N.Y. CPLR § 5222-A

NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only CPLR § 5222-A Service of notices and forms and procedure for claim ofexemption § 5222-a. Service of notices and forms and procedure for claim ofexemption. (a) Applicability. Any person authorized under subdivision(a) of section fifty-two hundred twenty-two of this article issuing arestraining notice affecting a natural person's account at a bankinginstitution pursuant to such subdivision must comply with this section,in addition to the general provisions set forth in such section. Anysheriff levying against a natural person's account at a bankinginstitution pursuant to section fifty-two hundred thirty-two of thisarticle must comply with this section, in addition to the generalprovisions set forth in section fifty-two hundred thirty-two of thisarticle. The procedures set forth in subdivisions (b), (c), (d), (e),(f) and (g) of this section shall not apply where pursuant tosubdivision (h) and/or (i) of section fifty-two hundred twenty-two orsubdivision (e) of section fifty-two hundred thirty-two of this article,no funds in the account are restrained or levied upon.(b) Service of exemption notice and exemption claim form. 1. Servicewith restraining notice upon banking institution. The person issuing therestraining notice pursuant to subdivision (a) of section fifty-twohundred twenty-two of this article shall provide the banking institutionwith the restraining notice, a copy of the restraining notice, anexemption notice and two exemption claim forms with sections titled"ADDRESS A" and "ADDRESS B" completed. The exemption notice andexemption claim forms shall be in the forms set forth in paragraph fourof this subdivision. The notice and the forms shall be served on thebanking institution together with the restraining notice and copy of t ms shall be in the forms set forth in paragraph fourof this subdivision. The notice and the forms shall be served on thebanking institution together with the restraining notice and copy of therestraining notice. Service must be accomplished in accordance withsubdivision (a) or (g) of section fifty-two hundred twenty-two of thisarticle. Failure to serve the notice and forms together with therestraining notice renders the restraining notice void, and the bankinginstitution shall not restrain the account.2. Service of execution by levy upon a garnishee banking institution.When serving an execution pursuant to subdivision (a) of sectionfifty-two hundred thirty-two of this article, the sheriff shall providethe banking institution with an exemption notice and two exemption claimforms, which shall be in the forms set forth in paragraph four of thissubdivision. The sheriff shall serve both the exemption notice and theexemption claim forms on the banking institution together with theexecution notice. Service must be accomplished in accordance withsubdivision (a) of section fifty-two hundred thirty-two of this article.Failure to serve the notice and forms renders the execution void, andthe banking institution shall not levy upon the account.3. Service upon judgment debtor. Within two business days afterreceipt of the restraining notice or execution, exemption notice andexemption --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only claim forms, the banking institution shall serve upon thejudgment debtor the copy of the restraining notice, the exemption noticeand two exemption claim forms. The banking institution shall serve thenotice and forms by first class mail to the last known address of thejudgment debtor. The inadvertent failure by a depository institution toprovide the notice required by this subdivision shall not give ri s by first class mail to the last known address of thejudgment debtor. The inadvertent failure by a depository institution toprovide the notice required by this subdivision shall not give rise toliability on the part of the depository institution.4. Content of exemption notice and exemption claim form. a. Theexemption notice shall be in the following form: "EXEMPTION NOTICE as required by New York Law YOUR BANK ACCOUNT IS RESTRAINED OR "FROZEN"The attached Restraining Notice or notice of Levy by Execution hasbeen issued against your bank account. You are receiving this noticebecause a creditor has obtained a money judgment against you, and one ormore of your bank accounts has been restrained to pay the judgment. Amoney judgment is a court's decision that you owe money to a creditor.You should be aware that FUTURE DEPOSITS into your account(s) might alsobe restrained if you do not respond to this notice.You may be able to "vacate" (remove) the judgment. If the judgment isvacated, your bank account will be released. Consult an attorney(including free legal services) or visit the court clerk for moreinformation about how to do this.Under state and federal law, certain types of funds cannot be takenfrom your bank account to pay a judgment. Such money is said to be"exempt."DOES YOUR BANK ACCOUNT CONTAIN ANY OF THE FOLLOWING TYPES OF FUNDS?1. Social security;2. Social security disability (SSD);3. Supplemental security income (SSI);4. Public assistance (welfare);5. Income earned while receiving SSI or public assistance;6. Veterans benefits;7. Unemployment insurance;8. Payments from pensions and retirement accounts;9. Disability benefits;10. Income earned in the last 60 days (90% of which is exempt);11. Workers' compensation benefits;12. Child support;13. Spousal support or maintenance (alimony);14. Railroad retirement;15. Black lung benefits; and/or16. COVID-19 stimulus re h is exempt);11. Workers' compensation benefits;12. Child support;13. Spousal support or maintenance (alimony);14. Railroad retirement;15. Black lung benefits; and/or16. COVID-19 stimulus relief for individuals and families withchildren.If YES, you can claim that your money is exempt