Question

What does a Garnishee Order instruct the bank to do?

• A. Allow unlimited withdrawals from the customer’s account
• B. Increase the customer’s credit limit
• C. Not honour cheques or allow withdrawals from the judgment debtor’s account
• D. None of the above

Answer 1

Answer:

C. Not honour cheques or allow withdrawals from the judgment debtor’s account

GARNISHEE ORDER 

• Garnishee order is an order issued by the court of law directing the banker, not to honour the cheque of a customer, or not to allow withdraw cash from his account, who happened to be a judgement debtor.

   

• Judgement Creditor: The person on whose request the Garnishee order is issued, he is called Judgement Creditor

• Judgement Debtor: The person whose money in the bank account against whom the order is obtained, he is called judgement debtor 

• Garnishee :The banker is called Garnishee