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Last Updated: 6/26/2018

Levy on Securities

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‚ÄčA legal action we may use to take stocks, bonds, and other non-exempt publicly-traded securities to collect unpaid taxes and other debts.  If we levy your securities, we send a letter to the investment company and to you.

Results of Levy on Securities

The investment company is required to freeze your accounts the day they receive our levy notice. After 10 days, the investment company must liquidate your securities to pay the amount levied. If the value of your securities is more than the amount owed, you may instruct the investment company which investment you want to liquidate to pay in full the debt.  This must be done within seven days.   

If the securities do not equal the amount owed, the investment company must liquidate all of them. All liquidated proceeds minus normal commissions and fees must be sent to us.

There may be exemptions from third party levies. The investment company must verify what accounts are exempt. (See Minnesota Statutes, section 550.37.)

Levy Reduction

A levy reduction notice is used to notify the investment company if the amount of the levy is reduced. It is used for two reasons:

  • A payment is received from another investment levy, bank levy, or revenue recapture that reduces the balance.

  • An adjustment is done to reduce the balance. 

Levy Release

A levy on securities will be released if you prove the funds are exempt or if you file bankruptcy.