CHAPTER 2. Bonds and Undertakings [995.010. - 996.560.]
Chapter 2 added by Stats. 1982, Ch. 998, Sec. 1.
§§ 995.010–996.560 · 98 sections
ARTICLE 1. Preliminary Provisions and Definitions §§ 995.010–995.190 · 15 sections
- § 995.010 This chapter shall be known and may be cited as the Bond and Undertaking Law.
- § 995.020 (a) The provisions of this chapter apply to a bond or undertaking executed, filed, posted, furnished, or otherwise given as security pursuant to any statute of…
- § 995.030 If service of a notice, paper, or other document is required under this chapter, service shall be made in the same manner as service of process in civil…
- § 995.040 An affidavit made under this chapter shall conform to the standards prescribed for an affidavit made pursuant to Section 437c.
- § 995.050 The times provided in this chapter, or in any other statute relating to a bond given in an action or proceeding, may be extended pursuant to Sections 1054 and…
- § 995.110 Unless the provision or context otherwise requires, the definitions in this article govern the construction of this chapter.
- § 995.120 (a) “Admitted surety insurer” means a corporate insurer or a reciprocal or interinsurance exchange to which the Insurance Commissioner has issued a certificate…
- § 995.130 (a) “Beneficiary” means the person for whose benefit a bond is given, whether executed to, in favor of, in the name of, or payable to the person as an obligee.…
- § 995.140 (a) “Bond” includes both of the following: (1) A surety, indemnity, fiduciary, or like bond executed by both the principal and sureties. (2) A surety,…
- § 995.150 “Court” means, if a bond is given in an action or proceeding, the court in which the action or proceeding is pending.
- § 995.160 “Officer” means the sheriff, marshal, clerk of court, judge or magistrate (if there is no clerk), board, commission, department, or other public official or…
- § 995.170 (a) “Principal” means the person who gives a bond. (b) For the purpose of application of this chapter to a bond given pursuant to any statute of this state,…
- § 995.180 “Statute” includes administrative regulation promulgated pursuant to statute.
- § 995.185 (a) “Surety” has the meaning provided in Section 2787 of the Civil Code and includes personal surety and admitted surety insurer. (b) For the purpose of…
- § 995.190 “Undertaking” means a surety, indemnity, fiduciary, or like undertaking executed by the sureties alone.
ARTICLE 2. General Provisions §§ 995.210–995.260 · 6 sections
- § 995.210 Unless the provision or context otherwise requires: (a) If a statute provides for a bond, an undertaking that otherwise satisfies the requirements for the bond…
- § 995.220 Notwithstanding any other statute, if a statute provides for a bond in an action or proceeding, including but not limited to a bond for issuance of a…
- § 995.230 The beneficiary of a bond given in an action or proceeding may in writing consent to the bond in an amount less than the amount required by statute or may…
- § 995.240 The court may, in its discretion, waive a provision for a bond in an action or proceeding and make such orders as may be appropriate as if the bond were given,…
- § 995.250 If a statute allows costs to a party in an action or proceeding, the costs shall include all of the following: (a) The premium on a bond reasonably paid by the…
- § 995.260 If a bond is recorded pursuant to statute, a certified copy of the record of the bond with all affidavits, acknowledgments, endorsements, and attachments may…
ARTICLE 3. Execution and Filing §§ 995.310–995.380 · 9 sections
- § 995.310 Unless the statute providing for the bond requires execution by an admitted surety insurer, a bond shall be executed by two or more sufficient personal…
- § 995.311 (a) Notwithstanding any other provision of law, any bond required on a public works contract, as defined in Section 1101 of the Public Contract Code, shall be…
- § 995.320 (a) A bond shall be in writing signed by the sureties under oath and shall include all of the following: (1) A statement that the sureties are jointly and…
- § 995.330 A bond or undertaking given in an action or proceeding may be in the following form: “(Title of court. Title of cause.) Whereas the ... desires to give (a…
- § 995.340 If a bond is given in an action or proceeding: (a) The bond shall be filed with the court unless the statute providing for the bond requires that the bond be…
- § 995.350 (a) Upon the filing of a bond with the court in an action or proceeding, the clerk shall enter in the register of actions the following information: (1) The…
- § 995.360 A bond given in an action or proceeding may be withdrawn from the file and returned to the principal on order of the court only if one of the following…
- § 995.370 At the time a bond is given, the principal shall serve a copy of the bond on the beneficiary. An affidavit of service shall be given and filed with the bond.
