LBD07433-03-9
S. 1755--A 2
account is exempt from application to the satisfaction of a money judg-
ment. Nothing in this subdivision shall be construed to limit a credi-
tor's rights under 42 U.S.C. S 659 or 38 U.S.C. S 5301 OR TO ENFORCE A
CHILD SUPPORT, SPOUSAL SUPPORT, ALIMONY OR MAINTENANCE OBLIGATION.
Nothing in this subdivision shall alter the exempt status of funds that
are protected from execution, levy, attachment, garnishment or other
legal process, pursuant to this section or under any other provision of
state or federal law, or shall affect the right of a judgment debtor to
claim such exemption.
2. For purposes of this article, "statutorily exempt payments" means
any personal property exempt from application to the satisfaction of a
money judgment under any provision of state or federal law. Such term
shall include, but not be limited to, payments from any of the following
sources: social security, including retirement, survivors' and disabili-
ty benefits, supplemental security income or child support payments
[processed and received pursuant to title IV-D of the Social Security
Act]; veterans administration benefits; public assistance; workers'
compensation; unemployment insurance; public or private pensions; rail-
road retirement; and black lung benefits.
3. (i) Beginning on April first, two thousand twelve, and at each
three-year interval ending on April first thereafter, the dollar amount
of the exemption provided in this section, subdivisions (e) and (h) of
section fifty-two hundred twenty-two, subdivision (a) of section fifty-
two hundred thirty and subdivision (e) of section fifty-two hundred
thirty-two of this article in effect immediately before that date shall
be adjusted as provided in subparagraph (ii) of this paragraph.
(ii) The superintendent of banks shall determine the amount of the
adjustment based on the change in the Consumer Price Index for All Urban
Consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA,
published by the U.S. Department of Labor, Bureau of Labor Statistics,
for the most recent three-year period ending on December thirty-first
preceding the adjustment, with each adjusted amount rounded to the near-
est twenty-five dollars.
(iii) Beginning on April first, two thousand twelve, and at each
three-year interval ending on April first thereafter, the superintendent
of banks shall publish the current dollar amount of the exemption
provided in this section, subdivisions (e) and (h) of section fifty-two
hundred twenty-two, subdivision (a) of section fifty-two hundred thirty
and subdivision (e) of section fifty-two hundred thirty-two of this
chapter, together with the date of the next scheduled adjustment. The
publication shall be substantially in the form set below:
CURRENT DOLLAR AMOUNT OF EXEMPTION FROM ENFORCEMENT OF JUDGMENT UNDER
NEW YORK CIVIL PRACTICE LAW AND RULES Sections 5205(l), 5222(e),
5222(h), 5230(a), and 5232(e)
The following is the current dollar amount of exemption from enforce-
ment of money judgments under CPLR sections 5205(l), 5222(e), 5222(h),
5230(a), and 5232(e), as required by CPLR section 5205(l)(3):
(Amount)
This amount is effective on April 1, (year) and shall not apply to
cases commenced before April 1, (year). The next adjustment is scheduled
for April 1, (year).
(iv) Adjustments made under subparagraph (i) of this paragraph shall
not apply with respect to restraining notices served or executions
effected before the date of the adjustment.
S 3. Section 5222 of the civil practice law and rules is amended by
adding a new subdivision (k) to read as follows:
S. 1755--A 3
(K) THE PROVISIONS OF SUBDIVISIONS (H), (I) AND (J) OF THIS SECTION DO
NOT APPLY WHEN THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES OR MUNICI-
PAL CORPORATIONS IS THE JUDGMENT CREDITOR, OR IF THE DEBT ENFORCED IS
FOR CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY, PROVIDED
THAT THE RESTRAINING NOTICE CONTAINS A LEGEND AT THE TOP THEREOF, ABOVE
THE CAPTION, IN SIXTEEN POINT BOLD TYPE WITH THE FOLLOWING LANGUAGE:
"THE JUDGMENT CREDITOR IS THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES
OR MUNICIPAL CORPORATIONS, AND/OR THE DEBT ENFORCED IS FOR CHILD
SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY.".
