HB 745 - SB 765
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 27, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 745 - SB 765
SUMMARY OF BILL: Extends, from one to five business days following receipt of a
garnishment, the period of time within which a garnishee must determine whether the garnishee
possesses or controls money or property of the judgment debtor and furnish to the judgment debtor
a copy of the garnishment summons and the notice to the judgment debtor. Requires the garnishee,
within such time period, to place a hold on any available funds of which it possesses control.
Authorizes a person to whom warranties are made and who took the instrument in good faith to
recover from the warrantor as damages for breach of warranty reasonable attorney fees under
certain circumstances.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 26-2-203:
o An officer may summon in writing any person as a garnishee to appear at the court
from which an execution is issued, or before any other court to whom the execution
is returnable; and
o The summons to the garnishee requires the garnishee to determine whether they
possess or control money or property of the judgment debtor and furnish a copy of
the garnishment summons and a notice to judgment debtor the same day, or next
working day, of receiving the garnishment notice.
• The proposed legislation expands such time constraint from one to five business days after
receiving the garnishment.
• Pursuant to Tenn. Code Ann. §§ 47-3-416, 47-3-417, 47-4-207, and 47-4-208, an individual
may recover from any warrantor certain damages for breach of warranty equal to the
amount paid less the amount the nonbreaching party received or is entitled to receive and
compensation for expenses and loss of interest resulting from the breach.
• The proposed legislation expands the scope of the damages a nonbreaching party may seek
in such instances to include reasonable attorney fees, if the party sends written notice by
certified or registered mail or commercial courier to the warrantor and the warrantor fails to
pay its claim within 30 days after receiving the notice.
• The proposed legislation will not significantly impact the Department of Financial
Institutions’ fees or operations; therefore, any fiscal impact is estimated to be not
significant.
HB 745 - SB 765 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director