debtor asserting exemption rights within ten 
days after receipt of the written objection to the exemption, 
the funds remain subject to the garnishment summons as if no 
claim of exemption had been made.  If a notice of motion and 
motion to determine the validity of a claim of exemption is 
received by the financial institution within the period 
provided, the financial institution shall retain the funds 
claimed to be exempt until otherwise ordered by the court, or 
until the garnishment lapses pursuant to section 571.79.  
    Sec. 27.  [571.915] [RELEASE OF FUNDS.] 
    At any time the debtor or the creditor may, by a writing 
dated after the service of the garnishment summons, direct the 
financial institution to release the funds in question to the 
other party.  Upon receipt of a release, the financial 
institution shall release the funds as directed. 
    Sec. 28.  [571.92] [GARNISHMENT OF EARNINGS.] 
    Sections 571.921 to 571.926 relate to the garnishment of 
earnings. 
    Sec. 29.  [571.921] [DEFINITIONS.] 
    For purposes of sections 571.921 to 571.926, the following 
terms have the meanings given them: 
    (a) "earnings" means: 
    (1) compensation paid or payable to an employee for 
personal service whether denominated as wages, salary, 
commissions, bonus, or otherwise, and includes periodic payments 
pursuant to a pension or retirement program; or 
    (2) compensation paid or payable to the producer for the 
sale of agricultural products; livestock or livestock products; 
milk or milk products; or fruit or other horticultural products 
produced when the producer is operating a family farm, a family 
farm corporation, or an authorized farm corporation, as defined 
in section 500.24, subdivision 2; 
    (b) "disposable earnings" means that part of the earnings 
of an individual remaining after the deduction from those 
earnings of amounts required by law to be withheld; 
    (c) "employee" means an individual who performs services 
subject to the right of the employer to control both what is 
done and how it is done; and 
    (d) "employer" means a person for whom an individual 
performs services as an employee. 
    Sec. 30.  [571.922] [LIMITATION ON WAGE GARNISHMENT.] 
    Unless the judgment is for child support, the maximum part 
of the aggregate disposable earnings of an individual for any 
pay period subjected to garnishment may not exceed the lesser of:
    (1) 25 percent of the debtor's disposable earnings; or 
    (2) the amount by which the debtor's disposable earnings 
exceed the following product:  40 times the federal minimum 
hourly wages prescribed by section 6(a)(1) of the Fair Labor 
Standards Act of 1938, United States Code, title 29, section 
206(a)(1), in effect at the time the earnings are payable, times 
the number of work weeks in the pay period.  When a pay period 
consists of other than a whole number of work weeks, each day of 
that pay period in excess of the number of completed work weeks 
shall be counted as a fraction of a work week equal to the 
number of excess work days divided by the number of days in the 
normal work week. 
     If the judgment is for child support, the garnishment may 
not exceed: 
    (1) 50 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child; 
    (2) 55 percent of the judgment debtor's disposable income, 
if the judgment debtor is supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
garnishment summons is received); 
    (3) 60 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child; or 
    (4) 65 percent of the judgment debtor's disposable income, 
if the judgment debtor is not supporting a spouse or dependent 
child, and the judgment is over 12 weeks old (12 weeks to be 
calculated to the beginning of the work week in which the 
garnishment summons is received). 
    No court may make, execute, or enforce an order or any 
process in violation of this section. 
    Sec. 31.  [571.923] [MULTIPLE EARNINGS GARNISHMENTS.] 
    Except as otherwise provided in this chapter or section 
518.611, subdivision 6, the priority of multiple earnings 
garnishments shall be determined by the order in which the 
garnishment summonses were served on the employer.  If the 
employer is served with two or more garnishment summonses at the 
same time on the same day, the garnishment summons issued 
pursuant to the first judgment entered has priority.  If two or 
more garnishment summonses are served on the same day and are 
based on judgments entered on the same day or if there are two 
or more garnishment summonses based on prejudgment garnishment 
pursuant to section 571.93, then the employer shall select the 
priority of the earnings garnishments. However, in all cases 
garnishments shall be effective no longer than 70 days from the 
date of the service of the garnishment summons. 
    Sec. 32.  [571.924] [GARNISHMENT EXEMPTION NOTICE.] 
