{"data":{"id":"us-ca/fin-1406","jurisdiction":"us-ca","citation":"FIN § 1406","heading":"","body":"(a) In this section:\n(1) “Creditor” includes, but is not limited to, a depositor.\n(2) “Insolvency,” when used with respect to a bank, means that the bank is unable to pay its debts as they come due.\n(b) This section does not apply to any of the following:\n(1) Any transaction authorized under Section 1463 or 1465.\n(2) Any transaction made by a bank in the ordinary course of its business.\n(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.\n(d) Any transaction made by a bank in violation of this section is void.","path":["Financial Code - FIN","DIVISION 1.1. BANKING [1000. - 1910.]","CHAPTER 12. Deposits [1400. - 1440.]","ARTICLE 1. Depositors [1400. - 1415.]"],"source_url":"https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zip","current_through":"2026-09-13","vintage":"","retrieved_at":"2026-09-14T05:56:33Z","sha256":"738a1106b1a283f61b7536b0647925b23efdf16d06fd15423c752b99d17e641d","source_id":"us-ca","stale":false,"prev":"us-ca/fin-1405","next":"us-ca/fin-1407"},"notice":"GroundRules: Original legal text. Not legal advice."}