18.712, the sheriff shall proceed as directed by the court. [2001 c.249 �49] (Release of Garnishment) ����� 18.770 Release of garnishment. (1) A garnishor may issue a release of garnishment th

18.712, the sheriff shall proceed as directed by the court. [2001 c.249 �49]

(Release of Garnishment)

����� 18.770 Release of garnishment. (1) A garnishor may issue a release of garnishment that covers all or any portion of the property held under a writ of garnishment. The release must be in substantially the form provided by ORS 18.842. The garnishor must deliver a copy of the release to the garnishee and the debtor. In addition, the garnishor must deliver a copy of the release to:

����� (a) The sheriff, if the garnishor has made a request for sale of property under ORS 18.755; and

����� (b) The court administrator for the court specified in the writ of garnishment as the court with authority over the writ, if the garnishor has made a request for sale of property under ORS 18.755 or if the garnishor has received a challenge to the garnishment.

����� (2) A person who does not receive a copy of a release under this section is not liable for treating the property as though the writ were still in effect.

����� (3) Any proceedings for the sale of property under ORS 18.758 shall be terminated immediately upon receipt by the sheriff of a copy of a release of garnishment.

����� (4) Upon receipt of a copy of a release under this section, the garnishee may proceed to deal with the released property as though the writ of garnishment had not been issued. [2001 c.249 �50; 2003 c.576 �70]

(Sanctions Against Noncomplying Garnishee)

����� 18.775 Liability of garnishee. (1) If a garnishee fails to file a garnishee response within the time required by law, or fails to deliver all garnishable property required to be delivered under the writ of garnishment within the time required by law, the garnishee is liable to the creditor in an amount equal to the lesser of:

����� (a) The amount required to satisfy the garnishment; or

����� (b) The value of the debtor�s garnishable property held by the garnishee at the time the writ is delivered to the garnishee.

����� (2) A judgment may be entered against the garnishee for the amounts specified in this section if, after a hearing, the court finds that:

����� (a) The garnishee at the time of the delivery of the writ of garnishment held garnishable property of the debtor beyond the amount reported in the garnishee response;

����� (b) The garnishee held any garnishable property of the debtor and the garnishee failed to make a response; or

����� (c) The garnishee failed to deliver garnishable property required to be delivered under the writ.

����� (3) A supplemental judgment shall be entered under subsection (2) of this section if the garnishment was issued for a debt described in ORS 18.605 (1)(a) and a general judgment has been entered in the action. A limited judgment shall be entered under subsection (2) of this section if the garnishment was issued for a debt described in ORS 18.605 (1)(a) and a general judgment has not been entered in the action. A limited or general judgment shall be entered under subsection (2) of this section if the garnishment was issued for a debt described in ORS 18.605 (1)(b), (c) or (d).

����� (4) If a garnishee is liable to a creditor under subsections (1) and (2) of this section, the creditor may also recover costs of the creditor as determined under ORCP 68. If the garnishee fails to file a garnishee response within the time required by law, the costs of the creditor may be recovered from the garnishee even if it is determined that the garnishee held no garnishable property of the debtor at the time the writ was delivered to the garnishee.

����� (5) Any amounts from a garnishee collected other than costs under a judgment entered pursuant to this section must be credited against the debt owed by the debtor to the creditor. [2001 c.249 �51; 2009 c.484 �8]

����� 18.778 Order to appear. (1) If a garnishee fails to provide a garnishee response within the time required by law, or the response is unsatisfactory to the garnishor, or the garnishee fails to deliver garnishable property under the writ of garnishment within the time required by law, upon application of the garnishor, the garnishee may be ordered by the court to appear at a specified time and place for an examination. In addition to or in lieu of an order to appear for examination, the court may order the garnishee to appear for a hearing under ORS 18.782 to determine whether the garnishee should be held liable for the amount specified in ORS 18.775.

����� (2) At any time after a garnishor applies for an order under this section, the court may enter an order restraining the garnishee from in any manner disposing of or injuring any of the property of the debtor alleged by the garnishor to be in the garnishee�s possession.

����� (3) Disobedience of any order of the court under this section, or refusal to answer any question upon appearance under an order to appear for examination, may be punished as contempt. [2001 c.249 �52]

����� 18.780 Pleadings; default judgment. (1) If the court orders a garnishee to appear for a hearing under ORS 18.782, the garnishor must serve upon the garnishee written allegations not less than 20 days before the time set for the hearing or within such time as may be specified in the order. The allegations must inform the garnishee that if the garnishee fails to answer the allegations not less than 10 days before the time when the garnishee is required to appear for hearing, default judgment may be given against the garnishee for an amount no greater than the judgment against the debtor, plus any costs awarded by the court in the proceeding. The garnishor may also serve upon the garnishee, not less than 20 days before the time set for the hearing or within such time as may be specified in the order, written interrogatories concerning matters relating to the garnishment.

����� (2) Unless further time is allowed for good cause, not less than 10 days before the time when the garnishee is required to appear for hearing, the garnishee must file with the court an answer to the allegations and interrogatories of the garnishor and deliver a true copy of the answer to the garnishor. The answer shall be on oath and shall contain a full response to all of the allegations and interrogatories.

����� (3) The garnishor may except to the answer of the garnishee for insufficiency, within such time as may be allowed by the court. If the answer is adjudged insufficient, the garnishee may be allowed to amend the answer.