    Subdivision 1.  [REQUIREMENT.] The creditor shall serve 
upon the debtor, no less than ten days before the service of the 
garnishment summons, a notice that a summons may be issued.  The 
notice shall:  (1) be substantially in the form set out in 
section 571.925; (2) be served personally, in the manner of a 
summons and complaint, or by first class mail to the last known 
address of the debtor; (3) inform the debtor that a garnishment 
summons may be served on the debtor's employer after ten days, 
and that the debtor may, within that time, cause to be served on 
the creditor a signed statement under penalties of perjury 
asserting an entitlement to an exemption from garnishment; (4) 
inform the debtor of the earnings garnishment exemptions 
contained in section 550.37, subdivision 14; and (5) advise the 
debtor of the relief set forth in this chapter to which the 
debtor may be entitled if a creditor in bad faith disregards a 
valid claim and the fee, costs, and penalty that may be assessed 
against a debtor who in bad faith falsely claims an exemption or 
in bad faith takes action to frustrate the garnishment process. 
    Subd. 2.  [ADDITIONAL NOTICES.] If the garnishment summons 
has not been served within one year after service of the notice, 
the creditor shall serve another notice upon the debtor before 
serving the garnishment summons on the debtor's employer.  If 
more than one year has passed since the service of the 
creditor's most recent garnishment summons, the creditor shall, 
no less than ten days before service of another garnishment 
summons, serve notice that another garnishment summons may be 
served. 
    Sec. 33.  [571.925] [FORM OF NOTICE.] 
    The ten-day notice informing a debtor that a garnishment 
summons may be used to garnish the earnings of an individual 
must be substantially in the following form: 
STATE OF MINNESOTA                             DISTRICT COURT
COUNTY OF .............         ........... JUDICIAL DISTRICT
....................(Creditor)
against
                                   GARNISHMENT EXEMPTION 
....................(Debtor)       NOTICE AND NOTICE OF 
and                                INTENT TO GARNISH EARNINGS 
                                   WITHIN TEN DAYS
....................(Garnishee)
 THE STATE OF MINNESOTA 
 TO THE ABOVE NAMED DEBTOR 
    PLEASE TAKE NOTICE that a garnishment summons or levy may 
be served upon your employer or other third parties, without any 
further court proceedings or notice to you, ten days or more 
from the date hereof.  Some or all of your earnings are exempt 
from garnishment.  If your earnings are garnished, your employer 
must show you how the amount that is garnished from your 
earnings was calculated.  You have the right to request a 
hearing if you claim the garnishment is incorrect. 
     Your earnings are completely exempt from garnishment if you 
are now a recipient of relief based on need, if you have been a 
recipient of relief within the last six months, or if you have 
been an inmate of a correctional institution in the last six 
months. 
    Relief based on need includes Aid to Families with 
Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA), 
Medical Assistance (MA), General Assistance (GA), General 
Assistance Medical Care (GAMC), Emergency General Assistance 
(EGA), Work Readiness, Minnesota Supplemental Aid (MSA), MSA 
Emergency Assistance (MSA-EA), Supplemental Security Income 
(SSI), and Energy Assistance. 
    If you wish to claim an exemption, you should fill out the 
appropriate form below, sign it, and send it to the creditor's 
attorney and the garnishee. 
    You may wish to contact the attorney for the creditor in 
order to arrange for a settlement of the debt or contact an 
attorney to advise you about exemptions or other rights. 
 PENALTIES
 (1) Be advised that even if you claim an exemption, a 
garnishment summons may still be served on your employer.  
If your earnings are garnished after you claim an 
exemption, you may petition the court for a determination 
of your exemption.  If the court finds that the creditor 
disregarded your claim of exemption in bad faith, you will 
be entitled to costs, reasonable attorney fees, actual 
damages, and an amount not to exceed $100. 
 (2) HOWEVER, BE WARNED if you claim an exemption, the 
creditor can also petition the court for a determination of 
your exemption, and if the court finds that you claimed an 
exemption in bad faith, you will be assessed costs and 
reasonable attorney's fees plus an amount not to exceed 
$100. 
 (3) If after receipt of this notice, you in bad faith take 
action to frustrate the garnishment, thus requiring the 
creditor to petition the court to resolve the problem, you 
will be liable to the creditor for costs and reasonable 
attorney's fees plus an amount not to exceed $100. 
DATED:  ............           ........................
                               (Attorney for) Creditor
                               ........................
                               Address
                               ........................
                               Telephone
 DEBTOR'S EXEMPTION CLAIM NOTICE
    I hereby claim that my earnings are exempt from garnishment 
because: 
 (1) I am presently a recipient of relief based on need. 
