Section 16621 Of Article 2. Security For Deposits From California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 4.5. >> Article 2.

. If any savings and loan association or credit union fails to pay all or any part of deposits on demand of the Treasurer, pursuant to the terms and conditions of the contract relating to the deposit that is to be withdrawn in whole or in part, the Treasurer shall forthwith recover upon or convert the security therefor into money and disburse it according to law.