Effective January 1, 2013, AB 2364 requires banks and other financial institutions with more than nine branch offices in California to designate at least one central location to receive service of legal process within the state by filing a designation with the California Department of Financial Institutions (DFI).
One obvious advantage to judgment-creditors is that they will no longer have to ascertain and serve the correct branch of a bank holding the judgment-debtor’s account. Identifying the right branch office for service of levies, attachments and garnishments under existing law has been an onerous, costly task for judgment-creditors, often reserved only for larger judgments that are deemed most likely to be collectable.
When a designation is received, DFI must update its online records to reflect the designation and must provide a copy of the current notice to any party who requests it as specified in the bill. DFI must also establish a website where judgment-creditors can obtain a financial institution’s designated central location information.
In addition to requiring larger banks to designate a central location, the bill establishes procedures for service of process and execution of levies at a bank or other financial institution’s central locations and other branches.
For instance, a judgment creditor may engage in a levy action against a specific deposit account or safe deposit box at a financial institution, by filing a written request with the financial institution. (The bill details the information required.) A levying officer must thereafter give at least 3 days’ notice to the judgment creditor regarding opening and seizing the contents of the safe deposit box.
Banks and other financial institutions with fewer than nine branches may choose whether to participate.
If you are a financial institution or a judgment-creditor with questions about how AB 2364 will affect you, contact the experienced business litigation and transactional law attorneys at Glass & Goldberg. Glass & Goldberg provides high quality and cost-effective legal services and advice for clients in all aspects of business litigation and transactional law. Call us at (818) 888-2220, email us at firstname.lastname@example.org, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.