In Kruger v. Wells Fargo Bank (1974) 11 Cal.3d 352, a bank's depositor was delinquent in paying her Master Charge bill. At issue was whether the bank could exercise its equitable right of setoff against her checking account, when all monies in that account came from state disability insurance and unemployment compensation, funds exempt from attachment or execution. The court held the deposits immune from setoff, reasoning that to permit setoff would frustrate the Legislature's objectives in providing those benefits and protecting them from seizure by creditors. In support of its conclusion, the court looked to the law of other states, in particular Finance Acceptance Company v. Breaux (1966) 160 Colo. 510, a Colorado Supreme Court decision which holds that an employer cannot set off the employee's obligations on promissory notes against exem-pt wages due him. The court cited with approval the Colorado court's statement that the majority view is that the right to exemption from attachment, execution or garnishment will be respected and protected without regard to the right of offset, and that the creditor will not be allowed to defeat the exemption with a demand against the debtor's claim, even though such demand would otherwise be good as a counterclaim or setoff. ( Kruger, supra, 11 Cal.3d at p. 369.)