15 Misc. 2d 196 | New York County Courts | 1958
This is an application by the judgment creditor pursuant to section 794 of the Civil Practice Act for an order directing that a third party, the Franklin National Bank,
The judgment creditor also claims a lien as to the contingent liability of the third-party bank to pay over to the judgment debtor the balance in an auto dealer’s reserve account. The purpose of that account is to secure the bank against possible loss on conditional sales contracts which previously had been purchased from the judgment debtor. The contract between the debtor and the third party provides that no moneys will be due the debtor until April, 1961, at which time all outstanding contracts will have been completed. In the event of default by any of the conditional vendees, the loss sustained by the bank will be deducted from the reserve account. The third party presently holds $1,149.66 to secure a total indebtedness of $29,600. That liability is unmatured, and it is impossible at present to ascertain the amount of indebtedness, if any, which will mature in April, 1961.
Section 794 of the Civil Practice Act provides for the issuance of an order directing a person indebted to a judgment debtor to pay the amount of that debt to the judgment creditor. It also provides that, should the indebtedness be unmatured at the time of the application, the court ‘ ‘ shall direct that pay
The lien of the judgment creditor as to the reserve account is a valid lien, however, and is superior to that of the United States. The restraining provisions of section 781 of the Civil Practice Act, indorsed upon the subpoena, will expire two years after the service of the subpoena unless extended by order. The court believes that the circumstances warrant an extension of those stay provisions and the order to be entered hereon should provide for an extension to and including the first day of June, 1961.
Accordingly, this motion is granted to the extent only that an order be entered directing that the third party, The Franklin National Bank, turn over to the judgment creditor the sum presently in the judgment debtor’s checking* account, i.e., $271.32, and further directing* that the restraining provisions of section 781 of the Civil Practice Act as to the judgment debtor’s reserve account be extended until the first day of June, 1961.
Submit order.