Section § 720.210

Explanation

If someone else's personal property has been seized because of a debt, someone who has a stronger claim, like a security interest or lien on that property, can file a claim to protect their rights. This also applies to fixtures, which are things attached to buildings, if they have a stronger claim to those too.

(a)CA Civil Procedure Code § 720.210(a) Where personal property has been levied upon under a writ of attachment, a writ of execution, a prejudgment or postjudgment writ of possession, or a writ of sale, a third person claiming a security interest in or lien on the personal property may make a third-party claim under this chapter if the security interest or lien claimed is superior to the creditor’s lien on the property.
(b)CA Civil Procedure Code § 720.210(b)A secured party claiming a security interest in fixtures may make a third-party claim pursuant to this chapter if the security interest claimed is superior to the creditor’s lien on the property. For this purpose, references in this division to “personal property” shall be deemed references to fixtures.

Section § 720.220

Explanation

If you want to claim personal property that someone else has seized, you need to notify the officer who took it, filing your claim before they sell it, hand it over to the creditor, or give the money to the creditor.

A person making a third-party claim under this chapter shall file the claim with the levying officer, together with two copies of the claim, after levy on the personal property but before the levying officer does any of the following:
(a)CA Civil Procedure Code § 720.220(a) Sells the property.
(b)CA Civil Procedure Code § 720.220(b) Delivers possession of the property to the creditor.
(c)CA Civil Procedure Code § 720.220(c) Pays proceeds of collection to the creditor.

Section § 720.230

Explanation

If you're claiming a right to someone's property because you have a security interest or lien, you must file it formally. This claim must be sworn to under oath and include key details like the name and address of the secured party, a description of the property, the specifics of your security interest or lien with facts supporting it, and the total amount owed. Also, you need to attach any supporting documents, such as a security agreement or lien writing, to the claim. If you don't attach these documents, the court might not consider them during a hearing.

(a)CA Civil Procedure Code § 720.230(a) The third-party claim shall be executed under oath and shall contain all of the following:
(1)CA Civil Procedure Code § 720.230(a)(1) The name of the secured party or lienholder and an address in this state where service by mail may be made on the secured party or lienholder.
(2)CA Civil Procedure Code § 720.230(a)(2) A description of the personal property in which a security interest or lien is claimed.
(3)CA Civil Procedure Code § 720.230(a)(3) A detailed description of the security interest or lien claimed, including a statement of the facts upon which it is based.
(4)CA Civil Procedure Code § 720.230(a)(4) A statement of the total amount of sums due or to accrue under the security interest or lien and the applicable rate of interest on amounts due.
(b)CA Civil Procedure Code § 720.230(b) In the case of a security interest, a copy of the security agreement and any financing statement shall be attached to the third-party claim. In the case of a lien, a copy of any writing upon which the claim is based shall be attached to the third-party claim. At a hearing on the third-party claim, the court in its discretion may exclude from evidence any writing a copy of which was not attached to the third-party claim.

Section § 720.240

Explanation

This section explains the steps a levying officer must take when a third-party claim is filed on levied property. Within five days, they must inform the creditor about the claim, whether the third party has posted a bond to release the property, and the creditor's options to object. If the third party hasn't posted a bond, the creditor can submit their own bond or deposit the claimed amount with interest. The creditor has ten days to respond. The levying officer also has to inform the debtor and can do so even if there are minor issues with the claim paperwork.

