Third-party Claims and Related ProceduresThird-party Undertaking to Release Property

Section § 720.610

Explanation

This law section says that if someone other than the debtor wants to claim ownership or rights to property that a court has seized (or levied), they can post a bond. This applies if they claim ownership or possession of real estate, personal belongings, or have a lien or security interest on personal property that the court has seized.

A third person may give an undertaking to release property pursuant to this chapter in the following cases:
(a)CA Civil Procedure Code § 720.610(a) Where the third person claims ownership or the right to possession of real property that has been levied upon under a writ of attachment or a writ of execution.
(b)CA Civil Procedure Code § 720.610(b) Where the third person claims ownership or the right to possession of personal property that has been levied upon under a writ of attachment, a writ of execution, or a writ of sale.
(c)CA Civil Procedure Code § 720.610(c) Where the third person claims a security interest in or a lien on personal property that has been levied upon under a writ of attachment, a writ of execution, or a writ of sale.
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Section § 720.620

Explanation

If a third party wants to claim ownership of property that has been seized to pay off a debtor’s liabilities, they need to file a document called an 'undertaking' with the officer handling the seizure. This must be done when they initially make their claim, or before the officer sells the property, gives it to the creditor, or hands over any money made from selling it.

The third person shall file the undertaking to release property with the levying officer, together with two copies of the undertaking:
(a)CA Civil Procedure Code § 720.620(a) At the time the third person files a third-party claim pursuant to Chapter 2 (commencing with Section 720.110) or Chapter 3 (commencing with Section 720.210).
(b)CA Civil Procedure Code § 720.620(b) If the third person has previously filed a third-party claim to the property, at any time before the levying officer does any of the following:
(1)CA Civil Procedure Code § 720.620(b)(1) Sells the property.
(2)CA Civil Procedure Code § 720.620(b)(2) Delivers possession of the property to the creditor.
(3)CA Civil Procedure Code § 720.620(b)(3) Pays proceeds of collection to the creditor.
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Section § 720.630

Explanation

This law outlines the process for releasing property that a third person claims. It requires a document (called an undertaking) that describes the property and the third person’s interest in it. The third person must agree to pay the creditor if the court decides the debtor has an interest in the property. The payment would be the lesser of the judgment amount or the property's market value. The required amount of the undertaking is generally double the property's value or the lien amount, unless there's a prior undertaking by the creditor or the third person chooses a larger amount.

(a)CA Civil Procedure Code § 720.630(a) The undertaking to release property shall contain a description of the property to be released and shall describe the interest of the third person.
(b)CA Civil Procedure Code § 720.630(b) The undertaking shall be made in favor of the creditor and shall provide that, if the debtor is finally adjudged to have an interest in the property levied upon, the third person shall pay to the creditor the lesser of the following:
(1)CA Civil Procedure Code § 720.630(b)(1) The amount required to satisfy the judgment against the debtor of the creditor who had the lien on the property.
(2)CA Civil Procedure Code § 720.630(b)(2) A sum equal to the market value of the debtor’s interest in the property levied upon.
(c)CA Civil Procedure Code § 720.630(c) Except as provided in subdivision (d) and unless the third person elects to file an undertaking in a larger amount, the amount of the undertaking shall be the lesser of the following amounts:
(1)CA Civil Procedure Code § 720.630(c)(1) Twice the market value of the property sought to be released.
(2)CA Civil Procedure Code § 720.630(c)(2) Twice the amount of the creditor’s lien on the property sought to be released.
(d)CA Civil Procedure Code § 720.630(d) If the creditor has given an undertaking in response to the third person’s claim regarding the property pursuant to Section 720.160 or 720.260, the third person’s undertaking shall be in the amount of the creditor’s undertaking.
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Section § 720.640

Explanation

This section explains what happens when a third-party makes a claim on seized property. If someone wants to release the property, they file something called an 'undertaking' with the officer in charge. When this happens, the officer must inform both the creditor (who's owed money) and the debtor (who owes money), and give them details of the third-party claim. If the undertaking is filed after the claim, the officer must inform both parties within five days and tell them the property will be released unless the creditor objects in a specified timeframe. Notice can be given in person or by mail.

(a)CA Civil Procedure Code § 720.640(a) If the undertaking to release property is filed with the levying officer at the time the third-party claim is filed, the levying officer shall serve a copy of the undertaking on the creditor and on the debtor with the notice of the filing of the third-party claim served pursuant to Section 720.140 or 720.240.
(b)CA Civil Procedure Code § 720.640(b) If the undertaking to release property is filed with the levying officer after the third-party claim is filed, not later than five days after the undertaking is filed, the levying officer shall serve a copy of the undertaking on the creditor and on the debtor with a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor objects to the undertaking. Service shall be made personally or by mail.
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Section § 720.650

Explanation
This law states that when a third party's promise or agreement is involved, it only takes effect once the property mentioned in it is officially released according to the rules in this chapter.
The third person’s undertaking becomes effective when the property described therein is released pursuant to this chapter.
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Section § 720.660

Explanation

After a set period for objections, a levying officer must return property listed in a third party's claim, unless the creditor objects and submits a notice before the deadline.

The levying officer shall release the property described in the third person’s undertaking in the manner provided by Section 720.170 promptly after the expiration of the time allowed for objecting to the undertaking, unless the creditor has objected to the undertaking, and filed with the levying officer a copy of the notice of motion as required by Section 720.760, prior to the expiration of that time.
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