S 4. Subdivision (a) of section 5222-a of the civil practice law and
rules, as added by chapter 575 of the laws of 2008, is amended to read
as follows:
(a) Applicability. Any person authorized under subdivision (a) of
section fifty-two hundred twenty-two of this article issuing a restrain-
ing notice affecting a natural person's account at a banking institution
pursuant to such subdivision must comply with this section, in addition
to the general provisions set forth in such section. Any sheriff [or
support collection unit] levying against a natural person's account at a
banking institution pursuant to section fifty-two hundred thirty-two of
this article must comply with this section, in addition to the general
provisions set forth in section fifty-two hundred thirty-two of this
article. The procedures set forth in subdivisions (b), (c), (d), (e),
(f) and (g) of this section shall not apply where pursuant to subdivi-
sion (h) and/or (i) of section fifty-two hundred twenty-two or subdivi-
sion (e) of section fifty-two hundred thirty-two of this article, no
funds in the account are restrained or levied upon.
S 5. Paragraphs 1 and 2 of subdivision (b) of section 5222-a of the
civil practice law and rules, as added by chapter 575 of the laws of
2008, are amended to read as follows:
1. Service with restraining notice upon banking institution. The
person [or support collection unit] issuing the restraining notice
pursuant to subdivision (a) of section fifty-two hundred twenty-two of
this article shall provide the banking institution with the restraining
notice, a copy of the restraining notice, an exemption notice and two
exemption claim forms with sections titled "ADDRESS A" and "ADDRESS B"
completed. The exemption notice and exemption claim forms shall be in
the forms set forth in paragraph four of this subdivision. The notice
and the forms shall be served on the banking institution together with
the restraining notice and copy of the restraining notice. Service must
be accomplished in accordance with subdivision (a) or (g) of section
fifty-two hundred twenty-two of this article. Failure to serve the
notice and forms together with the restraining notice renders the
restraining notice void, and the banking institution 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 section fifty-
two hundred thirty-two of this article, the sheriff [or support
collection unit] shall provide the banking institution with an exemption
notice and two exemption claim forms, which shall be in the forms set
forth in paragraph four of this subdivision. The sheriff [or support
collection unit] shall serve both the exemption notice and the exemption
claim forms on the banking institution together with the execution
notice. Service must be accomplished in accordance with subdivision (a)
of section fifty-two hundred thirty-two of this article. Failure to
serve the notice and forms renders the execution void, and the banking
institution shall not levy upon the account.
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S 6. Paragraphs 1 and 4 of subdivision (c) of section 5222-a of the
civil practice law and rules, as added by chapter 575 of the laws of
2008, are amended to read as follows:
1. To claim an exemption pursuant to the procedures in this section,
the judgment debtor shall complete the exemption claim forms, sign them
under penalty of perjury, and serve them within twenty days of the date
postmarked on the correspondence containing the notice and forms. The
judgment debtor shall serve one completed exemption claim form on the
banking institution and the other on the attorney for the judgment cred-
itor. In the event that there is no attorney for the judgment creditor
[or support collection unit], then the exemption claim form must be
served directly on the judgment creditor [or support collection unit].
The judgment debtor may serve the exemption claim forms in person or by
first-class mail.
4. Where the executed exemption claim form sent to the judgment credi-
tor [or support collection unit] is accompanied by information demon-
strating that all funds in the account are exempt, the judgment creditor
[or support collection unit] shall, within seven days of the postmark on
the envelope containing the exemption claim form and accompanying infor-
mation, instruct the banking institution to release the account, and the
restraint shall be deemed void. Where the account contains some funds
from exempt sources, and other funds from unknown sources, the judgment
creditor [or support collection unit] shall apply the lowest intermedi-
ate balance principle of accounting and, within seven days of the post-
mark on the envelope containing the exemption claim form and accompany-
ing information, shall instruct the banking institution to release the
exempt money in the account. The provisions of paragraph two of subdivi-
sion (b) of rule twenty-one hundred three of this chapter shall not
enlarge the judgment creditor's time to move pursuant to this section.
