§ 28-9-3-4 — Adverse claim by money judgment creditor attempting to garnish deposit account; accountability of depository institution; interrogatories; actions required of adverse claimant

Indiana § 28-9-3-4

• Jurisdiction: Indiana
• Art. 9: DEPOSITORY FINANCIAL INSTITUTIONS
• Ch. 3: Notice of Adverse Claims

Text

(a) This section applies to an adverse claimant
who is a money judgment creditor attempting to garnish a deposit
account.
(b) A depository financial institution may not be held accountable
to an adverse claimant for funds in a deposit account that are claimed
by the adverse claimant unless the adverse claimant has complied with
subsection (d).
(c) A depository institution is not required to respond to
interrogatories regarding deposit accounts at the depository financial
institution unless the adverse claimant has complied with subsection
(d).
(d) An adverse claimant shall do all of the following:
(1) Provide the depository financial institution notice of
garnishment proceedings, the unpaid amount of the judgment, and
sufficient identifying information about the judgment defendant
to enable the depository financial institution reasonably to verify
the judgment defendant as the depositor.
(2) Serve or cause to be served upon the depository financial
institution an order to answer interrogatories.
(3) If the judgment defendant is an individual, serve or cause to
be served upon the depository financial institution a copy of a
notice, or an apparently valid order containing a notice, issued by
a court that is directed to the judgment defendant (which is to be
used by the depository financial institution to comply with IC 28-9-4-2(a)(3)) and that:
(A) states that the adverse claimant has or may have served or
caused to be served upon one (1) or more depository financial
institutions notice that may result in the placing of a hold on
deposit accounts maintained by the judgment defendant, either
individually or jointly with another person, in such depository
financial institutions;
(B) states that under federal and state law certain funds are
exempt from garnishment, including Social Security,
Supplemental Security Income, veterans benefits, and certain
disability pension benefits, and that there may be other
exemptions from garnishment under federal or state law;
(C) states that if the judgment defendant or another person who
maintains a deposit account jointly with the judgment defendant
believes that some or all of the funds in the deposit account on
which a hold may have been placed are exempt, such person is
entitled to a prompt hearing for the purpose of presenting
evidence to establish exemptions and seeking removal of the
hold; and
(D) has attached to it a preprinted detachable form that may be
used by the judgment defendant or other person maintaining a
deposit account jointly with the judgment defendant in
requesting the prompt hearing specified in clause (C) and that
generally instructs such person as to how the form should be
used in requesting this hearing.
(4) Serve or cause to be served upon the depository financial
institution an apparently valid order issued by a court that
expressly directs the depository financial institution to place a
hold on a deposit account identified in the order whenever the
conditions under subdivisions (1) through (3) are met.
(5) Pay to the depository financial institution five dollars ($5) for
each judgment defendant identified by the adverse claimant under
subdivision (1). This fee may not be assessed as a cost to the
judgment defendant in the action.
(e) An order issued under subsection (d)(4):
(1) is subject to the limitations under IC 28-9-4-2 concerning the
duration of the restriction and the amount to be restricted; and
(2) may be terminated or modified to reflect valid exemptions of
a depositor that the court has considered.
(f) A depository financial institution is not required to pay funds in
a deposit account to an adverse claimant unless the adverse claimant
serves the depository financial institution with a final order in
garnishment directing the payment of the lesser of:
(1) the unpaid amount of the judgment specified by the
documents and process; or
(2) the balance in the account at the time of receipt of the
documents and process.

Legislative History

As added by P.L.258-1989, SEC.2. Amended by P.L.197-1991, SEC.1; P.L.198-1991, SEC.1; P.L.1-1992, SEC.157; P.L.89-1998, SEC.1.