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.
Procedures When Received
When you are served a garnishment, levy, subpoena, or search warrant, do the following the same day that you receive one of the documents:
- Accept the garnishment, levy, subpoena, or search warrant from the law enforcement officer or other individual presenting the document.
- Do not release any client information to the individual presenting the document.
- If required, inform the individual the requests in the document will be handled by the appropriate department in a timely manner.
- Immediately scan the legal document and attach it in an email to _Garnishment-Levy-Freeze-Subpoena.
- Forward the original garnishment, levy, subpoena, or search warrant to Deposit Services by interoffice delivery.
- Upon receipt of a garnishment or levy, Deposit Services places a hold on the affected portion of the available balance of the client’s account.
- Deposit Services notifies the client in writing that holds are placed on his/her account.
Holds
A hold may be placed on an account for more than the client's available balance, which creates a negative balance on the account. Do not release any funds from an account with a negative available balance. No associate, including all bank officers, can override a hold for garnishment or levy.
Do not cash a check for the client if his/her account’s available balance is negative because of a garnishment or levy hold.
Do not use the account to cash checks not drawn on the client’s account. The client’s account cannot be used to cover chargeback items if the account balance is negative.
Questions regarding a hold due to garnishment or levy may have more information regarding the legal document available in the hold maintenance. You can tell the client the information in the hold message. If you have additional questions, contact Call Me Direct x397100.
You can accept a deposit for an account with a hold due to garnishment or levy. However, do not give cash back on deposits made by a client with a garnishment or levy when the available balance is negative. Once the funds are deposited they become a part of the hold and are unavailable to the client.