§ 1406. — 1406. (Added by Stats. 2011, Ch. 243, Sec. 3.)

California § 1406.

• Jurisdiction: California
• Code FIN: Financial Code - FIN
• Div. 1.1.: DIVISION 1.1. BANKING
• Ch. 12.: CHAPTER 12. Deposits
• Art. 1.: ARTICLE 1. Depositors

Text

(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 void.

Legislative History

Added by Stats. 2011, Ch. 243, Sec. 3. (SB 664) Effective January 1, 2012.