Page:United States Statutes at Large Volume 76A.djvu/421

–325– -325§ 568. S a m e; undertaking by claimant (a) Where property levied upon under execution to satisfy a judgment for the payment of money is claimed, in whole or in part, by a third person, other than the judgment debtor, and an undertaking has been given by the judgment creditor as provided in section 566 of this title, the claimant may give an undertaking as provided in this section, which shall release the property described in the undertaking from the lien and levy of the execution. (b) The undertaking, with two sureties, shall be executed by the third person claiming in whole or in part the property upon which execution is levied in double the estimated value of the property claimed by the third person; except that in no case need the undertaking be for a greater sum than double the amount for which the execution is levied. Where the estimated value of the property claimed by the third person is less than the sum for which the execution is levied, the estimated value shall be stated in the undertaking, and the undertaking shall be conditioned that if the property claimed by the third person is finally adjudged to be the property of the judgment debtor, the third person will pay of the judgment upon which execution has issued a sum equal to the value, as estimated in the undertaking, of the property claimed by the third person, and the property claimed shall be described in the undertaking. (c) The undertaking shall be filed in the action in which the execution issued and a copy thereof served upon the judgment creditor or his attorney in the action. (d) Within 10 days after the service of the copy of the undertaking, the judgment creditor may object to the undertaking on the ground of inability of the sureties, or either of them, to pay the sum for which they become bound in the undertaking, and upon the ground that the estimated value of property therein is less than the marKet value of the property claimed. The objection to the undertaking shall be made in writing, specifying the ground or grounds of objection, and if the objection is made to the undertaking that the estimated value therein is less than the market value of the property claimed, the objection shall specify the judgment creditor's estimate of the market value of the property claimed. The written objection shall be served upon the third person giving the undertaking and claiming the property therein described. (e) Exceptions to the sufficiency of the sureties and their justification may be had or taken in the same manner as upon an undertaking on attachment. If they, or others in their place, fail to justify at the time and place appointed, the officer shall not release the property. If objection is not taken as provided in this section, the judgment creditor is deemed to have waived objections to the sufficiency of the sureties. (f) When objection is made to the undertaking upon the ground that the estimated value of the property claimed, as stated in the undertaking, is less than the market value of the property claimed, the third person may accept the estimated value stated by the judgment creditor in the objection, and a new undertaking may be at once filed with the judgment creditor's estimate stated therein as the estimated value, and objection may not thereafter be made upon that ground. If the judgment creditor's estimate of the market value is not accepted, the value of the property shall be determined as provided in section 566 of this title. (g) The sureties shall justify upon the undertaking as required by section 431 of Title 3. (h) The undertaking shall become effective for the purpose herein specified 10 days after service of a copy thereof on the judgment

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