- § 995.380 (a) If a bond does not contain the substantial matter or conditions required by this chapter or by the statute providing for the bond, or if there are any…
ARTICLE 4. Approval and Effect §§ 995.410–995.440 · 4 sections
- § 995.410 (a) A bond becomes effective without approval unless the statute providing for the bond requires that the bond be approved by the court or officer. (b) If the…
- § 995.420 (a) Unless the statute providing for a bond provides that the bond becomes effective at a different time, a bond is effective at the time it is given or, if…
- § 995.430 A bond remains in force and effect until the earliest of the following events: (a) The sureties withdraw from or cancel the bond or a new bond is given in…
- § 995.440 A bond given as a condition of a license or permit shall be continuous in form, remain in full force and effect, and run concurrently with the license or…
ARTICLE 5. Personal Sureties §§ 995.510–995.520 · 2 sections
- § 995.510 (a) A personal surety on a bond is sufficient if all of the following conditions are satisfied: (1) The surety is a person other than the principal. No officer…
- § 995.520 (a) A bond executed by personal sureties shall be accompanied by an affidavit of qualifications of each surety. (b) The affidavit shall contain all of the…
ARTICLE 6. Admitted Surety Insurers §§ 995.610–995.675 · 8 sections
- § 995.610 (a) If a statute provides for a bond with any number of sureties, one sufficient admitted surety insurer may become and shall be accepted as sole surety on the…
- § 995.620 Two or more admitted surety insurers may be sureties on a bond by executing the same or separate bonds for amounts aggregating the required amount of the bond.…
- § 995.630 An admitted surety insurer shall be accepted or approved by the court or officer as surety on a bond without further acknowledgment if the bond is executed in…
- § 995.640 Upon review of the Internet Web site of the Department of Insurance, the county clerk of any county shall, upon request of any person, do any of the following:…
- § 995.650 If an objection is made to the sufficiency of an admitted surety insurer, the person making the objection shall attach to and incorporate in the objection one…
- § 995.660 (a) If an objection is made to the sufficiency of an admitted surety insurer on a bond or if the bond is required to be approved, the insurer shall submit to…
- § 995.670 (a) This section applies to a bond executed, filed, posted, furnished, or otherwise given as security pursuant to any statute of this state or any law or…
- § 995.675 Notwithstanding Sections 995.660 and 995.670, the California Integrated Waste Management Board, the State Water Resources Control Board, and the Department of…
ARTICLE 7. Deposit in Lieu of Bond §§ 995.710–995.770 · 7 sections
- § 995.710 (a) Except as provided in subdivision (e) or to the extent the statute providing for a bond precludes a deposit in lieu of bond or limits the form of deposit,…
- § 995.720 (a) The market value of bonds or notes, including bearer bonds and bearer notes, shall be agreed upon by stipulation of the principal and beneficiary or, if…
- § 995.730 A deposit given instead of a bond has the same force and effect, is treated the same, and is subject to the same conditions, liability, and statutory…
- § 995.740 If no proceedings are pending to enforce the liability of the principal on the deposit, the officer shall: (a) Pay quarterly, on demand, any interest on the…
- § 995.750 (a) The principal shall pay the amount of the liability on the deposit within 30 days after the date on which the judgment of liability becomes final. (b) If…
- § 995.760 (a) If the principal does not pay the amount of the liability on the deposit within the time prescribed in Section 995.750, the deposit shall be collected,…
- § 995.770 A deposit given pursuant to this article shall be returned to the principal at the earliest of the following times: (a) Upon substitution of a sufficient bond…
ARTICLE 8. Bonds to the State of California §§ 995.810–995.850 · 5 sections
- § 995.810 The provisions of this article apply to a bond executed to, in favor of, in the name of, or payable to the State of California or the people of the state,…
- § 995.820 Except as otherwise provided by statute, a bond given by an officer of the court for the faithful discharge of the officer’s duties and obedience to the orders…
- § 995.830 If a statute or court order pursuant thereto providing for a bond does not specify the beneficiary of the bond, the bond shall be to the State of California.
- § 995.840 If a bond under this article is given in an action or proceeding: (a) The bond shall be approved by the court. (b) Any party for whose benefit the bond is…
- § 995.850 (a) The liability on a bond under this article may be enforced by or for the benefit of, and in the name of, any and all persons for whose benefit the bond is…
ARTICLE 9. Objections to Bonds §§ 995.910–995.960 · 6 sections
- § 995.910 This article governs objections to a bond given in an action or proceeding.
