2023 Minnesota Statutes › Chapters 540 - 552 — Civil Procedure › Chapter 550 — Executions, Redemption, Exemptions › Section 550.143 — Levy On Funds At A Financial Institution.

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, the notice, instructions, 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:
DISTRICT COURT
. JUDICIAL DISTRICT
FINANCIAL INSTITUTIONS
EXECUTION
DISCLOSURE
On the ..... day of ............., ......., 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 lesser 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.
.
Signature
.
Title
.
Telephone Number
Subd. 3.Notice, instructions, and 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 a notice, instructions, and two copies of an exemption notice, which must be substantially in the form set forth below. The sheriff shall serve the notice, instructions, and both copies of the exemption notice on the financial institution, along with the writ of execution. Failure of the sheriff to serve the notice, instructions, and 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, notice, instructions, 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.
Subd. 3a.
Form of notice.
The notice required by subdivision 3 must be provided as a separate form and must be substantially in the following form:
DISTRICT COURT
. JUDICIAL DISTRICT
DISTRICT COURT
. JUDICIAL DISTRICT
My money is protected because I get it from one or more of the following places:
(Check all that apply)
Government benefits include, but are not limited to, the following:
MFIP
- Minnesota family investment program,
MFIP Diversionary Work Program,
Work participation cash benefit,
GA
- general assistance,
EA
- emergency assistance,
MA
- medical assistance,
EGA
- emergency general assistance,
MSA
- Minnesota supplemental aid,
MSA-EA
- MSA emergency assistance,
Supplemental Nutrition Assistance Program (SNAP),
SSI - Supplemental Security Income,
MinnesotaCare,
Medicare Part B premium payments,
Medicare Part D extra help,
Energy or fuel assistance.
Case Number: .
County: .
Government benefits also include:
If you receive any of these government benefits, include copies of any documents you have that show you receive Social Security, unemployment, workers' compensation, or veterans benefits.
ALL or SOME of your earnings (wages) may also be protected.
If you check one of these lines,
your wages are only protected for 60 days after they are deposited in your account so
you MUST send the creditor a copy of BANK STATEMENTS
that show what was in your account
for the 60 days right before the bank froze your money.
If all of your earnings are not exempt, then some of your earnings are still protected for 20 days after they were deposited in your account. The amount protected is the larger amount of:
75 percent of your wages (after taxes are taken out); or
(insert the sum of the current federal minimum wage) multiplied by 40.
OTHER EXEMPT FUNDS
The money from the following are also completely protected after they are deposited in your account.
DEBTOR
.
DEBTOR ADDRESS
.
DEBTOR TELEPHONE NUMBER
Subd. 4.Effect of exemption notice.
Within two business days after receipt of the writ of execution, notice, instructions, and two copies of the exemption notice, the financial institution shall serve upon the judgment debtor the notice, instructions, and two copies of the exemption notice. The financial institution shall serve these forms 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 notice, instructions, and exemption notices are mailed to the judgment debtor, the funds remain subject to the execution levy and shall be remitted to the sheriff within six business 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. The judgment debtor is also required to include copies of bank statements for the prior 60 days with the exemption notice delivered to the attorney for the judgment creditor. In the event that there is no attorney for the judgment creditor, then the notice and bank statements must be sent directly to the judgment creditor. Failure of the judgment debtor to deliver the executed exemption notice or copies of the required bank statements for the prior 60 days 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 six business 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 and request for hearing.
(a) An objection shall be interposed within six business days of receipt by the creditor of an exemption claim from the debtor, by mailing or delivering one copy of the Notice of Objection and Notice of Hearing to the financial institution and one copy of the Notice of Objection and Notice of Hearing to the judgment debtor. 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 Notice of Objection and Notice of Hearing must be substantially in the form specified in subdivision 7.
(b) The court administrator may charge a fee of $1 for the filing of a Notice of Objection and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, the court administrator shall schedule the matter for hearing no sooner than five business days but no later than seven business days from the date of filing. A debtor may request continuance of the hearing by notifying the creditor and the court. The court shall schedule the continued hearing within seven days of the original hearing date.
(c) An order stating whether the debtor's funds are exempt must be issued by the court within three days of the date of the hearing.
Subd. 6.
Duties of financial institution if objection is made to exemption claim.
Upon receipt of a Notice of Objection and Notice of Hearing from the creditor or its attorney within the specified six-day period, the financial institution shall retain the funds claimed to be exempt. The financial institution shall retain the funds claimed to be exempt until otherwise ordered by the court or upon mutual agreement of the parties.
Subd. 7.
Form of Notice of Objection and Notice of Hearing.
(a) The Written Objection and Notice of Hearing must be in substantially the following form:
DISTRICT COURT
. JUDICIAL DISTRICT
CREDITOR'S NOTICE OF OBJECTION AND NOTICE OF HEARING ON EXEMPTION CLAIM
(DEBTOR)
.
ADDRESS
.
.
NOTICE OF HEARING
The creditor objects to your exemption claim. This hearing is to resolve your exemption claim.
.
.
.
The creditor objects to your claim of exemption from levy of execution for the following reason(s):
.
.
.
(Note: Bring with you to the hearing all documents and materials supporting your exemption claim.
Failure to do so could delay the court's decision.
)
If the creditor receives all documents and materials supporting your exemption claim before the hearing date, the creditor may agree with your exemption claim and you might still be able to avoid a hearing.
Because a court hearing will be held on your claim that your funds are protected, your financial institution will retain the funds until it receives an order from the court or upon mutual agreement between you and your creditor.
Subd. 8.
[Repealed by amendment, 2009 c 31 s 1]
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 or the financial institution to release the funds in question to the other party. Upon receipt of a release, the sheriff or the financial institution 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.
History:
1990 c 606 art 1 s 5; 1992 c 464 art 1 s 56; 1993 c 156 s 5; 1994 c 488 s 8; 1998 c 254 art 1 s 107; 1999 c 107 s 66; 1999 c 159 s 142; 2000 c 343 s 4; 2000 c 405 s 3-5; 2009 c 31 s 1; 2015 c 21 art 1 s 109; 1Sp2019 c 9 art 1 s 42