California Codes, Code of Civil Procedure - CCP, Part 2 — Of Civil Actions, Title 14 — Of Miscellaneous Provisions, Chapter 2 — Bonds and Undertakings, Article 7 — Deposit in Lieu of Bond, Section 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, sold, or otherwise applied to the liability upon order of the court that entered the judgment of liability, made upon five days’ notice to the parties.
(b) Bonds or notes, including bearer bonds and bearer notes, without a prevailing market price shall be sold at public auction. Notice of sale shall be served on the principal. Bonds or notes having a prevailing market price may be sold at private sale at a price not lower than the prevailing market price.
(c) The deposit shall be distributed in the following order:
(1) First, to pay the cost of collection, sale, or other application of the deposit.
(2) Second, to pay the judgment of liability of the principal on the deposit.
(3) Third, the remainder, if any, shall be returned to the principal.
Notes
Requires a deposit to be collected, sold, or applied by court order after five days’ notice when the principal misses the payment deadline. Requires public auction for bonds or notes without a prevailing price and permits market-priced private sale otherwise; distributes proceeds first to costs, second to liability, and returns any remainder to the principal.
Use as reference
Lexinter.net | California Code, Code of Civil Procedure - CCP § 995.760 | https://laws.lexinter.net/codes/california/code-of-civil-procedure/part-2/title-14/chapter-2/article-7/section-995-760