Garnishing Bank Accounts

Freeman v Smith, 2013 CanLII 59255 (ON SCSM)

[12] TD Canada Trust also relies on section 462 of the Bank Act (S.C. 1991, c. 46), alleging orally the account involved is a business account and not a “deposit account”. Neither party or representative is legally trained and could offer the court no assistance with the definition of “deposit account” and I was unable to find a definition in the Bank Act. I am not persuaded that a business account is not garnishable to satisfy a debt of the business.

[13] TD Canada Trust assured the court it has set aside from the account sufficient funds to satisfy the garnishment in full. As I understand the law the garnishee is liable for the amount set out in the garnishment notice and not any post-judgment interest that might have accumulated since the notice was served.

[14] Pursuant to Rule 20 of this court the Garnishee shall, within 10 days, pay to the Clerk of this court at 100 St. Patrick Street, 2nd Floor, Stratford, Ontario N5A 7W1 the sum of $3,721.83.