Statute · California Financial Code
Cal. Fin. Code § 40501 — RELEASE OF DEMAND DEPOSIT FUNDS
Cal. Fin. Code § 40501
- Type
- Statute
- Source
- California Financial Code
- Jurisdiction
- California
- Current through
- Nov 2, 2026 (California Legislative Counsel)
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…
Citator
Cal. Fin. Code § 40501 — RELEASE OF DEMAND DEPOSIT FUNDS is in force in the current edition of the Code, and nothing recorded condemns it.
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.