- § 995.920 The beneficiary may object to a bond on any of the following grounds: (a) The sureties are insufficient. (b) The amount of the bond is insufficient. (c) The…
- § 995.930 (a) An objection shall be in writing and shall be made by noticed motion. The notice of motion shall specify the precise grounds for the objection. If a ground…
- § 995.940 If a ground for the objection is that the value of property or an interest in property on which the amount of the bond is based exceeds the value estimated in…
- § 995.950 (a) Unless the parties otherwise agree, the hearing on an objection shall be held not less than two or more than five days after service of the notice of…
- § 995.960 (a) Upon the hearing, the court shall make an order determining the sufficiency or insufficiency of the bond. (b) If the court determines that the bond is…
ARTICLE 10. Insufficient and Excessive Bonds §§ 996.010–996.030 · 3 sections
- § 996.010 (a) If a bond is given in an action or proceeding, the court may determine that the bond is or has from any cause become insufficient because the sureties are…
- § 996.020 (a) If a bond is given other than in an action or proceeding and it is shown by affidavit of a credible witness or it otherwise comes to the attention of the…
- § 996.030 (a) The court if a bond is given or ordered in an action or proceeding, or the officer if a bond is given or ordered other than in an action or proceeding, may…
ARTICLE 11. Release or Substitution of Sureties on Bond Given in Action or Proceeding §§ 996.110–996.150 · 5 sections
- § 996.110 (a) A surety on a bond given in an action or proceeding may at any time apply to the court for an order that the surety be released from liability on the bond.…
- § 996.120 Upon the hearing of the application, the court shall determine whether injury to the beneficiary would result from substitution or release of the surety. If…
- § 996.130 (a) If a substitute surety is given, the substitute surety is subject to all the provisions of this chapter, including but not limited to the provisions…
- § 996.140 If the principal does not give a sufficient substitute surety within the time ordered by the court or such longer time as the surety consents to, all rights…
- § 996.150 If a surety is ordered released from liability on a bond: (a) The bond remains in full force and effect for all liabilities incurred before, and for acts,…
ARTICLE 12. New, Additional, and Supplemental Bonds §§ 996.210–996.250 · 5 sections
- § 996.210 (a) The principal shall give a new, additional, or supplemental bond if the court or officer orders that a new, additional, or supplemental bond be given. (b)…
- § 996.220 (a) A new, additional, or supplemental bond shall be in the same form and have the same obligation as the original bond and shall be in all other respects the…
- § 996.230 A new, additional, or supplemental bond is subject to all the provisions applicable to the original bond and to the provisions of this chapter, including but…
- § 996.240 If a new bond is given in place of the original bond: (a) The original bond remains in full force and effect for all liabilities incurred before, and for acts,…
- § 996.250 (a) An additional or supplemental bond does not discharge or affect the original bond. The original bond remains in full force and effect as if the additional…
ARTICLE 13. Cancellation of Bond or Withdrawal of Sureties §§ 996.310–996.360 · 6 sections
- § 996.310 This article governs cancellation of or withdrawal of a surety from a bond given other than in an action or proceeding.
- § 996.320 A surety may cancel or withdraw from a bond by giving a notice of cancellation or withdrawal to the officer to whom the bond was given in the same manner the…
- § 996.330 Cancellation or withdrawal of a surety is effective at the earliest of the following times: (a) Thirty days after notice of cancellation or withdrawal is…
- § 996.340 (a) If the principal does not give a new bond within 30 days after notice of cancellation or withdrawal is given, all rights obtained by giving the original…
- § 996.350 If the withdrawal of a surety does not reduce the amount of the bond or the number of sureties below the minimum required by the statute providing for the…
- § 996.360 If a surety cancels or withdraws from a bond: (a) The bond remains in full force and effect for all liabilities incurred before, and for acts, omissions, or…
ARTICLE 14. Liability of Principal and Sureties §§ 996.410–996.495 · 11 sections
- § 996.410 (a) The beneficiary may enforce the liability on a bond against both the principal and sureties. (b) If the beneficiary is a class of persons, any person in…
- § 996.420 (a) A surety on a bond given in an action or proceeding submits itself to the jurisdiction of the court in all matters affecting its liability on the bond. (b)…
- § 996.430 (a) The liability on a bond may be enforced by civil action. Both the principal and the sureties shall be joined as parties to the action. (b) If the bond was…
- § 996.440 (a) If a bond is given in an action or proceeding, the liability on the bond may be enforced on motion made in the court without the necessity of an…
- § 996.450 No provision in a bond is valid that attempts by contract to shorten the period prescribed by Section 337 or other statute for the commencement of an action on…
- § 996.460 (a) Notwithstanding Section 2845 of the Civil Code, a judgment of liability on a bond shall be in favor of the beneficiary and against the principal and…
- § 996.470 (a) Notwithstanding any other statute other than Section 996.480, the aggregate liability of a surety to all persons for all breaches of the condition of a…
- § 996.475 Nothing in this chapter is intended to limit the liability of a surety pursuant to any other statute. This section is declaratory of, and not a change in,…
- § 996.480 (a) If the nature and extent of the liability of the principal is established by final judgment of a court and the time for appeal has expired or, if an appeal…
- § 996.490 (a) Payment by a surety of the amount of a bond constitutes a full discharge of all the liability of the surety on the bond. (b) Each surety is liable to…
- § 996.495 A judgment of liability on a bond may be enforced in the same manner and to the same extent as other money judgments.
ARTICLE 15. Enforcement Lien §§ 996.510–996.560 · 6 sections
- § 996.510 This article applies to proceedings for the benefit of the state to enforce the liability on a bond executed to, in favor of, or payable to the state or the…
- § 996.520 The person enforcing the liability may file with the court in the proceedings an affidavit stating the following: (a) The bond was executed by the defendant or…
- § 996.530 The clerk receiving the affidavit shall certify to the recorder of the county in which the real property is situated all of the following: (a) The names of the…
- § 996.540 (a) Upon receiving the certificate the county recorder shall endorse upon it the time of its receipt. (b) The certificate shall be filed and recorded in the…
- § 996.550 (a) Any judgment recovered is a lien upon all real property belonging to the defendant situated in any county in which the certificate is filed, from the…
- § 996.560 If an agreement to sell real property affected by the lien created by the filing of a certificate was made before the filing of the certificate and the…