California Family Code 17522.5 – (a) Notwithstanding Section 8112 of the Commercial Code and …
(a) Notwithstanding § 8112 of the Commercial Code and § 700.130 of the Code of Civil Procedure, when a local child support agency pursuant to Section 17522, or the department pursuant to Section 17454 or 17500, issues a levy upon, or requires by notice any employer, person, political officer or entity, or depository institution to withhold the amount of, as applicable, a financial asset for the purpose of collecting a delinquent child support obligation, the person, financial institution, or securities intermediary (as defined in § 8102 of the Commercial Code) in possession or control of the financial asset shall liquidate the financial asset in a commercially reasonable manner within 20 days of the issuance of the levy or the notice to withhold. Within five days of liquidation, the person, financial institution, or securities intermediary shall transfer to the State Disbursement Unit, established under Section 17309, the proceeds of the liquidation, less any reasonable commissions or fees, or both, which are charged in the normal course of business.
(b) If the value of the financial assets exceed the total amount of support due, the obligor may, within 10 days after the service of the levy or notice to withhold upon the person, financial institution, or securities intermediary, instruct the person, financial institution, or securities intermediary who possesses or controls the financial assets as to which financial assets are to be sold to satisfy the obligation for delinquent support. If the obligor does not provide instructions for liquidation, the person, financial institution, or securities intermediary who possesses or controls the financial assets shall liquidate the financial assets in a commercially reasonable manner and in an amount sufficient to cover the obligation for delinquent child support, and any reasonable commissions or fees, or both, which are charged in the normal course of business, beginning with the financial assets purchased most recently.
Terms Used In California Family Code 17522.5
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- obligor: means a person owing a duty of support. See California Family Code 17212
- Person: includes a natural person, firm, association, organization, partnership, business trust, corporation, limited liability company, or public entity. See California Family Code 105
- State: means a state of the United States, the District of Columbia, or a commonwealth, territory, or insular possession subject to the jurisdiction of the United States. See California Family Code 145
- Support: refers to a support obligation owing on behalf of a child, spouse, or family, or an amount owing pursuant to Section 17402. See California Family Code 150
(c) For the purposes of this section, a financial asset shall include, but not be limited to, an uncertificated security, certificated security, or security entitlement (as defined in § 8102 of the Commercial Code), security (as defined in § 8103 of the Commercial Code), or a securities account (as defined in § 8501 of the Commercial Code).
(Amended by Stats. 2016, Ch. 474, Sec. 22. (AB 2882) Effective January 1, 2017.)