CT Gen Stat § 52-367b (2020)
2020 Connecticut General Statutes|Title 52 - Civil Actions|Chapter 906 - Postjudgment Procedures|Section 52-367b - Execution against debts due from financial institution. Natural person as judgment debtor.

 (a) Exempt debts. Execution may be granted pursuant to this section against any debts due from any financial institution to a judgment debtor who is a natural person, except to the extent such debts are protected from execution by sections 52-352a, 52-352b, 52-352c of the general statutes, revision of 1958, revised to 1983, 52-354 of the general statutes, revision of 1958, revised to 1983, 52-361 of the general statutes, revision of 1958, revised to 1983 and section 52-361a, as well as by any other laws or regulations of this state or of the United States which exempt such debts from execution.(b) Issuance and service of execution. If execution is desired against any such debt, the plaintiff requesting the execution shall make application to the clerk of the court. The application shall be accompanied by a fee of one hundred five dollars payable to the clerk of the court for the administrative costs of complying with the provisions of this section, which fee may be recoverable by the judgment creditor as a taxable cost of the action. In a IV-D case, the request for execution shall be accompanied by an affidavit signed by the serving officer attesting to an overdue support amount of five hundred dollars or more which accrued after the entry of an initial family support judgment. If the papers are in order, the clerk shall issue such execution containing a direction that the officer serving such execution shall, within seven days from the receipt by the serving officer of such execution, make demand (1) upon the main office of any financial institution having its main office within the county of the serving officer, (2) if such main office is not within the serving officer's county and such financial institution has one or more branch offices within such county, upon an employee of such a branch office, such employee and branch office having been designated by the financial institution in accordance with regulations adopted by the Banking Commissioner, in accordance with chapter 54, or (3) only upon demand of a financial institution which does not have any main office or branch office in this state, by certified mail, return receipt requested, for payment of any such nonexempt debt due to the judgment debtor and, after having made such demand, shall serve a true and attested copy of the execution, together with the affidavit and exemption claim form prescribed by subsection (k) of this section, with the serving officer's actions endorsed thereon, with the financial institution upon whom such demand is made. The serving officer shall not serve more than one financial institution execution per judgment debtor at a time, including copies thereof. After service of an execution on one financial institution, the serving officer shall not serve the same execution or a copy thereof upon another financial institution until receiving confirmation from the preceding financial institution that the judgment debtor had insufficient funds at the preceding financial institution available for collection to satisfy the execution, provided any such additional service is made not later than forty-five days from the receipt by the serving officer of such execution. After service of an execution on a financial institution, the serving officer shall not subsequently serve the same execution or a copy thereof upon such financial institution if an electronic direct deposit from a readily identifiable source described in subsection (c) of this section was made to the judgment debtor's account during the look-back period, as described in subsection (c) of this section. If no such deposit was made, the serving officer may subsequently serve the same execution or a copy thereof upon such institution, provided such execution has not expired or otherwise become unenforceable.(c) Removal of funds from judgment debtor's account. If any such financial institution upon which such execution is served and upon which such demand is made is indebted to the judgment debtor, the financial institution shall remove from the judgment debtor's account the amount of such indebtedness not exceeding the amount due on such execution before its midnight deadline, as defined in section 42a-4-104. Notwithstanding the provisions of this subsection, if electronic direct deposits that are readily identifiable as (1) exempt federal veterans' benefits, Social Security benefits, including, but not limited to, retirement, survivors' and disability benefits, supplemental security income benefits, exempt benefits paid by the federal Railroad Retirement Board or the federal Office of Personnel Management, unemployment compensation benefits exempt under section 52-352b, or child support payments processed and received pursuant to Title IV-D of the Social Security Act, or (2) wages were made to the judgment debtor's account during the look-back period of either the sixty-day period preceding the date that the execution was served on the financial institution, or, with regard to federal benefits, such greater period as required by federal