����� (4) If the garnishee fails to answer as required under subsection (2) of this section, the creditor may have judgment against the garnishee for want of answer. In no case shall default judgment be given against the garnishee for an amount greater than the judgment against the debtor, plus any costs awarded by the court in the proceeding. The judgment provided for in this subsection is in lieu of any judgment under ORS 18.775. Any amounts other than costs collected from a garnishee under a judgment entered pursuant to this subsection must be credited against the debt owed by the debtor to the creditor. [2001 c.249 �53]

����� 18.782 Hearing. Witnesses, including the debtor and garnishee, may be required to appear and testify at a hearing held pursuant to an order issued under ORS 18.778. The proceedings against a garnishee shall be tried by the court as upon the trial of an issue of law between a plaintiff and defendant. [2001 c.249 �54]

����� 18.784 [Formerly 18.619; 2013 c.688 �4; 2020 s.s.1 c.12 ��3,4; repealed by 2024 c.100 �31]

(Financial Institution as Garnishee)

����� 18.785 Duties of financial institution; garnishment account review; notice to debtor. (1) As used in this section:

����� (a) �Base protected account balance� means the amount not subject to garnishment calculated under subsection (2)(j) of this section.

����� (b) �Garnishment account review� means the review conducted under subsection (2)(c) of this section.

����� (c) �Lookback period� means the period described in subsection (2)(d) of this section.

����� (2)(a)(A) If a financial institution receives a writ of garnishment for a debtor that has an account with the financial institution, the financial institution shall first determine whether the writ of garnishment includes a Notice of Right to Garnish Federal Benefits from the United States Government or from a state child support enforcement agency, as provided in 31 C.F.R. part 212, or is attached to an attestation that a debt arises out of a child support or spousal support obligation or a judgment that contains a money award of restitution.

����� (B) If the writ of garnishment includes a Notice of Right to Garnish Federal Benefits, the provisions of paragraphs (b) to (j) of this subsection do not apply to the writ of garnishment and the financial institution shall proceed on the garnishment as provided in ORS 18.600 to 18.850.

����� (C) If the writ of garnishment is attached to an attestation that a debt arises out of a child support or spousal support obligation or a judgment that contains a money award of restitution, paragraphs (b), (c)(A), (e), (f) and (j) of this subsection do not apply to the writ of garnishment and the financial institution shall conduct a garnishment account review as provided in paragraphs (c)(B), (d) and (g) to (i) of this subsection.

����� (D) If the writ of garnishment does not include a Notice of Right to Garnish Federal Benefits or is not attached to an attestation that a debt arises out of a child support or spousal support obligation or a judgment that contains a money award of restitution, the financial institution shall immediately calculate and establish the total amount in all of the accounts the debtor has with the financial institution.

����� (b) If the total of the amounts in all of a debtor�s accounts with the financial institution does not exceed the base protected account balance, the financial institution shall provide full customary access to the amounts in the debtor�s accounts with the financial institution.

����� (c) If a financial institution finds under paragraph (a)(C) of this subsection that the total amount in all of a debtor�s accounts with the financial institution exceeds the base protected account balance, the financial institution shall:

����� (A) Provide full customary access to the base protected account balance; and

����� (B) Conduct a garnishment account review to determine whether one or more of the payments listed in this subparagraph were made to any of the debtor�s accounts by direct deposit or electronic transfer within the lookback period. The payments a financial institution must look for during a garnishment account review are:

����� (i) Federal benefit payments;

����� (ii) Payments from a public or private retirement plan as defined in ORS 18.358;

����� (iii) Public assistance payments or medical assistance, as defined in ORS 414.025, from the State of Oregon or an agency of the State of Oregon;

����� (iv) Unemployment compensation payments from the State of Oregon or an agency of the State of Oregon;

����� (v) Black lung benefits payments from the United States Department of Labor; and

����� (vi) Workers� compensation payments from a workers� compensation carrier.

����� (d) The lookback period during which a financial institution must determine whether a payment listed in paragraph (c) of this subsection was made to a debtor�s account with the financial institution:

����� (A) Ends on the day before the day on which the financial institution conducts the garnishment account review; and

����� (B) Begins:

����� (i) On the day in the second calendar month preceding the month in which the financial institution conducts the garnishment account review that has the same number as the day on which the lookback period ends; or

����� (ii) On the last day of the second calendar month preceding the month in which the financial institution conducts the garnishment account review, if the day described in sub-subparagraph (i) of this subparagraph does not exist.

����� (e)(A) If a financial institution determines after conducting a garnishment account review that a payment listed in paragraph (c)(B) of this subsection was made by direct deposit or electronic transfer to an account the debtor has with the financial institution within the lookback period, the financial institution shall provide the debtor with full customary access to the sum of the following amounts, which are not subject to garnishment:

����� (i) The base protected account balance; and

����� (ii) The amount by which the sum of all payments listed in paragraph (c) of this subsection that were made by direct deposit or electronic transfer to the debtor�s accounts with the financial institution within the lookback period exceeds the base protected account balance.

����� (B) The amounts in subparagraph (A) of this paragraph are calculated as of the effective date and time of the garnishment, but before the financial institution conducts the garnishment account review, and are not affected by withdrawals of funds by the debtor after the effective date and time of the garnishment.

����� (f) A financial institution that conducts a garnishment account review under paragraph (c) of this subsection shall proceed to deliver to the garnishor under ORS 18.600 to