§ 720.240.Service On Creditor; Time For Objecting to Undertaking Or Filing Undertaking

Title 9. Enforcement of Judgments · Division 4 · Chapter 3. Third-Party Claim of Security Interest or Lien · Enacted 1982 · no amendments on record · Last verified July 28, 2026

In one sentenceSection 720.240 gives the levying officer five days after a lienholder's claim is filed to serve the creditor with a copy and notice of the creditor's options, then gives the creditor ten days to object to an undertaking, post its own, or make a deposit, with the debtor served the same papers on the same schedule.

Full Text of § 720.240

Text sizeJump to: (a) (b) (c) (d)

(a) Not later than five days after the third-party claim is filed with the levying officer, the levying officer shall serve the following personally or by mail on the creditor:

(1) A copy of the third-party claim.

(2) A statement whether the third person has filed an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610).

(3) If the third person has filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor objects to the undertaking.

(4) If the third person has not filed an undertaking to release the property, a notice that the property will be released unless, within the time allowed as specified in the notice, the creditor does one of the following:

(A) Files with the levying officer an undertaking that satisfies the requirements of Section 720.260 and a statement under Section 720.280.

(B) Deposits with the levying officer the amount claimed plus interest at the applicable rate to the estimated date of tender to the secured party or lienholder.

(b) The time allowed the creditor for objecting to the third person's undertaking to release the property or for filing an undertaking and statement or making a deposit pursuant to subdivision (a) is 10 days after service under subdivision (a).

(c) Within the time allowed for service on the creditor under subdivision (a), the levying officer shall serve a copy of the papers specified in subdivision (a) on the debtor. Service shall be made personally or by mail.

(d) The levying officer may serve the copy of the third-party claim and the statement and notice pursuant to this section notwithstanding any defect, informality, or insufficiency of the claim.

End

Plain-English Summary

This section builds the timeline that drives the rest of Chapter 3. Within five days of the claim being filed, the levying officer has to serve the creditor with a copy of the claim and a notice explaining what happens next -- whether the third person has already filed an undertaking to release the property under Chapter 6 (§ 720.610), and if so, that the property will be released unless the creditor objects within the time allowed.

If no release undertaking has been filed, the notice instead tells the creditor that the property will be released unless the creditor, within the same window, either files an undertaking meeting § 720.260's requirements along with the statement § 720.280 requires, or deposits the amount claimed plus interest with the levying officer. Subdivision (b) sets that window at ten days after service.

The debtor doesn't get left out of the loop. Subdivision (c) requires the levying officer to serve the same papers on the debtor within the same time allowed for serving the creditor. And subdivision (d) makes clear that a defect, informality, or insufficiency in the claim doesn't stop the officer from serving it -- those problems get sorted out later, not at the mailing stage.

Frequently Asked Questions

How quickly must the levying officer notify the creditor of a lienholder's claim?

Not later than five days after the third-party claim is filed, under § 720.240(a).

How long does the creditor have to respond?

Ten days after service of the claim and notice, to either object to an undertaking already filed by the third person, or file its own undertaking and statement, or make a deposit.

Does the debtor get notice of the claim too?

Yes. Section 720.240(c) requires the levying officer to serve the debtor with the same papers within the same time allowed for serving the creditor.

Can a technical defect in the claim stop the levying officer from serving it?

No. Section 720.240(d) lets the officer serve the claim, statement, and notice regardless of any defect, informality, or insufficiency in the claim.

Amendment History

Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.

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

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