Garnishments, Levies, Freezes, Subpoenas, and Search Warrants are legal documents that the bank must comply with when they are presented. These legal documents are time-sensitive and may affect the bank, an associate, or a client's account. Below are samples of the types of documents that a bank associate may be presented with and or see referenced on a client's account. Note: When a hold is placed on a client's account the client must not be allowed access to any funds that are frozen or held.
Garnishment
A writ of garnishment is a court order commanding the bank to hold the client's funds on behalf of a third party. When outstanding debts have not been paid, the creditor can take legal action to have a garnishment issued against the client's bank account in satisfaction of the debt. The bank the amount designated in the garnishment and to retain any funds deposited until a court order is received to remit or release the funds. The length of time the hold remains on the account(s) is undetermined.
A client's rights to protected federal benefits require the bank to determine if the client has received protected federal benefits in the last two months. When applicable, a legal desk associate conducts a review to identify protected funds and make these funds available to the client. An order may specifically state that federal benefits are exempt and therefore the funds must be held.
Note: Additional attorney fees may be collected once the garnishment hold has been released.
Internal Revenue Service (IRS) Levy
An IRS levy is a legal seizure of money by the IRS to satisfy a tax debt. For accounts served with IRS levies, the bank immediately places a hold for 21 calendar days on all available funds in the named account(s). This is required by law. An IRS levy does not apply to protected federal benefit deposits.
Department of Revenue (DOR) Freeze
A DOR Freeze is money owed to the DOR for unpaid liability taxes. The bank is required to immediately place a hold for the total amount of the freeze or a full balance hold until the taxpayer satisfies the delinquent liability, or until 60 consecutive calendar days elapse from the date of receipt. Protected Federal Benefit deposits DO NOT apply to a DOR freeze.
Child Support Freeze
A Child Support Freeze is a child support order(s) that is not paid. The bank is required to immediately place a hold for the total amount of the freeze. The length of hold times that remain on the account(s) may vary. Unless otherwise noted on the freeze that Protected Federal Benefits should not be held prior two months of Protected Federal Benefits deposits will be available to the client.
Subpoena
CCB receives two types of subpoenas. The first type requires the named associate to testify before a court or other legal authority. The second type requires Capital City Bank to produce documents, materials, or other tangible evidence.
Search Warrant
A search warrant is a warrant that authorizes law enforcement officers to search a specified place for evidence such as a safe deposit box and/or freeze all funds in an account(s). Law enforcement officers cannot access the contents of a client's safes deposit box without a search warrant.