California Code of Civil Procedure

§ 1204

CCP § 1204 Effective Jan 1, 2000Title 4 · Part 3 · Ch. 3

Statute text

When any assignment, whether voluntary or involuntary, and whether formal or informal, is made for the benefit of creditors of the assignor, or results from any proceeding in insolvency or receivership commenced against him or her, or when any property is turned over to the creditors of a person, firm, association or corporation, or to a receiver or trustee for the benefit of creditors, the following claims have priority in the following order:

(a)Allowed unsecured claims, but only to the extent of four thousand three hundred dollars ($4,300) for each individual or corporation, as the case may be, earned within 90 days before the date of the making of such assignment or the taking over of the property or the commencement of the court proceeding or the date of the cessation of the debtor’s business, whichever occurs first, for either of the following:

(1)Wages, salaries, or commissions, including vacation, severance and sick leave pay earned by an individual.

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Legislative history

Amended by Stats. 1999, Ch. 202, Sec. 1. Effective January 1, 2000.