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HomeCommercial CodeDiv. 7Ch. 6§ 7602 Bailee Goods Lien Protection

§ 7602 Bailee Goods Lien Protection

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7602 Bailee Goods Lien Protection

Key Takeaways

  • •If someone stores your stuff and gives you a special paper (like a receipt) that you can trade or sell, that paper is important.
  • •If someone sues you and tries to take your stuff, they can’t just grab it from the person storing it—they need that special paper first.
  • •The person storing your stuff doesn’t have to hand it over until they get that paper or a court tells them to.
  • •If someone buys that special paper without knowing about the lawsuit, they get to keep the stuff, and the lawsuit can’t take it from them.

Example

You store your bike at a bike shop, and they give you a special receipt that says you own it. Someone sues you and tries to take your bike.

The bike shop won’t give your bike to the person suing you unless they have that special receipt or a court order. If someone else buys the receipt from you without knowing about the lawsuit, they get to keep the bike.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7602 Bailee Goods Lien Protection

Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the document’s negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or to the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process. (Repealed and added by Stats. 2006, Ch. 254, Sec. 49. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

lienbaileenegotiable document of titlejudicial process

Related Statutes

  • § 7601 Lost Document Replacement Orders
  • § 7603 Bailee Dispute Resolution Rights
  • § 9609 Secured Party Collateral Possession
  • § 2705 Seller'S Right To Stop Delivery
  • § 10600 Lease Contract Effective Dates

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 7602.
View Official Source