2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 9. DEPOSITORY FINANCIAL INSTITUTIONS ADVERSE CLAIMS ACT CHAPTER 4. PROCEDURE UPON RECEIPT OF NOTICE
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IC 28-9-4
Chapter 4. Procedure Upon Receipt of Notice
IC 28-9-4-1
Receipt of notice from an adverse claimant who is not a money
judgment creditor; hold on deposit account
Sec. 1. (a) Upon receipt of the notice required under
IC 28-9-3-3(b)(1), a depository financial institution shall place a hold
on the deposit account described in the notice the amount in
controversy that is specified by the notice.
(b) If within three (3) working days after receipt by a depository
financial institution of the notice required under IC 28-9-3-3(b)(1),
the adverse claimant has failed to serve or cause to be served an
apparently valid order directing the depository financial institution
to hold or restrict the funds in a deposit account against which an
adverse claim is asserted, the depository financial institution shall
treat the deposit account as if no notice of an adverse claim had been
given.
As added by P.L.258-1989, SEC.2.
IC 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
Sec. 2. (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.
As added by P.L.258-1989, SEC.2. Amended by P.L.89-1998, SEC.2.
IC 28-9-4-3
Garnishment fee; credit against unpaid amount of judgment;
deposit funds exempt from garnishment
Sec. 3. (a) This section applies to a depository financial institution
that is required to place a hold on a deposit account under section
2(a) of this chapter.
(b) Immediately prior to the placing of a hold on a deposit account
under section 2(a) of this chapter, the depository financial institution
is entitled to receive and deduct from the affected deposit account a
garnishment fee equal to the lesser of:
(1) twenty dollars ($20); or
(2) the amount of funds then in the deposit account.
However, if the court determines that the funds from which the
garnishment fee is deducted are exempt from garnishment, the
depository financial institution shall recredit the deposit account
affected with the amount of the garnishment fee previously deducted.
(c) In answering interrogatories served or caused to be served by
the adverse claimant regarding the amount of funds in a deposit
account, the depository financial institution shall indicate the balance
in the deposit account immediately prior to the deduction of the
garnishment fee specified in subsection (b).
(d) Upon receipt from the depository financial institution of
answers to interrogatories indicating a balance in a deposit account
in which the judgment defendant has an interest, the adverse claimant
shall credit or cause to be credited against the unpaid amount of the
judgment one-half (1/2) of the garnishment fee calculated in
accordance with subsection (b). However, if the court determines
that the funds from which the garnishment fee is deducted are
exempt from garnishment, that credit against the unpaid amount of
the judgment shall be reversed.
(e) For the purposes of subsections (b) and (d), if the court
determines that a portion of the funds in a deposit account is exempt
from garnishment, the garnishment fee specified in subsection (b)
shall be considered to have been deducted first from those funds in
the deposit account that are not exempt from garnishment.
(f) Subject only to the provisions of subsection (b) with respect to
adjustment of a deposit account based upon an exemption, once the
garnishment fee specified in that subsection is deducted, the
deducted amount shall not be subject to any claim by the adverse
claimant or a depositor.
As added by P.L.258-1989, SEC.2. Amended by P.L.198-1991,
SEC.2.
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