An Act To Clarify and Improve the Fairness of the Law of Trustee Process
Maine Legislature, Session 121, LD 0586
Committee: Judiciary
Sponsors: NORBERT, PENDLETON, MUSE, SHERMAN, TARDY, BRENNAN, MA YO
Amends: 5 MRSA §86, 14 MRSA §2603, 14 MRSA §2608-A, 14 MRSA §2614, 14 MRSA §2901, 14 MRSA §2952

Legislative Document 
No. 586 
H.P.449 
House of Representatives, February 11,2003 
An Act To Clarify and Improve the Fairness of the Law of Trustee 
Process 
Reference to the Committee on Judiciary suggested and ordered printed. 
Presented by Representative NORBERT of Portland. 
Cosponsored by Senator PENDLETON of Cumberland and 
17/~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: MUSE of Fryeburg, SHERMAN of Hodgdon, TARDY of Newport, Senators: 
BRENNAN of Cumberland, LaFOUNTAIN of York, MA YO of Sagadahoc. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §86, as corrected by RR 200L 
and affected by §58, 
is amended by adding at 
paragraph to read: 
c. 2, Pt. 
the end 
B, §2 
a 
new 
For filing and recording a designated office for service of 
trustee process under Title 14, section 2608 A, $25. 
Sec. 2. 14 MRSA §2603 is amended to read: 
§2603. Effect of service on trustee; service on 
partnership 
Service on the trustee binds all goods, effects or credits 
of the principal defendant entrusted to and deposited in bis the 
trustee's possession, to respond to the final judgment in the 
action, 
as 
when 
attached 
by 
ordinary 
process 
if 
process 
describing the principal defendant with reasonable certainty is 
received at a time and in a manner that affords the trustee a 
reasonable opportunity to act on it. When a partnership is made a 
trustee on trustee process, service upon one member of the firm 
sball--be is 
a 
sufficient attachment of the property of the 
principal defendant in the possession of the firm, 
FFaviaea-6~€R 
if that service be is made at any place of business of the firm 
or, if s~eb that service is made elsewhere, that legal service be 
is afterward made upon the other members of the firm. 
Sec.3. 14 MRS A §2604 is amended to read: 
§2604. County where action brought; divorce; financial 
institution as trustee: counterclaim 
If all the trustees live in the same county, 
the action 
sba±± ~ 
be 
brought 
there; 
if 
they 
reside 
in 
different 
counties, in any county in which one of them resides; and in a 
trustee process against a corporation, its residence sRall-be is 
deemed to be in the county in which it has its established or 
usual place of business, held its last annual meeting or usually 
holds its meetings; except that an action in which a railroad 
corporation is named and alleged as trustee may be brought in any 
county in which saia the railroad corporation runs and operates 
its road; and except that an action in which a 
baa*ia~ financial 
institution is named and alleged as trustee may be brought in any 
county in which 
saia-BaRkia~ the financial institution maintains 
a place of business. 
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baR*iR~-~~~~~~~-ia-~~-ea~a~Y-~~-~~Fisaie~iaa-~--~Re 
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Page I-LR1l56(1) 
When 
trustee 
process 
is 
used 
in 
connection 
with 
the 
commencement of an action for divorce, the action must be brought 
in the county in which the court has 
jurisdiction over the 
parties named in the action, and the alleged trustee, although 
residing in another county, 
may be summoned to appear in the 
county in which saia the court has jurisdiction over the parties 
named in the action and must answer and make disclosure in SlieR 
that county. The court sitting therein shall have full power and 
authority to award from the funds found to be held by the alleged 
trustee and belonging to the defendant such sum or sums as it may 
deem proper as an award for alimony or in lieu thereof. 
When 
trustee 
process 
is 
used 
in 
connection 
with 
a 
counterclaim arising out of the transaction or occurrence that is 
the subject matter of the opposing party's claim, the alleged 
trustee may be summoned to appear in the county in which the 
action is pending, even though Re that trustee does not reside or 
maintain a usual place of business in that county. 
Sec. 4. 14 MRS A §2608 is amended to read: 
§2608. Corporation as trustee; answer and disclosure 
All 
Except 
as 
provided in section 
260B-A, 
all domestic 
corporations and all foreign or alien companies or corporations 
established by the laws of any other state or country and having 
a place of business or doing business wi thin this State may be 
summoned as trustees, and trustee summonses may be served on them 
as other process is served on any such companies or corporations. 
They may answer by attorney or agent and make disclosures, which 
sRall must be signed and sworn to by SlieR an attorney or agent or 
slieR-e~ReF another person upon whom legal service of the summons 
may be made. 
The same proceedings sRall must thereupon be had 
throughout except necessary changes in form, as in other cases of 
foreign attachment. 
Sec. 5. 14 MRSA §2608-A is enacted to read: 
§2608-A. 
Service on financial institution as trustee 
Service 
of 
trustee 
process 
on 
a 
financial 
institution 
authorized to do business in this State, as defined in Title 9 B, 
section 131, is effected by one of the following means: 
1. 
