New York’s banking regulator has updated its guidance on how banks calculate the portion of a judgment debtor’s account that is shielded from restraining notices and levies, replacing its 2017 method to reflect changes in the state’s minimum wage law.
The New York State Department of Financial Services issued an industry letter yesterday to entities it regulates under the New York Banking Law. The letter updates the department’s April 4, 2017, guidance on the Exempt Income Protection Act (EIPA).
Under Article 52 of the Civil Practice Law and Rules, which governs the enforcement of money judgments, the amount exempt from a restraining notice or levy is set by a formula tied to the minimum wage. The formula uses the federal or New York State rate, whichever is higher…