California Code of Civil Procedure Code § 493.010

Code of Civil Procedure Code
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As used in this chapter, “general assignment for the benefit of creditors” means an assignment which satisfies all of the following requirements: (a) The assignment is an assignment of all the defendant’s assets that are transferable and not exempt from enforcement of a money judgment. (b) The assignment is for the benefit of all the defendant’s creditors. (c) The assignment does not itself create a preference of one creditor or class of creditors over any other creditor or class of creditors, but the assignment may recognize the existence of preferences to which creditors are otherwise entitled.

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