26B-9-112. Alternative payment by obligor through electronic funds transfer.
(1)
The office may enter into a written alternative payment agreement with an obligor which provides for electronic payment of child support under 3, or 4. Electronic payment shall be accomplished through an automatic withdrawal from the obligor’s account at a financial institution.
Terms Used In Utah Code 26B-9-112
Account: means a demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account. See Utah Code 26B-9-101
Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
Obligor: means a person, firm, corporation, or the estate of a decedent owing money to this state, to an individual, to another state, or other comparable jurisdiction in whose behalf this state is acting. See Utah Code 26B-9-101
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2)
The alternative payment agreement shall:
(a)
provide for electronic payment of child support in lieu of income withholding;
(b)
specify the date on which electronic payments will be withdrawn from an obligor’s account; and
(c)
specify the amount which will be withdrawn.
(3)
The office may terminate the agreement and initiate immediate income withholding, as defined in Section 26B-9-301, if:
(a)
required to meet federal or state requirements or guidelines;
(b)
funds available in the account at the scheduled time of withdrawal are insufficient to satisfy the agreement; or
(c)
requested by the obligor.
(4)
If the payment amount requires adjusting, the office may initiate a new written agreement with the obligor. If, for any reason, the office and obligor fail to agree on the terms, the office may terminate the agreement and initiate income withholding.
(5)
If an agreement is terminated for insufficient funds, a new agreement may not be entered into between the office and obligor for a period of at least 12 months.
(6)
The office shall make rules specifying eligibility requirements for obligors to enter into alternative payment agreements.
Renumbered and Amended by Chapter 305, 2023 General Session
