KRS 131.520: Surrender of property upon which levy made -- Effect of surrender or

failure to do so.

(1) Any person in possession of or obligated with respect to property or rights to

property subject to levy upon which a levy has been made shall, upon demand of the

commissioner or his delegate, surrender such property or rights or discharge such

obligation to the commissioner or his delegate, except such part of the property or

rights as is, at the time of such demand, subject to an attachment or execution under

any judicial process.

(2) Any person who fails or refuses to surrender any property or rights to property

subject to levy shall be liable in his own person and estate to the Commonwealth in

a sum equal to the value of the property or rights not so surrendere d, but not

exceeding the amount of taxes for the collection of which such levy has been made,

together with costs and interest on such sum at the rate of twelve percent (12%) per

annum from the date of such levy. Any amount other than costs recovered under

this paragraph shall be credited against the tax liability for the collection of which

such levy was made.

(3) Any person in possession of or obligated with respect to property or rights to

property subject to levy upon which a levy has been made who, upon demand by the

commissioner or his delegate, surrenders such property or rights to property or

discharges such obligation to the commissioner or his delegate shall be discharged

from any obligation or liability to the delinquent taxpayer with respect to s uch

property or rights to property arising from such surrender or payment.