Idaho Code 11-714 – Financial Institution Obligations When Served With Writ of Garnishment
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(1) If a notice of garnishment is served upon a financial institution that has an account or accounts of the debtor, the financial institution shall conduct a garnishment review of all accounts in the name of the debtor before taking any action that may affect funds in those accounts.
(2) The garnishment review shall be limited to the two (2) month period immediately preceding the date of service upon the financial institution of the garnishment. Solely for purposes of the garnishment review, any balance in the accounts on the corresponding date of the month two (2) months earlier, or on the last date of the month two (2) months earlier if the corresponding date does not exist, shall be deemed to be exempt. If the financial institution determines, solely from information transmitted to the financial institution by the payor, that one (1) or more payments of exempt funds as described in section 11-713(1), (2) or (3), Idaho Code, were deposited by direct or electronic deposit payment in an account of the debtor, the total balance of deposited exempt funds in the debtor account is not subject to garnishment.
Terms Used In Idaho Code 11-714
- Financial institution: means any state bank, national bank, trust company, savings and loan association, savings bank, federal savings and loan association, federal savings bank or credit union, as those terms are defined in title 26, Idaho Code, or any federal credit union organized under the federal credit union act, 12 U. See Idaho Code 11-701
- 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
- Garnishment: means a judicial proceeding in which a creditor or potential creditor asks the court to order a third party who is indebted to, or is in possession of, property, money or credits of the debtor to turn over to the creditor any of the debtor’s property, money or credits held by that third party. See Idaho Code 11-701
- Month: means a calendar month, unless otherwise expressed. See Idaho Code 73-114
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3) The financial institution conducting the garnishment review need only review information transmitted to the financial institution by the payor of direct or electronic deposit payments in making its determination that funds in the accounts are of the types of payments described in section 11-713(1), (2) or (3), Idaho Code. The financial institution conducting the garnishment review shall have no obligation to inquire into the source of funds or examine any deposit item made by any means other than direct or electronic deposit, even if such review would disclose that the funds so deposited may be exempt from garnishment as described in section 11-713(1), (2) or (3), Idaho Code.
(4) If a notice of right to garnish federal benefits from the United States government or from a state child support enforcement agency is attached to or included in the garnishment as provided in 31 C.F.R. § part 212, the financial institution shall not conduct a garnishment account review under this section and shall proceed on the garnishment.
(5) A financial institution conducting a garnishment review as required by this section is immune from civil liability to the garnishor, debtor or account owner from any act or omission with respect to the garnishment review, including without limitation any incorrect determination made after applying good faith methods for determining whether funds in an account are exempt. If a court determines that a financial institution erred in its identification of funds in an account as exempt or nonexempt, the sole remedy in exemption proceedings shall be issuance of an order of the court that the financial institution must adjust its actions with respect to a writ of execution as soon as possible. A financial institution is not liable to an account holder or garnishor and may not be assessed any penalty by reason of any action or inaction in good faith including:
(a) Failure to deliver any funds;
(b) Failure to refuse to deliver any funds;
(c) Failure to provide the required notices to an account holder;
(d) Customary clearing and settlement adjustments made to a debtor’s account that affect the balance in the debtor’s account; and
(e) Any bona fide errors that occur despite reasonable procedures implemented by the financial institution to prevent those errors.