§ 55642 Claim Payment Security

Food and Agricultural Code·California

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Key Takeaways

•The boss can take a promise (like money or stuff) to make sure people get paid.
•If someone doesn’t pay what they owe, the boss can use that promise (money or stuff) to pay the people who are owed.
•The boss checks to make sure the money is really owed before paying.

Example

A company goes broke and owes money to workers for their last paycheck.

The boss can use the company’s deposit or sell stuff the company promised as backup to pay the workers what they’re owed.

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

Official Source

View on CA.gov

§ 55642 Claim Payment Security

The director may accept such bond, if approved by him, and such other security. If the claims or any of them are not paid in accordance with the condition of such security, the director may, on proof being made to his satisfaction of the amounts which are due such claimants, pay all such unpaid claims insofar as possible out of the deposit money, or proceeds from any sale made by him of any securities or processed products which are given as security. (Enacted by Stats. 1967, Ch. 15.)

Last verified: January 23, 2026

Key Terms

security securities director claim accordance condition satisfaction

References

Official text at leginfo.legislature.ca.gov
California Legislature. Food and Agricultural Code. Section 55642.

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References

Key Takeaways

Example

Key Terms

Related Statutes

References