(a) In an action by a creditor for relief against a transfer or obligation under Chapter 1 (commencing with Section 3439) of Title 2 of Part 2 of Division 4 on the ground that the transfer or obligation is voidable as to the creditor, the transferee may give an undertaking as provided in this chapter.

(b) If an undertaking is given as provided in this chapter, the transferee may sell, encumber, transfer, convey, mortgage, pledge, or otherwise dispose of the property or obligation, or a part thereof, and the purchaser, encumbrancer, transferee, mortgagee, grantee, or pledgee of the property or obligation takes, owns, holds, and possesses the property or obligation unaffected by the action and any judgment that is rendered in the action.

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Terms Used In California Civil Code 3446

  • Creditor: means "creditor" as defined in Section 3439. See California Civil Code 3445
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • property: includes property real and personal. See California Civil Code 14
  • Transfer: means "transfer" as defined in Section 3439. See California Civil Code 3445
  • Transferee: means the person to whom property was transferred or an obligation was incurred, or the successors or assigns of the person. See California Civil Code 3445

(Amended by Stats. 2015, Ch. 44, Sec. 17. (SB 161) Effective January 1, 2016.)