CHAPTER 252I SUPPORT PAYMENTS == LEVIES AGAINST ACCOUNTS
252I.1 DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Account" means "account" as defined in section 524.103,
"share account or shares" as defined in section 534.102, the savings
or deposits of a member received or being held by a credit union, or
certificates of deposit. "Account" also includes deposits held by an
agent, a broker-dealer, or an issuer as defined in section 502.102
and money-market mutual fund accounts and "account" as defined in 42
U.S.C. § 666(a)(17). However, "account" does not include amounts
held by a financial institution as collateral for loans extended by
the financial institution.
2. "Bank" means "bank", "insured bank", and "state bank" as
defined in section 524.103.
3. "Court order" means "support order" as defined in section
252J.1.
4. "Credit union" means "credit union" as defined in section
533.51.
5. "Financial institution" means "financial institution" as
defined in 42 U.S.C. § 669A(d)(1). "Financial institution" also
includes an institution which holds deposits for an agent,
broker-dealer, or an issuer as defined in section 502.102.
6. "Obligor" means a person who has been ordered by a court or
administrative authority to pay support.
7. "Savings and loan association" means "association" as defined
in section 534.102.
8. "Support" or "support payments" means "support" or "support
payments" as defined in section 252D.16.
9. "Unit" or "child support recovery unit" means the child
support recovery unit created in section 252B.2.
10. "Working days" means only Monday, Tuesday, Wednesday,
Thursday, and Friday, but excluding the holidays specified in section
1C.2, subsections 1 through 9.
94 Acts, ch 1101, §1; 96 Acts, ch 1034, § 15; 97 Acts, ch 175,
§110; 98 Acts, ch 1170, §33
Referred to in § 252B.9
252I.2 PURPOSE AND USE.
1. Notwithstanding other statutory provisions which provide for
the execution, attachment, or levy against accounts, the unit may
utilize the process established in this chapter to collect delinquent
support payments provided that any exemptions or exceptions which
specifically apply to enforcement of support obligations pursuant to
other statutory provisions also apply to this chapter.
2. An obligor is subject to the provisions of this chapter if the
obligor's support obligation is being enforced by the child support
recovery unit, and if the support payments ordered under chapter 232,
234, 252A, 252C, 252D, 252E, 252F, 598, 600B, or any other applicable
chapter, or under a comparable statute of a foreign jurisdiction, as
certified to the child support recovery unit, are not paid to the
clerk of the district court or the collection services center
pursuant to section 598.22 and become delinquent in an amount equal
to the support payment for one month.
3. Any amount forwarded by a financial institution under this
chapter shall not exceed the amounts specified in 15 U.S.C. § 1673(b)
and shall not exceed the delinquent or accrued amount of support owed
by the obligor.
94 Acts, ch 1101, §2
Referred to in § 252I.5, 252I.6
252I.3 INITIAL NOTICE TO OBLIGOR.
The unit or district court may include language in any new or
modified support order issued on or after July 1, 1994, notifying the
obligor that the obligor is subject to the provisions of this
chapter. However, this chapter is sufficient notice for
implementation of administrative levy provisions without further
notice of the provisions of this chapter.
94 Acts, ch 1101, §3; 2005 Acts, ch 112, §12
252I.4 VERIFICATION OF ACCOUNTS AND IMMUNITY FROM LIABILITY.
1. The unit may contact a financial institution to obtain
verification of the account number, the names and social security
numbers listed for the account, and the account balance of any
account held by an obligor. Contact with a financial institution may
be by telephone or by written communication. The financial
institution may require positive voice recognition and may require
the telephone number of the authorized person from the unit before
releasing an obligor's account information by telephone.
2. The unit and financial institutions doing business in Iowa
shall enter into agreements to develop and operate a data match
system, using automated data exchanges to the maximum extent
feasible. The data match system shall allow a means by which each
financial institution shall provide to the unit for each calendar
quarter the name, record address, social security number or other
taxpayer identification number, and other identifying information for
each obligor who maintains an account at the institution and who owes
past-due support, as identified by the unit by name and social
security number or other taxpayer identification number. The unit
shall work with representatives of financial institutions to develop
a system to assist nonautomated financial institutions in complying
with the provisions of this section.
3. The unit may pay a reasonable fee to a financial institution
for conducting the data match required in subsection 2, not to exceed
the lower of either one hundred fifty dollars for each quarterly data
match or the actual costs incurred by the financial institution for
each quarterly data match. However, the unit may also adopt rules
pursuant to chapter 17A to specify a fee amount for each quarterly
data match based upon the estimated state share of funds collected
under this chapter, which, when adopted, shall be applied in lieu of
the one hundred fifty dollar fee under this subsection. In addition,
the unit may pay a reasonable fee to a financial institution for
automation programming development performed in order to conduct the
data match required in subsection 2, not to exceed the lower of
either five hundred dollars or the actual costs incurred by the
financial institution. The unit may use the state share of funds
collected under this chapter to pay the fees to financial
institutions under this subsection. For state fiscal years beginning
July 1, 1999, and July 1, 2000, the unit may use up to one hundred
percent of the state share of such funds. For state fiscal years
beginning on or after July 1, 2001, the unit may use up to fifty
percent of the state share of such funds. Notwithstanding any other
provision of law to the contrary, a financial institution shall have
until a date provided in the agreement in subsection 2 to submit its
claim for a fee under this subsection. If the unit does not have
sufficient funds available under this subsection for payment of fees
under this subsection for conducting data matches or for automation
program development performed in the fiscal year beginning July 1,
1999, the cost may be carried forward to the fiscal year beginning
July 1, 2000. The unit may also use funds from an amount assessed a
child support agency of another state, as defined in section 252H.2,
to conduct a data match requested by that child support agency as
provided in 42 U.S.C. § 666(a)(14) to pay fees to financial
institutions under this subsection.
