{"code":"FIN","codeName":"Financial Code","section":"1406","citation":"Fin. Code, § 1406","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 1.1. BANKING [1000. - 1910.]","url":"https://blackletter.si/financial-code/division-1.1"},{"name":"CHAPTER 12. Deposits [1400. - 1440.]","url":"https://blackletter.si/financial-code/division-1.1/chapter-12"},{"name":"ARTICLE 1. Depositors [1400. - 1415.]","url":"https://blackletter.si/financial-code/division-1.1/chapter-12/article-1"}],"history":"Added by Stats. 2011, Ch. 243, Sec. 3.   (SB 664)   Effective January 1, 2012.","effective":"2012-01-01","html":"<p>(a) In this section:</p><p>(1) “Creditor” includes, but is not limited to, a depositor.</p><p>(2) “Insolvency,” when used with respect to a bank, means that the bank is unable to pay its debts as they come due.</p><p>(b) This section does not apply to any of the following:</p><p>(1) Any transaction authorized under Section <a href=\"/fin/1463\">1463</a> or <a href=\"/fin/1465\">1465</a>.</p><p>(2) Any transaction made by a bank in the ordinary course of its business.</p><p>(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 <a href=\"/fin/600\">600</a>) of Division 1 or with a view to the preference of one creditor to another.</p><p>(d) Any transaction made by a bank in violation of this section is void.</p>","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.","otherVersions":[],"url":"https://blackletter.si/financial-code/depositors-1406","source":"California Legislative Information bulk export (pubinfo)"}