Maryland Governor Issues Exemption Order for CARES Act Payments

Financial institutions may not hold CARES Act rebate payments for garnishment or liens.

5/1/2020 8:30 AM

NewsStateCOVID-19
Maryland Governor Issues Exemption Order for CARES Act Payments

Maryland Gov. Larry Hogan issued an order April 29 exempting Coronavirus Aid, Relief, and Economic Security (CARES) Act payments from garnishment.

It states:

  • CARES Act Recovery Rebates are exempt from, and shall not be subject to, garnishment.
  • All financial institutions are hereby ordered not to hold a CARES Act Recovery Rebate of the judgment debtor under a writ of garnishment and to treat CARES Act Recovery Rebates as protected amounts under Maryland Rules 2-645.1 and 3-645.1.
  • No banking institution or credit union incorporated under the laws of this state shall have any lien upon, or right of setoff against funds in any customer or member’s account, to the extent such funds are traceable to a CARES Act Recovery Rebate.

In response to the governor’s order exempting CARES Act payments, the Maryland Commissioner of Financial Regulation issued an advisory for Non-Depository Financial Services Providers.

The advisory states:

"In light of the governor’s order, all business entities licensed by the Commissioner of Financial Regulation ("Commissioner") shall conform to the dictates therein and cease any and all garnishment and/or set-off activity on said Relief Payments, whether directly or through an authorized agent. To the extent a licensed business entity inadvertently receives the proceeds of the Relief Payments, they should endeavor to rectify this mistake in order to permit those funds to be used by Maryland taxpayers for the intended purposes.  Should it be determined that a licensed entity willfully or negligently violates the dictates of the governor’s order, such entity may be subject to regulatory action to the fullest extent of the law."

California, Indiana, New York, Illinois, Oregon, Rhode Island, Vermont, and Washington have also issued exemption orders applying to state or federal aid for consumers.

Visit ACA International’s COVID-19 page for more information on state and federal guidance.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Maryland Governor Issues Exemption Order for CARES Act Payments

Maryland Gov. Larry Hogan issued an order April 29 exempting Coronavirus Aid, Relief, and Economic Security (CARES) Act payments from garnishment.

It states:

  • CARES Act Recovery Rebates are exempt from, and shall not be subject to, garnishment.
  • All financial institutions are hereby ordered not to hold a CARES Act Recovery Rebate of the judgment debtor under a writ of garnishment and to treat CARES Act Recovery Rebates as protected amounts under Maryland Rules 2-645.1 and 3-645.1.
  • No banking institution or credit union incorporated under the laws of this state shall have any lien upon, or right of setoff against funds in any customer or member’s account, to the extent such funds are traceable to a CARES Act Recovery Rebate.

In response to the governor’s order exempting CARES Act payments, the Maryland Commissioner of Financial Regulation issued an advisory for Non-Depository Financial Services Providers.

The advisory states:

"In light of the governor’s order, all business entities licensed by the Commissioner of Financial Regulation ("Commissioner") shall conform to the dictates therein and cease any and all garnishment and/or set-off activity on said Relief Payments, whether directly or through an authorized agent. To the extent a licensed business entity inadvertently receives the proceeds of the Relief Payments, they should endeavor to rectify this mistake in order to permit those funds to be used by Maryland taxpayers for the intended purposes.  Should it be determined that a licensed entity willfully or negligently violates the dictates of the governor’s order, such entity may be subject to regulatory action to the fullest extent of the law."

California, Indiana, New York, Illinois, Oregon, Rhode Island, Vermont, and Washington have also issued exemption orders applying to state or federal aid for consumers.

Visit ACA International’s COVID-19 page for more information on state and federal guidance.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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