Sec. 20104. Protection of 2020 recovery rebates
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Subsection
(d)of section 2201 of the CARES Act, as amended by the preceding provisions of this Act, is amended— by redesignating paragraphs (1), (2), and
(3)as subparagraphs (A), (B), and (C), and by moving such subparagraphs 2 ems to the right, by striking and inserting “ reduction or offset .—Any credit reduction, offset, garnishment, etc .— Any credit , and by adding at the end the following new paragraphs: Any applicable payment shall not be subject to transfer, assignment, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law, to the same extent as payments described in section 207 of the Social Security Act ( 42 U.S.C. 407 ) without regard to subsection
(b)thereof. As soon as practicable after the date of the enactment of this paragraph, the Secretary of the Treasury shall encode applicable payments that are paid electronically to any account— with a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as a payment protected under subparagraph (A), and pursuant to the same specifications as required for a benefit payment to which part 212 of title 31, Code of Federal regulations applies. Upon receipt of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph (B), a financial institution shall follow the requirements and procedures set forth in part 212 of title 31, Code of Federal Regulations. This paragraph shall not alter the status of payments as tax refunds or other nonbenefit payments for purpose of any reclamation rights of the Department of Treasury or the Internal Revenue Service as per part 210 of title 31 of the Code of Federal Regulations. If a financial institution receives a garnishment order (other than an order that has been served by the United States) that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph
(B)has been deposited on any date in the prior 60 days (including any date before the date of the enactment of this paragraph), the financial institution, upon the request of the account holder or for purposes of complying in good faith with a State order, State law, court order, or interpretation by a State Attorney General relating to garnishment order, may, but is not required to, treat the amount of the payment as exempt under law from garnishment without requiring the account holder to assert any right of garnishment exemption or requiring the consent of the judgment creditor. A financial institution that complies in good faith with clause
(i)or that acts in good faith in reliance on clause
(ii)shall not be liable under any Federal or State law, regulation, or court or other order to a creditor that initiates an order for any protected amounts, to an account holder for any frozen amounts or garnishment order applied. For purposes of this paragraph— The term account holder means a natural person against whom a garnishment order is issued and whose name appears in a financial institution’s records. The term applicable payment means any payment of credit or refund by reason of section 6428 of such Code (as so added) or by reason of subsection
(c)of this section. The term garnishment means execution, levy, attachment, garnishment, or other legal process. The term garnishment order means a writ, order, notice, summons, judgment, levy, or similar written instruction issued by a court, a State or State agency, a municipality or municipal corporation, or a State child support enforcement agency, including a lien arising by operation of law for overdue child support or an order to freeze the assets in an account, to effect a garnishment against a debtor. . The amendments made by this section shall take effect on the date of the enactment of this Act.
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Sec. 20104
Protection of 2020 recovery rebates
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