By: Shannon Basile, Compliance Analyst
Recently the ICUL Compliance Team received a question about the proper way to respond to an out-of-state court judgement/garnishment order. The credit union was unsure how to respond to the request and questioned whether or not an out-of-state court had the authority to order an Illinois credit union to provide member account information and records.
The Illinois Enforcement of Foreign Judgments Act (735 ILCS 5/12/650-657) defines a foreign judgment as “any judgment, decree, or order of a court of the United States or any other court which is entitled to full faith and credit in this State.”
Enforcement of a judgment issued by an out-of-state court, excluding judgments applicable to other rules such as child support or orders of protection, requires a copy of the foreign judgment to be filed in the office of the circuit clerk for any county in Illinois. Once filed with an Illinois circuit clerk, the foreign judgment becomes enforceable in Illinois as if it was issued by an Illinois court. The date the foreign judgment is filed in Illinois becomes its effective date.
The judgement is subject to the same procedures, defenses and proceedings for reopening, vacating, or staying as a judgement issued by an Illinois circuit court and may be enforced in the same manner. The creditor or creditor’s attorney should file an affidavit along with the foreign judgement to provide the last known address of both the judgement debtor and judgment creditor. Once the foreign judgment and affidavit are filed, the clerk will mail notice of the filling to the judgment debtor and include the address of the judgement creditor and the creditor’s Illinois attorney, if any. The judgment creditor may also mail a copy of the filing to the debtor and file a proof of the mailing with the Illinois circuit clerk. Upon receipt of the filing notice from the Illinois circuit clerk, the debtor is entitled to request a stay due to any pending appeals in the judgement state or if the debtor can prove grounds for a stay of enforcement based on Illinois law.
Therefore, if a credit union receives a foreign judgment without confirmation it has been filed pursuant to the Uniform Enforcement of Foreign Judgments Act (735 ILCS 5/12/652) it should file a response by the due date listed in the foreign judgment stating it will comply with the judgment order once the judgment is filed in Illinois according to the Uniform Enforcement of Foreign Judgments Act. A copy of the credit union response should be sent to the judgment creditor and judgment debtor. As an abundance of caution, the credit union could place an administrative freeze on funds on deposit until the judgment creditor completes the filing process.