California Statutes
§ 1406. — 1406. (Added by Stats. 2011, Ch. 243, Sec. 3.)
California·Code FIN Financial Code - FIN·Div. 1.1. DIVISION 1.1. BANKING·Ch. 12. CHAPTER 12. Deposits·Art. 1. ARTICLE 1. Depositors
(a)In this section:
(1)“Creditor” includes, but is not limited to, a depositor.
(2)“Insolvency,” when used with respect to a bank, means that the bank is unable to pay its debts as they come due.
(b)This section does not apply to any of the following:
(1)Any transaction authorized under Section 1463 or 1465.
(2)Any transaction made by a bank in the ordinary course of its business.
(c)No bank may pay or secure a creditor if the bank does so (1) after committing an act of insolvency or in contemplation of insolvency and (2) with a view to preventing the application of its assets in the manner prescribed in Chapter 7 (commencing with Section 600) of Division 1 or with a view to the preference of one creditor to another.
(d)Any transaction made by a bank in violation of this section is
Free access — add to your briefcase to read the full text and ask questions with AI
California § 1406. (1406. (Added by Stats. 2011, Ch. 243, Sec. 3.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Legislative History
Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.