Has anyone taking action (close account, freeze account, etc.) when they have discovered that a corporation's status has been suspended by the Secretary of State.

Not in our neck of the woods. However, it is based on the risk to the bank. Seeing as how you are in California, you would have to check State law to see if you had any liability to continue to provide them deposit or loan services. That is not saying that a bank may not take a specific action on a customer, but it is not something routinely monitored unless they are doing something, like getting a new loan, etc.

The problem is more with the corporation and its directors and officers and has little effect on the corporation’s depository institution. The officers and directors can now be personally liable for actions of the corporation and the corporation cannot sue in its own name.

That is a big problem for the Corp but not much for you.

As noted, you might realize a corporation has "lapsed" or is "not in good standing" etc. when you are opening deposit account, making a loan, reviewing a line of credit, or reviewing an exemption from CTR filing.

If it's a new relationship, I suggest you tell them to come back when they have resolved the problem. If it's an existing relationship, I suggest you draw it to the customer's attention in a "helpful" tone, but indicate you do expect them to fix it and stay abreast of the situation until they do.