How Prejudgment Attachment of Foreign Bank Accounts Works

An attachment order is available in actions in which the plaintiff demands and would be entitled to a money judgment. Creditors cannot utilize Article 62 remedies in purely equitable actions or claims seeking non-monetary declaratory relief. The applicable ground depends on the defendant's status, conduct, and the nature of the action.

CPLR 6212(a) requires affidavits and other written evidence supporting the cause of action, probability of success, an attachment ground under CPLR 6201, and the amount demanded. The court evaluates whether those materials satisfy the statutory showing. A verified complaint is not independently required in every attachment application.

Under the separate entity rule, bank branches may be treated separately for attachment and restraint purposes. In Motorola Credit Corp. .. Standard Chartered Bank, 24 N.Y.3d 149 (2014), the Court of Appeals held that service on a domestic branch did not restrain assets held in foreign branches. Service on one branch therefore should not be assumed to reach accounts maintained abroad.

A bank served with an attachment order must comply with the levy to the extent covered property or debts fall within CPLR 6214. Service on an improper entity or unrelated branch may fail to reach the target account. Identifying the branch that holds the account is therefore central to determining the reach of the levy.

Service of the attachment order restrains covered property or debts within the scope of CPLR 6214. The garnishee generally may not transfer, interfere with, or pay over property or debts subject to the levy except as permitted by statute, sheriff direction, or court order. Noncompliance may expose the garnishee to liability arising from the improper transfer or payment.

A levy by service generally becomes void after ninety days unless the court extends the period, the sheriff has taken or collected the property or debt, or a proceeding under CPLR 6214(d) has begun. The creditor may use that proceeding to compel payment, delivery, or transfer to the sheriff. The statutory framework should not be described simply as a ninety-day perfection deadline.

The garnishee must serve the sheriff with a statement within ten days after service, unless the court directs a shorter period. The statement generally identifies debts, property, amounts, and values associated with the defendant. If the garnishee holds money or owes at least the amount of the attachment, the statute permits a more limited statement.

CPLR 6220 allows an interested person to move for disclosure after an attachment order is granted and before final judgment. The court may order disclosure concerning property in which the defendant has an interest or debts owed to the defendant. This procedure is not limited to cases in which the garnishee's ten-day statement is missing or incomplete.

An ex parte attachment generally requires a motion to confirm within a period not exceeding five days after levy. When the order rests on CPLR 6201(1), CPLR 6211(b) provides a different procedure involving the garnishee statement and a ten-day confirmation period. Missing the applicable deadline causes the order and levy to lose further effect.

CPLR 6212(b) requires the plaintiff to give an undertaking in an amount fixed by the court, with a statutory minimum of five hundred dollars. The undertaking covers costs and damages, including reasonable attorney's fees, if the defendant recovers judgment or it is finally determined that the plaintiff was not entitled to the attachment. The amount above the statutory minimum is set by the court.