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Federal and State law requires all financial institutions in Minnesota to participate in the financial institution data match program.
Minnesota Financial Institution Data Match


Authority

  • Minnesota Statutes, section 13B.06
  • Minnesota Statutes, sections 552.04 and 552.06

Levy of Assets in Financial Institutions For Collection of Support

CSED is authorized to issue a Notice of Levy for accounts maintained by an obligor in financial institutions to collect past-due support in cases where a child support arrearage equals or exceeds five times the monthly support obligation, the obligor has failed to make full payments required by a previously executed payment agreement, and where the arrearages have already been submitted for offset against federal or state tax refunds.

Property Subject to the Levy

Any accounts maintained by an obligor in a financial institution are subject to the levy.

Levying on Joint Accounts

Joint accounts are subject to levy.

Required Action by the Financial Institution

Upon receipt of the Notice of Levy, the financial institution must:

  1. Immediately freeze funds in all accounts in which the obligor has an interest, up to the amount of the past-due support indicated in the Notice of Lien/Levy Action (Appendix C, page 36); and

  2. Hold the encumbered funds for 45 calendar days from the date of receipt of the levy. The institution must suspend any and all activity with respect to, and payments from, any and all accounts of the obligor up to the amount levied. The suspension (holding period) must continue for 45 days. Additional deposits may be made into the account(s) during the 45 day holding period. These funds are excluded from the levy action and may be withdrawn even if the account balance at date of the receipt of the levy was less than the amount requested in the levy.

  3. Surrender the encumbered funds to CSED after 45 days unless otherwise notified by CSED.

CSED will pay the financial institution $15 for each levied account the month following issuance of the Notice of Lien/Levy Action. CSED will send one check to each financial institution regardless of how many levy requests were made to that financial institution in the previous month.

Notice to the Obligor

CSED will notify the obligor that a levy has occurred within three business days after the Notice of Levy Action is sent to the financial institution. This notice will include information regarding how to claim exemptions, contest the levy, and prevent future levies. 

The obligor must file an exemption claim within 20 days or file a contest motion in court within 30 days. If contested, a hearing must be held within 10 days of obligor's request. 

CSED will immediately notify the financial institution if a contest motion is filed. The financial institution will continue to hold the funds until notified of the results of the hearing (even if after 45 days).

Upon issuance of an order, CSED will immediately notify the financial institution of results. The financial institution will release accounts designated as exempt and/or release funds to CSED after 45 days expires.




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