(Specify the program, case number, and the county from 
which relief is being received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (2) I am not now receiving relief based on need, but I have 
received relief based on need within the last six months. 
(Specify the program, case number, and the county from 
which relief has been received.) 
................    ......................   ...............
Program             Case Number (if known)   County
 (3) I have been an inmate of a correctional institution 
with the last six months.  (Specify the correctional 
institution and location.) 
...........................       ..........................
Correctional Institution          Location
    I hereby authorize any agency that has distributed relief 
to me or any correctional institution in which I was an inmate 
to disclose to the above-named creditor or his attorney only 
whether or not I am or have been a recipient of relief based on 
need or an inmate of a correctional institution within the last 
six months.  I have mailed or delivered a copy of this form to 
the creditor or creditor's attorney. 
...........................          .........................
Date                                 Debtor
                                     .........................
                                     Address
    Sec. 34.  [571.926] [PROCEEDINGS IF NO EXEMPTION STATEMENT 
IS RECEIVED.] 
    If no statement of exemption is received by the creditor on 
an earnings garnishment within ten days from the service of the 
notice, the creditor may proceed with the garnishment.  Failure 
of the debtor to serve a statement does not constitute a waiver 
of any right the debtor may have to an exemption.  If the 
statement of exemption is received by the creditor, the creditor 
may still cause a garnishment summons to be issued subject to 
sanctions provided in section 571.72, subdivision 6. 
    Sec. 35.  [571.927] [PENALTY FOR RETALIATION FOR 
GARNISHMENT.] 
    Subdivision 1.  [PROHIBITION.] An employer shall not 
discharge or otherwise discipline an employee as a result of an 
earnings garnishment authorized by this chapter. 
    Subd. 2.  [REMEDY.] If an employer violates this section, a 
court may order the reinstatement of an aggrieved party who 
demonstrates a violation of this section, and other relief the 
court considers appropriate.  The aggrieved party may bring a 
civil action within 90 days of the date of the prohibited 
action.  If an employer-employee relationship existed before the 
violation of this section, the employee shall recover twice the 
wages lost as a result of this violation. 
    Subd. 3.  [NONWAIVER.] The rights guaranteed by this 
section may not be waived or altered by employment contract. 
    Sec. 36.  [571.93] [GARNISHMENT BEFORE JUDGMENT OR 
DEFAULT.] 
    Subdivision 1.  [GROUNDS.] The court may order the issuance 
of a garnishment summons before judgment or default in the civil 
action, if a summons and complaint, or copies of these 
documents, are filed with the appropriate court, and if, upon 
application to the court, it appears that any of the following 
grounds exist: 
    (1) the debtor has assigned, secreted, or disposed of, or 
is about to assign, secrete, or dispose of, any of the debtor's 
nonexempt property, with intent to delay or defraud any of 
debtor's creditors; 
    (2) the debtor has removed, or is about to remove, any of 
the debtor's nonexempt property from this state, with intent to 
delay or defraud any of debtor's creditors; 
    (3) the debtor has converted or is about to convert any of 
the debtor's nonexempt property into money or credits, for the 
purpose of placing the property beyond the reach of any of 
debtor's creditors; 
    (4) the debtor has committed an intentional fraud giving 
rise to the claim upon which the civil action is brought; 
    (5) the debtor has committed any act or omission, for which 
the debtor has been convicted of a felony, giving rise to the 
claim upon which the civil action is brought; or 
    (6) the purpose of the garnishment is to establish quasi in 
rem jurisdiction and 
    (i) debtor is a resident individual having left the state 
with intent to defraud creditors, or to avoid service; or 
    (ii) a judgment had previously been obtained in another 
state consistent with due process; or 
    (iii) the claim in the civil action is directly related to 
and arises from the property sought to be attached; or 
    (iv) no forum is available to obtain a personal judgment 
against the debtor in the United States or elsewhere; or 
    (7) the creditor has been unable to serve upon the debtor 
the summons and complaint in the civil action because the debtor 
has been inaccessible due to residence and employment in a 
building where access is restricted. 
    Subd. 2.  [NOTICE AND HEARING REQUIREMENTS.] If the 
garnishment is before notice and hearing, the requirements of 
section 571.931 must be met.  If the garnishment is after notice 
and hearing, the requirements of section 571.932 must be met. 