Information demonstrating that funds are exempt includes, but is not
limited to, originals or copies of benefit award letters, checks, check
stubs or any other document that discloses the source of the judgment
debtor's income, and bank records showing the last two months of account
activity. If the judgment creditor [or support collection unit] fails to
act in accordance with this subdivision, the judgment creditor [or
support collection unit] shall be deemed to have acted in bad faith and
the judgment debtor may seek a court award of the damages, costs, fees
and penalties provided for in subdivision (g) of this section.
S 7. Section 5222-a of the civil practice law and rules is amended by
adding a new subdivision (i) to read as follows:
(I) THE PROVISIONS OF THIS SECTION DO NOT APPLY WHEN THE STATE OF NEW
YORK, OR ANY OF ITS AGENCIES OR MUNICIPAL CORPORATIONS IS THE JUDGMENT
CREDITOR, OR IF THE DEBT ENFORCED IS FOR CHILD SUPPORT, SPOUSAL SUPPORT,
MAINTENANCE OR ALIMONY, PROVIDED THAT THE RESTRAINING NOTICE CONTAINS A
LEGEND AT THE TOP THEREOF, ABOVE THE CAPTION, IN SIXTEEN POINT BOLD TYPE
WITH THE FOLLOWING LANGUAGE: "THE JUDGMENT CREDITOR IS THE STATE OF NEW
YORK, OR ANY OF ITS AGENCIES OR MUNICIPAL CORPORATIONS, AND/OR THE DEBT
ENFORCED IS FOR CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMO-
NY.".
S 8. Subdivision (a) of section 5230 of the civil practice law and
rules, as amended by chapter 575 of the laws of 2008, is amended to read
as follows:
(a) Form. An execution shall specify the date that the judgment or
order was entered, the court in which it was entered, the amount of the
judgment or order and the amount due thereon and it shall specify the
names of the parties in whose favor and against whom the judgment or
S. 1755--A 5
order was entered. An execution shall direct that only the property in
which a named judgment debtor or obligor who is not deceased has an
interest, or the debts owed to the named judgment debtor or obligor, be
levied upon or sold thereunder and shall specify the last known address
of that judgment debtor or obligor. [An] EXCEPT IN CASES WHEN THE STATE
OF NEW YORK, OR ANY OF ITS AGENCIES OR MUNICIPAL CORPORATIONS IS THE
JUDGMENT CREDITOR, OR IF THE DEBT ENFORCED IS FOR CHILD SUPPORT, SPOUSAL
SUPPORT, MAINTENANCE OR ALIMONY, PROVIDED THAT IN THOSE INSTANCES THE
EXECUTION CONTAINS A LEGEND AT THE TOP THEREOF, ABOVE THE CAPTION, IN
SIXTEEN POINT BOLD TYPE WITH THE FOLLOWING LANGUAGE: "THE JUDGMENT CRED-
ITOR IS THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES OR MUNICIPAL
CORPORATIONS, AND/OR THE DEBT ENFORCED IS FOR CHILD SUPPORT, SPOUSAL
SUPPORT, MAINTENANCE OR ALIMONY.", AN execution notice shall state that,
pursuant to subdivision (l) of section fifty-two hundred five of this
article, two thousand five hundred dollars of an account containing
direct deposit or electronic payments reasonably identifiable as statu-
torily exempt payments, as defined in paragraph two of subdivision (l)
of section fifty-two hundred five of this article, is exempt from
execution and that the garnishee cannot levy upon or restrain two thou-
sand five hundred dollars in such an account. [An] EXCEPT IN CASES WHEN
THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES OR MUNICIPAL CORPORATIONS
IS THE JUDGMENT CREDITOR, OR IF THE DEBT ENFORCED IS FOR CHILD SUPPORT,
SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY, PROVIDED THAT IN THOSE
INSTANCES THE EXECUTION CONTAINS A LEGEND AT THE TOP THEREOF, ABOVE THE
CAPTION, IN SIXTEEN POINT BOLD TYPE WITH THE FOLLOWING LANGUAGE: "THE
JUDGMENT CREDITOR IS THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES OR
MUNICIPAL CORPORATIONS, AND/OR THE DEBT ENFORCED IS FOR CHILD SUPPORT,
SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY.", AN execution notice shall
likewise state that pursuant to subdivision (i) of section fifty-two
hundred twenty-two of this article, an execution shall not apply to an
amount equal to or less than ninety percent of the greater of two
hundred forty times the federal minimum hourly wage prescribed in the
Fair Labor Standards Act of 1938 or two hundred forty times the state
minimum hourly wage prescribed in section six hundred fifty-two of the
labor law as in effect at the time the earnings are payable, except such
part as a court determines to be unnecessary for the reasonable require-
ments of the judgment debtor and his or her dependents. Where the judg-
ment or order was entered in a court other than the supreme, county or a
family court, the execution shall also specify the date on which a tran-
script of the judgment or order was filed with the clerk of the county
in which the judgment was entered. Where jurisdiction in the action was
based upon a levy upon property or debt pursuant to an order of attach-
ment, the execution shall also state that fact, describe all property
and debts levied upon, and direct that only such property and debts be
sold thereunder. Where the judgment or order was recovered for all or
part of a mortgage debt, the execution shall also describe the mortgaged
property, specify the book and page where the mortgage is recorded, and
direct that no part of the mortgaged property be levied upon or sold
thereunder.
