2006 Code of Virginia § 63.2-1931 - Effect of service on banks, savings institutions, etc

63.2-1931. Effect of service on banks, savings institutions, etc.

Service of a lien or orders to withhold and deliver or any other notice ordocument authorized by this chapter on the main office or headquarters orregistered agent of any bank, savings institution or other financialinstitution or broker-dealer as defined in 13.1-501 or any other placedesignated by such financial institution or broker-dealer shall be effectiveas to any accounts, credits or other personal property (excluding propertyheld in a safe-deposit box) of the noncustodial parent held by thatinstitution or broker-dealer. The bank, savings institution, financialinstitution or broker-dealer may accept service or treat service as valideven though made at a point other than those specified above.

Within twenty-one days of receipt of an answer from any bank, savingsinstitution or other financial institution or broker-dealer indicating that asupport debtor may have an interest in funds in a joint account, theDepartment shall serve notice of the order to withhold on all joint accountholders at the address for each account holder as provided by the bank,savings institution or other financial institution or broker-dealer in thesame manner as service upon the support debtor. A copy of the notice shall beserved on the financial institution or broker-dealer by certified mail,return receipt requested. Each account holder may appeal the action to ahearing officer as provided in 63.2-1929. However, the issue to bedetermined by the hearing officer is limited to whether the support debtorhas any interest in the joint account which is being held based on thesupport debtor's contribution to the account. Upon satisfactory proof thatthe support debtor has no interest in the joint account, the Department shallrelease the order to withhold. Upon receipt of the copy of the notice to thejoint account holders, the financial institution or broker-dealer shall treatthe initial order to withhold as continuing in effect over the entireproperty being withheld until a release or order to deliver is served by theDepartment or until the ninety-day period set forth in the followingparagraph expires. If the financial institution or broker-dealer does notreceive a copy of the notice to the joint account holders within twenty-onedays from delivery of its answer, it may treat the order to withhold asreleased.

Upon the determination that the support debtor has some interest in the jointaccount, the Department shall initiate a petition in the general districtcourt or in the circuit court, if the joint account and the amount claimedagainst the support debtor each exceed $10,000, for the jurisdiction in whichthe support debtor or any joint account owner resides in order that the courtmay make a determination of the extent of the interest of the support debtorin the joint account, based on the amount the support debtor contributed tothe account. If the support debtor and all account owners are nonresidents,venue shall be where the support obligee resides or where the property islocated. In cases where the joint account is owned by persons married to eachother, the funds in the account shall belong to them equally unless there isclear and convincing evidence otherwise. The Department shall serve a copy ofthe petition on the financial institution or broker-dealer by certified mail,return receipt requested. If the financial institution or broker-dealer doesnot receive a copy of the petition within ninety days of receipt of thenotice to the joint account holders, it may treat the order to withhold asreleased.

Notwithstanding service or receipt of such order of support, the financialinstitution may pay any check deposited with it or another financialinstitution on or before the date of service or receipt of the order ofsupport on it.

(1988, cc. 795, 906, 63.1-260.1; 1990, c. 950; 1992, c. 111; 2002, c. 747.)