Authority
- Minnesota Statutes, section 13B.06
- Minnesota Statutes, sections 552.04
and 552.06
Levy of Assets in Financial
Institutions For Collection of Support
CSD is authorized to issue a Notice of
Levy for accounts maintained by an obligor in financial institutions to
collect past-due support in cases where a child support arrearage equals
or exceeds five times the monthly support obligation, the obligor has
failed to make full payments required by a previously executed payment
agreement, and where the arrearages have already been submitted for offset
against federal or state tax refunds.
Property Subject to the Levy
Any accounts maintained by an obligor in
a financial institution are subject to the levy.
Levying on Joint Accounts
Joint accounts are subject to levy.
Required Action by the Financial
Institution
Upon receipt of the Notice of Levy, the
financial institution must:
- Immediately freeze funds in all
accounts in which the obligor has an interest, up to the amount of the
past-due support indicated in the Notice of Lien/Levy Action
(Appendix C, page 36); and
- Hold the encumbered funds for 45
calendar days from the date of receipt of the levy. The institution
must suspend any and all activity with respect to, and payments from,
any and all accounts of the obligor up to the amount levied. The
suspension (holding period) must continue for 45 days. Additional
deposits may be made into the account(s) during the 45 day holding
period. These funds are excluded from the levy action and may be
withdrawn even if the account balance at date of the receipt of the
levy was less than the amount requested in the levy.
- Surrender the encumbered funds to CSD
after 45 days unless otherwise notified by CSD.
CSD will pay the financial institution
$15 for each levied account the month following issuance of the Notice
of Lien/Levy Action. CSD will send one check to each financial
institution regardless of how many levy requests were made to that
financial institution in the previous month.
Notice to the Obligor
CSD will notify the obligor that a levy
has occurred within three business days after the Notice of Levy Action
is sent to the financial institution. This notice will include information
regarding how to claim exemptions, contest the levy, and prevent future
levies.
The obligor must file an exemption claim
within 20 days or file a contest motion in court within 30 days. If
contested, a hearing must be held within 10 days of obligor's
request.
CSD will immediately notify the
financial institution if a contest motion is filed. The financial
institution will continue to hold the funds until notified of the results
of the hearing (even if after 45 days).
Upon issuance of an order, CSD will
immediately notify the financial institution of results. The financial
institution will release accounts designated as exempt and/or release
funds to CSD after 45 days expires.
