                                 CODE OF VIRGINIA

SERVING NOTICE OF LIEN ON FINANCIAL INSTITUTION (§ 8.01-502.1)

A. No judgment creditor or attorney for a judgment creditor shall have a notice
of lien served on a financial institution under &#xA7; 8.01-502 unless such
judgment creditor or attorney has a reasonable basis for believing that the
judgment debtor is entitled to a payment from such institution. The fact that a
financial institution is doing business in a geographic area where the judgment
debtor resides, works or has a place of business is not, by itself, a reasonable
basis for believing that the judgment debtor is entitled to a payment from a
financial institution. Any person violating this section shall be liable to a
financial institution for the sum of $100 for each notice of lien wrongfully
served on such institution. In any action at law to recover an amount due
hereunder, the judgment creditor or attorney for the judgment creditor causing
the notice of lien to be served on the financial institution shall have the
burden of showing a reasonable basis for believing that the judgment debtor was
entitled to a payment from such institution.

B. Any judgment creditor serving a notice of lien on a financial institution
shall, within five business days of such service, mail to the judgment debtor at
his last known address a copy of the notice of lien along with a notice of
exemptions and claim for exemption form in accordance with &#xA7; 8.01-512.4.
The judgment creditor or attorney for the judgment creditor shall file a
certification with the court affirming that he has mailed the judgment debtor
these notices. In the event that the judgment creditor fails to comply with the
requirements of this subsection, he shall be liable to the judgment debtor for
no more than $100 in damages, unless he proves by a preponderance of the
evidence that the failure was not willful.

C. A financial institution served with a valid notice of lien shall provide a
written response to the judgment creditor or attorney for the judgment creditor
within twenty-one days after being served with such notice of lien indicating
the amount of money held by the financial institution pursuant to the notice of
lien.

HISTORY: 1997, c. 750; 1999, c. 48; 2010, c. 673.