4. a. A financial institution is immune from any liability in any
action or proceeding, whether civil or criminal, for any of the
following:
(1) The disclosure of any information by a financial institution
to the unit pursuant to this chapter or the rules or procedures
adopted by the unit to implement this chapter, including disclosure
of information relating to an obligor who maintains an account with
the financial institution or disclosure of information relating to
any other person who maintains an account with the financial
institution that is provided for the purpose of complying with the
data match requirements of this section and with the agreement
entered into between the financial institution and the unit pursuant
to subsection 2.
(2) Any encumbrance or surrender of any assets held by a
financial institution in response to a notice of lien or levy issued
by the unit.
(3) Any action or omission in connection with good faith efforts
to comply with this chapter or any rules or procedures that are
adopted by the unit to implement this chapter.
(4) The disclosure, use, or misuse by the unit or by any other
person of information provided or assets delivered to the unit by a
financial institution.
b. For the purposes of this section, "financial institution"
includes officers, directors, employees, contractors, and agents of
the financial institution.
5. The financial institution or the unit is not liable for the
cost of any early withdrawal penalty of an obligor's certificate of
deposit.
94 Acts, ch 1101, §4; 97 Acts, ch 175, §111; 99 Acts, ch 127, §3;
2000 Acts, ch 1096, §3, 4; 2000 Acts, ch 1232, §90, 95
252I.5 ADMINISTRATIVE LEVY -- NOTICE TO FINANCIAL INSTITUTION.
1. If an obligor is subject to this chapter under section 252I.2,
the unit may initiate an administrative action to levy against the
accounts of the obligor.
2. The unit may send a notice to the financial institution with
which the account is placed, directing that the financial institution
forward all or a portion of the moneys in the obligor's account or
accounts to the collection services center established pursuant to
chapter 252B. The notice shall be sent by regular mail, with proof
of service completed according to rule of civil procedure 1.442.
3. The notice to the financial institution shall contain all of
the following:
a. The name and social security number of the obligor.
b. A statement that the obligor is believed to have one or more
accounts at the financial institution.
c. A statement that pursuant to the provisions of this chapter,
the obligor's accounts are subject to seizure and the financial
institution is authorized and required to forward moneys to the
collection services center.
d. The maximum amount that shall be forwarded by the financial
institution, which shall not exceed the delinquent or accrued amount
of support owed by the obligor.
e. The prescribed time frame which the financial institution must
meet in forwarding amounts.
f. The address of the collection services center and the
collection services center account number.
g. A telephone number, address, and contact name of the child
support recovery unit contact initiating the action.
94 Acts, ch 1101, §5; 2005 Acts, ch 112, §13
Referred to in § 252I.6, 252I.7
252I.6 ADMINISTRATIVE LEVY -- NOTICE TO SUPPORT OBLIGOR.
1. The unit may administratively initiate an action to seize
accounts of an obligor who is subject to this chapter under section
252I.2.
2. The unit shall notify an obligor subject to this chapter, and
any other party known to have an interest in the account, of the
action. The notice shall contain all of the following:
a. The name and social security number of the obligor.
b. A statement that the obligor is believed to have one or more
accounts at the financial institution.
c. A statement that pursuant to the provisions of this chapter,
the obligor's accounts are subject to seizure and the financial
institution is authorized and required to forward moneys to the
collection services center.
d. The maximum amount to be forwarded by the financial
institution, which shall not exceed the delinquent or accrued amount
of support owed by the obligor.
e. The prescribed time frames within which the financial
institution must comply.
f. A statement that any challenge to the action shall be in
writing and shall be received by the child support recovery unit
within ten days of the date of the notice to the obligor.
g. The address of the collection services center and the
collection services center account number.
h. A telephone number, address, and contact name for the child
support recovery unit contact initiating the action.
3. The unit shall forward the notice to the obligor by regular
mail within two working days of sending the notice to the financial
institution pursuant to section 252I.5. Proof of service shall be
completed according to rule of civil procedure 1.442.
94 Acts, ch 1101, §6
252I.7 RESPONSIBILITIES OF FINANCIAL INSTITUTION.
Upon receipt of a notice under section 252I.5, the financial
institution shall do all of the following:
1. Immediately encumber funds in all accounts in which the
obligor has an interest to the extent of the debt indicated in the
notice from the unit.
