§ 12207 Bond Approval Requirements

This law says that a bond must be approved by the state commissioner and that the bond's money is meant to be used by the state and anyone who can sue the main party under this law.

Key Takeaways

•The bond needs the commissioner's approval before it is valid.
•The bond's funds are for the state and for anyone who can bring a claim under this law.
•If the principal (e.g., contractor) is sued, the bond can be used to satisfy the claim.

Example

A contractor fails to finish a road project, and a driver who gets hurt sues the contractor.

Because the contractor had a bond that was approved by the commissioner, the driver can use that bond money to pay for damages, even though the lawsuit is against the contractor.

The bond shall be approved by the commissioner. The bond shall run to the state for the use of the state and of any person who has a cause of action against the principal under the provisions of this division. (Amended by Stats. 1982, Ch. 517, Sec. 212.)

This law says that a bond must be approved by the state commissioner and that the bond's money is meant to be used by the state and anyone who can sue the main party under this law.

Key Takeaways

•The bond needs the commissioner's approval before it is valid.
•The bond's funds are for the state and for anyone who can bring a claim under this law.
•If the principal (e.g., contractor) is sued, the bond can be used to satisfy the claim.

Example

A contractor fails to finish a road project, and a driver who gets hurt sues the contractor.

Because the contractor had a bond that was approved by the commissioner, the driver can use that bond money to pay for damages, even though the lawsuit is against the contractor.

Key Takeaways

Example

Key Terms

References

§ 12207 Bond Approval Requirements

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References