2020 California Code
Financial Code - FIN
DIVISION 19 - RELEASE OF DEMAND DEPOSIT FUNDS
Section 40501.

Universal Citation: CA Fin Code § 40501 (2020)
40501.  

In accordance with the implied contract existing between a financial institution and its depositor, no bank, savings association, credit union, or other financial institution operating in this state which maintains and services demand deposit accounts, including NOW accounts, may release any funds from those accounts to any person or entity who is not the account holder, unless the funds are released pursuant to the depositor’s authorization or in accordance with the law. This section does not apply to any setoff for a debt claimed to be owed to a bank, savings association, credit union, or other financial institution by a customer.

(Added by Stats. 1985, Ch. 1057, Sec. 1.)

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