Gillespie

Gillespie v. California Standard Indemnity Co.

Good Law
1989 Cal. App. LEXIS 1035·212 Cal. App. 3d 1351·264 Cal. Rptr. 146
Court of Appeal of CaliforniaMay 30, 1989Nos. B029403, B029404California3,459 words

Opinion

Lead Opinion

Danielson, J.

In consolidated appeals, real party in interest and appellant Central Bank (the Bank), appeals from orders of the superior court directing the Bank to turn over to plaintiff and respondent Insurance Commissioner of the State of California (Commissioner), as liquidator of defendants California Standard Indemnity Company (California Standard) and Great Global Assurance Company (Great Global), funds evidenced by certain certificates of deposit, and denying the Bank’s motion for leave to exercise its alleged security interest therein. The Bank challenges the propriety of the trial court’s use of the summary order to show cause proceeding to take funds evidenced by the Bank’s certificates of deposit, as well as the applicability of Insurance Code section 1031, subdivision (b), prohibiting any setoff by a person to whom the obligation of the person in liquidation was sold or transferred, to the proceeding, urging the statute, if applicable, *1354 violates various constitutional provisions. 1 The Bank also complains that the court failed to recognize and protect its assertedly valid banker’s lien on the deposit account balances and certificates of deposit. We affirm the…

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