Bill Text: MN HF1576 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Financial institutions required to provide notice to all named account holders after receipt of execution levy, garnishment summons, or writ of execution.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-04-26 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF1576 Detail]
Download: Minnesota-2011-HF1576-Introduced.html
1.2relating to creditors remedies; requiring a financial institution to provide notice to
1.3all named account holders after receipt of execution levy, garnishment summons,
1.4or writ of execution;amending Minnesota Statutes 2010, sections 550.143,
1.5subdivision 4; 551.05, subdivision 2; 571.913.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 550.143, subdivision 4, is amended to read:
1.8 Subd. 4. Effect of exemption notice. Within two business days after receipt of
1.9the writ of execution, notice, instructions, and two copies of the exemption notice, the
1.10financial institution shall serve upon the judgment debtor and all joint account owners the
1.11notice, instructions, and two copies of the exemption notice. The financial institution shall
1.12serve these forms by first class mail to the last known address of the judgment debtor and
1.13all joint account owners. If no claim of exemption is received by the financial institution
1.14within 14 days after the notice, instructions, and exemption notices are mailed to the
1.15judgment debtor and all joint account owners, the funds remain subject to the execution
1.16levy and shall be remitted to the sheriff within six business days. If the judgment debtor
1.17elects to claim an exemption, the judgment debtor shall complete the exemption notice,
1.18sign it under penalty of perjury, and deliver one copy to the financial institution and one
1.19copy to the attorney for the judgment creditor within 14 days of the date postmarked on
1.20the correspondence mailed to the debtor containing the exemption notices. The judgment
1.21debtor is also required to include copies of bank statements for the prior 60 days with the
1.22exemption notice delivered to the attorney for the judgment creditor. In the event that
1.23there is no attorney for the judgment creditor, then the notice and bank statements must
1.24be sent directly to the judgment creditor. Failure of the judgment debtor to deliver the
1.25executed exemption notice or copies of the required bank statements for the prior 60 days
2.1does not constitute a waiver of any claimed right to an exemption. Upon timely receipt
2.2of a claim of exemption, funds not claimed to be exempt by the debtor remain subject to
2.3the execution levy. All money claimed to be exempt shall be released to the judgment
2.4debtor upon the expiration of six business days after the date postmarked on the envelope
2.5containing the executed exemption notice mailed to the financial institution, or the date
2.6of personal delivery of the executed exemption notice to the financial institution, unless
2.7within that time the judgment creditor interposes an objection to the exemption.
2.8EFFECTIVE DATE.This section is effective the day following final enactment
2.9and applies to levies on or after that date.
2.10 Sec. 2. Minnesota Statutes 2010, section 551.05, subdivision 2, is amended to read:
2.11 Subd. 2. Effect of exemption notice. Within two business days after receipt of the
2.12execution levy and the notice, instructions, and two copies of the exemption notices, the
2.13financial institution shall serve upon the judgment debtor and all joint account owners the
2.14notice, instructions, and two copies of the exemption notice. The financial institution shall
2.15serve the notice by first class mail to the last known address of the judgment debtor and
2.16all joint account owners. If no claim of exemption is received by the financial institution
2.17within 14 days after the exemption notices are mailed to the judgment debtor and all joint
2.18account owners, the funds remain subject to the execution levy and shall be remitted to
2.19the judgment creditor's attorney within six business days. If the judgment debtor elects
2.20to claim an exemption, the judgment debtor shall complete the exemption notice, sign it
2.21under penalty of perjury, and deliver one copy to the financial institution and one copy
2.22to the attorney for the judgment creditor within 14 days of the date postmarked on the
2.23correspondence mailed to the judgment debtor containing the exemption notices. The
2.24debtor is also required to include copies of bank statements for the prior 60 days with the
2.25exemption notice. In the event that there is no attorney for the judgment creditor, the
2.26notice must be sent directly to the judgment creditor. Failure of the judgment debtor to
2.27deliver the executed exemption notice or copies of the required bank statements for the
2.28prior 60 days does not constitute a waiver of any claimed right to an exemption. Upon
2.29timely receipt of a claim of exemption, funds not claimed to be exempt by the judgment
2.30debtor remain subject to the execution levy. All money claimed to be exempt shall be
2.31released to the judgment debtor upon the expiration of six business days after the date
2.32postmarked on the envelope containing the executed exemption notice mailed to the
2.33financial institution, or the date of personal delivery of the executed exemption notice to
2.34the financial institution, unless within that time the attorney for the judgment creditor
2.35interposes an objection to the exemption.
