California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 2 — Special Relations of Debtor and Creditor, Title 1 — General Principles, Section 3432
A debtor may pay one creditor in preference to another, or may give to one creditor security for the payment of his demand in preference to another.
Notes
Allows a debtor to prefer one creditor over another either by paying the preferred creditor or by giving that creditor security for payment of the creditor’s demand. The provision expressly authorizes both forms of preference—payment and security—when the debtor chooses to favor one creditor over another.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 3432 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-2/title-1/section-3432