§ 28-9-4-2 — Receipt of notice from an adverse claimant who is a money judgment creditor; restriction on withdrawal from deposit account; expiration of restriction

(a) Upon receipt from an adverse claimant who
is a money judgment creditor of the documents and process required
under IC 28-9-3-4(d), a depository financial institution shall:
(1) deduct and obtain from the deposit account the full amount of
the fee specified in section 3(b) of this chapter;
(2) within a commercially reasonable time after receiving the
documents and process, restrict withdrawal of funds in the deposit
account identified in the documents and process in an amount
equal to the lesser of:
(A) the unpaid amount of the judgment specified by the
documents and process; or
(B) the balance in the account at the time of receipt of the
documents and process;
less one-half (1/2) of the amount of the fee deducted under
subdivision (1);
(3) if the depository financial institution places a hold on the
deposit account of a judgment defendant who is an individual,
within one (1) working day after the hold has been placed, send
to each depositor whose deposit account is affected at the last
known address of such depositor or depositors (as the address is
shown by the records of the depository financial institution with
respect to that deposit account) a copy of the notice or order
containing the notice specified in IC 28-9-3-4(d)(3) and a written
notification advising the depositor or depositors that the hold has
been placed; and
(4) if the depository financial institution places a hold on the
deposit account of a judgment defendant who is not an individual,
within one (1) working day after the hold has been placed, send
to each depositor whose deposit account is affected at the last
known address of such depositor or depositors (as the address is
shown by the records of the depository financial institution with
respect to that deposit account) a written notification advising the
depositor or depositors that the hold has been placed.
(b) The restriction on withdrawal from a deposit account imposed
by a depository financial institution under this section may not exceed
ninety (90) days, pending a court's determination of the adverse
claimant's rights to the amount restricted.
(c) If:
(1) ninety (90) days have elapsed after the hold is placed on a
deposit account; and
(2) an apparently valid order of a court has not been served upon
the depository financial institution that directs the depository
financial institution to begin or to continue to restrict withdrawals
from a deposit account;
the restriction on withdrawal from the deposit account imposed under
subsection (a) expires.

Legislative History

As added by P.L.258-1989, SEC.2. Amended by P.L.89-1998, SEC.2.