A07048 Summary:

BILL NOA07048
 
SAME ASNo Same As
 
SPONSORAbinanti
 
COSPNSR
 
MLTSPNSR
 
Amd SS5222, 5225, 5227, 5232 & 6214, CPLR
 
Relates to making service upon a financial institution of orders of attachment and notices and orders in aid of enforcement of judgments effective upon any account to which the financial institution is a garnishee.
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A07048 Actions:

BILL NOA07048
 
04/21/2015referred to codes
06/08/2015reported referred to rules
06/17/2015reported
06/17/2015rules report cal.550
06/17/2015ordered to third reading rules cal.550
01/06/2016referred to codes
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A07048 Committee Votes:

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A07048 Floor Votes:

There are no votes for this bill in this legislative session.
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A07048 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7048
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 21, 2015
                                       ___________
 
        Introduced  by  M.  of A. ABINANTI -- (at request of the Office of Court
          Administration) -- read once and referred to the Committee on Codes
 
        AN ACT to amend the civil practice law and rules, in relation to  making
          service  upon  a  financial  institution  of  orders of attachment and
          notices and orders in aid of enforcement of judgments  effective  upon
          any account as to which the institution is a garnishee
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (a) of section 5222 of the civil  practice  law
     2  and  rules, as amended by chapter 409 of the laws of 2000, is amended to
     3  read as follows:
     4    (a) Issuance; on whom served; form; service. A restraining notice  may
     5  be  issued  by  the  clerk of the court or the attorney for the judgment
     6  creditor as officer of the court, or  by  the  support  collection  unit
     7  designated by the appropriate social services district. It may be served
     8  upon  any  person,  except  the employer of a judgment debtor or obligor
     9  where the property sought to be restrained consists of wages  or  salary
    10  due  or  to  become  due  to the judgment debtor or obligor. It shall be
    11  served personally in the same manner as a summons or  by  registered  or
    12  certified  mail,  return  receipt  requested or if issued by the support
    13  collection unit, by regular mail, or by electronic means as set forth in
    14  subdivision (g) of this section. It shall specify all of the parties  to
    15  the  action,  the date that the judgment or order was entered, the court
    16  in which it was entered, the amount of the judgment  or  order  and  the
    17  amount  then  due  thereon,  the names of all parties in whose favor and
    18  against whom the judgment or order  was  entered,  it  shall  set  forth
    19  subdivision  (b)  and  shall  state that disobedience is punishable as a
    20  contempt of court, and it shall contain an original signature or copy of
    21  the original signature of the clerk of the court or attorney or the name
    22  of the support collection unit which issued it. Service of a restraining
    23  notice upon a department or agency of the state or upon  an  institution
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09774-01-5

        A. 7048                             2
 
     1  under its direction shall be made by serving a copy upon the head of the
     2  department,  or  the  person designated by him or her and upon the state
     3  department of audit and control at its office in Albany;  a  restraining
     4  notice  served  upon  a state board, commission, body or agency which is
     5  not within any department of the state shall  be  made  by  serving  the
     6  restraining notice upon the state department of audit and control at its
     7  office  in Albany. Service at the office of a department of the state in
     8  Albany may be made by the sheriff of any county by registered or  certi-
     9  fied  mail,  return  receipt  requested,  or  if  issued  by the support
    10  collection unit, by regular mail.  Service of a restraining notice  upon
    11  a  financial institution shall be made by serving the institution's main
    12  office or any office of the financial institution.
    13    § 2. Subdivision (b) of section 5225 of the  civil  practice  law  and
    14  rules, as amended by chapter 388 of the laws of 1964, is amended to read
    15  as follows:
    16    (b)  Property not in the possession of judgment debtor. Upon a special
    17  proceeding commenced by the  judgment  creditor,  against  a  person  in
    18  possession  or  custody of money or other personal property in which the
    19  judgment debtor has an interest, or against a person who is a transferee
    20  of money or other personal property from the judgment debtor,  where  it
    21  is  shown that the judgment debtor is entitled to the possession of such
    22  property or that the judgment creditor's  rights  to  the  property  are
    23  superior to those of the transferee, the court shall require such person
    24  to pay the money, or so much of it as is sufficient to satisfy the judg-
    25  ment,  to  the  judgment  creditor  and,  if the amount to be so paid is
    26  insufficient to satisfy the judgment,  to  deliver  any  other  personal
    27  property,  or  so  much  of  it as is of sufficient value to satisfy the
    28  judgment, to a designated sheriff. Costs of the proceeding shall not  be
    29  awarded  against  a  person  who  did  not dispute the judgment debtor's
    30  interest or right to possession. Notice of the proceeding shall also  be
    31  served  upon  the  judgment debtor in the same manner as a summons or by
    32  registered or certified mail, return receipt requested.  The  court  may
    33  permit the judgment debtor to intervene in the proceeding. The court may
    34  permit  any  adverse  claimant  to  intervene  in the proceeding and may
    35  determine his or her rights in accordance with section 5239.  Service of
    36  an order to show cause and petition or notice of petition  and  petition
    37  commencing  a  special  proceeding  pursuant  to this subdivision upon a
    38  financial institution shall be made by serving  the  institution's  main
    39  office or any office of the financial institution.
    40    §  3.  Section 5227 of the civil practice law and rules, as amended by
    41  chapter 532 of the laws of 1963, is amended to read as follows:
    42    § 5227. Payment of debts owed  to  judgment  debtor.  Upon  a  special
    43  proceeding commenced by the judgment creditor, against any person who it
    44  is  shown  is  or will become indebted to the judgment debtor, the court
    45  may require such person to pay to the judgment creditor  the  debt  upon
    46  maturity, or so much of it as is sufficient to satisfy the judgment, and
    47  to  execute  and deliver any document necessary to effect payment; or it
    48  may direct that a judgment be entered against such person  in  favor  of
    49  the  judgment  creditor.  Costs  of  the proceeding shall not be awarded
    50  against a person who did not dispute the indebtedness.   Notice  of  the
    51  proceeding  shall  also  be  served upon the judgment debtor in the same
    52  manner as a summons or by registered or certified mail,  return  receipt
    53  requested.  The court may permit the judgment debtor to intervene in the
    54  proceeding. The court may permit any adverse claimant  to  intervene  in
    55  the  proceeding  and  may determine his or her rights in accordance with
    56  section 5239.  Service of an order to show cause and petition or  notice

