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 3 — Form of Security, Section 8722
A bond under this chapter shall satisfy all of the following requirements:
(a) The bond shall be executed by an admitted surety insurer that is either listed in the Department of the Treasury’s Listing of Approved Sureties (Department Circular 570) or that has an A.M. Best rating of A or better and has an underwriting limitation, under Section 12090 of the Insurance Code, greater than the amount of the bond.
(b) The bond shall be in an amount not less than 15 percent of the contract price for the work of improvement or, if the work of improvement is to be substantially completed within six months after the commencement of work, not less than 25 percent of the contract price.
(c) The bond shall be conditioned for payment on default by the owner of any undisputed amount pursuant to the contract that is due and payable for more than 30 days.
Notes
Requires a chapter bond from a qualifying admitted surety and in an amount of at least 15 percent of contract price, or 25 percent if substantial completion is due within six months. Requires the bond to secure an owner’s default on an undisputed contract amount that has remained due and payable for more than 30 days.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8722 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-7/article-3/section-8722