§ 697.730.Tangible Personal Property Subject to Lien

Title 9. Enforcement of Judgments · Division 2 · Chapter 2. Liens · Article 4. Execution Lien · Last amended 2001 · Last verified July 28, 2026

In one sentenceSection 697.730 keeps tangible personal property in a levying officer's custody subject to the execution lien even after it's transferred or encumbered, except that a buyer or lessee in the ordinary course of business takes the property free of the lien when a keeper has been placed in charge of a levied-on going business.

Full Text of § 697.730

Text sizeJump to: (a) (b)

(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.

End

Plain-English Summary

Tangible personal property that's been taken into a levying officer's custody carries the same continuing-lien rule as real property under § 697.720 — a transfer or encumbrance of that property doesn't free it from the execution lien.

The exception applies to a specific enforcement method: when a levying officer levies on a going business by placing a keeper in charge, rather than physically removing the inventory, ordinary commerce needs to keep functioning. So a buyer or lessee in the ordinary course of business who deals with that business takes the property free of the execution lien, using the same ordinary-course definitions the Commercial Code applies to security interests under §§ 9320 and 9321.

Frequently Asked Questions

Does an execution lien on personal property survive a sale of that property?

Generally yes, if the property is in a levying officer's custody, unless the sale falls within the keeper exception in § 697.730(b).

What is the keeper exception?

When a levying officer levies on a going business by placing a keeper in charge rather than removing the property, a buyer or lessee in the ordinary course of that business takes free of the execution lien.

Does this section apply to property not in the levying officer's custody?

No, that situation is governed by § 697.740 instead.

Amendment History

EFFECTIVE 7/1/2001. Amended October 10, 1999 (Bill Number: SB 45) (Chapter 991).

Source & verification. Section text is reproduced verbatim from the California Legislative Information. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

Also known as: execution lien keeper going business californialevy on tangible personal property lien survives sale