    Sec. 37.  [571.931] [PREJUDGMENT GARNISHMENT BEFORE NOTICE 
AND HEARING.] 
    Subdivision 1.  [WRITTEN APPLICATION.] A creditor seeking a 
prejudgment garnishment order in extraordinary circumstances to 
secure property before the hearing specified in section 571.932 
shall proceed by written application.  The application must be 
accompanied by affidavits or by oral testimony, or both, setting 
forth in detail: 
    (1) the basis and the amount of the claim in the civil 
action; 
    (2) the facts which constitute the conditions for 
prejudgment garnishment as specified in section 571.93, 
subdivision 1; and 
    (3) a good faith estimate, based on facts known to the 
creditor, of any harm that would be suffered by the debtor if a 
prejudgment garnishment order is entered without notice and 
hearing. 
    Subd. 2.  [CONDITIONS.] A prejudgment garnishment order may 
be issued before the hearing specified in subdivision 4 only if 
the following conditions are met: 
    (1) the creditor has made a good faith effort to inform the 
debtor of the application for a prejudgment garnishment order or 
that informing the debtor would endanger the ability of the 
creditor to recover upon a judgment subsequently awarded; 
    (2) the creditor has demonstrated the probability of 
success on the merits; 
    (3) the creditor has demonstrated the existence of one or 
more of the grounds specified in section 571.93, subdivision 1; 
and 
    (4) due to extraordinary circumstances, the creditor's 
interests cannot be protected pending a hearing by an 
appropriate order of the court, other than by directing a 
prehearing seizure of property. 
    Subd. 3.  [ORDER.] All prejudgment garnishment orders must: 
    (1) state the names and addresses of all persons whose 
affidavits were submitted to the court and of all witnesses who 
gave oral testimony; 
    (2) contain specific findings of fact, based upon competent 
evidence presented either in the form of affidavits or oral 
testimony, supporting the conclusion that each of the conditions 
in subdivision 1 have been met; 
    (3) be narrowly drafted to minimize any harm to the debtor 
as a result of the seizure of the debtor's property; and 
    (4) provide for the bond required by section 571.932, 
subdivision 6. 
    Subd. 4.  [SUBSEQUENT HEARING.] If the court issues a 
prejudgment garnishment order, the order must establish a date 
for a hearing at which the debtor may be heard.  The subsequent 
hearing must be conducted at the earliest practicable time.  At 
the hearing, the burden of proof is on the creditor to establish 
the grounds justifying the prejudgment garnishment order. 
    Subd. 5.  [STANDARDS AT SUBSEQUENT HEARING.] The hearing 
held pursuant to subdivision 4 must be conducted in accordance 
with the standards established in section 571.932.  In addition, 
if the court finds that the motion for a prejudgment garnishment 
order was made in bad faith, the court shall award debtor the 
actual damages, costs, and reasonable attorney's fees, suffered 
by reason of the prejudgment garnishment. 
    Subd. 6.  [NOTICE.] The debtor shall be served with a copy 
of the prejudgment garnishment order issued pursuant to this 
section together with a copy of all pleadings and other 
documents not previously served, including any affidavits upon 
which the claimant intends to rely at the subsequent hearing and 
a transcript of any oral testimony given at the prejudgment 
garnishment hearing upon which the creditor intends to rely and 
a notice of hearing.  Service must be in the manner prescribed 
for personal service of a summons unless that service is 
impracticable or would be ineffective and the court prescribes 
an alternative method of service calculated to provide actual 
notice to the debtor. 
    The notice of hearing served upon the debtor must be signed 
by the creditor or the attorney for the creditor and must be 
accompanied by an exemption notice.  The notice of hearing must 
be accompanied by an exemption notice, and both notices must 
provide, at a minimum, the following information in 
substantially the following language: 
 NOTICE OF HEARING
     TO:  (the debtor) 
    The (insert the name of court) Court has ordered the 
prejudgment garnishment of some of your property in the 
possession or control of a third party.  Some of your property 
may be exempt from seizure.  See the exemption notice below.  
    The Court issued this Order based upon the claim of (insert 
name of creditor) that (insert name of creditor) is entitled to 
a court order for garnishment of your property to secure your 
payment of any money judgment that (insert name of creditor) may 
later be obtained against you and that immediate action was 
necessary.  
