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Course description

When your institution is presented with a garnishment order for funds from a customer’s accounts, or a subpoena for records concerning a customer or their accounts or transactions, there is little time to consult with bank counsel to determine how or whether to respond to the claim to funds or information. There can be legal limits on your time to respond, privacy and other confidentiality issues to resolve, constraints on the funds that can be remitted or held or the information to be shared, required forms for your response, and other knotty issues to resolve before you act on the claim.

A failure to understand the third party’s claim, a mistake in determining what funds or information  can or cannot be remitted or shared, or a failure to meet a legal deadline for completing the response to these claims can put the financial institution at risk for penalties or damages, or even for the full amount of the claim. To avoid such challenges and meet legal deadlines, financial institutions should have well-researched and clearly written policies and procedures for the intake and processing of garnishments, subpoenas and similar legal documents, for providing timely and proper responses to them, and for notifying its customers, when permitted.

This webinar is intended to assist financial institutions in identifying their responsibilities when such legal documents are served on the bank and developing written policies and procedures which their legal counsel may review and approve.  Both state law and federal law are critical in this effort, and procedures must ensure compliance with both.

The program is not a substitute for legal advice on a particular fact situation. Because state laws vary widely, this presentation will focus on federal procedures; the discussion of state rules is necessarily general and will be used to illustrate how a state rule may influence an institution’s handling of these documents. Accordingly, the discussion is not focused on the laws of any one state, nor will it provide guidance for handling specific states’ requirements. It will, however, illustrate how critical it is to understand state requirements that can affect a bank’s procedures. Such issues must be considered with the assistance of an institution’s legal counsel.

On completion of this program attendees should be:

*familiar with the federal claims most likely to be made against customer funds or information, 

*able to develop a written, systematic plan for handling federal and state third-party claims in a timely, well documented fashion and

*encouraged to present their written procedures for review and approval by legal counsel.



Individuals in charge of designing, revising or auditing a procedure for handling third-party claims against customer funds or subpoenas for information are the expected attendees.



John Burnett

John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company. John joined Glia Group, Inc. and the BankersOnline.com team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.

Course curriculum

  • 1


    • Access Webinar

  • 2


    • Slides

    • Materials

    • Questions and Answers