S 9. Subdivision (e) of section 5232 of the civil practice law and
rules, as added by chapter 575 of the laws of 2008, is amended to read
as follows:
(e) Notwithstanding the provisions of subdivision (a) of this section,
if direct deposit or electronic payments reasonably identifiable as
statutorily exempt payments as defined in paragraph two of subdivision
(l) of section fifty-two hundred five of this article were made to the
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judgment debtor's account during the forty-five day period preceding the
date that the execution notice was served on the garnishee banking
institution, then a garnishee banking institution shall not execute,
levy, attach, garnish or otherwise restrain or encumber two thousand
five hundred dollars in the judgment debtor's account. Notwithstanding
the provisions of subdivision (a) of this section, an execution shall
not apply to an amount equal to or less than the greater of two hundred
forty times the federal minimum hourly wage prescribed in the Fair Labor
Standards Act of 1938 or two hundred forty times the state minimum hour-
ly wage prescribed in section six hundred fifty-two of the labor law as
in effect at the time the earnings are payable (as published on the
websites of the United States department of labor and the state depart-
ment of labor) except such part thereof as a court determines to be
unnecessary for the reasonable requirements of the judgment debtor and
his or her dependents. This amount shall be equal to seventeen hundred
sixteen dollars on the effective date of this subdivision, and shall
rise to seventeen hundred forty dollars on July twenty-fourth, two thou-
sand nine, and shall rise thereafter in tandem with the minimum wage.
Nothing in this subsection shall be construed to limit a banking insti-
tution's right or obligation to restrain, remove or execute upon such
funds from the judgment debtor's account if required by 42 U.S.C. S 659
or 38 U.S.C. S 5301 OR TO ENFORCE A CHILD SUPPORT, SPOUSAL SUPPORT,
ALIMONY OR MAINTENANCE OBLIGATION or by a court order. Nothing in this
subdivision shall alter the exempt status of funds that are protected
from execution, levy, attachment, garnishment, or other legal process,
under section fifty-two hundred five of this article or under any other
provision of state or federal law, or affect the right of a judgment
debtor to claim such exemption.
S 10. Section 5232 of the civil practice law and rules is amended by
adding a new subdivision (h) to read as follows:
(H) THE PROVISIONS OF SUBDIVISIONS (E), (F) AND (G) OF THIS SECTION DO
NOT APPLY WHEN THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES OR MUNICI-
PAL CORPORATIONS IS THE JUDGMENT CREDITOR, OR IF THE DEBT ENFORCED IS
FOR CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY PROVIDED THAT
IN THOSE INSTANCES THE EXECUTION CONTAINS A LEGEND AT THE TOP THEREOF,
ABOVE THE CAPTION, IN SIXTEEN POINT BOLD TYPE WITH THE FOLLOWING
LANGUAGE: "THE JUDGMENT CREDITOR IS THE STATE OF NEW YORK, OR ANY OF ITS
AGENCIES OR MUNICIPAL CORPORATIONS, AND/OR THE DEBT ENFORCED IS FOR
CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE OR ALIMONY."
S 11. This act shall take effect immediately.