(a)CA Civil Procedure Code § 720.240(a) Not later than five days after the third-party claim is filed with the levying officer, the levying officer shall serve the following personally or by mail on the creditor:
(1)CA Civil Procedure Code § 720.240(a)(1) A copy of the third-party claim.
(2)CA Civil Procedure Code § 720.240(a)(2) A statement whether the third person has filed an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).
(3)CA Civil Procedure Code § 720.240(a)(3) If the third person has filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor objects to the undertaking.
(4)CA Civil Procedure Code § 720.240(a)(4) If the third person has not filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor does one of the following:
(A)CA Civil Procedure Code § 720.240(a)(4)(A) Files with the levying officer an undertaking that satisfies the requirements of Section 720.260 and a statement under Section 720.280.
(B)CA Civil Procedure Code § 720.240(a)(4)(B) Deposits with the levying officer the amount claimed plus interest at the applicable rate to the estimated date of tender to the secured party or lienholder.
(b)CA Civil Procedure Code § 720.240(b) The time allowed the creditor for objecting to the third person’s undertaking to release the property or for filing an undertaking and statement or making a deposit pursuant to subdivision (a) is 10 days after service under subdivision (a).
(c)CA Civil Procedure Code § 720.240(c) Within the time allowed for service on the creditor under subdivision (a), the levying officer shall serve a copy of the papers specified in subdivision (a) on the debtor. Service shall be made personally or by mail.
(d)CA Civil Procedure Code § 720.240(d) The levying officer may serve the copy of the third-party claim and the statement and notice pursuant to this section notwithstanding any defect, informality, or insufficiency of the claim.

Section § 720.250

Explanation

If someone files a claim on property that's been seized because they have a security interest or lien, the officer in charge can't sell the property, give it to the creditor, or pay the creditor with any money made from it. Also, even if the person with the security interest or lien doesn't file a claim, their interest in the property isn't affected.

(a)CA Civil Procedure Code § 720.250(a) Except as otherwise provided by statute, if a third-party claim is timely filed, the levying officer may not do any of the following with respect to the personal property in which the security interest or lien is claimed:
(1)CA Civil Procedure Code § 720.250(a)(1) Sell the property.
(2)CA Civil Procedure Code § 720.250(a)(2) Deliver possession of the property to the creditor.
(3)CA Civil Procedure Code § 720.250(a)(3) Pay proceeds of collection to the creditor.
(b)CA Civil Procedure Code § 720.250(b) The interest of a secured party or lienholder in the property levied upon is not affected by the failure of the secured party or lienholder to file a third-party claim under this chapter.

Section § 720.260

Explanation

This section discusses the procedures a creditor must follow to move ahead with enforcing a court order when a third party has a claim on the property. The creditor can either give a guarantee (called an undertaking) or deposit money with the officer taking action. If they do this, the officer will carry out the writ. After the property is handled, it's free from claims by the original lienholder. The undertaking must be for $10,000 or slightly more, depending on the situation. It protects the original lienholder from losses if their claim ends up having priority. If the creditor is a government entity, they can file a notice instead of a financial guarantee to oppose the third party's claim.

(a)CA Civil Procedure Code § 720.260(a) If the creditor within the time allowed under subdivision (b) of Section 720.240 either files with the levying officer an undertaking that satisfies the requirements of this section and a statement that satisfies the requirements of Section 720.280 or makes a deposit with the levying officer of the amount claimed under Section 720.230:
(1)CA Civil Procedure Code § 720.260(a)(1) The levying officer shall execute the writ in the manner provided by law unless, in a case where the creditor has filed an undertaking, the secured party or lienholder files an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).
(2)CA Civil Procedure Code § 720.260(a)(2) After sale, payment, or delivery of the property pursuant to the writ, the property is free of all claims or liens of the secured party or lienholder for which the creditor has given the undertaking or made the deposit.
(b)CA Civil Procedure Code § 720.260(b) Subject to Sections 720.770 and 996.010, unless the creditor elects to file an undertaking in a larger amount, the amount of the undertaking filed by the creditor under this section shall be in the amount of ten thousand dollars ($10,000) or twice the amount of the execution lien as of the date of levy or other enforcement lien as of the date it was created, whichever is the lesser amount.
(c)CA Civil Procedure Code § 720.260(c) An undertaking given by the creditor under this chapter shall:
(1)CA Civil Procedure Code § 720.260(c)(1) Be made in favor of the secured party or lienholder.
(2)CA Civil Procedure Code § 720.260(c)(2) Indemnify the secured party or lienholder against any loss, liability, damages, costs, and attorney’s fees, incurred by reason of the enforcement proceedings.
(3)CA Civil Procedure Code § 720.260(c)(3) Be conditioned on a final judgment that the security interest or lien of the third person is entitled to priority over the creditor’s lien.
(d)CA Civil Procedure Code § 720.260(d) If the creditor is a public entity exempt from giving an undertaking, the public entity shall, in lieu of filing the undertaking, file with the levying officer a notice stating that the public entity opposes the claim of the third person. When so filed, the notice is deemed to satisfy the requirement of this section that an undertaking be filed.

