California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 6 — Payment Bond, Section 8600
(a) This section applies if, before the commencement of work, the owner in good faith files a direct contract with the county recorder, and records a payment bond of the direct contractor in an amount not less than 50 percent of the price stated in the direct contract.
(b) If the conditions of subdivision (a) are satisfied, the court shall, where equitable to do so, restrict lien enforcement under this title to the aggregate amount due from the owner to the direct contractor and shall enter judgment against the direct contractor and surety on the bond for any deficiency that remains between the amount due to the direct contractor and the whole amount due to claimants.
Notes
Allows a court, when equitable, to limit lien enforcement to the amount the owner owes the direct contractor if, before work begins, the owner files the direct contract and records a payment bond worth at least 50 percent of its price. Requires judgment against the contractor and surety for any remaining claimant deficiency.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8600 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-6/section-8600