Code of Civil Procedure section 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.

Source: Section 697.730, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=CCP§ionNum=697.­730.­ (updated Jan. 1, 2000; accessed Nov. 3, 2025).

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Verified:
Nov. 3, 2025

§ 697.730's source at ca​.gov