SECTIONS 697.710-697.750 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 697.710-697.750

697.710. 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.

697.720. 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.

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) 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) 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) 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.

697.740. 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) 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) 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) 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) 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) A holder to whom a negotiable document of title has been duly
negotiated within the meaning of Section 7501 of the Commercial Code.
(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) 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) A holder of a purchase money security interest (as defined in
Section 9103 of the Commercial Code).
(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) A person who acquires any right or interest in letters of
credit, advices of credit, or money.
(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.

697.750. 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.