law, then the financial institution shall leave the lesser of the account balance or one thousand dollars in the judgment debtor's account, provided nothing in this subsection shall be construed to limit a financial institution's right or obligation to remove such funds from the judgment debtor's account if required by any other provision of law or by a court order. The judgment debtor shall have full and customary access to such funds left in the judgment debtor's account pursuant to this subsection. The financial institution may notify the judgment creditor that funds have been left in the judgment debtor's account pursuant to this subsection. Nothing in this subsection shall alter the exempt status of funds which are exempt from execution under subsection (a) of this section or under any other provision of state or federal law, or the right of a judgment debtor to claim such exemption. Nothing in this subsection shall be construed to affect any other rights or obligations of the financial institution with regard to the funds in the judgment debtor's account.(d) Notice to judgment debtor and secured party. If any funds are removed from the judgment debtor's account pursuant to subsection (c) of this section, upon receipt of the execution and exemption claim form from the serving officer, the financial institution shall (1) forthwith mail copies thereof, postage prepaid, to the judgment debtor and to any secured party that is party to a control agreement between the financial institution and such secured party under article 9 of title 42a at the last-known address of the judgment debtor and of any such secured party with respect to the affected accounts on the records of the financial institution, and (2) mail notice to the judgment debtor as required by 31 CFR 212.6 and 212.7. The financial institution shall hold the amount removed from the judgment debtor's account pursuant to subsection (c) of this section for fifteen days from the date of the mailing to the judgment debtor and any such secured party, and during such period shall not pay the serving officer.(e) Claim of exemption and claim of prior perfected security interest. To prevent the financial institution from paying the serving officer, as provided in subsection (h) of this section, the judgment debtor shall give notice of a claim of exemption by delivering to the financial institution, by mail or other means, the exemption claim form or other written notice that an exemption is being claimed and any such secured party shall give notice of its claim of a prior perfected security interest in such deposit account by delivering to the financial institution, by mail or other means, written notice thereof. The financial institution may designate an address to which the notice of a claim of exemption, or a secured party claim notice, shall be delivered. Upon receipt of such notice, the financial institution shall, within two business days, send a copy of such notice to the clerk of the court which issued the execution.(f) Hearing. (1) Upon receipt of an exemption claim form or a secured party claim notice, the clerk of the court shall enter the appearance of the judgment debtor or such secured party with the address set forth in the exemption claim form or secured party claim notice. The clerk shall forthwith send file-stamped copies of the exemption claim form or secured party claim notice to the judgment creditor and judgment debtor with a notice stating that the disputed funds are being held for forty-five days from the date the exemption claim form or secured party claim notice was received by the financial institution or until a court order is entered regarding the disposition of the funds, whichever occurs earlier, and the clerk shall automatically schedule the matter for a short calendar hearing. The claim of exemption filed by such judgment debtor shall be prima facie evidence at such hearing of the existence of the exemption.(2) Upon receipt of notice from the financial institution pursuant to subsection (c) of this section, a judgment creditor may, on an ex parte basis, present to a judge of the Superior Court an affidavit sworn under oath by a competent party demonstrating a reasonable belief that such judgment debtor's account contains funds which are not exempt from execution and the amount of such nonexempt funds. Such affidavit shall not be conclusory but is required to show the factual basis upon which the reasonable belief is based. If such judge finds that the judgment creditor has demonstrated a reasonable belief that such judgment debtor's account contains funds which are not exempt from execution, such judge shall authorize the judgment creditor to submit a written application to the clerk of the court for a hearing on the exempt status of funds left in the judgment debtor's account pursuant to subsection (c) of this section. The judgment creditor shall promptly send a copy of the application and the supporting affidavit to the judgment debtor and to any secured party shown on a secured party claim notice sent to the judgment creditor pursuant to subdivision (1) of this subsection. Upon receipt of such application, the clerk of the court shall automatically schedule the matter for a short calendar hearing and shall give written notice to the judgment creditor, the judgment debtor and any secured party shown on a secured party claim notice received by the clerk of the court. The notice to the judgment creditor pursuant to subsection (c) of this section shall be prima facie evidence at such hearing that the funds in the account are exempt funds. The burden of proof shall be upon the judgment creditor to establish the amount of funds which are not exempt.