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HomeCivil CodeDiv. 4Pt. 6Ch. 6§ 8606 Payment Bond Claim Enforcement

§ 8606 Payment Bond Claim Enforcement

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 8606 Payment Bond Claim Enforcement

Key Takeaways

  • •If someone is building or fixing something big (like a house or road), they must have a special promise (called a 'payment bond') to pay everyone who works on it.
  • •This promise is like a backup plan—if the boss doesn’t pay the workers or suppliers, they can use this promise to get their money.
  • •The boss, the main worker, or even a sub-worker can be the one who makes this promise.
  • •Workers or suppliers can ask for their money using this promise, either when they also ask for a legal claim on the property or in a separate fight in court.

Example

A company hires a builder to fix a school. The builder hires a plumber to do the pipes but doesn’t pay them after the job is done.

The plumber can use the 'payment bond' (the special promise) to get their money, even if the builder is broke. They can take the bond company to court to get paid.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 8606 Payment Bond Claim Enforcement

(a) A payment bond under this title shall be conditioned for the payment in full of the claims of all claimants and shall by its terms inure to the benefit of all claimants so as to give a claimant a right of action to enforce the liability on the bond. The bond shall be given by an admitted surety insurer. (b) An owner, direct contractor, or subcontractor may be the principal on the bond. (c) A claimant may enforce the liability on the bond in an action to enforce a lien under this part or in a separate action on the bond. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Last verified: January 21, 2026

Key Terms

payment bondadmitted surety insurerprincipalclaimantlienright of action

Related Statutes

  • § 8604 Lender Bond Acceptance Rules
  • § 5310 Association Policy Disclosure Requirements
  • § 8600 Contractor Payment Bond Liens
  • § 8602 Contractor Bond Requirements
  • § 8608 Payment Bond Claim Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 8606.
View Official Source