12-1595. Garnishment of bank account in names of two or more persons; bond of judgment creditor

A. A bank deposit made in the names of two or more persons shall be subject to garnishment.

B. The answering garnishee shall, upon service of the writ, impound all funds then present in the bank account, and shall promptly notify each person who appears from the business records of the garnishee to have an interest in such bank account in addition to the judgment debtor that such account has been impounded, the name of the judgment creditor and judgment debtor and the court in which the action is pending as stated on the writ. The notice may be made personally or by registered mail, postage prepaid, addressed to each such person at his last known address as reflected by the business records of the garnishee.

C. The answer of the garnishee, in such case, shall state under oath the names of all persons who appear from the business records of the garnishee to have an interest in the bank account in addition to the judgment debtor. Upon the filing of the answer the court shall join all persons who appear to have an interest in the bank account in addition to the judgment debtor, as reflected by the answer of garnishee, and shall proceed to a determination of the interest of the judgment debtor therein.

D. Upon entry of an order based upon such proceeding all impounded funds, except those of the judgment debtor, shall be released by the garnishee. The matter shall otherwise proceed as in any other garnishment action.

E. All persons whose funds are impounded under the provisions of this section shall, together with the judgment debtor, be considered to be joint and several obligees of the bond provided for by section 12-1573, but the liability of the sureties on such bond shall be limited to the amount of the penal sum named in the bond.