California Bank Levy & Attachments Requires Central Location to Serve

Existing law establishes procedures for service of various legal processes on financial institutions, and procedures for attachment and execution of levies served on financial institutions. Existing law requires service in connection with a levy to be made upon the branch or at the office that has actual possession of the property levied upon, or where the deposit account levied upon is carried, as specified.

This bill would instead require a financial institution that has more than 9 branch offices in California to designate one or more central locations for service of legal process within the state, and would authorize a financial institution with fewer than 9 branch offices in California to do the same. The bill would establish procedures for service of process and execution of levies at a financial institution™s central locations and other branches. The bill would require financial institutions designating central locations to file a notice of the designation with the Department of Financial Institutions. The bill would require the department to update its online records to reflect the designation, and would require the department to provide a copy of the current notice to any person upon request, as specified. The bill would establish procedures for a judgment creditor to engage in a levy action against a specific deposit account or safe deposit box at a financial institution, including by filing a written request with the financial institution for enforcement against the account or safe deposit box. The bill would require the request to contain specified information.

The bill would require a levying officer to give at least 3 days€™ notice to the judgment creditor regarding opening and seizing the contents of a safe deposit box pursuant to these provisions, as specified. click bill AB2364 (Wagner) regarding bill chaptered into law.

The California Department of Financial Institutions is currently in the process of collecting and compiling the central locations that were provided by the banks and credit unions doing business in California. The new law provides that California Department of Financial Institutions (DFI) has ten (10) business days to post the information after it is received.  The California Department of Financial Institutions hopes to have the list posted to the it's website on or about January 15, 2013.

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