§ 55643 Bond Default Enforcement Actions

• •If someone breaks a promise (default) that was backed by a bond (like a promise to pay), the director has to tell them and the person who guaranteed the bond (surety).
• •The director will ask for the money to be paid to the people who didn’t get what they were owed.
• •If the money isn’t paid, the director can take legal action to make sure the bond pays out.

A construction company promises to pay its workers but doesn’t. The company had a bond to guarantee payment.

The director will tell the company and the bond guarantor that the workers weren’t paid. If the company doesn’t pay, the director can sue to get the money from the bond.