NY Banks Shielded From Suits Under Account-Freeze Law

Law360, New York (November 21, 2013, 7:35 PM EST) -- New York banks cannot be sued by account holders for violating a law designed to exempt subsistence income from a creditor's account freeze, the state’s high court ruled Thursday, saying the statute was not intended to spawn litigation.

Answering certified questions from the Second Circuit, the New York Court of Appeals unanimously held that the Exempt Income Protection Act’s amendments to the statutory framework for enforcing money judgments in New York does not furnish account holders with a right of action for alleged violations.

The EIPA,...
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