§ 44-53-6 - Surrender of property.
SECTION 44-53-6
§ 44-53-6 Surrender of property. –(a) Any person in possession of, or obligated with respect to, property orrights to property subject to levy upon which a levy has been made shall, upondemand of the tax administrator, surrender the property or rights, or dischargethe obligation, to the tax administrator, except that part of the property orrights as is, at the time of the demand, subject to an attachment or executionunder any judicial process.
(b) Any person who fails or refuses to surrender any propertyor rights to property, subject to levy, upon demand by the tax administrator,shall be liable in their own person and estate to the state in a sum equal tothe value of the property or rights not so surrendered, but not exceeding theamount of taxes for the collection of which the levy has been made, togetherwith costs and interests on the sum at the rate prescribed in § 44-1-7from the date of the levy. Any amount, other than costs, recovered under thissubsection shall be credited against the tax liability for the collection ofwhich the levy was made.
(c) In addition to the personal liability imposed bysubsection (b) of this section, if any person required to surrender property orrights to property fails or refuses to surrender the property or rights toproperty without a reasonable cause, the person shall be liable for penaltyequal to fifty percent (50%) of the amount recoverable under subsection (b) ofthis section. No part of the penalty shall be credited against the taxliability for the collection of which the levy was made.
(d) Any financial institution chartered under state orfederal law, including, but not limited to, trust companies, savings banks,savings and loan associations, national banks and credit unions, shallsurrender any deposits, including any interest in the financial institutionthat would otherwise be required to be surrendered under this subsection onlyafter twenty-one (21) days after service of levy.
(e) Any person in possession of, or obligated with respect toproperty or rights to property subject to levy upon which a levy has been made,who, upon demand by the tax administrator, surrenders the property or rights toproperty or discharges the obligation, to the tax administrator, or who pays aliability under subsection (b) of this section shall be discharged from anyobligation or liability to the delinquent taxpayer with respect to the propertyor rights to property arising from the surrender or payment. In the case of alevy which is satisfied, the person shall also be discharged from anyobligation or liability to any beneficiary arising from the surrender payment.