3.1EFFECTIVE DATE.This section is effective the day following final enactment
3.2and applies to levies on or after that date.
3.3 Sec. 3. Minnesota Statutes 2010, section 571.913, is amended to read:
3.4571.913 EFFECT OF EXEMPTION NOTICE.
3.5Within two business days after receipt of the garnishment summons, the notice,
3.6instructions, and two copies of the exemption notice, the financial institution shall serve
3.7upon the debtor and all joint account owners the notice, instructions, and two copies
3.8of the exemption notice. The financial institution shall serve these forms by first class
3.9mail to the last known address of the debtor and all joint account owners. If no claim of
3.10exemption is received by the financial institution within 14 days after the exemption
3.11notices are mailed to the debtor and all joint account owners, the funds remain subject to
3.12the garnishment summons. If the debtor elects to claim an exemption, the debtor shall
3.13complete the exemption notices, sign them under penalty of perjury, and deliver one copy
3.14to the financial institution and one copy to the attorney for the creditor within 14 days of
3.15the date postmarked on the correspondence mailed to the debtor containing the exemption
3.16notices. The debtor is also required to include copies of bank statements for the prior 60
3.17days with the exemption notice delivered to the attorney for the creditor. In the event that
3.18there is no attorney for the creditor, then the notice and the bank statements must be sent
3.19directly to the creditor. Failure of the debtor to deliver the executed exemption notice or
3.20copies of the required bank statements for the prior 60 days does not constitute a waiver
3.21of a claimed right to an exemption. Upon timely receipt of a claim of exemption, funds
3.22not claimed to be exempt by the debtor remain subject to the garnishment summons.
3.23All money claimed to be exempt shall be released to the debtor upon the expiration of
3.24six business days after the date postmarked on the envelope containing the executed
3.25exemption notice mailed to the financial institution, or the date of personal delivery of the
3.26executed exemption notice to the financial institution, unless within that time the creditor
3.27interposes an objection to the exemption.
3.28EFFECTIVE DATE.This section is effective the day following final enactment
3.29and applies to garnishments on or after that date.
1.3all named account holders after receipt of execution levy, garnishment summons,
1.4or writ of execution;amending Minnesota Statutes 2010, sections 550.143,
1.5subdivision 4; 551.05, subdivision 2; 571.913.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 550.143, subdivision 4, is amended to read:
1.8 Subd. 4. Effect of exemption notice. Within two business days after receipt of
1.9the writ of execution, notice, instructions, and two copies of the exemption notice, the
1.10financial institution shall serve upon the judgment debtor and all joint account owners the
1.11notice, instructions, and two copies of the exemption notice. The financial institution shall
1.12serve these forms by first class mail to the last known address of the judgment debtor and
1.13all joint account owners. If no claim of exemption is received by the financial institution
1.14within 14 days after the notice, instructions, and exemption notices are mailed to the
1.15judgment debtor and all joint account owners, the funds remain subject to the execution
1.16levy and shall be remitted to the sheriff within six business days. If the judgment debtor
1.17elects to claim an exemption, the judgment debtor shall complete the exemption notice,
1.18sign it under penalty of perjury, and deliver one copy to the financial institution and one
1.19copy to the attorney for the judgment creditor within 14 days of the date postmarked on
1.20the correspondence mailed to the debtor containing the exemption notices. The judgment
1.21debtor is also required to include copies of bank statements for the prior 60 days with the
1.22exemption notice delivered to the attorney for the judgment creditor. In the event that
1.23there is no attorney for the judgment creditor, then the notice and bank statements must
1.24be sent directly to the judgment creditor. Failure of the judgment debtor to deliver the
1.25executed exemption notice or copies of the required bank statements for the prior 60 days
2.1does not constitute a waiver of any claimed right to an exemption. Upon timely receipt
2.2of a claim of exemption, funds not claimed to be exempt by the debtor remain subject to
2.3the execution levy. All money claimed to be exempt shall be released to the judgment
2.4debtor upon the expiration of six business days after the date postmarked on the envelope
2.5containing the executed exemption notice mailed to the financial institution, or the date
2.6of personal delivery of the executed exemption notice to the financial institution, unless
2.7within that time the judgment creditor interposes an objection to the exemption.
