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California Code Of Civil Procedure Section 704.080

Legal Research Home > California Lawyer > Code of Civil Procedure > California Code Of Civil Procedure Section 704.080

(a) For the purposes of this section:
   (1) "Deposit account" means a deposit account in which payments of
public benefits or social security benefits are directly deposited
by the government or its agent.
   (2) "Social security benefits" means payments authorized by the
Social Security Administration for regular retirement and survivors'
benefits, supplemental security income benefits, coal miners' health
benefits, and disability insurance benefits.  "Public benefits" means
aid payments authorized pursuant to subdivision (a) of Section 11450
of the Welfare and Institutions Code, payments for supportive
services as described in Section 11323.2 of the Welfare and
Institutions Code, and general assistance payments made pursuant to
Section 17000.5 of the Welfare and Institutions Code.
   (b) A deposit account is exempt without making a claim in the
following amount:
   (1) One thousand two hundred twenty-five dollars ($1,225) where
one depositor is the designated payee of the directly deposited
public benefits payments.
   (2) Two thousand four hundred twenty-five dollars ($2,425) where
one depositor is the designated payee of directly deposited social
security payments.
   (3) One thousand eight hundred twenty-five dollars ($1,825) where
two or more depositors are the designated payees of the directly
deposited public benefits payments, unless those depositors are joint
payees of directly deposited payments that represent a benefit to
only one of the depositors, in which case the exemption under
paragraph (1) applies.
   (4) Three thousand six hundred fifty dollars ($3,650) where two or
more depositors are the designated payees of directly deposited
social security payments, unless those depositors are joint payees of
directly deposited payments that represent a benefit to only one of
the depositors, in which case the exemption under paragraph (2)
applies.
   (c) The amount of a deposit account that exceeds the exemption
provided in subdivision (b) is exempt to the extent that it consists
of payments of public benefits or social security benefits.
   (d) Notwithstanding Article 5 (commencing with Section 701.010) of
Chapter 3, when a deposit account is levied upon or otherwise sought
to be subjected to the enforcement of a money judgment, the
financial institution that holds the deposit account shall either
place the amount that exceeds the exemption provided in subdivision
(b) in a suspense account or otherwise prohibit withdrawal of that
amount pending notification of the failure of the judgment creditor
to file the affidavit required by this section or the judicial
determination of the exempt status of the amount.  Within 10 business
days after the levy, the financial institution shall provide the
levying officer with a written notice stating (1) that the deposit
account is one in which payments of public benefits or social
security benefits are directly deposited by the government or its
agent and (2) the balance of the deposit account that exceeds the
exemption provided by subdivision (b).  Promptly upon receipt of the
notice, the levying officer shall serve the notice on the judgment
creditor.  Service shall be made personally or by mail.
   (e) Notwithstanding the procedure prescribed in Article 2
(commencing with Section 703.510), whether there is an amount exempt
under subdivision (c) shall be determined as follows:
   (1) Within five days after the levying officer serves the notice
on the judgment creditor under subdivision (d), a judgment creditor
who desires to claim that the amount is not exempt shall file with
the court an affidavit alleging that the amount is not exempt and
file a copy with the levying officer.  The affidavit shall be in the
form of the notice of opposition provided by Section 703.560, and a
hearing shall be set and held, and notice given, as provided by
Sections 703.570 and 703.580.  For the purpose of this subdivision,
the "notice of opposition to the claim of exemption" in Sections
703.570 and 703.580 means the affidavit under this subdivision.
   (2) If the judgment creditor does not file the affidavit with the
levying officer and give notice of hearing pursuant to Section
703.570 within the time provided in paragraph (1), the levying
officer shall release the deposit account and shall notify the
financial institution.
   (3) The affidavit constitutes the pleading of the judgment
creditor, subject to the power of the court to permit amendments in
the interest of justice.  The affidavit is deemed controverted and no
counteraffidavit is required.
   (4) At a hearing under this subdivision, the judgment debtor has
the burden of proving that the excess amount is exempt.
   (5) At the conclusion of the hearing, the court by order shall
determine whether or not the amount of the deposit account is exempt
pursuant to subdivision (c) in whole or in part and shall make an
appropriate order for its prompt disposition.  No findings are
required in a proceeding under this subdivision.
   (6) Upon determining the exemption claim for the deposit account
under subdivision (c), the court shall immediately transmit a
certified copy of the order of the court to the financial institution
and to the levying officer.  If the order determines that all or
part of the excess is exempt under subdivision (c), with respect to
the amount of the excess which is exempt, the financial institution
shall transfer the exempt excess from the suspense account or
otherwise release any restrictions on its withdrawal by the judgment
debtor.  The transfer or release shall be effected within three
business days of the receipt of the certified copy of the court order
by the financial institution.
   (f) If the judgment debtor claims that a portion of the amount is
exempt other than pursuant to subdivision (c), the claim of exemption
shall be made pursuant to Article 2 (commencing with Section
703.510).  If the judgment debtor also opposes the judgment creditor'
s affidavit regarding an amount exempt pursuant to subdivision (c),
both exemptions shall be determined at the same hearing, provided the
judgment debtor has complied with Article 2 (commencing with Section
703.510).

Last modified: January 12, 2009