Statute · California Civil Code
Cal. Civ. Code § 8604 — Payment Bond
Cal. Civ. Code § 8604
- Type
- Statute
- Source
- California Civil Code
- Jurisdiction
- California
- Date
- 2011-01-01
- Current through
- Nov 2, 2026 (California Legislative Counsel)
(a) If a lending institution requires that a payment bond be given as a condition of lending money to finance a work of improvement, and accepts in writing as sufficient a bond given in fulfillment of the requirement, the lending institution may not thereafter object to the borrower as to the…
Citator
Cal. Civ. Code § 8604 — Payment Bond is in force in the current edition of the Code, and nothing recorded condemns it.
(a) If a lending institution requires that a payment bond be given as a condition of lending money to finance a work of improvement, and accepts in writing as sufficient a bond given in fulfillment of the requirement, the lending institution may not thereafter object to the borrower as to the validity of the bond or refuse to make the loan based on an objection to the bond if the bond is given by an admitted surety insurer.
(b) For purposes of this section, a “lending institution” includes a commercial bank, savings and loan institution, credit union, or other organization or person engaged in the business of financing loans.