and cannot be taken.To make the claim, you must(a) complete the EXEMPTION CLAIM FORM attached;(b) deliver or mail the form to the bank with the restrained or"frozen" account; and(c) deliver or mail the form to the creditor or its attorney at theaddress listed on the form.You must send the forms within 20 DAYS of the postmarked date on theenvelope holding this notice. You may be able to get your accountreleased faster if you send to the creditor or its attorney writtenproof that your money is exempt. Proof can include an award letter fromthe government, an annual statement from your pension, pay stubs, copiesof checks, bank records showing the last two months of account activity,or other papers showing that the money in your bank account is exempt.If you send the creditor's attorney proof that the money in your accountis exempt, the attorney must release that money within seven days. Youdo not need an attorney to make an exemption claim using the form."b. The exemption claim form shall be in the following form:NAME OF COURT, NAME OF COUNTY-------------------------------------xPLAINTIFF/PETITIONER/CLAIMANT INDEX NO.V.DEFENDANT/RESPONDENT EXEMPTION CLAIM FORM-------------------------------------xNAME AND ADDRESS OF JUDGMENT NAME AND ADDRESS OF FINANCIALCREDITOR OR ATTORNEY INSTITUTION(To be completed by judgment (To be completed by judgmentcreditor or attorney) creditor or attorney)ADDRESS ADDRESSA_____________________ B__________________________________________ _____________________Directions: To claim that some or all of the funds in your account areexempt, complete both copies of this form, ____________ B__________________________________________ _____________________Directions: To claim that some or all of the funds in your account areexempt, complete both copies of this form, and make one copy foryourself. Mail or deliver one form to ADDRESS A and one form to ADDRESSB within twenty days of the date on the envelope holding this notice.**If you have any documents, such as an award letter, an annualstatement from your pension, paystubs, copies of checks or bank recordsshowing the last two months of account activity, include copies of thedocuments with this form. Your account may be released more quickly._________________________________________________________________________I state that my account contains the following type(s) of funds (checkall that apply):____Social security____Social security disability (SSD)____Supplemental security income (SSI)____Public assistance____Wages while receiving SSI or public assistance____Veterans benefits____Unemployment insurance____Payments from pensions and retirement accounts____Income earned in the last 60 days (90% of which is exempt)____Child support____Spousal support or maintenance (alimony)____Workers' compensation____Railroad retirement or CPLR § 5222-A Page 2 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only black lung benefits_____COVID-19 stimulus relief for individuals and families with children____Other (describe exemption):_________________________________I request that any correspondence to me regarding my claim be sent tothe following address:_____________________________________________________________________ (FILL IN YOUR COMPLETE ADDRESS)I certify under penalty of perjury that the statement above is true tothe best of my knowledge and belief ________________________________________________ (FILL IN YOUR COMPLETE ADDRESS)I certify under penalty of perjury that the statement above is true tothe best of my knowledge and belief._________________________________________________________________________DATE SIGNATURE OF JUDGMENT DEBTOR(c) Claim of exemption. 1. To claim an exemption pursuant to theprocedures in this section, the judgment debtor shall complete theexemption claim forms, sign them under penalty of perjury, and servethem within twenty days of the date postmarked on the correspondencecontaining the notice and forms. The judgment debtor shall serve onecompleted exemption claim form on the banking institution and the otheron the attorney for the judgment creditor. In the event that there is noattorney for the judgment creditor, then the exemption claim form mustbe served directly on the judgment creditor. The judgment debtor mayserve the exemption claim forms in person or by first-class mail.2. Where the banking institution receives an exemption claim form, itshall notify the judgment creditor forthwith of the date on which thefunds will be released pursuant to paragraph three of this subdivision.3. The banking institution shall release all funds in the judgmentdebtor's account eight days after the date postmarked on the envelopecontaining the executed exemption claim form mailed to the bankinginstitution or the date of personal delivery of the executed exemptionclaim form to the banking institution, and the restraint shall be deemedvoid, except where the judgment creditor interposes an objection to theexemption within that time.4. Where the executed exemption claim form sent to the judgmentcreditor is accompanied by information demonstrating that all funds inthe account are exempt, the judgment creditor shall, within seven daysof the postmark on the envelope containing the exemption claim form andaccompany y information demonstrating that all funds inthe account are exempt, the judgment creditor shall, within seven daysof the postmark on the envelope containing the exemption claim form andaccompanying information, instruct the banking institution to releasethe account, and the restraint shall be deemed void. Where the accountcontains some funds from exempt sources, and other funds from unknownsources, the judgment creditor shall apply the lowest intermediatebalance principle of accounting and, within seven days of the postmarkon the envelope containing the exemption claim form and accompanyinginformation, shall