2010 California Code
Code of Civil Procedure
Article 5. Duties And Liabilities Of Third Persons After Levy

701.010.  (a) Except as otherwise provided by statute, when a levy
is made by service of a copy of the writ of execution and a notice of
levy on a third person, the third person at the time of levy or
promptly thereafter shall comply with this section.
   (b) Unless the third person has good cause for failure or refusal
to do so:
   (1) The third person shall deliver to the levying officer any of
the property levied upon that is in the possession or under the
control of the third person at the time of levy unless the third
person claims the right to possession of the property.
   (2) To the extent that the third person does not deny an
obligation levied upon, or claim a priority over the judgment
creditor's lien, the third person shall pay to the levying officer
both of the following:
   (A) The amount of the obligation levied upon that is due and
payable to the judgment debtor at the time of levy.
   (B) Amounts that become due and payable to the judgment debtor on
the obligation levied upon during the period of the execution lien.
   (3) If the third person makes a delivery or payment to the levying
officer pursuant to this section, the third person shall execute and
deliver any documents necessary to effect the transfer of the
property.
   (c) For the purposes of this section, "good cause" includes, but
is not limited to, a showing that the third person did not know or
have reason to know of the levy from all the facts and circumstances
known to the third person.



701.020.  (a) If a third person is required by this article to
deliver property to the levying officer or to make payments to the
levying officer and the third person fails or refuses without good
cause to do so, the third person is liable to the judgment creditor
for whichever of the following is the lesser amount:
   (1) The value of the judgment debtor's interest in the property or
the amount of the payments required to be made.
   (2) The amount required to satisfy the judgment pursuant to which
the levy is made.
   (b) The third person's liability continues until the earliest of
the following times:
   (1) The time when the property levied upon is delivered to the
levying officer or the payments are made to the levying officer.
   (2) The time when the property levied upon is released pursuant to
Section 699. 060.
   (3) The time when the judgment is satisfied or discharged.
   (c) If the third person's liability is established, the court that
determines the liability may, in its discretion, require the third
person to pay the costs and reasonable attorney's fees incurred by
the judgment creditor in establishing the liability.



701.030.  (a) At the time of service of a copy of the writ of
execution and a notice of levy on a third person, the levying officer
shall request the third person to give the levying officer a
garnishee's memorandum containing the information required by this
section. Within 10 days after the request is made, the third person
shall mail or deliver the garnishee's memorandum to the levying
officer whether or not the levy is effective.
   (b) The garnishee's memorandum shall be executed under oath and
shall contain the following information:
   (1) A description of any property of the judgment debtor sought to
be levied upon that is not delivered to the levying officer and the
reason for not delivering the property.
   (2) A description of any property of the judgment debtor not
sought to be levied upon that is in the possession or under the
control of the third person at the time of levy.
   (3) A statement of the amount and terms of any obligation to the
judgment debtor sought to be levied upon that is due and payable and
is not paid to the levying officer, and the reason for not paying the
obligation.
   (4) A statement of the amount and terms of any obligation to the
judgment debtor sought to be levied upon that is not due and payable
at the time of levy.
   (5) A statement of the amount and terms of any obligation to the
judgment debtor at the time of levy not sought to be levied upon.
   (6) A description of claims and rights of other persons to the
property or obligation levied upon that are known to the third person
and the names and addresses of those other persons.
   (c) If a garnishee's memorandum is received from the third person,
the levying officer shall retain a copy and promptly mail or deliver
a copy of the memorandum to the judgment creditor.
   (d) Except as provided in subdivisions (e) and (f), if a third
person does not give the levying officer a garnishee's memorandum
within the time provided in subdivision (a), or does not provide
complete information, the third person may, in the court's
discretion, be required to pay the costs and reasonable attorney's
fees incurred in any proceedings to obtain the information required
in the garnishee's memorandum.
   (e) Notwithstanding subdivision (a), when the levy is made upon a
deposit account or upon property in a safe deposit box, the financial
institution need not give a garnishee's memorandum to the levying
officer if the financial institution fully complies with the levy
and, if a garnishee's memorandum is required, the garnishee's
memorandum needs to provide information with respect only to property
that is carried on the records available at the office or branch
where the levy is made.
   (f) Notwithstanding subdivision (a), the third person need not
give a garnishee's memorandum to the levying officer if both of the
following conditions are satisfied:
   (1) The third person has delivered to the levying officer all of
the property sought to be levied upon.
   (2) The third person has paid to the levying officer the amount
due at the time of levy on any obligation to the judgment debtor that
was levied upon, and there is no additional amount that thereafter
will become payable on the obligation levied upon.
   (g) The garnishee may electronically transmit the garnishee's
memorandum to the levying officer pursuant to Chapter 2 (commencing
with Section 263) of Title 4 of Part 1.



701.035.  A third person who gives a garnishee's memorandum pursuant
to this title is not liable to any person for the disclosure in the
garnishee's memorandum of any information contained in the garnishee'
s memorandum.


701.040.  (a) Except as otherwise ordered by the court upon a
determination that the judgment creditor's lien has priority over the
security interest, if property levied upon is subject to a security
interest that attached prior to levy, the property or obligation is
subject to enforcement of the security interest without regard to the
levy unless the property is in the custody of the levying officer;
but, if the execution lien has priority over the security interest,
the secured party is liable to the judgment creditor for any proceeds
received by the secured party from the property to the extent of the
execution lien.
   (b) After the security interest is satisfied, the secured party
shall deliver any excess property, and pay any excess payments or
proceeds of property, remaining in the possession of the secured
party to the levying officer for the purposes of the levy, as
provided in Section 9615 of the Commercial Code, unless otherwise
ordered by the court or directed by the levying officer.



701.050.  After service of a copy of the writ of execution and a
notice of levy on an account debtor obligated on an account
receivable, chattel paper, or general intangible:
   (a) If the account debtor has been making payments or is required
to make payments to the judgment debtor, the account debtor shall
make payments to the levying officer as they become due unless
otherwise directed by court order or by the levying officer. Payments
made to the judgment debtor after the account debtor has received
notice of the levy do not discharge the obligation of the account
debtor to make payments as required by this subdivision.
   (b) If the account debtor has been making payments to a third
person or is required to make payments to a third person (whether
pursuant to a security agreement, assignment for collection, or
otherwise), the account debtor shall continue to make such payments
to the third person notwithstanding the levy until the account debtor
receives notice that the obligation to the third person is satisfied
or is otherwise directed by court order or by the third person.
After the account debtor receives notice that the obligation to the
third person is satisfied, the account debtor shall make payments to
the levying officer as they become due unless otherwise directed by
court order or by the levying officer.
   (c) If pursuant to a security agreement the judgment debtor has
liberty to accept the return of goods or make repossessions under the
account receivable or chattel paper, the account debtor shall
deliver to the levying officer property returnable to the judgment
debtor unless otherwise directed by court order or by the levying
officer.



701.060.  If the levying officer obtains custody of an instrument
levied upon and serves the obligor under the instrument pursuant to
the levy, the obligor shall make payments to the levying officer as
they become due. Payments made to a person other than the levying
officer do not discharge the obligation of the obligor to make
payments as required by this section if the payments are made after
the obligor has received notice of the levy.



701.070.  If a final money judgment has been levied upon and the
levying officer has served the judgment debtor under the final money
judgment levied upon, the judgment debtor shall make any payments due
under the judgment to the levying officer. Payments made to a person
other than the levying officer do not discharge the obligation of
the judgment debtor under the final money judgment levied upon if the
payments are made after the judgment debtor has received notice of
the levy.