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SECTION 5222-A
Service of notices and forms and procedure for claim of exemption
Civil Practice Law & Rules (CVP) CHAPTER 8, ARTICLE 52
§ 5222-a. Service of notices and forms and procedure for claim of
exemption. (a) Applicability. Any person authorized under subdivision
(a) of section fifty-two hundred twenty-two of this article issuing a
restraining 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 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
subdivision (h) and/or (i) of section fifty-two hundred twenty-two or
subdivision (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. Service
with restraining notice upon banking institution. The person 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 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 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.

3. Service upon judgment debtor. Within two business days after
receipt of the restraining notice or execution, exemption notice and
exemption claim forms, the banking institution shall serve upon the
judgment debtor the copy of the restraining notice, the exemption notice
and two exemption claim forms. The banking institution shall serve the
notice and forms by first class mail to the last known address of the
judgment debtor. The inadvertent failure by a depository institution to
provide the notice required by this subdivision shall not give rise to
liability on the part of the depository institution.

4. Content of exemption notice and exemption claim form. a. The
exemption 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 has
been issued against your bank account. You are receiving this notice
because a creditor has obtained a money judgment against you, and one or
more of your bank accounts has been restrained to pay the judgment. A
money 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 also
be restrained if you do not respond to this notice.

You may be able to "vacate" (remove) the judgment. If the judgment is
vacated, your bank account will be released. Consult an attorney
(including free legal services) or visit the court clerk for more
information about how to do this.

Under state and federal law, certain types of funds cannot be taken
from 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; and/or

15. Black lung benefits.

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 the
address listed on the form.

You must send the forms within 20 DAYS of the postmarked date on the
envelope holding this notice. You may be able to get your account
released faster if you send to the creditor or its attorney written
proof that your money is exempt. Proof can include an award letter from
the government, an annual statement from your pension, pay stubs, copies
of 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 account
is exempt, the attorney must release that money within seven days. You
do 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
-------------------------------------x
PLAINTIFF/PETITIONER/CLAIMANT INDEX NO.
V.
DEFENDANT/RESPONDENT EXEMPTION CLAIM FORM
-------------------------------------x
NAME AND ADDRESS OF JUDGMENT NAME AND ADDRESS OF FINANCIAL
CREDITOR OR ATTORNEY INSTITUTION
(To be completed by judgment (To be completed by judgment
creditor or attorney) creditor or attorney)
ADDRESS ADDRESS
A_____________________ B______________________

____________________ _____________________
Directions: To claim that some or all of the funds in your account are
exempt, complete both copies of this form, and make one copy for
yourself. Mail or deliver one form to ADDRESS A and one form to ADDRESS
B within twenty days of the date on the envelope holding this notice.
**If you have any documents, such as an award letter, an annual
statement from your pension, paystubs, copies of checks or bank records
showing the last two months of account activity, include copies of the
documents with this form. Your account may be released more quickly.
_________________________________________________________________________
I state that my account contains the following type(s) of funds (check
all 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 black lung benefits
____Other (describe exemption):_________________________________
I request that any correspondence to me regarding my claim be sent to
the following address:
_____________________________________________________________________

(FILL IN YOUR COMPLETE ADDRESS)
I certify under penalty of perjury that the statement above is true to
the best of my knowledge and belief.
_________________________________________________________________________
DATE SIGNATURE OF JUDGMENT DEBTOR

(c) Claim of exemption. 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 creditor. In the event that there is no
attorney for the judgment creditor, then the exemption claim form must
be served directly on the judgment creditor. The judgment debtor may
serve the exemption claim forms in person or by first-class mail.

2. Where the banking institution receives an exemption claim form, it
shall notify the judgment creditor forthwith of the date on which the
funds will be released pursuant to paragraph three of this subdivision.

3. The banking institution shall release all funds in the judgment
debtor's account eight days after the date postmarked on the envelope
containing the executed exemption claim form mailed to the banking
institution or the date of personal delivery of the executed exemption
claim form to the banking institution, and the restraint shall be deemed
void, except where the judgment creditor interposes an objection to the
exemption within that time.

4. Where the executed exemption claim form sent to the judgment
creditor is accompanied by information demonstrating that all funds in
the account are exempt, the judgment creditor shall, within seven days
of the postmark on the envelope containing the exemption claim form and
accompanying information, 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 shall apply the lowest intermediate
balance principle of accounting and, within seven days of the postmark
on the envelope containing the exemption claim form and accompanying
information, shall instruct the banking institution to release the
exempt money in the account. The provisions of paragraph two of
subdivision (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 fails to act in accordance
with this subdivision, the judgment creditor 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.

5. If no claim of exemption is received by the banking institution
within twenty-five days after the notice and forms are mailed to the
judgment debtor, the funds remain subject to the restraining notice or
execution. Failure of the judgment debtor to deliver the executed
exemption claim form does not constitute a waiver of any right to an
exemption.

(d) Objection to exemption claim and request for hearing. A judgment
creditor may object to the claim of exemption by moving for an order
pursuant to section fifty-two hundred forty of this article. The
judgment creditor must serve the banking institution and the judgment
debtor with its motion papers within eight days after the date
postmarked on the envelope containing the executed exemption claim form
or the date of personal delivery of the executed exemption claim form to
the banking institution, and the provisions of paragraph one of
subdivision (b) of rule twenty-one hundred three of this chapter shall
not enlarge the judgment creditor's time to move pursuant to this
section. The judgment debtor shall be served at the address provided on
the exemption claim form. The affirmation or affidavit in support of the
motion shall demonstrate a reasonable belief that such judgment debtor's
account contains funds that are not exempt from execution and the amount
of such nonexempt funds. The executed exemption claim form shall be
attached to the affirmation or affidavit. The affirmation or affidavit
shall not be conclusory, but is required to show the factual basis upon
which the reasonable belief is based. The hearing to decide the motion
shall be noticed for seven days after service of the moving papers. The
executed exemption claim form shall be prima facie evidence at such
hearing that the funds in the account are exempt funds. The burden of
proof shall be upon the judgment creditor to establish the amount of
funds that are not exempt. The court shall, within five days of the
hearing, issue an order stating whether or not funds in the account are
exempt and ordering the appropriate relief. The judgment creditor or its
attorney must serve the order on the banking institution and the
judgment debtor no later than two business days after the court issues
the order.

(e) Duties of banking institution if objection is made to exemption
claim. Upon receipt of a written objection pursuant to subdivision (d)
of this section from the judgment creditor or its attorney within the
specified eight-day period, the banking institution shall retain the
funds claimed to be exempt for twenty-one days unless otherwise ordered
by the court. If the period of twenty-one days expires and the banking
institution has not been otherwise ordered by the court, the banking
institution shall release the funds to the judgment debtor.

(f) Release of funds. At any time during the procedure specified in
this section, the judgment debtor or the judgment creditor may, by a
writing dated after the service of the restraining notice, direct the
banking institution to release the funds in question to the other party.
Upon receipt of a release, the banking institution shall release the
funds as directed.

(g) Proceedings; bad faith claims. Where the judgment creditor objects
to a claim of exemption pursuant to subdivision (d) of this section and
the court finds that the judgment creditor disputed the claim of
exemption in bad faith, as provided in paragraph four of subdivision (c)
of this section, the judgment debtor shall be awarded costs, reasonable
attorney fees, actual damages and an amount not to exceed one thousand
dollars.

(h) Rights of judgment debtor. Nothing in this section shall in any
way restrict the rights and remedies otherwise available to a judgment
debtor, including but not limited to, rights to property exemptions
under federal and state law.

(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
alimony.".