Title 9. Enforcement of Judgments · Division 2 · Chapter 2. Liens · Article 1. General Provisions · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 697.040 extinguishes existing liens and blocks new ones under this division while enforcement of the judgment is stayed on appeal by an adequate undertaking or stayed under §§ 1699 or 1710.50, but shields real property judgment liens and personal property judgment liens from a stay granted under § 918 unless the court orders otherwise.
(a)If enforcement of the judgment is stayed on appeal by the giving of a sufficient undertaking under Chapter 2 (commencing with Section 916) of Title 13:
(1)Existing liens created under this division are extinguished.
(2)New liens may not be created under this division during the period of the stay.
(b)Unless the court otherwise expressly orders, a stay of enforcement of the judgment under Section 918 does not extinguish or prevent the creation of a lien under Article 2 (commencing with Section 697.310) or Article 3 (commencing with Section 697.510); but, unless the court otherwise expressly orders, no other liens may be created or continued under this division during the period of the stay of enforcement.
(c)Unless the court expressly orders otherwise, if enforcement of the judgment is stayed pursuant to Section 1699 or 1710.50:
(1)Existing liens created under this division are extinguished.
(2)New liens may not be created under this division during the period of the stay.
Plain-English Summary
A stay of enforcement is supposed to pause collection efforts, and § 697.040 spells out what that pause does to liens already in place, or that a creditor might otherwise create. The rule differs depending on which kind of stay is involved.
Subdivision (a) covers the strongest kind of stay -- an appeal stayed by a sufficient undertaking under Chapter 2 (commencing with Section 916) of Title 13. That stay extinguishes existing liens created under this division outright, and blocks any new ones from being created while the stay lasts. Subdivision (c) treats a stay under § 1699 or § 1710.50 the same way, unless the court expressly orders otherwise.
Subdivision (b) is more forgiving toward a stay obtained under § 918. That kind of stay doesn't extinguish or prevent the creation of a judgment lien on real property under Article 2 (commencing with § 697.310) or a judgment lien on personal property under Article 3 (commencing with § 697.510), unless the court expressly orders otherwise. It does, however, block other liens under this division from being created or continued during the stay, again absent a contrary court order.
Frequently Asked Questions
Does a stay of enforcement wipe out an existing lien?
It depends on the type of stay. A stay by sufficient undertaking under Chapter 2 (commencing with Section 916) of Title 13, or a stay under § 1699 or § 1710.50, extinguishes existing liens under this division unless the court orders otherwise for the latter two.
Are judgment liens on real or personal property protected from a stay?
Under § 918, generally yes -- subdivision (b) shields real property judgment liens under Article 2 and personal property judgment liens under Article 3 from extinguishment unless the court expressly orders otherwise.
Can new liens be created while a stay is in effect?
Generally no, except that a § 918 stay does not by itself block creating judgment liens on real or personal property under Articles 2 and 3, unless the court orders otherwise.
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 Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as:stay of enforcement effect on lien californiadoes appeal stay a judgment lien california