California Business And Professions Code Section 10239.18

In all cases of mutual debts or mutual credits between the person in liquidation under Section 10239.6 and any other person, such credits and debts shall be set off and the balance only shall be allowed or paid, but no setoff shall be allowed in favor of such other person where any of the following facts exist: (a) The obligation of the person in liquidation to such other person does not entitle such other person claiming such setoff to share as a claimant in the assets of such person in liquidation. (b) The obligation of the person in liquidation to such other person was purchased by, or transferred to, such other person. (c) The obligation of such other person to the person in liquidation is to pay an assessment levied aginst such other person or to pay a balance upon a subscription for shares of the capital stock of the person in liquidation.