Section 525.235

Title XXXVI STATUTORY ACTIONS AND TORTS

Chapter 525

Effective - 28 Aug 2026, see footnote   

  525.235.  Accounts held by financial institutions, orders of garnishment, procedure — inapplicability — liability limitations — effective date. — ^*1.  For purposes of this section, the term "financial institution" means a federally insured bank, savings bank, savings and loan association, or credit union.

  ^*2.  All orders of garnishment issued in this state for the purpose of attaching to account funds on deposit held by a financial institution shall be issued only under this section and shall attach only to such funds held by the financial institution on the date of service on the financial institution, provided the effective date of service shall be a banking day and provided service is made prior to the financial institution's business cutoff time, otherwise the service on the financial institution shall be effective on the next banking day.  If an account receives electronic deposits of exempt protected funds, including, but not limited to, funds described under subdivision (10) of subsection 1 of section 513.430, the attachment date for such account shall be the date and banking day that the financial institution applies for the federally required look-back analysis to determine the protected amount.  The return date for orders of garnishment under this section shall not be less than thirty days from the effective date of service.

  ^*3.  All orders of garnishment issued in this state for the purpose of attaching to account funds held by a financial institution shall include the judgment debtor's address and the last four digits of the debtor's tax identification number, if known, and shall specify the amount of funds to be withheld by the garnishee.

  ^*4.  If an order of garnishment attaches to account funds held by a financial institution and the garnishee holds funds of the judgment debtor in two or more accounts, the garnishee may withhold payment of the amount attached from any accounts belonging to a judgment debtor and such accounts may have a different attachment date if necessary for the federally required look-back analysis.

  ^*5.  If an order of garnishment attaches to account funds held by a financial institution and the garnishee holds funds of the judgment debtor in an account which the judgment debtor owns in joint tenancy with one or more individuals who are not subject to the garnishment, the garnishee shall withhold the entire amount sought by the garnishment.  The garnishee shall provide a copy of the order of garnishment to each account holder within two business days to the address provided to the garnishee by each account holder by mail or electronically if authorized by the account holder.  Each account holder may file an objection or request of exemption of all or a portion of the account with the court that issued the order of garnishment within thirty days of the date the garnishment attaches and serve their objection or request for exemption on the garnishor and the garnishee.  If the objection or request of exemption is not resolved within thirty days of the timely filing of the objection or request of exemption, the garnishee may pay the garnished funds to the circuit court to be held for pending resolution of the objection or request.

  ^*6.  No party shall seek an order of garnishment attaching to account funds held by a financial institution except on good faith belief of the party seeking garnishment that the party to be served with the garnishment order has, or will have, account assets of the judgment debtor.  Except as provided in this subsection, not more than one garnishment shall be issued by a party seeking an order of garnishment under this section for the same garnishee applicable to the same claim or claims and against the same judgment debtor in any thirty-day period.  A judge may order an exception to this subsection in any case in which the party seeking the garnishment shall in person or by attorney:

  (1)  Certify that the garnishment is not for the purpose of harassment of the debtor; and

  (2)  State facts demonstrating to the satisfaction of the judge that there is reason to believe that^** the garnishee has property of the debtor that is not exempt from execution.

  ^*7.  No financial institution shall have a duty to investigate or assert any defenses of a judgment debtor.

  ^*8.  A financial institution served an order of garnishment and interrogatories under this section shall answer within twenty days.  Funds shall be released to the judgment debtor sixty days after an answer is submitted, or sooner if required under an order to pay, or paid into the court if objections are filed by the judgment debtor and the financial institution is served with a copy of the objections.

  ^*9.  This section does not apply to wage garnishments or to garnishments of property other than account funds held by a financial institution, and a garnishment issued under this section does not require a garnishee to search for, hold, or return wages or other property.  A garnishment under this section does not require a garnishee to report or hold or respond to interrogatories not related to account funds.

  ^*10.  This section does not limit the authority of a garnishor to obtain and issue an order of garnishment and interrogatories for wages or for property, other than account funds, held by a financial institution pursuant to law and the rules of the Missouri supreme court.

  ^*11.  (1)  A garnishee acting in good faith compliance with a facially valid order of garnishment under this section shall not be liable to any debtor, creditor, or other person for withholding, restraining, or releasing funds in reasonable reliance upon the terms of the writ or order.

  (2)  A garnishee shall not be required to:

  (a)  Adjudicate competing claims of ownership to property or funds;

  (b)  Determine the legal sufficiency or validity of the underlying judgment; or

  (c)  Investigate facts outside the information contained in the writ or the garnishee's business records.

  (3)  A garnishee shall be liable for damages arising from a garnishment only if:

  (a)  The garnishee fails to follow the clear and express terms of the writ or order;

  (b)  Such failure constitutes gross negligence or willful misconduct; and

  (c)  Actual damages are proven.

  (4)  A garnishee shall not be liable if the garnishee corrects an error within five business days after receiving written notice identifying the alleged error and promptly releases any improperly restrained funds.

  (5)  Temporary restraint of funds pending review of a claimed exemption shall not create liability if the garnishee, garnishor, and judgment debtor or other persons act within time frames required by law.

  12.  The provisions of subsections 1 to 11 of this section shall be effective January 1, 2028.

  13.  The provisions of this section shall be implemented and administered in accordance with rules of the Missouri supreme court.

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(L. 2026 H.B. 1870 merged with S.B. 835 & 1111)

*Subsections 1 to 11 effective 1-01-28, see subsection 12.

**Word "which" appears in original rolls of S.B. 835 & 1111, 2026.