    You have the legal right to challenge (insert name of 
creditor) claims at a court hearing before a judge.  The hearing 
will be held at the (insert place) on (insert date) at (insert 
time).  You may attend the court hearing alone or with an 
attorney.  After you have presented your side of the matter, the 
court will decide what should be done with your property until 
the lawsuit against you is finally decided.  
    IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER 
GARNISHMENT OF YOUR PROPERTY. 
 EXEMPTION NOTICE
    Some of your property may be exempt and cannot be garnished.
The following is a list of some of the more common exemptions.  
It is not complete and is subject to section 550.37, and other 
state and federal laws.  If you have questions about an 
exemption, you should obtain competent legal advice.  
    (1) A homestead or the proceeds from the sale of a 
homestead.  
    (2) Household furniture, appliances, phonographs, radios, 
and televisions up to a total current value of $4,500 at the 
time of attachment.  
    (3) A manufactured (mobile) home used as your home.  
    (4) One motor vehicle currently worth less than $2,000 
after deducting any security interests.  
    (5) Farm machinery used by someone principally engaged in 
farming, or tools, machines, or office furniture used in your 
business or trade.  This exemption is limited to $10,000.  
    (6) Relief based on need.  This includes:  Aid to Families 
with Dependent Children (AFDC), AFDC-Emergency Assistance 
(AFDC-EA), Medical Assistance (MA), General Assistance (GA), 
General Assistance Medical Care (GAMC), Emergency General 
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
Income (SSI), and Energy Assistance.  
    (7) Social Security benefits.  
    (8) Unemployment compensation, workers' compensation, or 
veterans' benefits.  
    (9) An accident, disability or retirement pension or 
annuity. 
    (10) Life insurance proceeds.  
    (11) The earnings of your minor child.  
    (12) Money from a claim for damage or destruction of exempt 
property (such as household goods, farm tools, business 
equipment, a manufactured (mobile) home, or a car.)  
    Sec. 38.  [571.932] [PREJUDGMENT GARNISHMENT AFTER NOTICE 
AND HEARING.] 
    Subdivision 1.  [MOTION.] A creditor seeking to obtain an 
order of garnishment in other than extraordinary circumstances 
shall proceed by motion.  The motion must be accompanied by an 
affidavit setting forth in detail:  
    (1) the basis and amount of the claim in the civil action; 
and 
    (2) the facts that constitute one or more of the grounds 
for garnishment as specified in section 571.93, subdivision 1.  
    Subd. 2.  [SERVICE.] The creditor's motion to obtain an 
order of garnishment together with the creditor's affidavit and 
notice of hearing must be served in the manner prescribed for 
service of a summons in a civil action in district court unless 
that service is impracticable or would be ineffective and the 
court prescribes an alternative method of service calculated to 
provide actual notice to the debtor.  If the debtor has already 
appeared in the action, the motion must be served in the manner 
prescribed for service of pleadings subsequent to the summons.  
The date of the hearing must be fixed in accordance with Rule 6 
of the Minnesota Rules of Civil Procedure for the District 
Courts, unless a different date is fixed by order of the court.  
    The notice of hearing served upon the debtor shall be 
signed by the creditor or the attorney for the creditor and 
shall provide, at a minimum, the following information in 
substantially the following language: 
 NOTICE OF HEARING
    TO:  (the debtor) 
    A hearing will be held (insert place) on (insert date) at 
(insert time) to determine whether nonexempt property belonging 
to you will be garnished to secure a judgment that may be 
entered against you.  
    You may attend the court hearing alone or with an attorney. 
After you have presented your side of the matter, the court will 
decide whether your property should be garnished until the 
lawsuit which has been commenced against you is finally decided. 
    If the court directs the issuance of a garnishment summons 
while the lawsuit is pending, you may still keep the property 
until the lawsuit is decided if you file a bond in an amount set 
by the court.  
    IF YOU DO NOT ATTEND THIS HEARING, THE COURT MAY ORDER YOUR 
NONEXEMPT PROPERTY TO BE GARNISHED.  
 EXEMPTION NOTICE
    Some of your property may be exempt and cannot be garnished.
The following is a list of some of the more common exemptions.  
It is not complete and is subject to section 550.37, and other 
state and federal laws.  The dollar amounts contained in this 
list are subject to the provisions of section 550.37, 
subdivision 4a, at the time of the garnishment.  If you have 
questions about an exemption, you should obtain competent legal 
advice.  
    (1) A homestead or the proceeds from the sale of a 
homestead.  
