Section 2: Bank Executions

Definitions

A Financial Institution Execution (commonly referred to as a “bank execution”) is a court order that allows a judgment creditor, through a levying officer (state marshal or constable), to collect on a judgment directly from the judgment debtor’s bank account.  Generally, when a judgment debtor fails to pay off a judgment, a judgment creditor can apply to the clerk of court to issue a bank execution.  Under this type of execution, the state marshal serves the bank and then the bank pays the marshal any non-exempt funds in the judgment debtor’s account (if any) up to the judgment amount plus interest (if awarded) and fees.  The marshal then turns over the funds to the judgment creditor, less his or her fee to pay down the judgment amount.

The following procedures refer to bank executions involving natural persons. Executions involving non-natural persons and executions based on tax warrants have their own, similar procedures.  While this manual provides some basic information about bank executions, the procedures are set forth more completely in the Connecticut General Statutes.  Refer to the Statutes subsection at the end of this section for applicable statutory references. 

Service

A state marshal must serve a bank execution within seven days of receipt.  To do so, the state marshal must make a demand in person for the execution amount, including the judgment amount, post-judgment interest ordered (if indicated on the execution), and the state marshal statutory fee, from a bank which has its main office in the state marshal’s county, or if no such main office, then on a properly designated employee at a properly designated branch of the bank located within the state marshal’s county.  Note that, where the state marshal commenced the underlying civil action in his or her county, he or she may serve a post-judgment execution, including a bank execution, in another Connecticut county.  See Out-of-County State Marshal Work subsection of the Civil Process section of this manual. 

The state marshal should obtain information about the judgment debtor from his or her client or attorney including the names of banks where the debtor is suspected to have an account and/or the account number, if available.  Note that the marshal is not obligated to research potential banks for the creditor and is not required to accept a bank execution where the judgment creditor has not provided information about the debtor.  In addition, while the marshal may accept an execution without information about the debtor’s bank accounts and may attempt collection within the statutory time frame, the bank may question an execution if there is not sufficient identifying information about the account holder.

By statute, a state marshal shall not serve more than one bank per judgment debtor at a time.  After making his or her demand, the state marshal must serve a properly endorsed, true and attested copy of the execution, and an affidavit and exemption claim form (JD-CV-24a), on the bank officer upon whom the demand was made.  In support enforcement matters, the marshal must also provide an affidavit signed by the marshal attesting that there is an overdue support amount of five hundred dollars or more which accrued after the entry of an initial family support judgment.

The state marshal must provide the bank with certain information about the execution.  This is typically done by providing a cover sheet.  The marshal should provide the name of the judgment debtor, the execution balance, post-judgment interest (if ordered and noted on the execution), the state marshal’s fee, and the $8.00 statutory fee due to the bank if monies are actually removed from the judgment debtor’s account.  The marshal should inform the bank that it must distribute any monies from the judgment debtor’s account directly to the marshal and not to the judgment creditor, or to his or her attorney.  After service, the marshal must provide a return which identifies each bank to which the marshal has made a successive demand.  See sample form included at the end of this section.  It is helpful to include boxes on the return in which the marshal can list the bank served and/or in which the bank may provide information including its stamp when responding to the marshal’s demand.

Fee:  The state marshal’s statutory fee is currently 15% of the total amount of the execution, including the judgment amount and any post-judgment interest ordered by the court.  For example, if the judgment amount is $1,000 and there is no post-judgment interest ordered, the state marshal fee will be $150.  Accordingly, the total execution amount to be collected will be $1,150.  If the bank distributes $1,150 to the marshal from the debtor’s account under the execution, the marshal should forward $1,000 to the judgment creditor and retain $150 for his or her fee.  Note however, that if the amount collected is less than the total execution amount, the marshal may only collect his or her 15% fee on what is actually collected under the execution.  In addition, the marshal should calculate his or her fee without including the fee in the base sum of the execution, so that he or she is only taking 15% of the judgment/interest amount and not also taking a fee on his or her 15% fee.  

Using the previous example on a $1,000 judgment amount, if the bank distributes $800 to the marshal, the marshal should forward $695.65 to the judgment creditor and retain $104.35 (15% of $695.65) for his or her fee.  The judgment amount would then be reduced by $695.65 leaving $304.35 on the judgment.  As discussed below, the judgment creditor would then apply to the court for a new execution on the remaining judgment.     

The marshal may only collect a fee if funds are collected.  Also note that a marshal may not collect an administrative fee or mileage in addition to the 15% statutory fee.  If the marshal collects funds under an execution, but they are so nominal that it will not provide for a $30 fee, the marshal may seek a one-time $30 minimum fee under statute.