instruct the banking institution to release theexempt money in the account. The provisions of paragraph two ofsubdivision (b) of rule twenty-one hundred three of this chapter shallnot enlarge the judgment creditor's time to move pursuant to thissection. Information demonstrating that funds are exempt includes, butis not limited to, originals or copies of benefit award letters, checks,check stubs or any other document that discloses the source of thejudgment debtor's income, and bank records showing the last two monthsof account activity. If the judgment creditor fails to act in accordancewith this subdivision, the judgment creditor shall be deemed to haveacted in bad faith and the judgment debtor may seek a court award of thedamages, costs, fees and penalties provided for in subdivision (g) ofthis section.5. If no claim of exemption is received by the banking institutionwithin twenty-five days after the notice and forms are mailed to thejudgment debtor, the funds remain subject to the restraining notice orexecution. Failure of the judgment debtor to deliver the executedexemption claim form does not constitute a waiver of any right to anexemption.(d) Objection to exemption claim and request for hearing. A judgmentcreditor may object to the claim of exemption by moving aim form does not constitute a waiver of any right to anexemption.(d) Objection to exemption claim and request for hearing. A judgmentcreditor may object to the claim of exemption by moving for an orderpursuant to section fifty-two hundred forty of this article. Thejudgment creditor must serve the banking institution and the judgmentdebtor with its motion papers within eight days after the datepostmarked on the envelope containing the executed exemption claim formor the date of personal delivery of the executed exemption claim form tothe banking institution, and the provisions of paragraph one ofsubdivision CPLR § 5222-A Page 3 --- NEW YORK CIVIL PRACTICE LAW AND RULES (CPLR) New York State | For Informational Purposes Only (b) of rule twenty-one hundred three of this chapter shallnot enlarge the judgment creditor's time to move pursuant to thissection. The judgment debtor shall be served at the address provided onthe exemption claim form. The affirmation or affidavit in support of themotion shall demonstrate a reasonable belief that such judgment debtor'saccount contains funds that are not exempt from execution and the amountof such nonexempt funds. The executed exemption claim form shall beattached to the affirmation or affidavit. The affirmation or affidavitshall not be conclusory, but is required to show the factual basis uponwhich the reasonable belief is based. The hearing to decide the motionshall be noticed for seven days after service of the moving papers. Theexecuted exemption claim form shall be prima facie evidence at suchhearing that the funds in the account are exempt funds. The burden ofproof shall be upon the judgment creditor to establish the amount offunds that are not exempt. The court shall, within five days of thehearing, issue an order stating whether or not funds in the account areexempt and ordering the appropriate relief. The judgment cr nds that are not exempt. The court shall, within five days of thehearing, issue an order stating whether or not funds in the account areexempt and ordering the appropriate relief. The judgment creditor or itsattorney must serve the order on the banking institution and thejudgment debtor no later than two business days after the court issuesthe order.(e) Duties of banking institution if objection is made to exemptionclaim. Upon receipt of a written objection pursuant to subdivision (d)of this section from the judgment creditor or its attorney within thespecified eight-day period, the banking institution shall retain thefunds claimed to be exempt for twenty-one days unless otherwise orderedby the court. If the period of twenty-one days expires and the bankinginstitution has not been otherwise ordered by the court, the bankinginstitution shall release the funds to the judgment debtor.(f) Release of funds. At any time during the procedure specified inthis section, the judgment debtor or the judgment creditor may, by awriting dated after the service of the restraining notice, direct thebanking institution to release the funds in question to the other party.Upon receipt of a release, the banking institution shall release thefunds as directed.(g) Proceedings; bad faith claims. Where the judgment creditor objectsto a claim of exemption pursuant to subdivision (d) of this section andthe court finds that the judgment creditor disputed the claim ofexemption in bad faith, as provided in paragraph four of subdivision (c)of this section, the judgment debtor shall be awarded costs, reasonableattorney fees, actual damages and an amount not to exceed one thousanddollars.(h) Rights of judgment debtor. Nothing in this section shall in anyway restrict the rights and remedies otherwise available to a judgmentdebtor, including but not limited to, rights to property exemptionsunder federal and state in this section shall in anyway restrict the rights and remedies otherwise available to a judgmentdebtor, including but not limited to, rights to property exemptionsunder federal and state law.(i) The provisions of this section do not apply when the state of NewYork, or any of its agencies or municipal corporations is the judgmentcreditor, or if the debt enforced is for child support, spousal support,maintenance or alimony, provided that the restraining notice contains alegend at the top thereof, above the caption, in sixteen point bold typewith the following language: "The judgment creditor is the state of NewYork, or any of its agencies or municipal corporations, AND/OR the debtenforced is for child support, spousal support, maintenance oralimony.". CPLR § 5222-A Page 4