(a) Unless another method of levy is provided by this article, to levy upon tangible personal property in the possession or under the control of a third person, the levying officer shall personally serve a copy of the writ of execution and a notice of levy on the third person.
§ 700.040.Levy Upon Tangible Personal Property Under Control of Third Person
Title 9. Enforcement of Judgments · Division 2 · Chapter 3. Execution · Article 4. Methods of Levy · Enacted 1982 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 700.040 levies on tangible personal property held by a third person through personal service of the writ and notice of levy on that third person, unless the goods are in a bailee's possession, in which case § 700.060 or § 700.120 governs instead.
Full Text of § 700.040
(b) If goods are in the possession of a bailee who has issued a negotiable document of title therefor, the goods may not be levied upon but the negotiable document of title may be levied upon in the manner provided by Section 700.120. If goods are in the possession of a bailee other than one who has issued a negotiable document of title therefor, the goods may be levied upon in the manner provided by Section 700.060. As used in this subdivision, "bailee" means "bailee" as defined in Section 7102 of the Commercial Code.
Plain-English Summary
When someone other than the judgment debtor holds tangible personal property, the levying officer cannot take custody outright — a stranger to the judgment has possession, so notice to that person is what creates the levy. Section 700.040 requires the officer to personally serve a copy of the writ of execution and a notice of levy on the third person in possession or control of the property.
Bailed goods split into two tracks. If the bailee has issued a negotiable document of title for the goods, the goods themselves cannot be levied on directly; instead, the negotiable document of title gets levied under § 700.120. If the bailee has not issued such a document, the goods are levied on under § 700.060 instead of this section. The Commercial Code's definition of “bailee” controls which track applies.
Frequently Asked Questions
How is tangible personal property in a third person's possession levied upon?
By personally serving a copy of the writ of execution and a notice of levy on that third person.
What if a bailee has issued a negotiable document of title for the goods?
The goods themselves cannot be levied on; instead, the negotiable document of title is levied under § 700.120.
What if the bailee hasn't issued a negotiable document of title?
The goods are levied on under § 700.060 rather than this section.
Where does the definition of "bailee" for this purpose come from?
Section 7102 of the Commercial Code.
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: levy personal property third person possession california