        A. 7048                             3
 
     1  of  petition  and  petition  commencing a special proceeding pursuant to
     2  this section upon a financial institution shall be made by  serving  the
     3  institution's main office or any office of the financial institution.
     4    §  4.  Subdivision  (a)  of section 5232 of the civil practice law and
     5  rules, as amended by chapter 59 of the laws of 1993, is amended to  read
     6  as follows:
     7    (a)  Levy  by service of execution.  The sheriff or support collection
     8  unit designated by the appropriate social services district  shall  levy
     9  upon any interest of the judgment debtor or obligor in personal property
    10  not capable of delivery, or upon any debt owed to the judgment debtor or
    11  obligor,  by  serving a copy of the execution upon the garnishee, in the
    12  same manner as a summons, except that such service shall not be made  by
    13  delivery  to a person authorized to receive service of summons solely by
    14  a designation filed pursuant to a provision of law other than rule  318.
    15  Service upon a financial institution shall be made by serving the insti-
    16  tution's  main office or any office of the financial institution. In the
    17  event the garnishee is the state of New York, such levy shall be made in
    18  the same manner as an income execution pursuant to section 5231 of  this
    19  article.    A  levy by service of the execution is effective only if, at
    20  the time of service, the person served  owes  a  debt  to  the  judgment
    21  debtor  or obligor or he or she is in the possession or custody of prop-
    22  erty not capable of delivery in which he or she knows or has  reason  to
    23  believe  the judgment debtor or obligor has an interest, or if the judg-
    24  ment creditor or support collection unit has stated in  a  notice  which
    25  shall  be served with the execution that a specified debt is owed by the
    26  person served to the judgment debtor or obligor  or  that  the  judgment
    27  debtor  or  obligor has an interest in specified property not capable of
    28  delivery in the possession or custody of the person served. All property
    29  not capable of delivery in which the judgment debtor or obligor is known
    30  or believed to have an interest then in or thereafter  coming  into  the
    31  possession  or  custody of such a person, including any specified in the
    32  notice, and all debts of such a person, including any specified  in  the
    33  notice,  then  due  or  thereafter  coming due to the judgment debtor or
    34  obligor, shall be subject to  the  levy.  The  person  served  with  the
    35  execution  shall  forthwith transfer all such property, and pay all such
    36  debts upon maturity, to the sheriff or to the  support  collection  unit
    37  and  execute  any  document necessary to effect the transfer or payment.
    38  After such transfer or payment, property coming into the  possession  or
    39  custody  of  the garnishee, or debt incurred by him, or her shall not be
    40  subject to the levy. Until such transfer or payment is  made,  or  until
    41  the  expiration  of  ninety days after the service of the execution upon
    42  him or her, or of such further time as is provided by any order  of  the
    43  court served upon him or her, whichever event first occurs, the garnish-
    44  ee  is  forbidden to make or suffer any sale, assignment or transfer of,
    45  or any interference with, any such property, or pay  over  or  otherwise
    46  dispose  of  any  such debt, to any person other than the sheriff or the
    47  support collection unit, except upon direction of  the  sheriff  or  the
    48  support  collection  unit  or  pursuant to an order of the court. At the
    49  expiration of ninety days after  a  levy  is  made  by  service  of  the
    50  execution,  or  of  such  further  time as the court, upon motion of the
    51  judgment creditor or support collection  unit  has  provided,  the  levy
    52  shall be void except as to property or debts which have been transferred
    53  or  paid to the sheriff or to the support collection unit or as to which
    54  a proceeding under sections 5225 or 5227 has been  brought.  A  judgment
    55  creditor  who,  or support collection unit which, has specified personal
    56  property or debt to be levied upon in a notice served with an  execution

        A. 7048                             4
 
     1  shall  be  liable to the owner of the property or the person to whom the
     2  debt is owed, if other than the judgment  debtor  or  obligor,  for  any
     3  damages sustained by reason of the levy.
     4    §  5.  Subdivision  (a)  of section 6214 of the civil practice law and
     5  rules, as amended by chapter 860 of the laws of 1977, is amended to read
     6  as follows:
     7    (a) Method of levy. The sheriff shall levy upon any  interest  of  the
     8  defendant  in personal property, or upon any debt owed to the defendant,
     9  by serving a copy of the order of attachment upon the garnishee, or upon
    10  the defendant if property to  be  levied  upon  is  in  the  defendant's
    11  possession  or custody, in the same manner as a summons except that such
    12  service shall not be made by delivery of a copy to a  person  authorized
    13  to  receive service of summons solely by a designation filed pursuant to
    14  a provision of law other than rule 318.  Service upon a financial insti-
    15  tution shall be made by serving the institution's  main  office  or  any
    16  office of the financial institution.
    17    §  6. This act shall take effect on the first of January next succeed-
    18  ing the date on which it shall have become a law.
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