A. From and after the service of all of the documents required to be served pursuant to section 12-1574 the garnishee shall not pay to the judgment debtor any monies or deliver to him any personal property which is not exempt, and the garnishee, if a corporation in which the judgment debtor is alleged to be the owner of shares or to have an interest, shall not permit or recognize any sale or transfer of the judgment debtor’s shares or interest, if it is within the legal power of the garnishee to do so. Any such payment, delivery, sale or transfer is void and of no effect as to so much of the monies, personal property, shares or interest as is necessary to satisfy the judgment creditor‘s demand, except that this provision shall not void or impair the rights of a bona fide transferee, for value and without notice of the garnishment, of negotiable instruments, documents of title, corporate stock or securities, or other documents or instruments which embody legal rights transferable only by transfer of the documents or instruments themselves, unless the document or instrument is held by the garnishee at the time of service of the writ of garnishment.

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Terms Used In Arizona Laws 12-1578

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deliver: means any of the following:

    (a) To hand deliver. See Arizona Laws 12-1570

  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Judgment creditor: means a person or entity that has a money judgment or an order for support of a person that is due and unpaid or an order pursuant to chapter 14 of this title allowing him to garnish monies, personal property or shares of stock before final judgment on the underlying action. See Arizona Laws 12-1570
  • Judgment debtor: means a person or entity against which a money judgment has been awarded or against which an order for support of a person is due and unpaid or against which an order pursuant to chapter 14 of this title has been entered. See Arizona Laws 12-1570
  • Magistrate: means an officer having power to issue a warrant for the arrest of a person charged with a public offense and includes the chief justice and justices of the supreme court, judges of the superior court, judges of the court of appeals, justices of the peace and judges of a municipal court. See Arizona Laws 1-215
  • Monies: includes cash, credit and accounts, but does not include earnings as defined in section 12-1598, paragraph 4. See Arizona Laws 12-1570
  • Personal property: means all property and interests to which a security interest may be perfected pursuant to Title 47, Chapter 9, except accounts. See Arizona Laws 12-1570
  • Personal property: All property that is not real property.
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.
  • Writ: means an order or precept in writing issued in the name of the state or by a court or judicial officer. See Arizona Laws 1-215

B. A financial institution shall not withhold from the judgment debtor the amount set forth as exempt pursuant to section 33-1126, subsection A, paragraph 9, unless ordered by the court to do so after a hearing pursuant to section 12-1580.

C. The judgment debtor may at any time before judgment replevy any property garnished by giving bond to be approved and filed in the action by the officer who issued the writ of garnishment, in double the amount of the judgment creditor’s debt, or, at the judgment debtor’s option, by giving bond for the value of the property garnished as determined by the court, justice of the peace or city or town magistrate, and conditioned upon the payment of any judgment that may be given against the garnishee in the action or for payment of the value of the property garnished.

D. When the judgment debtor gives bond, he may make any defense which the garnishee could make in such action.

E. If judgment is given in favor of the judgment creditor it shall be against the judgment debtor and the sureties on the replevin bond for the amount of such judgment.