45-Day Cycles:  After service of an execution on one bank, the serving officer may not serve the same execution or a copy thereof upon another bank until receiving confirmation from the first bank that the judgment debtor had insufficient funds available for collection to satisfy the execution.  Once service is made within the seven-day period and the bank confirms to the state marshal that for an appropriate reason there are no funds or no available funds—such as there being no account or no or little money in an account—the state marshal may make additional, sequential demands on different banks, one bank at a time.  Note that such additional, sequential demands must be made within 45 days from the date the state marshal received the execution.  Also note that a marshal is not obligated under law to make successive demands and, after receiving confirmation from the initially served bank that no funds were available for collection, could prepare a return indicating that the execution was unsatisfied.  A marshal may not make a demand on an additional bank until he or she has received confirmation from the previously-served bank that there were no or insufficient non-exempt funds at that bank.  This prevents the marshal from potentially over-collecting on the judgment by receiving payment from more than one bank which cumulatively exceed the execution amount.  The marshal should send a prompt return reporting to the judgment creditor on each bank served, the bank’s response, whether and how much money was collected (if applicable), and whether the execution was unsatisfied, partially satisfied, or fully satisfied.  Any funds collected must be timely distributed with the return.

Fully-Satisfied Executions:  If the bank distributes funds that fully satisfy the demand amount (including the judgment amount, post-judgment interest, and the marshal fee), the marshal should prepare a return for the client designating that the execution was fully satisfied.  At this point, the marshal’s duties as to this judgment will have concluded. 

Unsatisfied Executions:  If the bank confirms that there are no applicable accounts or no or insufficient funds, the marshal should prepare a return indicating that the execution was unsatisfied.  As noted above, with client consent, the marshal may continue to serve the execution on subsequent banks within a 45-day period.  In addition, once the initial 45-day period has concluded, if the execution is still unsatisfied, the client may re-use the execution by authorizing the initial state marshal to start another 45-day period of serving new, successive banks.  The client may also provide the execution to another marshal to serve on new, successive banks within a new 45-day period. 

Note that under federal law, an execution involving a judgment debtor who is a natural person may not be re-served on any bank that has already been served with that execution.  A marshal may only serve a served bank again if the court issues a new execution.  See Code of Federal Regulations Title 31, Part 212: Garnishment of Accounts Containing Federal Benefit Payments.

Partially-Satisfied Executions:  If the initial 45-day cycle results in a payment from the bank which partially satisfies the execution amount, the execution ends.  Unlike with unsatisfied executions, no re-service of a partially-satisfied execution is permitted in subsequent 45-day cycles.  Instead, the state marshal must provide a return so that the client can obtain a new execution from the court for the remaining judgment amount.  The marshal must note the partial satisfaction on the original execution and on his or her return. 

Federal Exemptions:  Certain federal benefits (Social Security, Veteran’s benefits, certain Federal railroad benefits, and certain Federal retirement benefits) cannot be withdrawn from an account to satisfy a bank execution.  On the initial service, the bank is required, within two days, to complete a two-month lookback (account review) to determine if there are any federally exempt funds in an account.  Excess funds beyond the protected benefits are still subject to the execution and other claims of relevant exemptions.  See Code of Federal Regulations Title 31, Part 212: Garnishment of Accounts Containing Federal Benefit Payments.  This Regulation does not apply if the United States is having the execution served, or if a state’s child support enforcement agency is having the execution served.

 Manner

The judgment creditor or his or her lawyer must calculate the total amount due for court approval.  State marshals may not collect post-judgment interest unless the box on the original execution for court-ordered post-judgment interest is checked by the court.  Interest is set by statute.  For many types of civil matters the interest rate is 10% annually.  As noted above, the state marshal will add his or her fee, which is 15% of the sum of the execution and post-judgment interest (if applicable).  There is also an $8.00 bank processing fee if there is money to be removed from an account. 

Once the state marshal makes a demand on a bank and the execution has been served, the bank is required, by its “midnight deadline” (midnight of the next banking day), to remove and hold any non-exempt funds or funds not subject to particular security interests.  Under statute, the bank must send the judgment debtor and any secured parties a copy of the execution, the affidavit, and an exemption claim form by mail.  The bank must then hold the funds for 15 days from the date of this mailing.  As noted above, the bank is also required to complete an account review for protected federal deposits.  If the debtor, or secured party, does not file a claim in court, the bank will release the funds to the state marshal.  The state marshal then deducts his or her fee and distributes the execution money to the judgment creditor in accordance with General Statutes § 6-35.

