A. From and after the service of all of the documents required to be served pursuant to section 12-1574 the garnishee shall not pay to the judgment debtor any monies or deliver to him any personal property which is not exempt, and the garnishee, if a corporation in which the judgment debtor is alleged to be the owner of shares or to have an interest, shall not permit or recognize any sale or transfer of the judgment debtor's shares or interest, if it is within the legal power of the garnishee to do so. Any such payment, delivery, sale or transfer is void and of no effect as to so much of the monies, personal property, shares or interest as is necessary to satisfy the judgment creditor's demand, except that this provision shall not void or impair the rights of a bona fide transferee, for value and without notice of the garnishment, of negotiable instruments, documents of title, corporate stock or securities, or other documents or instruments which embody legal rights transferable only by transfer of the documents or instruments themselves, unless the document or instrument is held by the garnishee at the time of service of the writ of garnishment.
B. A financial institution shall not withhold from the judgment debtor the amount set forth as exempt pursuant to section 33-1126, subsection A, paragraph 9, unless ordered by the court to do so after a hearing pursuant to section 12-1580.
C. The judgment debtor may at any time before judgment replevy any property garnished by giving bond to be approved and filed in the action by the officer who issued the writ of garnishment, in double the amount of the judgment creditor's debt, or, at the judgment debtor's option, by giving bond for the value of the property garnished as determined by the court, justice of the peace or city or town magistrate, and conditioned upon the payment of any judgment that may be given against the garnishee in the action or for payment of the value of the property garnished.
D. When the judgment debtor gives bond, he may make any defense which the garnishee could make in such action.
E. If judgment is given in favor of the judgment creditor it shall be against the judgment debtor and the sureties on the replevin bond for the amount of such judgment.
Notes of Decisions
Kellin v. Hon. lynch/americanwest, 449 P.3d 719 (Ariz. Ct. App. 2019).
· cites it 2× “” A.R.S. § 12-1578(A). Although this fact means the court could not have set a supersedeas bond to secure payment of the garnishment judgments, the court’s decision is supportable if any other reasonable basis for setting the $50,000 bonds exists.”
Am. Sur. Co. of New York v. Nash, 389 P.2d 266 (Ariz. 1964).
· cites it 4× “A.R.S. § 12-1578 provides: "From and after the service of a writ of garnishment, the garnishee shall not pay to defendant any debt or deliver to him any property * * *.”
Reeb v. Interchange Resources, Inc. of Phoenix, 478 P.2d 82 (Ariz. 1970).
· cites it 2× “Appellee also urges that under Arizona garnishment statutes, particularly A.R.S. § 12-1578, subsec. A and A.R.S. § 12-1585 1 , garnishment should be proper with respect not only to sums owing at the time the writ is served, but also as to debts which may come into existence…”
Roofing Wholesale Co., Inc. v. Palmer, 502 P.2d 1327 (Ariz. 1972).
“The latter's entity rights are adequately protected by the right to replevy under § 12-1578, subsec. B, A.R.S.; the counterclaim procedures for wrongful garnishment under De Wulf v.”
First Nat'l Bank & Trust Co. v. Pomona Mach. Co., 486 P.2d 184 (Ariz. 1971).
“The latter’s entity rights are adequately protected by the right to replevy under § 12-1578, subsec. B, A.R.S.; the counter-claim procedures for wrongful garnishment under De Wulf v.”
Valley Nat'l Bank v. Brown, 508 P.2d 752 (Ariz. Ct. App. 1973).
· cites it 2× “2d 396 (1962); A.R.S. § 12-1578 (1956). Fourth, the garnishee is under a duty to advise all adverse claimants to the property or debt garnished of the pendency of the garnishment proceedings.”
Tryon v. Silverstein, 455 P.2d 474 (Ariz. Ct. App. 1969).
· cites it 3× “writ (A.R.S. § 12-1578). Silverstein apparently complied with these sections.”
Reeb v. Interchange Resources, Inc., 473 P.2d 818 (Ariz. Ct. App. 1970).
· cites it 2× “A.R.S. § 12-1578 provides that from and after the service of a writ of garnishment the garnishee shall not pay the defendant any debt or deliver to him any property and that any such payment or delivery of property shall be void and of no effect.”
— Ariz. Rev. Stat. § 12-1578(A) — 2 cases
Kellin v. Hon. lynch/americanwest, 449 P.3d 719 (Ariz. Ct. App. 2019).
“” A.R.S. § 12-1578(A). Although this fact means the court could not have set a supersedeas bond to secure payment of the garnishment judgments, the court’s decision is supportable if any other reasonable basis for setting the $50,000 bonds exists.”
— Ariz. Rev. Stat. § 12-1578(E) — 1 case
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