California Code of Regulations › Title 10 - Investment › Chapter 6 - Real Estate Commissioner › Article 12 - Subdivisions › Section 2792.3 - 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
				  11018.5(a)(2)(A)
				  to secure the faithful performance of a commitment by the subdivider to
				  complete common facilities and common-area improvements shall be in
				  substantially the following form:
COMPANY NAME
Bond No.__________
Premium: $__________
KNOW ALL MEN BY THESE PRESENTS, that we, __________(Name of
				  subdivider), as PRINCIPAL, and __________ (Name of surety), a corporation
				  organized under the law of the State of__________, and authorized to transact
				  the business of surety in the State of California, as SURETY, are firmly held
				  and bound unto __________ (Name of homeowners association) (hereinafter
				  referred to as OBLIGEE) in the penal sum of __________Dollars ($__________) 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
				  11018.5(a)(2)(A)
				  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 subdivision development known as __________ (Name of subdivision), 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 actions.
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.
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 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__________, 19___
___________________________
___________________________
(PRINCIPAL)
(SURETY)
By___________________________
By___________________________
1. New section
				  filed 12-2-74; effective thirtieth day thereafter (Register 74, No. 49). For
				  history of former section, see Register 65, No.
				  17.
Note: Authority cited: Sections
					 10080,
					 10226,
					 10149.2,
					 11001,
					 and
					 11011.8,
					 Business and Professions Code and Section
					 21082,
					 Public Resources Code.