2011 Connecticut Code
Title 52 Civil Actions
Chapter 906 Postjudgment Procedures
Sec. 52-367a. Execution against debts due from financial institution. Judgment debtor other than natural person.

      Sec. 52-367a. Execution against debts due from financial institution. Judgment debtor other than natural person. (a) As used in this section and section 52-367b, "financial institution" means any bank, savings bank, savings and loan association or credit union organized, chartered or licensed under the laws of this state or the United States and having its main office in this state, or any similar out-of-state institution having a branch office in this state.

      (b) Execution may be granted pursuant to this section against any debts due from any financial institution to a judgment debtor which is not a natural person. 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 seventy-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. The clerk shall issue such execution containing a direction that the officer serving such execution shall make demand (1) upon the main office of any financial institution having its main office within the county of the serving officer, or (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, for the payment of any debt due to the judgment debtor, and, after having made such demand, shall serve a true and attested copy thereof, with the serving officer's actions thereon endorsed, with the financial institution officer 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. If the serving officer does not receive within twenty-five days of the service of the demand a response from the financial institution that was served indicating whether or not the taxpayer has funds at the financial institution available for collection, the serving officer may assume that sufficient funds are not available for collection and may proceed to serve another financial institution in accordance with this subsection.

      (c) 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. Except as provided in subsection (d) of this section, the financial institution shall immediately pay to such serving officer the amount removed from the judgment debtor's account, which amount shall be received and applied on such execution by such serving officer. Such financial institution shall act upon such execution according to section 42a-4-303 before its midnight deadline, as defined in section 42a-4-104. Nothing in this subsection shall be construed to affect any other rights or obligations of the financial institution with regard to funds in the judgment debtor's account.

      (d) If the deposit account is subject to a security interest of a secured party, other than the financial institution upon which such execution is served and upon which such demand is made, pursuant to a control agreement between the financial institution and such secured party under article 9 of title 42a, and if any funds are removed from the judgment debtor's account pursuant to subsection (c) of this section, the financial institution shall forthwith mail a copy of the execution when received from the serving officer, postage prepaid, to the judgment debtor and to such other secured party at the last known address of such parties with respect to the affected accounts on the records of the financial institution. The financial institution shall hold the amount removed from the judgment debtor's account pursuant to subsection (c) of this section for twenty days from the date of the mailing to the judgment debtor and such other secured party, and during such period shall not pay the serving officer.

      (e) To prevent the financial institution from paying the serving officer, as provided in subsection (h) of this section, such other secured party shall give notice of its prior perfected security interest in such deposit account, by delivering to the clerk of the court that issued the execution a written claim for determination of interests in property pursuant to section 52-356c and by delivering a copy of such claim to the financial institution upon which such execution is served.

      (f) Upon receipt of a written claim for determination of interests in property made pursuant to subsection (e) of this section, the clerk of the court shall enter the appearance of the secured party with the address set forth in the written claim. The clerk shall forthwith send file-stamped copies of the written claim to the judgment creditor, the judgment debtor and the financial institution upon which such execution was served with a notice stating that the disputed funds are being held until a court order is entered regarding the disposition of the funds.

      (g) If a written claim for determination of interests in property is made pursuant to subsection (e) of this section, the financial institution shall continue to hold the amount removed from the judgment debtor's account until a court order is received regarding disposition of the funds.

      (h) If no written claim for determination of interests in property is made pursuant to subsection (e) 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) If a written claim for determination of interests in property is made pursuant to subsection (e) of this section, the clerk of the court, after a judgment or order is entered pursuant to section 52-356c, shall forthwith send a copy of such judgment or order to the financial institution. Such judgment or 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 judgment or order. The judgment or order of the court may be implemented during such seven-day period, unless stayed by the court.

      (j) If records or testimony are subpoenaed from a financial institution in connection with a hearing conducted pursuant to section 52-356c on a written claim for determination of interests in property made pursuant to subsection (e) 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 that 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 section 52-356c to determine the legitimacy of a claim of an interest in property made under subsection (e) of this section.

      (k) If such financial institution fails or refuses to pay over to such 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, and the amount so recovered by such judgment creditor shall be applied toward the payment of the amount due on such execution.

      (l) Except as provided in subsection (k) 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.

      (m) Nothing in this section shall in any way restrict the rights and remedies otherwise available to a judgment debtor or to any such secured party at law or in equity.

