A levy on property under a writ of execution creates an execution lien on the property from the time of levy until the expiration of two years after the date of issuance of the writ unless the judgment is sooner satisfied.
LiensExecution Lien
Section § 697.710
When creditors enforce a court judgment by seizing property, they create a lien, or financial claim, on that property. This lien lasts for up to two years unless the debt is paid off earlier.
execution lien property levy writ of execution
Section § 697.720
If someone's property has a lien (a legal claim due to debt), and they decide to sell or borrow against it, the lien stays attached to the property even after it's sold or used as collateral.
Subject to Section 701.630, if an interest in real property subject to an execution lien is transferred or encumbered, the interest transferred or encumbered remains subject to the lien after the transfer or encumbrance.
execution lien real property transfer
Section § 697.730
This law discusses what happens when tangible personal property is subject to an execution lien – a type of legal claim on the property – and is under the control of a levying officer. Generally, the property stays subject to the lien even if transferred or encumbered (e.g., used as collateral for a loan). However, there is an exception: if the levying officer has placed a keeper in charge of a business's property, making a purchase or lease from that business can mean taking the property free of the lien. This is true for buyers or lessees in the regular course of business who meet specific definitions and conditions under the Commercial Code, indicating they can take property without the seller or lessor's prior security interests.
(a)CA Civil Procedure Code § 697.730(a) Subject to Section 701.630 and except as provided in subdivision (b), if tangible personal property subject to an execution lien is in the custody of a levying officer and is transferred or encumbered, the property remains subject to the lien after the transfer or encumbrance.
(b)CA Civil Procedure Code § 697.730(b) If a levy upon tangible personal property of a going business is made by the levying officer placing a keeper in charge of the business, a purchaser or lessee
of property subject to the execution lien takes the property free of the execution lien if the purchaser or lessee is one of the following:
(1)CA Civil Procedure Code § 697.730(b)(1) A buyer in ordinary course of business (as defined in Section 1201 of the Commercial Code) who, under Section 9320 of the Commercial Code, would take free of a security interest created by his or her seller.
(2)CA Civil Procedure Code § 697.730(b)(2) A lessee in ordinary course of business (as defined in paragraph (15) of subdivision (a) of Section 10103 of the Commercial Code) who, under Section 9321 of the Commercial Code, would take free of a security interest created by the lessor.
execution lien tangible personal property levying officer
Section § 697.740
This law explains that if personal property is under a lien from a court order but isn't in the possession of the officer enforcing that order, it generally stays under that lien even if it's transferred or has a claim put on it by someone else. However, exceptions exist for people who acquire the property in good faith and under certain conditions, such as for fair value without knowing about the lien or as part of regular business activities. These exceptions include buyers or lessees in the ordinary course of business, holders of negotiable instruments or documents, protected purchasers of securities, and banks with certain interests.
Except as provided in Sections 9617 and 9622 of the Commercial Code and in Section 701.630, if personal property subject to an execution lien is not in the custody of a levying officer and the property is transferred or encumbered, the property remains subject to the lien after the transfer or encumbrance except where the transfer or encumbrance is made to one of the following persons:
(a)CA Civil Procedure Code § 697.740(a) A person who acquires an interest in the property under the law of this
state for reasonably equivalent value without knowledge of the lien. For purposes of this subdivision, value is given for a transfer or encumbrance if, in exchange for the transfer or encumbrance, property is transferred or an antecedent debt is secured or satisfied.
(b)CA Civil Procedure Code § 697.740(b) A buyer in ordinary course of business (as defined in Section 1201 of the Commercial Code) who, under Section 9320 of the Commercial Code, would take free of a security interest created by the seller or encumbrancer.
(c)CA Civil Procedure Code § 697.740(c) A lessee in ordinary course of business (as defined in paragraph (15) of subdivision (a) of Section 10103 of the Commercial Code) or a licensee in the ordinary course of business (as defined in subdivision (a) of Section 9321 of the Commercial Code) who, under Section 9321 of the Commercial Code, would take free of a security interest created by the lessor or the licensor.
(d)CA Civil Procedure Code § 697.740(d) A holder in due course (as defined in Section 3302 of the Commercial Code) of a negotiable instrument within the meaning of Section 3104 of the Commercial Code.
(e)CA Civil Procedure Code § 697.740(e) A holder to whom a negotiable document of title has been duly negotiated within the meaning of Section 7501 of the Commercial Code.
(f)CA Civil Procedure Code § 697.740(f) A protected purchaser (as defined in Section 8303 of the Commercial Code) of a security or a person entitled to the benefits of Section 8502 or 8510 of the Commercial Code.
(g)CA Civil Procedure Code § 697.740(g) A purchaser of chattel paper who gives new value and takes possession of the chattel paper in good faith and in the ordinary course of the purchaser’s business or a purchaser of an instrument who gives value and takes possession of the instrument in good faith.
(h)CA Civil Procedure Code § 697.740(h) A holder of a purchase money security interest (as defined in Section 9103 of the Commercial Code).
(i)CA Civil Procedure Code § 697.740(i) A collecting bank holding a security interest in items being collected, accompanying documents and proceeds, pursuant to Section 4210 of the Commercial Code.
(j)CA Civil Procedure Code § 697.740(j) A person who acquires any right or interest in letters of credit, advices of credit, or money.
(k)CA Civil Procedure Code § 697.740(k) A person who acquires any right or interest in property subject to a certificate of title statute of another jurisdiction under the law of which indication of a security interest on the certificate of title is required as a condition of perfection of the security interest.
execution lien property transfer encumbrance
Section § 697.750
This law states that even if growing crops, timber set to be cut, or minerals like oil and gas that need extracting are transferred or used as security for a debt, they are still subject to any existing court-ordered liens (claims) until the debt is resolved. There are some exceptions mentioned in other specific sections of the law.
Notwithstanding Section 697.740, except as provided in Section 9617 of the Commercial Code and in Section 701.630, if (1) growing crops, (2) timber to be cut, or (3) minerals or the like (including oil or gas) to be extracted or accounts receivable resulting from the sale thereof at wellhead or minehead are subject to an execution lien and are transferred or encumbered, the property remains subject to the execution lien after the transfer or encumbrance.
execution lien growing crops timber to be cut
