Minnesota Legislature
Office of the Revisor of Statutes
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.
Official Publication of the State of Minnesota
Revisor of Statutes