    (2) Household furniture, appliances, phonographs, radios, 
and televisions up to a total current value of $5,850. 
    (3) A manufactured (mobile) home used as your home.  
    (4) One motor vehicle currently worth less than $2,600 
after deducting any security interests.  
    (5) Farm machinery used by an individual principally 
engaged in farming, or tools, machines, or office furniture used 
in your business or trade.  This exemption is limited to $13,000.
    (6) Relief based on need.  This includes:  Aid to Families 
with Dependent Children (AFDC), AFDC-Emergency Assistance 
(AFDC-EA), Medical Assistance (MA), General Assistance (GA), 
General Assistance Medical Care (GAMC), Emergency General 
Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 
(MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 
Income (SSI), and Energy Assistance.  
    (7) Social Security benefits.  
    (8) Unemployment compensation, workers' compensation, or 
veterans' benefits.  
    (9) An accident, disability or retirement pension or 
annuity. 
    (10) Life insurance proceeds.  
    (11) The earnings of your minor child.  
    (12) Money from a claim for damage or destruction of exempt 
property (such as household goods, farm tools, business 
equipment, a manufactured (mobile) home, or a car.)  
    Subd. 3.  [STANDARDS FOR ORDER.] An order for prejudgment 
garnishment may be issued only if the creditor has demonstrated 
the probability of success on the merits, and the creditor has 
stated facts that show the existence of at least one of the 
grounds stated in section 571.93, subdivision 1.  However, even 
if those standards are met, the order may not be issued if:  
    (1) the circumstances do not constitute a risk to 
collectibility of any judgment that may be entered; or 
    (2)(i) the debtor has raised a defense to the merits of the 
creditor's claim or has raised a counterclaim in an amount equal 
to or greater than the claim and the defense or counterclaim is 
not frivolous; and 
    (ii) the interests of the debtor cannot be adequately 
protected by a bond filed by the creditor pursuant to section 
571.932, subdivision 6, if property is garnished; and 
    (iii) the harm suffered by the debtor as a result of 
garnishment would be greater than the harm that would be 
suffered by the creditor if property is not attached. 
    Subd. 4.  [PROTECTION OF CREDITOR.] If the creditor makes 
the showing prescribed by subdivision 3 but the court 
nevertheless determines that an order of garnishment should not 
be issued for the reasons set forth in subdivision 3, clause 
(2), the court shall enter a further order protecting the rights 
of the creditor to the extent possible.  The order may require 
that the debtor post a bond in an amount set by the court, that 
the debtor make the property available for inspection from time 
to time, that the debtor be restrained from certain activities, 
including, but not limited to, selling, disposing, or otherwise 
encumbering property, or any other provision the court considers 
appropriate.  
    Subd. 5.  [STAY OF ORDER.] An order permitting prejudgment 
garnishment of property may be stayed up to three days to allow 
the debtor time to post a bond.  
    Subd. 6.  [BONDING REQUIREMENT.] (a) Before issuing an 
order of garnishment, the court shall require the creditor to 
post a bond in the penal sum of at least $500, conditioned that 
if judgment be given for the debtor or if the order is vacated, 
the creditor will pay all costs that may be awarded against the 
creditor and all damages caused by the garnishment.  Damages may 
be awarded in a sum in excess of the bond only if, before the 
issuance of the order establishing the amount of the bond, the 
debtor specifically notified the creditor and the court of the 
likelihood that the debtor would suffer the specific damages, or 
the court finds that the creditor acted in bad faith in bringing 
or pursuing the garnishment proceeding.  In establishing the 
amount of the bond, the court shall consider the value and 
nature of the property garnished, the method of retention or 
storage of the property, the potential harm to the debtor or any 
party, and other factors that the court considers appropriate.  
Nothing in this section modifies or restricts the application of 
section 549.20 or 549.21.  
    (b) The court may at any time modify the amount of the bond 
upon its own motion or upon the motion of a party based on the 
value of the property garnished, the nature of the property 
attached, the methods of retention or storage of the property, 
the potential harm to the debtor or a party, or other factor 
that the court considers appropriate.  
    (c) In lieu of filing a bond, either the creditor or the 
debtor may satisfy the bonding requirements by depositing cash, 
an irrevocable letter of credit, a cashier's check, or a 
certified check with the court. 