If the debtor or secured party sends the bank an exemption request, the bank, within two days of receipt of the request, must notify the clerk, and the court will set a hearing date on the exemption. The bank will then hold the funds for 45 days from the date the bank received the exemption notice from the debtor or secured party, or court order, whichever is earlier. The bank may also, on its own claim that certain funds are statutorily exempt, give such notice to the judgment creditor. The judgment creditor may then ask the court for a hearing.  If the 45-day period runs without a court order regarding a claimed exemption, the bank must return the funds to the judgment debtor’s account.  If the court orders distribution to the state marshal, the bank will release the funds and the state marshal should distribute the funds to the judgment creditor in accordance with General Statutes § 6-35 as noted below.

Collection

When all statutory holding periods and all possible court proceedings have concluded, the bank is required to transfer the funds to the state marshal’s client fund account before the statutory midnight deadline.  The state marshal is empowered by statute to make demand for the money after any stay periods are over.  Usually the bank automatically forwards the funds after stays are lifted, but it is incumbent upon the state marshal to track his or her executions and make demands on the bank if it has not transferred funds.  If a bank distributes funds, the state marshal must ensure that the bank is provided the eight dollar statutory fee for the bank’s money distribution costs. The judgment creditor is responsible for this sum and can recover it as a taxable cost of the action.  The marshal should work with the judgment creditor or his or her attorney to effect payment of this fee to the bank and may agree with the creditor to deduct the amount from collected funds.

Pursuant to General Statutes § 6-35, State Marshal Commission regulations, and the Audit Policy adopted by the Commission, a state marshal must distribute collected funds to his or her client within 30 days of receipt, for sums up to $1,000, and immediately, for sums $1,000 or more.  General Statutes § 6-35 permits the marshal to enter an alternate agreement with his or her client as to the timing of the distribution of funds.  Any such agreement, if entered, should be in writing and should be kept by the marshal.

Returns

When the execution is satisfied in full or in part, the state marshal must prepare a return and send the return and the signed original execution papers back to the judgment creditor, or his or her attorney, along with any funds collected on the judgment.    With natural person bank executions, the marshal should prepare a return for unsatisfied executions for every 45-day cycle, and the marshal should make arrangements with his or her client to keep the original execution for successive 45-day cycles.  The marshal should note on the return all services on banks and the results thereof.  Be advised that General Statutes § 6-32 has a double damage liability clause against state marshals regarding the failure to provide service or a return.

Non-Natural Person Executions

There are no 45-day cycles where the judgment debtor is not a natural person.  Note that the marshal must still serve only one bank at a time under this type of execution.  The marshal may not serve a successive bank until the previously-served bank provides confirmation regarding whether or not funds are available.  The statute provides that, if there is no response from the bank within 25 days after service, the state marshal may serve another bank.  As with natural person executions, the marshal must provide a return reporting on the banks served, responses from the banks, and any funds collected.  The return must designate whether the execution was unsatisfied, partially-satisfied, or fully-satisfied.  Any funds collected must be timely distributed with the return although, as noted above, the marshal and creditor may agree to a distribution schedule.

As with natural person executions, with non-natural person executions a fully-satisfied execution ends the execution and the fact of the full satisfaction must be noted on the original execution.  Unlike with natural-person executions, where the judgment debtor is not a natural person, a marshal may continue to re-serve a partially-satisfied execution on successive banks, one bank at a time, unless a court rules otherwise.  Also, unlike with natural person executions, there is no federal restriction on re-service of the execution on the same bank under the Code of Federal Regulations Title 331 Part 2, since the federal benefits protected under those regulations only involve natural person accountholders.

Alias Tax Warrants/Bank Executions

A state marshal may, on behalf of a town tax collector, serve bank executions issued in connection with tax warrants.  As with other types of executions, the marshal may serve only one bank at a time for any given taxpayer.  A state marshal cannot serve another bank until the first bank sends confirmation to the marshal of no available funds, 25 days pass from a request for information, or there is service of a warrant.

