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#1478943 - 12/10/10 02:23 PM FL Agreement to Waive Garnishment Protection
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
With a recent update to Laser Pro, there is now a document that generates for all loans entitled FL Agreement to Waive Garnishment Protection. There is a little bit of information that appears in the Advisory Warnings to Lender section of the Loan Processing Checklist & says "This transaction includes one or more Florida Agreements to Waive Garnishment Protection. Although these print as separate documents, Florida Statutes 221.11(2)(b)(2) requires the agreement to be attached to the Associated Promissory Note, Credit Agreement or Guaranty. Please take appropriate steps to ensure this occurs and consult with your legal counsel if you have any questions."

I am unfamiliar with this law and have never seen a document like this in the past. Is this a new law? If so, when was it effective? Would you recommend we provide this document to all borrowers every time, or only in certain circumstances?

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#1479814 - 12/13/10 07:23 PM Re: FL Agreement to Waive Garnishment Protection Many Hats
Whatup Offline
Gold Star
Joined: Feb 2003
Posts: 379
Florida statute 492 was amended effective 10/1/10 to require the garnishment waiver in certain circumstances. You should check with your bank counsel to get an opinion as to when you would need to use the waiver. Our counsel has advised that as long as the bank has it written into policy that we will not pursue garnishment over the weekly limit of $750, the waiver is not required to be provided/signed on any of our transactions

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#1479842 - 12/13/10 07:49 PM Re: FL Agreement to Waive Garnishment Protection Whatup
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
492?...I was trying to read about it and statute 492 has to do with Professional Geology?

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#1481221 - 12/15/10 08:31 PM Re: FL Agreement to Waive Garnishment Protection Whatup
lucyc Offline
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lucyc
Joined: Jul 2007
Posts: 1,072
What policy would you have that written in?

Does this affect deposit accounts as well? For example, are we supposed to provide this waiver to new and exisitng accounts if we don't have a policy that drives our deposit products?

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#1481762 - 12/16/10 06:33 PM Re: FL Agreement to Waive Garnishment Protection lucyc
Whatup Offline
Gold Star
Joined: Feb 2003
Posts: 379
Sorry Many Hats. It is FL Statute Section 222.11....it was FL Senate Bill 492.

lvc - This is only written into our lending policies because we do not have a right of garnishment clause in our depository documentation

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#1504039 - 02/02/11 07:35 PM Re: FL Agreement to Waive Garnishment Protection Whatup
Banker Sue Offline
100 Club
Joined: May 2004
Posts: 149
If you don't have it written into policy, should the form be kept in the file whether or not the customer signs it?

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#1506534 - 02/08/11 03:12 PM Re: FL Agreement to Waive Garnishment Protection Banker Sue
Whatup Offline
Gold Star
Joined: Feb 2003
Posts: 379
I would think that for audit purposes, if it is not written in to policy, the waiver should be made part of the file; whether the borrower agrees to sign it or not.

We amended our loan policy to account for not garnishing over the established limit because we were not prepared to offer an ultimatum if the borrower refused to sign the waiver

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#1572353 - 06/30/11 04:25 PM Re: FL Agreement to Waive Garnishment Protection Whatup
Georgia Golfer Offline
Gold Star
Georgia Golfer
Joined: Jun 2003
Posts: 415
1st Tee
The whole thing makes no sense to me, why would anyone agree to waive their protective rights? This thing is basically saying that we can't garnish your income if you default on this loan, unless you sign this, so sign it please. Crazy.

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