518A.58 ESCROW ACCOUNT; CHILD SUPPORT; MAINTENANCE OBLIGATION.
Subdivision 1. Stay of service.
If the court finds there is no arrearage in child support or
maintenance as of the date of the court hearing, the court shall stay service of the order under
if the obligor establishes a savings account for a sum equal to two months of the
monthly child support or maintenance obligation and provides proof of the establishment to the
court and the public authority on or before the day of the court hearing determining the obligation.
This sum must be held in a financial institution in an interest-bearing account with only the public
authority authorized as drawer of funds. Proof of the establishment must include the financial
institution name and address, account number, and the amount of deposit.
Subd. 2. Release of stay.
Within three working days of receipt of notice of default, the public
authority shall direct the financial institution to release to the public authority the sum held under
this subdivision when the following conditions are met:
(1) the obligor fails to pay the support amount to the obligee or the public authority within
ten days of the date it is ordered to be paid;
(2) the obligee transmits a notice of default to the public authority and makes application
to the public authority for child support and maintenance collection services. The notice must
be verified by the obligee and must contain the title of the action, the court file number, the full
name and address of the obligee, the name and last known address of the obligor, the obligor's last
known employer or other payor of funds, the date of the first unpaid amount, the date of the last
unpaid amount, and the total amount unpaid; and
(3) within three working days of receipt of notice from the obligee, the public authority sends
a copy of the notice of default and a notice of intent to implement income withholding by mail to
the obligor at the address given. The notice of intent shall state that the order establishing the
support or maintenance obligation will be served on the obligor's employer or payor of funds
unless within 15 days after the mailing of the notice the obligor requests a hearing on the issue of
whether payment was in default as of the date of the notice of default and serves notice of the
request for hearing on the public authority and the obligee.
Subd. 3. Duties of public authority.
Within three working days of receipt of sums released
under subdivision 2, the public authority shall remit to the obligee all amounts not assigned under
as current support or maintenance. The public authority shall also serve a copy of
the court's order and the provisions of section
and this section on the obligor's employer
or other payor of funds unless within 15 days after mailing of the notice of intent to implement
income withholding the obligor makes a proper motion pursuant to section
rules of the expedited child support process. The public authority shall instruct the employer or
payor of funds pursuant to section
as to the effective date on which the next support or
maintenance payment is due. The withholding process must begin on said date and shall reflect
the total credits of principal and interest amounts received from the escrow account.
Subd. 4. Hearing.
Within 30 days of the date of the notice of default under subdivision 2,
clause (2), the court must hold a hearing if a motion is brought by the obligor as set forth in
subdivision 2. If the court finds that there was a default, the court shall order the immediate
withholding of support or maintenance from the obligor's income. If the court finds that there was
no default, the court shall order the reestablishment of the escrow account by either the obligee or
obligor and continue the stay of income withholding.
Subd. 5. Termination of stay.
When the obligation for support of a child or for spousal
maintenance ends under the terms of the order or decree establishing the obligation and the sum
held under this section has not otherwise been released, the public authority shall release the sum
and interest to the obligor when the following conditions are met:
(1) the obligor transmits a notice of termination to the public authority. The notice shall be
verified by the obligor and contain the title of the action, the court file number, the full name
and address of the obligee, specify the event that ends the support or maintenance obligation,
the effective date of the termination of support or maintenance obligation, and the applicable
provisions of the order or decree that established the support or maintenance obligation;
(2) the public authority sends a copy of the notice of termination to the obligee; and
(3) the obligee fails within 20 days after mailing of the notice under clause (2) to request a
hearing on the issue of whether the support or maintenance obligation continues and serve notice
of the request for hearing on the obligor and the public authority.
History: 1988 c 693 s 3; 1995 c 257 art 3 s 10; 1997 c 203 art 6 s 92; 1999 c 159 s 138;
2002 c 344 s 19,20; 2005 c 164 s 29; 1Sp2005 c 7 s 28