Court Opinions

State Laws

US Code

US Constitution

Texas Finance Code - Section 276.002. Garnishment Of Financial Institution Account

Legal Research Home > Texas Laws > Finance Code > Texas Finance Code - Section 276.002. Garnishment Of Financial Institution Account

§ 276.002. GARNISHMENT OF FINANCIAL INSTITUTION 
ACCOUNT.  (a)  Notwithstanding the Texas Rules of Civil Procedure, 
if a financial institution fails to timely file an answer to a writ 
of garnishment issued before or after a judgment is rendered in the 
case, a court may enter a default judgment against the financial 
institution solely as to the existence of liability and not as to 
the amount of damages.
	(b)  A financial institution against which a default 
judgment is entered under Subsection (a) is not deemed to have in 
the financial institution's possession or to have knowledge of 
sufficient debts, assets, or personal effects of the debtor to 
satisfy the debtor's obligations to the garnishor.
	(c)  After a default judgment is entered against a financial 
institution as to the existence of liability as provided by 
Subsection (a), the garnishor has the burden to establish the 
amount of actual damages proximately caused to the garnishor by the 
financial institution's default.
	(d)  The court may award to the garnishor:                                     
		(1)  damages in the amount determined under Subsection 
(c);  and            
		(2)  for good cause shown, reasonable attorney's fees 
incurred by the garnishor in establishing damages under Subsection 
(c).
	(e)  Notwithstanding Section 22.004, Government Code, the 
supreme court may not amend or adopt rules in conflict with this 
section.

Added by Acts 2005, 79th Leg., ch. 1319, § 1, eff. Sept. 1, 2005.          

Last modified: August 11, 2007