SECTIONS 493.010-493.060 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 493.010-493.060

493.010. As used in this chapter, "general assignment for the
benefit of creditors" means an assignment which satisfies all of the
following requirements:
(a) The assignment is an assignment of all the defendant's assets
that are transferable and not exempt from enforcement of a money
judgment.
(b) The assignment is for the benefit of all the defendant's
creditors.
(c) The assignment does not itself create a preference of one
creditor or class of creditors over any other creditor or class of
creditors, but the assignment may recognize the existence of
preferences to which creditors are otherwise entitled.

493.020. Notwithstanding any other provision of this title, the
defendant may make a general assignment for the benefit of creditors.

493.030. (a) The making of a general assignment for the benefit of
creditors terminates a lien of a temporary protective order or of
attachment if the lien was created within 90 days prior to the making
of the general assignment.
(b) The filing of a petition commencing a voluntary or involuntary
case under Title 11 of the United States Code (Bankruptcy)
terminates a lien of a temporary protective order or of attachment if
the lien was created within 90 days prior to the filing of the
petition.
(c) Subdivisions (a) and (b) do not apply unless all liens of
attachment on the defendant's property in other states that were
created within 90 days prior to the making of a general assignment
for the benefit of creditors or the filing of a petition commencing a
case under Title 11 of the United States Code (Bankruptcy) have
terminated.

493.040. (a) Where a lien of attachment terminates pursuant to
Section 493.030, the assignee under a general assignment for the
benefit of creditors or, in the case of a bankruptcy, the trustee,
interim trustee, or the debtor in possession if there is no trustee
or interim trustee, may secure the release of the attached property
by filing with the levying officer a request for release of
attachment stating the grounds for release and describing the
property to be released, executed under oath, together with a copy
thereof.
(b) In the case of an assignee, the request shall include two
copies of the general assignment for the benefit of creditors.
(c) In the case of a trustee, interim trustee, or debtor in
possession, the request shall include a certified copy of the
petition in bankruptcy, together with a copy thereof.
(d) If immediate release of the attachment is sought, the request
shall be accompanied by an undertaking to pay the plaintiff any
damages resulting from an improper release of the attachment, in the
amount to be secured by the attachment, executed by an admitted
surety insurer.
(e) Within five days after the filing of the request for release
of attachment, the levying officer shall mail to the plaintiff:
(1) A copy of the request for release of the attachment, including
the copy of the document filed pursuant to subdivision (b) or (c).
(2) If an undertaking has not been given, a notice that the
attachment will be released pursuant to the request for release of
attachment unless otherwise ordered by a court within 10 days after
the date of mailing the notice.
(3) If an undertaking has been given, a notice that the attachment
has been released.
(f) Unless otherwise ordered by a court, if an undertaking has not
been given, the levying officer shall release the attachment
pursuant to the request for release of attachment after the
expiration of 10 days from the date of mailing the papers referred to
in subdivision (e) to the plaintiff. If an undertaking has been
given, the levying officer shall immediately release the attachment
pursuant to the request for release of attachment.
(g) Where the attached property has been taken into custody, it
shall be released to the person making the request for release of
attachment or some other person designated in the request. Where the
attached property has not been taken into custody, it shall be
released as provided in subdivision (c) or (d) of Section 488.730.
(h) The levying officer is not liable for releasing an attachment
in accordance with this section nor is any other person liable for
acting in conformity with the release.

493.050. (a) The lien of a temporary protective order or of
attachment, which has terminated pursuant to Section 493.030, is
reinstated with the same effect as if it had not been terminated in
the following cases:
(1) Where the termination is the result of the making of a general
assignment for the benefit of creditors and the general assignment
for the benefit of creditors is set aside otherwise than by the
filing of a petition commencing a case under Title 11 of the United
States Code (Bankruptcy).
(2) Where the termination is the result of the filing of a
petition commencing a case under Title 11 of the United States Code
(Bankruptcy) and the petition is dismissed.
(3) Where the termination is the result of the filing of a
petition commencing a case under Title 11 of the United States Code
(Bankruptcy) and the trustee abandons property which had been subject
to the lien of the temporary protective order or of attachment.
(b) The period from the making of a general assignment for the
benefit of creditors until reinstatement of the lien of the temporary
protective order or of attachment is not counted in determining the
duration of the temporary protective order or the lien of attachment.

493.060. (a) Upon the making of a general assignment for the
benefit of creditors that terminates a lien under this chapter, the
assignee is subrogated to the rights of the plaintiff under the
temporary protective order or attachment.
(b) Upon the filing of a petition commencing a case under Title 11
of the United States Code (Bankruptcy), a lien terminated pursuant
to this chapter is preserved for the benefit of the estate.