Section § 720.270

Explanation

If someone or an entity has a claim on property being seized by a levying officer, they need to take action to either support their claim with a proper undertaking or deposit the claimed amount. If the creditor fails to do this within a certain timeframe, the officer will release the property unless there are other court orders or liens. Property released back to a debtor needs to be claimed promptly, or it could go to another party making a claim. Even if the property is released, disputes involving third parties can still be heard in court.

(a)CA Civil Procedure Code § 720.270(a) In a case where the third person has not filed with the levying officer an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610), if the creditor does not within the time allowed under subdivision (b) of Section 720.240 file with the levying officer an undertaking (or file a notice if the creditor is a public entity) that satisfies the requirements of Section 720.260 and a statement under Section 720.280, or deposit with the levying officer the amount claimed under Section 720.230, the levying officer shall release the personal property unless it is to be held under another lien or unless otherwise ordered by the court.
(b)CA Civil Procedure Code § 720.270(b) Except as otherwise provided in this section, release is governed by Section 699.060.
(c)CA Civil Procedure Code § 720.270(c) If property that has been taken into custody is to be released to the debtor pursuant to Section 699.060 and the debtor has not claimed the property within 10 days after notice was served pursuant to Section 699.060, the levying officer shall release the property to the secured party or lienholder making the claim.
(d)CA Civil Procedure Code § 720.270(d) A hearing may be had on the third-party claim pursuant to Chapter 4 (commencing with Section 720.310) notwithstanding the release of the property pursuant to this section.

Section § 720.280

Explanation

If a creditor wants to challenge a secured party's claim on a debtor's property, they must first file a document with the officer in charge, declaring under oath why the secured party's claim is invalid or why it shouldn't take priority over their own. They also have to send this document to both the secured party and the debtor, either in person or by mail.

At the time the creditor files an undertaking with the levying officer in response to a third-party claim by a secured party, the creditor shall do all of the following:
(a)CA Civil Procedure Code § 720.280(a) File with the levying officer a statement executed under oath that the security interest is invalid, that the security interest is not entitled to priority over the creditor’s lien, or that the amount demanded in the claim exceeds the amount to which the secured party is entitled, for the reasons specified therein.
(b)CA Civil Procedure Code § 720.280(b) Serve a copy of the statement on the secured party. Service shall be made personally or by mail.
(c)CA Civil Procedure Code § 720.280(c) Serve a copy of the statement on the debtor. Service shall be made personally or by mail.

Section § 720.290

Explanation

This law section explains what happens when a creditor deposits money with a court officer (levying officer) to cover a third-party claim on property. If the deposit is enough, and the creditor has used a valid payment method, the officer gives the money to the secured party or lienholder, unless the check has not cleared yet. If the secured party or lienholder accepts this money, their interest in the property passes to the creditor, who then gains rights to proceeds from the property sale. If the money is refused, the deposit is sent to the county treasurer for the benefit of the lienholder or secured party.

(a)CA Civil Procedure Code § 720.290(a) If the levying officer receives a sufficient deposit from the creditor, the levying officer shall promptly tender or pay the deposit to the secured party or lienholder who made the third-party claim except that, if the deposit is made by personal check, the levying officer is allowed a reasonable time for the check to clear.
(b)CA Civil Procedure Code § 720.290(b) If the tender is accepted, the interest of the secured party or lienholder in the property for which deposit is made passes to the creditor making the deposit and, on distribution of any proceeds under Section 701.810, the creditor who makes the deposit shall be entitled to the proceeds to the extent of the deposit in the priority of the interest for which the deposit is made.
(c)CA Civil Procedure Code § 720.290(c) If the tender is refused, the amount of the deposit shall be deposited with the county treasurer payable to the order of the secured party or lienholder.