58.1-535 - Application of funds on deposit.
§ 58.1-535. Application of funds on deposit.
A. In addition to the collection remedy provided in this article, if aclaimant agency has on deposit any funds which are due to the debtor, theclaimant agency may apply such funds to the payment of any delinquent debtwhich the debtor owes to the claimant agency, provided that the claimantagency first provides written notification to the debtor of its intent toapply the funds against the debt.
B. The contents of the written notification to the debtor shall clearly setforth the basis for the claim to the funds on deposit, the intention to applythe funds against the debt to the claimant agency, and the right of thedebtor to contest the validity of the claim before the claimant agency.
C. If as the result of an error by the claimant agency a debtor is denied allor a portion of his funds under the provisions of this section, interestshall be paid by the claimant agency to the debtor at the overpayment rateprovided in § 58.1-15 for the time such funds were denied, except that acounty, city or town shall pay interest in the manner prescribed in §58.1-3916 or § 58.1-3918.
D. As used in this section:
"Debtor" means any individual, business or group having a delinquent debtor account with any claimant agency which obligation has not been satisfiedby court order, set aside by court order, or discharged in bankruptcy.
"Funds on deposit" means any funds of a debtor that a claimant agency mayhave in its possession, including overpayments of taxes and any funds due toa debtor arising from a contractual agreement with a claimant agency.
(1988, cc. 563, 768; 1989, c. 77; 1999, c. 631.)