(g) Disposition if exemption or prior perfected security interest is claimed. If an exemption claim is made or a secured party claim notice is given pursuant to subsection (e) of this section, the financial institution shall continue to hold the amount removed from the judgment debtor's account for forty-five days or until a court order is received regarding disposition of the funds, whichever occurs earlier. If no such order is received within forty-five days of the date the financial institution sends a copy of the exemption claim form or notice of exemption or a secured party claim notice to the clerk of the court, the financial institution shall return the funds to the judgment debtor's account.(h) Disposition if no exemption or prior perfected security interest is claimed. If no claim of exemption or secured party claim notice is received by the financial institution within fifteen days of the mailing to the judgment debtor and any secured party of the execution and exemption claim form pursuant to subsection (d) of this section, the financial institution shall, upon demand, forthwith pay the serving officer the amount removed from the judgment debtor's account, and the serving officer shall thereupon pay such sum, less such serving officer's fees, to the judgment creditor, except to the extent otherwise ordered by a court.(i) Court order. The court, after a hearing conducted pursuant to subsection (f) of this section, shall enter an order determining the issues raised by the claim of exemption and claim by a secured party of a prior perfected security interest in such deposit account. The clerk of the court shall forthwith send a copy of such order to the financial institution. Such order shall be deemed to be a final judgment for the purposes of appeal. No appeal shall be taken except within seven days of the rendering of the order. The order of the court may be implemented during such seven-day period, unless stayed by the court.(j) Determination of exempt moneys. Except as otherwise provided in subsection (c) of this section, if both exempt and nonexempt moneys have been deposited into an account, for the purposes of determining which moneys are exempt under this section, the moneys most recently deposited as of the time the execution is served shall be deemed to be the moneys remaining in the account.(k) Forms. The execution, exemption claim form and clerk's notice regarding the filing of a claim of exemption shall be in such form as prescribed by the judges of the Superior Court or their designee. The exemption claim form shall be dated and include a checklist and description of the most common exemptions, instructions on the manner of claiming the exemptions and a space for the judgment debtor to certify those exemptions claimed under penalty of false statement.(l) Records of financial institution. If records or testimony are subpoenaed from a financial institution in connection with a hearing conducted pursuant to subsection (f) of this section, the reasonable costs and expenses of the financial institution in complying with the subpoena shall be recoverable by the financial institution from the party requiring such records or testimony, provided, the financial institution shall be under no obligation to attempt to obtain records or documentation relating to the account executed against which are held by any other financial institution. The records of a financial institution as to the dates and amounts of deposits into an account in the financial institution shall, if certified as true and accurate by an officer of the financial institution, be admissible as evidence without the presence of the officer in any hearing conducted pursuant to subsection (f) of this section to determine the legitimacy of a claim of exemption made under this section.(m) Fee for financial institution's costs. If there are moneys to be removed from the judgment debtor's account, prior to the removal of such moneys pursuant to subsection (c) of this section, the financial institution shall receive from the serving officer as representative of the judgment creditor a fee of eight dollars for the financial institution's costs in complying with the provisions of this section which fee may be recoverable by the judgment creditor as a taxable cost of the action.