Transfer Of Things In Action 953.-955.1 - Things In Action 953.-955.1 - CA Civil Law

Section § 954

In California, if someone has a legal claim because their property rights were violated or because of an unmet obligation, they can transfer this claim to someone else. Essentially, it's saying you can sell or give away your right to sue the person who wronged you.

A thing in action, arising out of the violation of a right of property, or out of an obligation, may be transferred by the owner.

transfer right of property violation obligation thing in action legal claim property rights unmet obligation assigning claims legal transfer property violation owner transfer obligation claim transferable claims

(Amended by Stats. 1990, Ch. 79, Sec. 2. Operative July 1, 1991, by Sec. 37 of Ch. 79, as amended by Stats. 1990, Ch. 710, Sec. 46.)

Section § 954.5

This law deals with transferring rights that are represented by a court judgment. If you transfer such rights in writing, it's considered legally effective against others. If multiple people claim the same right, the one who officially files the assignment with the court first has the upper hand. However, simply filing the paperwork doesn’t mean the person who owes money under the judgment is automatically informed, so they can still make valid payments towards the judgment without knowing about the new assignment.

(a) Subject to subdivisions (b) and (c), a transfer of a right represented by a judgment excluded from coverage of Division 9 of the Commercial Code by paragraph (9) of subdivision (d) of Section 9109 of the Commercial Code shall be deemed perfected as against third persons upon there being executed and delivered to the transferee an assignment thereof in writing.

(b) As between bona fide assignees of the same right for value without notice, the assignee who first becomes an assignee of record, by filing an acknowledgment of assignment of judgment with the court as provided in Section 673 of the Code of Civil Procedure or otherwise becoming an assignee of record, has priority.

(c) The filing of an acknowledgment of assignment of the judgment with the court under Section 673 of the Code of Civil Procedure is not, of itself, notice to the judgment debtor so as to invalidate any payments made by the judgment debtor that would otherwise be applied to the satisfaction of the judgment.

transfer of judgment writing assignment transfer bona fide assignees priority in assignments assignment of judgment acknowledgment filing court filing priority third party rights judgment debtor payments Section 673 acknowledgment perfection of rights commercial code exclusion

(Amended by Stats. 1999, Ch. 991, Sec. 1.8. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)

Section § 955

In California, if you transfer certain types of nonnegotiable financial documents or sell business-related debts, these transfers are considered "perfected"—or legally recognized—once they're properly endorsed or assigned in writing and given to the new owner. This applies even if the person who owes the debt doesn’t know about the transfer, meaning they’re still safe making payments to the original owner.

A transfer other than one intended to create a security interest (paragraph (1) or (3) of subdivision (a) of Section 9109 of the Commercial Code) of a nonnegotiable instrument which is otherwise negotiable within Division 3 of the Commercial Code but which is not payable to order or to bearer and a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose (paragraph (4) of subdivision (d) of Section 9109 of the Commercial Code) shall be deemed perfected against third persons when such property rights have been endorsed or assigned in writing and in the case of such instruments or chattel paper delivered to the transferee, whether or not notice of such transfer or sale has been given to the obligor; but such endorsement, assignment, or delivery is not, of itself, notice to the obligor so as to invalidate any payments made by the obligor to the transferor.

nonnegotiable instrument endorsed assigned in writing business debt sale chattel paper accounts payment intangibles promissory notes secured transactions transferor transferee perfected transfer property rights obligor Commercial Code Section 9109

(Amended by Stats. 1999, Ch. 991, Sec. 2. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)

Section § 955.1

This law explains how certain financial or payment-related transfers are considered 'perfected,' meaning legally enforceable against others who might also claim rights to them. When you transfer things like payment intangibles or promissory notes, it's enforceable once there’s a written assignment. If you have multiple genuine buyers, the one who first informs the debtor in writing gets priority. However, just having an assignment doesn't mean the debtor knows about it, so any payments they make to the original owner are still valid. This law doesn't cover water supply or recovery properties.

(a) Except as provided in Sections 954.5 and 955 and subject to subdivisions (b) and (c), a transfer other than one intended to create a security interest pursuant to paragraph (1) or (3) of subdivision (a) of Section 9109 of the Commercial Code, of any payment intangible, as defined in Section 9102 of the Commercial Code, and any transfer of accounts, chattel paper, payment intangibles, or promissory notes excluded from the coverage of Division 9 of the Commercial Code by paragraph (4) of subdivision (d) of Section 9109 of the Commercial Code shall be deemed perfected as against third persons upon there being executed and delivered to the transferee an assignment thereof in writing.

(b) As between bona fide assignees of the same right for value without notice, the assignee first giving notice of the right to the obligor in writing has priority.

(c) The assignment is not, of itself, notice to the obligor so as to invalidate any payments made by the obligor to the transferor.

(d) This section does not apply to transfers or assignments of water supply property, as defined in Section 849 of the Public Utilities Code.

(e) This section does not apply to transfers or assignments of recovery property, as defined in Section 848 of the Public Utilities Code.

payment intangibles promissory notes chattel paper written assignment third-party rights bona fide assignee priority notice obligor payments water supply property exclusion recovery property exclusion perfection of transfer Commercial Code Section 9109 transfer of accounts assignment validity

(Amended by Stats. 2014, Ch. 482, Sec. 2. (SB 936) Effective January 1, 2015.)

Section § [953.]

This law defines a 'thing in action' as the legal right to seek money or personal property through a court process.

Section Nine Hundred and Fifty-three. A thing in action is a right to recover money or other personal property by a judicial proceeding.

thing in action right to recover judicial proceeding legal right money recovery personal property court process legal claim financial recovery property rights

(Amended by Code Amendments 1873-74, Ch. 612.)