What is the Garnishment Bank Act?

The Garnishment Bank Act is a North Carolina law that pertains to the garnishment of bank accounts. The law states that a bank can only be required to pay up to the amount of money that is contained in a person’s account at the time the court orders the garnishment. This means that if the court orders a garnishment in the amount of $500, but the account only contains $300, then the bank can only pay out that $300. This is meant to protect both the bank and the customer from any surprises or misunderstandings. Any funds in the account will be used to pay the garnishment, regardless of whether the money was deposited before or after the garnishment order was issued. Additionally, any funds deposited after the order is issued are still subject to the garnishment. North Carolina’s Garnishment Bank Act also states that the bank must determine the amount of the garnishment before any funds are released from the account. If the amount of the garnishment order goes over the amount of money present in the account, then the bank has no obligation to pay out the excess amount. In North Carolina, the Garnishment Bank Act applies to all banks, financial institutions, and credit unions in the state. This law is meant to provide legal protection for both banks and customers so that they do not have to worry about unexpected surprises or misunderstandings about the amount of money that is being garnished.

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What is the Garnishment Bank Act?

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