2. No sooner than fifteen days, and no later than twenty days
from the date the financial institution receives the notice under
section 252I.5, unless notified by the unit of a challenge by the
obligor or an account holder of interest, the financial institution
shall forward the moneys encumbered to the collection services center
with the obligor's name and social security number, collection
services center account number, and any other information required in
the notice.
3. The financial institution may assess a fee against the
obligor, not to exceed ten dollars, for forwarding of moneys to the
collection services center. This fee is in addition to the amount of
support due. In the event that there are insufficient moneys to
cover the fee and the support amount due, the institution may deduct
the fee amount prior to forwarding moneys to the collection services
center and the amount credited to the support obligation shall be
reduced by the fee amount.
94 Acts, ch 1101, §7
Referred to in § 252I.8
252I.8 CHALLENGES TO ACTION.
1. Challenges under this chapter may be initiated only by an
obligor or by an account holder of interest. Actions initiated by
the unit under this chapter are not subject to chapter 17A, and
resulting court hearings following certification shall be an original
hearing before the district court.
2. The person challenging the action shall submit a written
challenge to the person identified as the contact for the unit in the
notice, within ten working days of the date of the notice.
3. The unit shall, upon receipt of a written challenge, review
the facts of the case with the challenging party. Only a mistake of
fact, including but not limited to, a mistake in the identity of the
obligor or a mistake in the amount of delinquent support due shall be
considered as a reason to dismiss or modify the proceeding.
4. If the unit determines that a mistake of fact has occurred the
unit shall proceed as follows:
a. If a mistake in identity has occurred or the obligor is not
delinquent in an amount equal to the payment for one month, the unit
shall notify the financial institution that the administrative levy
has been released. The unit shall provide a copy of the notice to
the support obligor by regular mail.
b. If the obligor is delinquent, but the amount of the
delinquency is less than the amount indicated in the notice, the unit
shall notify the financial institution of the revised amount with a
copy of the notice and issue a copy to the obligor or forward a copy
to the obligor by regular mail. Upon written receipt of instructions
from the unit, the financial institution shall release the funds in
excess of the revised amount to the obligor and the moneys in the
amount of the debt shall be processed according to section 252I.7.
5. If the unit finds no mistake of fact, the unit shall provide a
notice to that effect to the challenging party by regular mail. Upon
written request of the challenging party, the unit shall request a
hearing before the district court in the county in which the
underlying support order is filed.
a. The financial institution shall encumber moneys if the child
support recovery unit notifies the financial institution to do so.
b. The clerk of the district court shall schedule a hearing upon
the request by the unit for a time not later than ten calendar days
after the filing of the request for hearing. The clerk shall mail
copies of the request for hearing and the order scheduling the
hearing to the unit and to all account holders of interest.
c. If the court finds that there is a mistake of identity or that
the obligor does not owe the delinquent support, the unit shall
notify the financial institution that the administrative levy has
been released.
d. If the court finds that the obligor has an interest in the
account, and the amount of support due was incorrectly overstated,
the unit shall notify the financial institution to release the excess
moneys to the obligor and remit the remaining moneys in the amount of
the debt to the collection services center for disbursement to the
appropriate recipient.
e. If the court finds that the obligor has an interest in the
account, and the amount of support due is correct, the financial
institution shall forward the moneys to the collection services
center for disbursement to the appropriate recipient.
f. If the obligor or any other party known to have an interest in
the account fails to appear at the hearing, the court may find the
challenging party in default, shall ratify the administrative levy,
if valid upon its face, and shall enter an order directing the
financial institution to release the moneys to the unit.
g. Issues related to visitation, custody, or other provisions not
related to levies against accounts are not grounds for a hearing
under this chapter.
h. Support orders shall not be modified under a challenge
pursuant to this section.
i. Any findings in the challenge of an administrative levy
related to the amount of the accruing or accrued support obligation
do not modify the underlying support order.
j. An order entered under this chapter for a levy against an
account of a support obligor has priority over a levy for a purpose
other than the support of the dependents in the court order being
enforced.
6. The support obligor may withdraw the request for challenge by
submitting a written withdrawal to the person identified as the
contact for the unit in the notice or the unit may withdraw the
administrative levy at any time prior to the court hearing and
provide notice of the withdrawal to the obligor and any account
holder of interest and to the financial institution, by regular mail.
7. If the financial institution has forwarded moneys to the
collection services center and has deducted a fee from the moneys of
the account, or if any additional fees or costs are levied against
the account, and all funds are subsequently refunded to the account
due to a mistake of fact or ruling of the court, the child support
recovery unit shall reimburse the account for any fees assessed by
the financial institution. If the mistake of fact is a mistake in
the amount of support due and any portion of the moneys is retained
as support payments, however, the unit is not required to reimburse
the account for any fees or costs levied against the account.
Additionally, for the purposes of reimbursement to the account for
any fees or costs, each certificate of deposit is considered a
separate account.
94 Acts, ch 1101, §8