SUMMONS OF GARNISHEE Present law requires a summons to a garnishee to notify the garnishee that, although the garnishee has a longer time in which to answer the court concerning the garnishment, the garnishee must do the following on the same day the garnishment is received or on the next working day:  Determine if the garnishee possesses or controls money or property of the judgment debtor.  If so, within that same time period, furnish a copy of the garnishment summons and notice to judgment debtor by mailing them first class, postage prepaid, to the judgment debtor, or by actual delivery to the judgment debtor. This bill revises such notice to, instead, provide that the garnishee has within five business days after receiving the garnishment to perform such actions. TRANSFER WARRANTIES – NEGOTIABLE INSTRUMENTS / BANK DEPOSITS AND COLLECTIONS Present law describes several ways that warranties are made to persons. A person to whom such warranties are made and who took the instrument in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach. This bill adds that if the person to whom the warranties are made sends written notice by certified or registered mail or commercial courier to the warrantor of its claim for breach of warranty and the warrantor fails to pay the claim within 30 days after receiving the notice, then the expenses of the person to whom the warranties are made must include reasonable attorney fees. PRESENTMENT WARRANTIES – NEGOTIABLE INSTRUMENTS / BANK DEPOSITS AND COLLECTIONS Present law authorizes a drawee making payment to recover from any warrantor damages for breach of warranty equal to the amount paid by the drawee less the amount the drawee received or is entitled to receive from the drawer because of the payment. In addition, the drawee is entitled to compensation for expenses and loss of interest resulting from the breach. However, the right of the drawee to recover such damages is not affected by any failure of the drawee to exercise ordinary care in making payment. This bill adds that if the drawee making payment sends written notice by certified or registered mail or commercial courier to the warrantor of its claim for breach of warranty and the warrantor fails to pay the claim within 30 days after receiving the notice, then the expenses of the drawee to whom the warranties are made must include reasonable attorney fees. ON MARCH 10, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 765, AS AMENDED. AMENDMENT #1 makes the following revisions:  Requires a garnishee to, within two business days instead of five, after the day the garnishee receives a garnishment, determine if the garnishee possesses or controls money or property of the judgment debtor and furnish a copy of the garnishment summons and notice to judgment debtor, but in no event must the garnishee furnish the copy and notice prior to placing a hold on all available funds in the garnishee's possession or control.  Revises the summons to garnishee to reflect the provisions above.  Revises the requirement that a sheriff or other officer who summons a garnishee provide the garnishee with three copies of the garnishment to, instead, only require "copies" without specifying a specific number.  Revises the present law provisions relative to the copy of execution furnished to a judgment debtor by a sheriff or other officer to, instead, require a garnishee to be the only party to furnish a copy of the garnishment summons and notice to judgment debtor to the judgment debtor.  Removes the provisions concerning the inclusion of reasonable attorney fees in the expenses of the person to whom warranties are made when there has been a breach and failure to pay for 30 days as applied in the bill to presentment warranties and transfer warranties for bank deposits and collections. Instead, this amendment provides that (i) in the case of transfer warranties for bank deposits and collections, if the person to whom the warranties are made sends written notice by certified or registered mail or commercial courier to the warrantor of the person's claim for breach of warranty and the warrantor fails to pay the claim within 30 days after receiving the notice, then the expenses of the person to whom the warranties are made must include reasonable attorney fees, and (ii) in the case of presentment warranties for bank deposits and collections, if the drawee making payment sends written notice by certified or registered mail or commercial courier to the warrantor of the drawee's claim for breach of warranty and the warrantor fails to pay the claim within 30 days after receiving the notice, then the expenses of the drawee to whom the warranties are made must include reasonable attorney fees.

Statutes affected:
Introduced: 26-2-203(b), 26-2-203, 47-3-416(b), 47-3-416, 47-3-417(b), 47-3-417, 47-4-207(c), 47-4-207, 47-4-208(b), 47-4-208