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 700.100 levies on chattel paper by taking it into custody if the debtor holds it, or serving the third person in possession, and lets the officer also serve the account debtor if instructed, with the levy creating a lien on the debtor's rights in the underlying goods.
(a)To levy upon chattel paper, the levying officer shall:
(1)If the chattel paper is in the possession of the judgment debtor, take the chattel paper into custody.
(2)If the chattel paper is in the possession of a third person, personally serve a copy of the writ of execution and a notice of levy on the third person.
(b)If the levying officer obtains custody of the chattel paper or if pursuant to a security agreement the judgment debtor has liberty to collect or compromise the chattel paper or to accept the return of goods or make repossessions, the levying officer shall, if so instructed by the judgment creditor, serve a copy of the writ of execution and a notice of levy on the account debtor. Service shall be made personally or by mail.
(c)In addition to any other rights created by a levy on chattel paper, the levy creates a lien on the judgment debtor's rights in specific goods subject to the chattel paper.
Plain-English Summary
Chattel paper — the combined record of a debt and a security interest in specific goods — is levied on the same way most tangible-or-document property in this article is handled: if the judgment debtor has it, the officer takes it into custody; if a third person has it, the officer personally serves that person with the writ and a notice of levy.
Once the officer has custody, or if the debtor still has authority under a security agreement to collect or compromise the paper or repossess the goods, the officer also serves the account debtor — the person who owes payment on the chattel paper — if the judgment creditor instructs it. That service can be personal or by mail.
Subdivision (c) adds a substantive effect beyond notice: levying on chattel paper creates a lien on the judgment debtor's rights in the specific goods the paper covers, on top of whatever rights the levy reaches in the paper itself.
Frequently Asked Questions
How is chattel paper levied on when the debtor has it?
The levying officer takes it into custody.
What if a third person has possession of the chattel paper?
The officer personally serves that third person with a copy of the writ and a notice of levy.
When is the account debtor served?
If the officer has custody of the paper, or the debtor retains authority to collect or compromise it, and the judgment creditor instructs that service be made.
Does levying on chattel paper affect the underlying goods?
Yes, § 700.100(c) creates a lien on the judgment debtor's rights in the specific goods subject to the chattel paper.
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