(n) Liability of financial institution. If the financial institution fails or refuses to pay over to the serving officer the amount of such debt, not exceeding the amount due on such execution, such financial institution shall be liable in an action therefor to the judgment creditor named in such execution for the amount of nonexempt moneys which the financial institution failed or refused to pay over, excluding funds of up to one thousand dollars which the financial institution in good faith allowed the judgment debtor to access pursuant to subsection (c) of this section. The amount so recovered by such judgment creditor shall be applied toward the payment of the amount due on such execution. Thereupon, the rights of the financial institution shall be subrogated to the rights of the judgment creditor. If such financial institution pays exempt moneys from the account of the judgment debtor over to the serving officer contrary to the provisions of this section, such financial institution shall be liable in an action therefor to the judgment debtor for any exempt moneys so paid and such financial institution shall refund or waive any charges or fees by the financial institution, including, but not limited to, dishonored check fees, overdraft fees or minimum balance service charges and legal process fees, which were assessed as a result of such payment of exempt moneys. Thereupon, the rights of the financial institution shall be subrogated to the rights of the judgment debtor.(o) Good faith immunity. Except as provided in subsection (n) of this section, no financial institution or any officer, director or employee of such financial institution shall be liable to any person with respect to any act done or omitted in good faith or through the commission of a bona fide error that occurred despite reasonable procedures maintained by the financial institution to prevent such errors in complying with the provisions of this section.(p) Rights of judgment debtor and secured party. Nothing in this section shall in any way restrict the rights and remedies otherwise available to a judgment debtor or any such secured party at law or in equity.(q) Financial institution's rights re uncollected funds. Nothing in this section shall in any way affect any rights of the financial institution with respect to uncollected funds credited to the account of the judgment debtor, which rights shall be superior to those of the judgment creditor.(r) Deposits of public assistance or Title IV-D child support payments. For the purposes of this subsection, “exempt” has the same meaning as provided in subsection (c) of section 52-352a. Funds deposited in an account that has been established for the express purpose of receiving electronic direct deposits of public assistance or of Title IV-D child support payments from the Department of Social Services shall be exempt.(P.A. 81-352, S. 2; P.A. 83-384, S. 2; P.A. 84-546, S. 118, 173; P.A. 85-140, S. 5; P.A. 87-9, S. 2, 3; P.A. 87-569, S. 2; P.A. 94-141; P.A. 95-356, S. 2; P.A. 96-268, S. 12, 34; P.A. 01-196, S. 1, 2; June Sp. Sess. P.A. 01-9, S. 12, 131; P.A. 02-93, S. 1; P.A. 03-2, S. 49; 03-62, S. 23; 03-84, S. 41; 03-224, S. 13; P.A. 04-257, S. 81; P.A. 06-149, S. 26; P.A. 07-111, S. 4; June Sp. Sess. P.A. 09-3, S. 139; P.A. 12-89, S. 7, 14; P.A. 14-7, S. 17, 18; 14-9, S. 1; 14-122, S. 188; 14-217, S. 260; P.A. 16-26, S. 8; P.A. 19-41, S. 2.)History: P.A. 83-384 amended Subsec. (b) to provide that service of an execution may be made upon an employee of a branch office when the main office of the banking institution is not within the serving officer's precincts; P.A. 84-546 made technical changes in Subsec. (a); P.A. 85-140 amended Subsec. (k) by replacing “pursuant to section 51-14” after “judges of the superior court” with “or their designee”; (Revisor's note: Pursuant to P.A. 87-9 “banking commissioner” was changed editorially by the Revisors to “commissioner of banking”); P.A. 87-569 substituted “county” for “precincts”; P.A. 94-141 amended Subsec. (f) to provide that the notice shall state that the disputed assets are being held for 45 days, rather than 20 days, and that the assets are being held for said 45 days “or until a court order is entered regarding the disposition of the funds, whichever occurs earlier,” amended Subsec. (g) to increase from 20 to 45 days the time period that the banking institution shall hold the funds, and amended Subsec. (i) to require the clerk of the court to forthwith send a copy of the order to the banking institution; P.A. 95-356 added Subsec. (r) exempting funds in account established for the express purpose of receiving electronic direct deposits of public assistance payments for the Department of Social Services; P.A. 96-268 amended Subsec. (b) to require that request for execution in a IV-D case be accompanied by an affidavit signed by the levying officer attesting to an overdue support amount of $500 or more, effective July 1, 1996; P.A. 01-196 amended Subsec. (b) by making technical changes, amended Subsec. (c) to add provisions re treatment of electronic direct deposits of exempt funds, amended Subsec. (d) to add reference to removal of funds pursuant to Subsec. (c) and make a technical change, amended Subsec. (f) to designate existing provisions as Subdiv. (1) and add Subdiv. (2) re nonexempt funds affidavit and hearing, amended Subsec. (h) to make a technical change, amended Subsec. (n) to add provisions re exclusion of funds accessed pursuant to Subsec. (c) and re waiver of charges and fees assessed as a result of payment of exempt moneys, and amended Subsec. (o) to add provision re commission of bona fide error, effective January 1, 2002; June Sp. Sess. P.A. 01-9 amended Subsec. (b) to add provisions re levying officer making additional demands and make technical changes, effective