When a state marshal intends to serve a bank with more than 15, and up to 250 individual tax warrants on a given day, the state marshal must, before making service, make a request for information on the bank concerning whether funds exist.  A state marshal may, but is not required to send such a request for information where there are less than 15 taxpayers. The request must be made by mail or facsimile to an office designated by the bank and must include: (1) the name and last-known address of each taxpayer who is the subject of the warrant, (2) the address to which the response can be mailed or delivered or a facsimile number to which the response may be transmitted, (3) in the case of a request transmitted via facsimile, the name, address, judicial district, badge number and telephone number of the marshal serving the request, and (4) the following statement:

To (insert name of financial institution): In accordance with Section 12-162 of the General Statutes of the State of Connecticut, you are hereby commanded to report to (insert name of town or serving officer), at the address or facsimile number specified in this request, whether the financial institution is indebted to the taxpayer or taxpayers listed in this request.

The bank must respond to the marshal’s request for information not later than 5 business days, for requests listing fewer than 100 taxpayers, and not later than 10 days, for requests listing between 100 and 250 taxpayers.  By statute, no request for information can include more than 250 taxpayers.  Once a state marshal serves a request for information on a bank, he or she may not serve an additional request for information on that bank until the bank has had an opportunity to respond within the applicable statutory timeframe.

Banks are responsible for making the list of the designated branches for service available to the tax collectors, and they may also file information with the State Marshal Commission.  If they fail to provide a designated list the statute provides broader options for service.

Exemptions:  Certain property of a judgment debtor is exempt from execution. The most common exemptions for debtors who are natural persons are set forth in General Statutes § 52-352b.  It is important for state marshals to be aware of the exempt property rules.  Under the law, state marshals may face liability if they collect exempt property under an execution.  If a state marshal has doubts about whether certain property is exempt, the state marshal can certify the question of the exemption to the court for a hearing and a determination on the matter.

Accounting Procedures and Recordkeeping

A state marshal is required to abide by specific professional standards when collecting, safe-guarding, and distributing client funds.  Money collected under bank executions must be kept in a Trustee/Client Fund Account and handled in accordance with State Marshal Commission Regulations § 6-38b-6 and the Commission Audit Policy.  See the Audit Policy in the Recordkeeping section of this manual.  Under General Statutes § 6-38e, the State Marshal Commission is authorized to periodically review and audit the records and accounts of state marshals.  Marshals must also submit account reconciliations to the Commission pursuant to the Audit Policy.

Major Statutes/Regulations

There are many statutes/regulations that touch on bank executions. The state marshal should always check with his or her client, attorney (if applicable), and the statutes if he or she has any questions about a particular execution.

These statutes are available in the Statutes section of the Connecticut General Assembly website.

The following reference list is not exhaustive and sets forth only the most important and commonly used statutes covering bank executions:

52-367b           Primary statute for executions against natural persons. 

52-367a           Primary statute for executions against non-natural persons.

12-162             Alias tax warrants: requests for information/bank executions.

36a-42             Authority for banks to disclose information to state marshals.

42a-4-104 (a)   “Midnight deadline” definition.

52-261 (a) (6)  State marshal fees under an execution (15% on the amount of the
                                                 execution; $30 minimum fee).

6-35                 Timing for distribution of collected funds (not later than 30 days
                                                 collection of $1,000, whichever first occurs).

6-32                 State marshal duty to serve and make prompt and true return; liability.

52-352a           Exempt property lists.  Note that wage executions are one of the listed

52-352b           exemptions for bank executions. See General Statutes § 52-367b (a).

52-321a          

52-351b           Discovery by judgment creditor (interrogatories).

52-397             Examination of judgment debtor.  
See General Statutes §§ 52-46 and 52-46a for service.

52-350e           Service of process in post-judgment matters.

52-362d           Support enforcement collection matters.

37-3a &           Post-judgment interest rate for certain civil matters.
                        37-3b  

6-38e               Audit authority of the State Marshal Commission.

6-38 (d)           State marshal must perform work in order to collect a fee.

52-55               Completion of service by another state marshal.

Federal Regulations:  Code of Federal Regulations Title 31, Part 212 - Garnishment of Accounts Containing Federal Benefit Payments/And Related Federal Rules and regulations.  

Forms

The following is a list of the common forms utilized for bank executions.   Note that these forms are updated frequently by the Judicial Branch.  Accordingly, it is important to verify that the most recent form has been utilized.  These forms are available at the Forms section of the Judicial Branch website located at: http://www.jud.ct.gov/webforms Opens in a new window Opens in a new window

JD-CV-24 Financial Institution Execution Proceedings - Judgment Debtor Who Is a Natural Person, Application and Execution

JD-CV-024A Exemption Claim Form, Financial Institution Execution 

JD-CV-024N Financial Institution Execution Proceedings - Judgment Debtor Who Is Not a Natural Person, Application and Execution