The third person shall file the undertaking to release property with the levying officer, together with two copies of the undertaking:
(a) At the time the third person files a third-party claim pursuant to Chapter 2 (commencing with Section 720.110) or Chapter 3 (commencing with Section 720.210).
(b) If the third person has previously filed a third-party claim to the property, at any time before the levying officer does any of the following:
(1) Sells the property.
(2) Delivers possession of the property to the creditor.
(3) Pays proceeds of collection to the creditor.
(Added by Stats. 1982, Ch. 1364, Sec. 2. Operative July 1, 1983, by Sec. 3 of Ch. 1364.)