California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 7 — Security for Large Project, Article 2 — Security Requirement, Section 8710
An owner described in subdivision (a) of Section 8700 shall provide the direct contractor all of the following:
(a) Security for the owner’s payment obligation pursuant to the contract. The security shall be used only if the owner defaults on the payment obligation to the direct contractor. This subdivision does not apply to an owner that is the majority owner of the direct contractor.
(b) A copy, certified by the county recorder, of any recorded mortgage or deed of trust that secures the construction loan of a lending institution for the work of improvement, disclosing the amount of the loan.
Notes
Requires a covered owner to provide the direct contractor security for the owner’s contract-payment obligation, usable only upon payment default, unless the owner is the direct contractor’s majority owner. Also requires a county-recorder-certified copy of any recorded mortgage or deed of trust securing the construction loan, disclosing the loan amount.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8710 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-7/article-2/section-8710