Last Month's Q&A: Answered!

The following question appeared in the Q&A section of Banking Spectrum's March 2013 Report Bulletin. Compare your answer to the correct answer provided below.

Q: We were served with a restraining notice against a depositor's account for $17,000 to satisfy a judgment.  The depositor did not claim an exempt funds exemption.  We got a letter from the attorney for the plaintiff and an e-mail from the attorney for the defendant, our depositor, telling us to remove the restraint on the account as the matter had been settled.  Does the bank need a court order before it releases the hold?

A:  No.  Letters for both attorneys, and even a letter from plaintiff’s counsel would have been sufficient to release the hold.  Some banks may require an acknowledgment from the depositor but no court order or action is needed.  A court does not issue a restraining notice as this is part of the process for post judgment collection of assets, initiated usually by an attorney.  Keep the correspondence on this matter for the file on the account.