Sec. 9. 14 MRSA §3102 is amended to read:

§3102. Default for nonappearance; costs

When the person summoned under section 3101 does not appear and answer to the action, he shall that person must be defaulted, adjudged trustee to the extent provided in section 2614 and be liable to costs. If he that person appears at the return day and submits to an examination on oath and is discharged, he shall the person must be allowed his legal costs. If he the person is charged, he the person may retain the amount of his costs. When the plaintiff dismisses his the action against him the trustee or the principal, the trustee shall must be allowed his costs.

SUMMARY

This bill makes a series of changes to the laws governing trustee process to provide fair treatment of alleged trustees without interfering with the ability of judgment creditors to reach funds to satisfy judgments. To ensure that financial institutions are able to properly identify and promptly act upon trustee process, financial institutions would be able to designate with the Secretary of State a specific office for service of process or to agree to accept service made otherwise.

The bill clarifies that an alleged trustee has a reasonable opportunity to act upon the process served upon it, in the same way that a bank has a reasonable time to act upon a stop payment order.

In the event of a default, under the bill the trustee is adjudged trustee for the amount of the principal defendant's property actually in its possession up to the amount of the judgment, not for a greater amount, thus eliminating potential windfalls. In the event that the trustee fails to make disclosure, other statutory remedies, such as assessment of costs and, in a proper case, contempt penalties, remain available.