(a) In a case where the third person has not filed with the levying officer an undertaking to release the property pursuant to Chapter 6 (commencing with Section 720.610), if the creditor does not within the time allowed under subdivision (b) of Section 720.240 file with the levying officer an undertaking (or file a notice if the creditor is a public entity) that satisfies the requirements of Section 720.260 and a statement under Section 720.280, or deposit with the levying officer the amount claimed under Section 720.230, the levying officer shall release the personal property unless it is to be held under another lien or unless otherwise ordered by the court.
§ 720.270.Release of Property
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 720.270 requires the levying officer to release the property when the creditor fails to timely file an undertaking or statement or make a deposit and no release undertaking is on file, subject to the general release procedure of § 699.060, and it preserves the third person's right to a hearing on the claim under Chapter 4 even after the property has been released.
Full Text of § 720.270
(c) If property that has been taken into custody is to be released to the debtor pursuant to Section 699.060 and the debtor has not claimed the property within 10 days after notice was served pursuant to Section 699.060, the levying officer shall release the property to the secured party or lienholder making the claim.
Plain-English Summary
Not every creditor responds to a lienholder's claim. If the third person hasn't already filed an undertaking to release the property under Chapter 6, and the creditor lets § 720.240's response window pass without filing an undertaking (or a notice, for an exempt public entity) and the § 720.280 statement, or making a deposit under § 720.230, subdivision (a) requires the levying officer to release the property -- unless it's held under some other lien or the court orders otherwise.
The mechanics of that release track the general release procedure of § 699.060, with one refinement for property the officer has taken into custody: if the debtor doesn't come claim it within ten days after the § 699.060 notice, the officer releases the property to the secured party or lienholder who made the claim, not back to the debtor.
Release doesn't end the dispute. Subdivision (d) confirms that a hearing on the third-party claim can still go forward under Chapter 4 (§ 720.310) even though the property is no longer in the levying officer's hands -- the hearing decides who ultimately has the better claim to it, or to its value.
Frequently Asked Questions
When must the levying officer release property claimed by a lienholder?
When the third person hasn't filed an undertaking to release the property under Chapter 6, and the creditor doesn't timely file an undertaking (or notice) and statement, or make a deposit, under § 720.240.
What happens to property taken into custody if the debtor doesn't reclaim it?
Section 720.270(c) directs the levying officer to release it to the secured party or lienholder who made the third-party claim, if the debtor hasn't claimed it within ten days after the § 699.060 notice.
Does releasing the property end the third-party claim dispute?
No. Section 720.270(d) allows a hearing on the claim to proceed under Chapter 4 even after the property has been released.
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: release of property third party claim californialevying officer release lien claim