July 1, 2001; P.A. 02-93 amended Subsec. (c) by adding provision re child support payments processed and received pursuant to Title IV-D and by changing amount to be left in judgment debtor's account from $800 to $1,000, amended Subsec. (n) by changing amount of excluded funds from $800 to $1,000 and made technical changes throughout section, effective January 1, 2003; P.A. 03-2 amended Subsec. (b) to require a plaintiff requesting execution to “make application to” rather than “notify” the clerk of the court and add provision requiring the application be accompanied by a fee of $35 payable to the clerk of the court for administrative costs of compliance and authorizing the recovery of such fee by the judgment creditor as a taxable cost of the action, effective February 28, 2003; P.A. 03-62 amended Subsec. (d) to require the banking institution to mail copies of the execution and exemption claim form “to any secured party that is party to a control agreement between the banking institution and such secured party under article 9 of title 42a” and add references to “any such secured party”, amended Subsec. (e) to add provision requiring any such secured party to give notice of its claim of a prior perfected security interest in deposit account by delivering written notice to the banking institution and add reference to “a secured party claim notice”, amended Subsec. (f)(1) to add reference to the appearance of “such secured party” and add references to “a secured party claim notice”, amended Subsec. (f)(2) to require the judgment creditor to send a copy of the application and affidavit “to any secured party shown on a secured party claim notice sent to the judgment creditor pursuant to subdivision (1) of this subsection” and require the court clerk to give written notice to “any secured party shown on a secured party claim notice received by the clerk of the court”, amended Subsec. (g) to make provisions applicable if “a secured party claim notice is given” and add reference to “a secured party claim notice”, amended Subsec. (h) to add reference to “secured party claim notice” and “any secured party”, amended Subsec. (i) to add reference to the “claim by a secured party of a prior perfected security interest in such deposit account” and amended Subsec. (p) to add reference to “any such secured party”; P.A. 03-84 changed “Commissioner of Banking” to “Banking Commissioner” in Subsec. (b), effective June 3, 2003; P.A. 03-224 replaced references to “banking institution” with references to “financial institution” and made a technical change, effective July 2, 2003; P.A. 04-257 made a technical change in Subsecs. (d) and (e), effective June 14, 2004; P.A. 06-149 amended Subsec. (r) to reference deposits of Title IV-D child support payments, effective June 6, 2006; P.A. 07-111 amended Subsec. (b) to delete provision authorizing serving officer to make additional demands upon main office of other financial institutions or employees of other branch offices if officer has made initial demand within 7-day period, and to provide that serving officer shall not serve more than one financial institution execution per judgment debtor at a time, and that after service of execution on one financial institution, serving officer shall not serve the same execution or copy thereof upon another financial institution until receiving confirmation from preceding financial institution that judgment debtor had insufficient funds at preceding financial institution available for collection to satisfy execution; June Sp. Sess. P.A. 09-3 amended Subsec. (b) to increase application fee from $35 to $75, effective September 9, 2009; P.A. 12-89 amended Subsec. (b) to increase application fee from $75 to $100, effective July 1, 2012, and decrease such fee from $100 to $75, effective July 1, 2015; P.A. 14-7 amended Subsec. (b) to add provision prohibiting serving officer from subsequently serving execution on a financial institution if, after serving the same execution on the financial institution, an electronic deposit was made from a readily identifiable source, amended Subsec. (c) to add provisions re exempt benefits paid by the federal Railroad Retirement Board or Office of Personnel Management and certain unemployment compensation benefits, replace “thirty-day period” with “look-back period of either the sixty-day period” and add “full and customary” re access to funds left in judgment debtor's account, amended Subsec. (d) to add provision re financial institution to mail notice to judgment debtor as required by 31 CFR 212.6 and 212.7, and made conforming changes in Subsecs. (d) and (j); P.A. 14-9 amended Subsec. (c) to designate existing provisions re readily identifiable electronic direct deposits as Subdiv. (1) and add Subdiv. (2) re wages; P.A. 14-122 made a technical change in Subsec. (r); P.A. 14-217 repealed P.A. 12-89, S. 14; P.A. 16-26 amended Subsec. (b) to increase application fee from $100 to $105, effective July 1, 2016; P.A. 19-41 amended Subsec. (b) by adding Subdiv. (3) re making demand by certified mail, return receipt requested, on financial institution which does not have any main office or branch office in this state, replacing “financial institution officer” with “financial institution” and making a technical change.