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1. Whether Petitioner Is Deemed To Have Pledged Property
as Collateral Based on Section 3054 of the California
Civil Code
Petitioners contend that petitioner’s guaranty of Green
Valley debt was an economic outlay under section 3054 of the
California Civil Code (West 1993). Section 3054 of the
California Civil Code grants a lending institution a general lien
on all property in its possession belonging to customers.6
Petitioners contend that, under section 3054 of the California
Civil Code, Green Valley’s creditors could have filed a general
lien on petitioner’s personal property while petitioner’s
guaranties were in effect. We disagree. Section 3054 of the
California Civil Code applies to banks and savings and loan
associations. None of Green Valley’s creditors were banks or
6 Sec. 3054 of the California Civil Code (West 1993)
provides:
SEC. 3054. BANKER'S OR SAVINGS AND LOAN ASSOCIATION'S
LIEN; DEPOSIT ACCOUNTS.
(a) A banker, or a savings and loan
association, has a general lien, dependent on
possession, upon all property in his or her
hands belonging to a customer, for the
balance due to the banker or savings and loan
association from the customer in the course
of the business.
(b) The exercise of this lien with
respect to deposit accounts shall be subject
to the limitations and procedures set forth
in Section 864 or 6660 of the Financial Code.
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Last modified: May 25, 2011