NACM Oregon
Business Credit Journal March/April
2013
7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
Garnishing An Out-of-State Bank Account? Yes, It May Be Possible
In This Issue Garnishing An Out-of-State Bank Account ........................ 1 NACM Certification Program..... 2 Certification Success............... 3 Chair’s Message...................... 2 President’s Message................ 2 International Corner................ 7 NACM-Oregon Foundation....... 8 Reporting Credit Experience..... 9 DSO Results........................... 11 Webinars On the Move............ 13 Education............................... 14 Contacts................................. 16
Bradley D. Blakeley, Esq., Blakeley & Blakeley, LLP Judgment creditors often face the issue of whether they can levy on the bank account of an out-of-state judgment debtor. In a common scenario, a judgment creditor, often through its a forum-selection clause in its credit application or contract, obtains a judgment in their home state against an out-of-state judgment debtor. Using the judgment debtor’s checks, credit application or perhaps a third-party service, the judgment creditor confirms that the judgment debtor uses a bank with branches in the judgment creditor’s home state. Now the question for the judgment creditor is can it levy on the bank in its home state? The answer can take two forms depending on whether the bank is state chartered or federally chartered. Many years ago, when most banks were state chartered, their funds were held at the branch level. As a result, a judgment creditor’s levy had to be branch specific. Specifically, Commercial Code § 4107 provides that “A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notice or orders shall be given under this division and under Division 3 (commencing with Section 3101).” But in the mid to late 1980s, the banking industry went through major changes, with many banks consolidating or merging. In response, in 1994, Congress ...continue on page 15
Four Key Things to Consider Before Outsourcing Credit, Collections Functions An increasing number
of companies have looked abroad, especially to Southeast Asia and Eastern Europe, as a way to cut costs. This is trend that has not missed the credit industry. And, while it would be dishonest to say cheap
labor and lax regulations have helped some save money, there’s often much more than meets the eye when it comes to outsourcing credit and collections functions. While some continue to do it to varying degrees, there are
also a bevy of stories of companies who’ve brought those operations back home entirely for a variety of reasons (notably including the following). ...continue on page 12
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