2.8EFFECTIVE DATE.This section is effective the day following final enactment
2.9and applies to levies on or after that date.
2.10 Sec. 2. Minnesota Statutes 2010, section 551.05, subdivision 2, is amended to read:
2.11 Subd. 2. Effect of exemption notice. Within two business days after receipt of the
2.12execution levy and the notice, instructions, and two copies of the exemption notices, the
2.13financial institution shall serve upon the judgment debtor and all joint account owners the
2.14notice, instructions, and two copies of the exemption notice. The financial institution shall
2.15serve the notice by first class mail to the last known address of the judgment debtor and
2.16all joint account owners. If no claim of exemption is received by the financial institution
2.17within 14 days after the exemption notices are mailed to the judgment debtor and all joint
2.18account owners, the funds remain subject to the execution levy and shall be remitted to
2.19the judgment creditor's attorney within six business days. If the judgment debtor elects
2.20to claim an exemption, the judgment debtor shall complete the exemption notice, sign it
2.21under penalty of perjury, and deliver one copy to the financial institution and one copy
2.22to the attorney for the judgment creditor within 14 days of the date postmarked on the
2.23correspondence mailed to the judgment debtor containing the exemption notices. The
2.24debtor is also required to include copies of bank statements for the prior 60 days with the
2.25exemption notice. In the event that there is no attorney for the judgment creditor, the
2.26notice must be sent directly to the judgment creditor. Failure of the judgment debtor to
2.27deliver the executed exemption notice or copies of the required bank statements for the
2.28prior 60 days does not constitute a waiver of any claimed right to an exemption. Upon
2.29timely receipt of a claim of exemption, funds not claimed to be exempt by the judgment
2.30debtor remain subject to the execution levy. All money claimed to be exempt shall be
2.31released to the judgment debtor upon the expiration of six business days after the date
2.32postmarked on the envelope containing the executed exemption notice mailed to the
2.33financial institution, or the date of personal delivery of the executed exemption notice to
2.34the financial institution, unless within that time the attorney for the judgment creditor
2.35interposes an objection to the exemption.
3.1EFFECTIVE DATE.This section is effective the day following final enactment
3.2and applies to levies on or after that date.
3.3 Sec. 3. Minnesota Statutes 2010, section 571.913, is amended to read:
3.4571.913 EFFECT OF EXEMPTION NOTICE.
3.5Within two business days after receipt of the garnishment summons, the notice,
3.6instructions, and two copies of the exemption notice, the financial institution shall serve
3.7upon the debtor and all joint account owners the notice, instructions, and two copies
3.8of the exemption notice. The financial institution shall serve these forms by first class
3.9mail to the last known address of the debtor and all joint account owners. If no claim of
3.10exemption is received by the financial institution within 14 days after the exemption
3.11notices are mailed to the debtor and all joint account owners, the funds remain subject to
3.12the garnishment summons. If the debtor elects to claim an exemption, the debtor shall
3.13complete the exemption notices, sign them under penalty of perjury, and deliver one copy
3.14to the financial institution and one copy to the attorney for the creditor within 14 days of
3.15the date postmarked on the correspondence mailed to the debtor containing the exemption
3.16notices. The debtor is also required to include copies of bank statements for the prior 60
3.17days with the exemption notice delivered to the attorney for the creditor. In the event that
3.18there is no attorney for the creditor, then the notice and the bank statements must be sent
3.19directly to the creditor. Failure of the debtor to deliver the executed exemption notice or
3.20copies of the required bank statements for the prior 60 days does not constitute a waiver
3.21of a claimed right to an exemption. Upon timely receipt of a claim of exemption, funds
3.22not claimed to be exempt by the debtor remain subject to the garnishment summons.
3.23All money claimed to be exempt shall be released to the debtor upon the expiration of
3.24six business days after the date postmarked on the envelope containing the executed
3.25exemption notice mailed to the financial institution, or the date of personal delivery of the
3.26executed exemption notice to the financial institution, unless within that time the creditor
3.27interposes an objection to the exemption.
3.28EFFECTIVE DATE.This section is effective the day following final enactment
3.29and applies to garnishments on or after that date.
