At the time the creditor files an undertaking with the levying officer in response to a third-party claim by a secured party, the creditor shall do all of the following:
§ 720.280.Statement Filed By Creditor At Time of 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 720.280 requires a creditor who files an undertaking against a secured party's third-party claim to also file a sworn statement explaining why the security interest is invalid, lacks priority, or overstates the amount owed, and to serve copies of that statement on both the secured party and the debtor.
Full Text of § 720.280
(a) File with the levying officer a statement executed under oath that the security interest is invalid, that the security interest is not entitled to priority over the creditor's lien, or that the amount demanded in the claim exceeds the amount to which the secured party is entitled, for the reasons specified therein.
(b) Serve a copy of the statement on the secured party. Service shall be made personally or by mail.
(c) Serve a copy of the statement on the debtor. Service shall be made personally or by mail.
Plain-English Summary
An undertaking under § 720.260 buys the creditor time to keep the enforcement moving, but it doesn't come free -- the creditor also has to put the challenge to the lienholder's claim in writing. This section requires the creditor, at the same time the undertaking is filed, to file a statement under oath giving the reasons the security interest or lien is invalid, doesn't have priority over the creditor's lien, or claims more than the secured party is entitled to.
That statement isn't just filed and forgotten. The creditor has to serve a copy on the secured party and a separate copy on the debtor, in each case personally or by mail, so both know exactly what the creditor is disputing before the matter moves toward a § 720.310 hearing.
Under § 720.350, this statement does double duty -- it becomes the creditor's pleading if the case reaches a hearing, standing in for the answer a defendant would file in an ordinary lawsuit.
Frequently Asked Questions
What must a creditor file along with an undertaking opposing a secured party's claim?
A statement under oath giving the reasons the security interest is invalid, isn't entitled to priority over the creditor's lien, or exceeds the amount the secured party is entitled to.
Who must be served with a copy of that statement?
Both the secured party and the debtor, each served personally or by mail.
Does this statement matter later if there's a hearing?
Yes. Section 720.350 treats the creditor's statement as the creditor's pleading at a hearing on a secured party's third-party 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 Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: creditor statement opposing lien claim californiagrounds to challenge security interest claim