(a)  Any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the tax administrator, surrender the property or rights, or discharge the obligation, to the tax administrator, except that part of the property or rights as is, at the time of the demand, subject to an attachment or execution under any judicial process.

(b)  Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the tax administrator, shall be liable in their own person and estate to the state in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which the levy has been made, together with costs and interests on the sum at the rate prescribed in § 44-1-7 from the date of the levy. Any amount, other than costs, recovered under this subsection shall be credited against the tax liability for the collection of which the levy was made.

(c)  In addition to the personal liability imposed by subsection (b) of this section, if any person required to surrender property or rights to property fails or refuses to surrender the property or rights to property without a reasonable cause, the person shall be liable for penalty equal to fifty percent (50%) of the amount recoverable under subsection (b) of this section. No part of the penalty shall be credited against the tax liability for the collection of which the levy was made.

(d)  Any financial institution chartered under state or federal law, including, but not limited to, trust companies, savings banks, savings and loan associations, national banks and credit unions, shall surrender any deposits, including any interest in the financial institution that would otherwise be required to be surrendered under this subsection only after twenty-one (21) days after service of levy.

(e)  Any person in possession of, or obligated with respect to property or rights to property subject to levy upon which a levy has been made, who, upon demand by the tax administrator, surrenders the property or rights to property or discharges the obligation, to the tax administrator, or who pays a liability under subsection (b) of this section shall be discharged from any obligation or liability to the delinquent taxpayer with respect to the property or rights to property arising from the surrender or payment. In the case of a levy which is satisfied, the person shall also be discharged from any obligation or liability to any beneficiary arising from the surrender payment.