Designated office. 
Personal service by any lawful means 
upon the office designated by the financial 
institution for 
service of trustee process in a registry maintained for this 
purpose by the Secretary of State; or 
2. 
Acceptance 
by 
designated 
officer 
or 
employee. 
Acceptance of service in writing by an officer or employee of the 
financial institution expressly authorized to accept service of 
trustee process. 
Sec.6. 14 MRSA §2614 is amended to read: 
§2614. Trustee not appearing defaulted 
When a person summoned as trustee neglects to appear and 
answer to the action, He-sHall the trustee must be defaulted and 
adjudged trustee 
a6---a-l:-~ea to the extent that such a person 
holds 
goods, 
effects 
or 
credits 
of 
the 
principal 
defendant 
otherwise available to satisfy the unsatisfied portion of final 
judgment. 
Nothing in this section limits the additional remedies 
available 
under 
this 
chapter 
for 
the 
trustee's 
failure 
to 
disclose, including the assessment of costs under section 2701 
or, in a proper case, contempt. 
Sec. 7. 14 MRSA §2901 is amended to read: 
§2901. Discontinuance of action 
When 
a 
trustee action is discontinued or settled by the 
principal parties tHeEeta to the action, the trustee 6Hall-be is 
entitled to 
no 
costsT--pFe¥iaea if the plaintiff or 
His 
the 
plaintiff's attorney SHall, at least 7 days before the trustee's 
disclosure under oath is required to be served, BatiE}, notifies 
the trustee in writing that the action has been discontinued. 
Upon conclusion of the principal action, when the goods, effects 
or credits trusteed are not to be used to satisfy a judgment, the 
plaintiff or the plaintiff's attorney shall notify the trustee in 
writing within 30 days of the extinguishment of plaintiff's claim 
to such property. 
If the trustee discloses possession of goods, effects or 
credits of the principal defendant, or by virtue of default 1S 
adjudged trustee, and the trusteed funds are not collected or 
released within 7 years, they must be presumed abandoned under 
Title 
33, 
chapter 
unless 
the 
trustee 
is 
served with 
a 
certificate of the clerk of the appropriate court, between 30 and 
days prior to such date, evidencing that the principal action 
is still pending. 
Sec. 8. 14 MRSA §2952 is amended to read: 
§2952. Judgment against trustee where no examination 
After notice of StieH g motion under section 2951 has been 
served e:a-li-im, if He the person neglects to appear and answer 
~se~e~e to the motion, se-ssa±± that person must be defaulted and 
adjudged trustee to the extent that the person holds goods, 
effects or credits of the principal defendant otherwise available 
to satisfy the unsatisfied portion of final judgment. 
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a~aia6~-~~-~~--~se--w~B&-~-~€ffia~£~£~--aHe-~-~~-~Ha~ffiea~ 
a~aias~-~~-p-F-i-aG-:i,.p.a-1--ae:EeRaaR~ ... Nothing in this section limits 
the additional 
remedies available under this chapter for 
the 
trustee's failure to disclose, including the assessment of costs 
under section 3102. 
Sec. 9. 14 MRS A §3102 is amended to read: 
§3102. Default for nonappearance; costs 
When the person summoned under section 3101 does not appear 
and answer to the action, se-ssa±± that person must be defaulted, 
adjudged trustee to the extent provided in section 2614 and be 
liable to costs. 
If se that person appears at the return day and 
submits to an examination on oath and is discharged, se-ssa±± the 
person must be allowed sis legal costs. 
If se the person is 
charged, se the person may retain the amount of sis costs. 
When 
the plaintiff dismisses sis the action against siffi the trustee or 
the principal, the trustee ssa±± must be allowed sis costs. 
SUMMARY 
This bill makes a series of changes to the laws governing 
trustee process to provide fair treatment of alleged trustees 
without interfering with the ability of judgment creditors to 
reach 
funds 
to 
satisfy judgments. 
To 
ensure that financial 
institutions are able to properly identify and promptly act upon 
trustee 
process, 
financial 
institutions 
would 
be 
able 
to 
designate with the Secretary of State 
a 
specific office for 
service of process or to agree to accept service made otherwise. 
The bill clarifies that an alleged trustee has a reasonable 
opportuni ty to act upon the process served upon it, in the same 
way that a bank has a reasonable time to act upon a stop payment 
order. 
In the event of a default, under the bill the trustee is 
adjudged trustee for 
the 
amount of the principal defendant's 
property actually in its possession up 
to the 
amount of the 
judgment, not for a greater amount, 
thus eliminating potential 
windfalls. 
In 
the 
event 
that 
the 
trustee 
fails 
to 
make 
disclosure, other statutory remedies. such as assessment of costs 
and, in a proper case. contempt penalties, remain available. 
This bill provides that failure to claim or release trusteed 
funds, in the absence of further court process, would give rise 
to 
a 
presumption of 
abandonment 
under 
the Uniform 
Unclaimed 
Property 
Act 
and 
subsequent 
reporting 
and 
payment 
to 
the 
Treasurer of State.