California Codes, Code of Civil Procedure - CCP, Part 2 — Of Civil Actions, Title 6.5 — Attachment, Chapter 13 — Effect of Bankruptcy Proceedings and General Assignments for the Benefit of Creditors, Section 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.
Notes
Defines a general assignment for the benefit of creditors as an assignment of all transferable assets not exempt from enforcement, made for the benefit of all creditors, that does not itself create a preference among creditors or creditor classes. The assignment may recognize preferences to which creditors are otherwise entitled.
Use as reference
Lexinter.net | California Code, Code of Civil Procedure - CCP § 493.010 | https://laws.lexinter.net/codes/california/code-of-civil-procedure/part-2/title-6-5/chapter-13/section-493-010