Unless otherwise provided by statute, where a levy is made by serving a copy of the execution letter and a notice of levy on a third person, the third person shall comply with Article 5 ‘ Duties and Liabilities of Third Persons Upon Levy ‘ at the time of levy or promptly afterwards.
Unless the Third Person Is Justified in Failing or Refusing to Do So:
- The third person shall, at the time of the levy, give to the levying officer any estate in the possession or control of the third person, unless the third person claims the right to own the property.
- The third person shall pay to the levying officer both of the following: to the degree that the third person does not dispute the duty levied or assert priority over the lien of the judgment creditor:
- If, pursuant to Section 701.010 of Code of Civil Procedure of California, the third party makes a delivery or payment to the levying officer, the third party shall execute and supply any documents necessary for the transfer of the property.
If, under Section 701.020 of Code of Civil Procedure of California, a third person is required to deliver property to the levying officer or to make payments to the levying officer and the third person fails or refuses to do so without good reason, the third person shall be liable to the lender of the judgment for the lesser amount of whichever of the following:
- The value of the debtor’s interest in the property or the amount of the payments.
- The amount required to comply with the judgment under which the charge is assessed.
The Responsibility of the Third Person Continues Until the Earliest of the Following Times:
- The date when the levied property is submitted to the levying officer or payments are made to the levying officer.
- The time of release of the property levied in accordance with Section 699.060.
- The time of the satisfaction or discharge of the judgment.
Also, according to the Law except otherwise ordered by a court on the decision that the lien of the judgment creditor takes precedence over the security interest, where the property levied is subject to a security interest attached prior to the levy, the property or duty shall be subject to enforcement of the security interest without regard to the levy, unless the property is in the custody of the levying officer; however, where appropriate.
If the levying officer is granted custody for an instrument levied and serves the obligor in compliance with the levy under the instrument, the obligor shall make fees to the levying officer as they become due. Fees paid to a person apart from the levying officer do not fulfill the obligor’s obligation to make payments as required by this section if payments are made after notification of the levy has been received by the obligor.