      (1963, P.A. 44; February, 1965, P.A. 63, S. 1; P.A. 78-121, S. 78, 113; P.A. 81-352, S. 1; P.A. 83-384, S. 1; P.A. 84-546, S. 117, 173; P.A. 87-9, S. 2, 3; 87-569, S. 1; P.A. 97-158; P.A. 03-2, S. 48; 03-62, S. 22; 03-84, S. 40; 03-224, S. 12; P.A. 04-257, S. 80; P.A. 07-111, S. 3; June Sp. Sess. P.A. 09-3, S. 138.)

      History: 1965 act added provision in third sentence for leaving copy with banking institution officer; P.A. 78-121 removed private bankers and referred to savings and loan associations rather than to "building or" savings and loan associations in definition of "banking institution"; P.A. 81-352 included "federal credit union" in the definition of banking institution and made the definition applicable to Sec. 52-367a, made the provisions of the section applicable only to judgment debtors who are not natural persons, and made certain minor language changes; P.A. 83-384 provided 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 change, substituting "actions" for "doings"; (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. 97-158 redefined "banking institution"; (Revisor's note: In 2003 commas were inserted editorially by the Revisors before "or (2)" and after "Commissioner of Banking" for consistency and proper form); P.A. 03-2 required a plaintiff requesting execution to "make application to the clerk of the court" rather than "so notify the clerk" and added 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 designated existing definitional provision as Subsec. (a), designated existing provisions authorizing execution against debts due from banking institution to judgment debtor and prescribing the procedure for requesting, issuing and serving such execution as Subsec. (b), designated existing provisions re obligations of banking institution upon being served such execution as Subsec. (c) and amended said Subsec. to rephrase provisions, add exception re Subsec. (d) to requirement of immediate payment to the officer and add provision that nothing shall be construed to affect any other rights or obligations of the banking institution with regard to funds in the judgment debtor's account, added new Subsec. (d) re banking institution's obligations when the deposit account is subject to a security interest of a secured party pursuant to a control agreement under article 9 of title 42a, added new Subsec. (e) re procedure for such other secured party to give notice of its prior perfected security interest, added new Subsec. (f) re obligations of court clerk when a written claim for determination of interests in property is received, added new Subsec. (g) re obligation of banking institution to continue to hold the amount removed from judgment debtor's account if a written claim for determination of interests in property is made, added new Subsec. (h) re obligation of banking institution to pay the serving officer and obligation of serving officer to pay the judgment creditor if no written claim for determination of interests in property is made, added new Subsec. (i) re obligation of court clerk after a judgment or order is entered pursuant to Sec. 52-356c and the finality, appeal and implementation of such judgment or order, added new Subsec. (j) re recovery of costs and expenses of banking institution in complying with a subpoena and admissibility of the records of a banking institution as to dates and amounts of deposits into an account, designated existing provision re liability of banking institution that fails or refuses to pay over the amount of the debt as Subsec. (k), added new Subsec. (l) re immunity from liability for good faith acts or omissions or commission of bona fide errors occurring despite reasonable procedures to prevent such errors, and added Subsec. (m) re no restriction of the rights and remedies otherwise available to a judgment debtor or any such secured party at law or in equity; P.A. 03-84 changed "Commissioner of Banking" to "Banking Commissioner" and made technical changes, effective June 3, 2003; P.A. 03-224 replaced references to "banking institution" with references to "financial institution" and made technical changes, effective July 2, 2003; P.A. 04-257 made technical changes in Subsecs. (c) to (j) and (l), effective June 14, 2004; P.A. 07-111 amended Subsec. (b) to provide that serving officer shall not serve more than one financial institution execution per judgment debtor at a time, 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, and that if serving officer does not receive within 25 days of service of demand a response from institution that was served indicating whether or not taxpayer has funds at such institution available for collection, serving officer may assume sufficient funds are not available; June Sp. Sess. P.A. 09-3 amended Subsec. (b) to increase application fee from $35 to $75, effective September 9, 2009.

      Cited. 181 C. 125. Cited. 230 C. 486. Cited. 232 C. 167. Cited. 240 C. 343.

      Requirements and obligations imposed by statute do not apply to any portion of depositor's account that does not represent a debt due from bank to the depositor. 67 CA 588.