    Subd. 7.  [REQUIREMENTS OF ORDER.] An order for prejudgment 
garnishment after notice and hearing must:  
    (1) contain the findings required by section 571.932, 
subdivision 3; 
    (2) state with particularity the facts upon which the 
findings are made; 
    (3) state that a debtor who attended the hearing was 
offered an opportunity to identify exempt property, without 
waiver of the right to claim exemption in property not 
identified at the hearing; 
    (4) direct the issuance of a garnishment summons; and 
    (5) specify the amount of the bond. 
    Sec. 39.  [REPEALER.] 
    Minnesota Statutes 1988, sections 550.041; 550.05; 550.14; 
550.141; 571.41; 571.42; 571.43; 571.44; 571.45; 571.46; 
571.471; 571.495; 571.50; 571.51; 571.52; 571.53; 571.54; 
571.55; 571.56; 571.57; 571.58; 571.59; 571.60; 571.61; 571.62; 
571.63; 571.64; 571.65; 571.66; 571.67; 571.68; and 571.69, are 
repealed. 
    Sec. 40.  [EFFECTIVE DATE.] 
    Sections 1 to 39 are effective October 1, 1990, and apply 
to garnishments begun on or after that date. 

                                ARTICLE 4

             SCOTT COUNTY WORTHLESS CHECK DIVERSION PROGRAM
    Section 1.  [SCOTT COUNTY WORTHLESS CHECK DIVERSION 
PROGRAM.] 
    Subdivision 1.  [PILOT PROGRAM.] A prosecuting attorney in 
Scott county may create within the office a diversion program 
for persons who write worthless checks, subject to the approval 
of the state court administrator.  For purposes of this section, 
"writing a worthless check" means making, drawing, or delivering 
any check or draft upon any bank or depository for the payment 
of money when there is probable cause to believe there is a 
violation of Minnesota Statutes, section 609.535.  The program 
may be conducted by the prosecuting attorney or by a private 
entity under contract with the prosecuting attorney.  If the 
program is conducted by a private entity, no prosecutorial 
discretion vests in that entity. 
    Subd. 2.  [REFERRAL.] The prosecuting attorney may refer a 
worthless check case to the diversion program.  Except as 
provided in subdivision 5, this section does not limit the power 
of the prosecuting attorney to prosecute worthless check 
complaints. 
    Subd. 3.  [NOTIFICATION OF REFERRAL.] On referral of a case 
to the diversion program, a notice shall be mailed to the person 
alleged to have written the worthless check.  The notice shall 
be approved by the state court administrator. 
    Subd. 4.  [AGREEMENT TO FOREGO PROSECUTION.] The 
prosecuting attorney may enter a written agreement with the 
person to forego prosecution on the worthless check for a period 
to be determined by the prosecuting attorney, not to exceed six 
months, pending satisfaction of required conditions.  The 
written agreement shall be kept by the prosecuting attorney for 
no less than three years. 
    Subd. 5.  [WORTHLESS CHECK FEE.] (a) A prosecuting attorney 
may collect a fee from a person diverted under the program if 
the prosecuting attorney's office collects and processes a 
worthless check.  The amount of the fee shall not exceed $25 for 
each worthless check.  Fees collected under this section shall 
be deposited in the local government unit treasury and used only 
for the pretrial diversion program created under this section. 
    (b) If a nonstate agency or entity is used by the 
prosecuting attorney to administer the worthless check 
prosecution diversion program, the nonstate agency or entity may 
be funded by costs assessed to the check writers enrolled in the 
program.  Program costs assessed to a check writer shall not 
exceed $75. 
    Subd. 6.  [COERCION EXCEPTION.] Sending a notice under 
subdivision 4 or entering an agreement under subdivision 5 does 
not constitute coercion under Minnesota Statutes, section 
609.27, subdivision 1, clause (5). 
    Subd. 7.  [REPORT TO LEGISLATURE.] The state court 
administrator, with the cooperation of the prosecuting attorney 
in Scott county who implements a worthless check pretrial 
diversion pilot program under this section, shall report on its 
effectiveness by January 15, 1991, to the chairs of the 
judiciary committees in the house of representatives and the 
senate.  The report shall recommend any necessary changes in 
state laws to increase the effectiveness of these programs. 
    Sec. 2.  [REPEALER.] 
    Section 1 is repealed July 1, 1991. 
    Sec. 3.  [EFFECTIVE DATE.] 
    Section 1 is effective on approval of the Scott County 
Board. 
    Presented to the governor April 28, 1990 
    Signed by the governor May 4, 1990, 11:09 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569