California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 12.2 - Time-Share Project › Section 2808 - Approved Form of Bond for Completion of Common Facilities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A bond posted pursuant to Section
				  11230
				  to secure the faithful performance of a commitment by the developer to complete
				  common facilities and common-area improvements shall be in substantially the
				  following form:
Bond for Completion of Common Facilities
Bond No._________________________
Premium: $ ____________________
___________________________
KNOW ALL MEN BY THESE PRESENTS, that we
(Name of developer), as PRINCIPAL, and ____________________
				  (Name of surety), a corporation organized under the law of the State of
				  ____________________, and authorized to transact the business of surety in the
				  State of California, as SURETY, are firmly held and bound unto
				  ____________________(Name of homeowner association) (hereinafter referred to as
				  OBLIGEE) in the penal sum of __________Dollars ($__________) for which sum,
				  well and truly to be paid, we bind ourselves, our heirs, administrators,
				  successors and assigns, jointly and severally, firmly by these presents. This
				  bond is given pursuant to Section
				  11230 of the California Business
				  and Professions Code to assure lien-free completion of the improvements
				  described in PRINCIPAL's "Planned Construction Statement," a copy of which is
				  attached hereto and incorporated herein by reference, for the time-share
				  development known as ______________________________ (Name of time-share),
				  situated in the County of ____________________, State
				  of____________________.
SURETY, for value received, hereby agrees that the matters
				  set forth in California Civil Code Section
				  3225, or
				  similar acts or omissions which might release the SURETY pursuant to law, shall
				  not in any way release SURETY from the obligation of this bond or reduce
				  SURETY's obligation thereunder. SURETY, for value received, does hereby waive
				  the right granted to SURETY under California Civil Code Section
				  2845 to require
				  that OBLIGEE proceed independently against PRINCIPAL to enforce this
				  obligation, but reserves to itself any right under said Section
				  2845 to require that OBLIGEE
				  proceed jointly against PRINCIPAL and SURETY in any such action.
The condition of this obligation is such that if PRINCIPAL
				  shall complete or cause to be completed said improvements free of liens and
				  claims on or before the latest completion date specified in said "Planned
				  Construction Statement," or an extension thereof given in writing by OBLIGEE to
				  PRINCIPAL and assented to in writing by SURETY, then this obligation shall be
				  null and void; otherwise, it shall remain in full force and effect.
This obligation may be reduced from time to time
				  proportionate to the percentage of the covered improvements which have been
				  completed, upon presentation to the SURETY and OBLIGEE of a statement of an
				  architect or engineer familiar with the project certifying the percentage
				  completion of the improvements.
A suit or action on this bond must be filed within two years
				  after the latest completion date set forth in the "Planned Construction
				  Statement" or any extension thereof given in writing by OBLIGEE to PRINCIPAL
				  and assented to in writing by SURETY.
The SURETY, its successors and assigns, are jointly and
				  severally liable on the obligations of the bond, chapter 2 (commencing with
				  section 995.010), Title 14, part 2, Code
				  of Civil Procedure and Article 2, Chapter 2, Part 2, Division 4, Business and
				  Professions Code.
The PRINCIPAL and SURETY may be served with notices, papers
				  and other documents under chapter 2 (commencing with section
				  995.010), Title 14, part 2, Code
				  of Civil Procedure at the addresses given below.
The terms, conditions and coverage of this bond have been
				  approved by the Real Estate Commissioner of the State of California.
IN WITNESS WHEREOF, PRINCIPAL and SURETY have caused these
				  presents to be duly signed and sealed this __________ day of
				  ____________________, 20___
___________________________
___________________________
(Principal)
(Surety)
___________________________By:
___________________________By:
(Signature)
(Signature)
Address: (for Principal)
Address: (for
						  Surety)
___________________________
___________________________
___________________________
___________________________
___________________________
___________________________
This bond is executed under an unrevoked power of
				  attorney.
I certify (or declare) under penalty of perjury under the
				  laws of the State of California that the foregoing is true and correct.
___________________________
___________________________
Date
Signature of Attorney-in-Fact
						  for Surety
___________________________
Printed or typed name of
						  Attorney-in-Fact for Surety
1. Amendment
				  moving section
				  2808 from article 12.1 to article
				  12.2. and new section filed 5-5-2005; operative 7-1-2005 (Register 2005, No.
				  18). For prior history, see Register 83, No. 30.
Note: Authority cited: Section
					 11281,
					 Business and Professions Code. Reference: Section
					 11230,
					 Business and Professions Code.