Bonds and UndertakingsApproval and Effect

Section § 995.410

Explanation

This section explains how bonds become effective. Generally, a bond automatically takes effect without needing official approval, unless the specific law related to that bond says it must be approved first. If approval is needed, a court or official can decide to approve or not based on evidence, affidavits, or by questioning the people backing the bond. It's also possible for a bond to be approved for more than the minimum amount required by law.

(a)CA Civil Procedure Code § 995.410(a) A bond becomes effective without approval unless the statute providing for the bond requires that the bond be approved by the court or officer.
(b)CA Civil Procedure Code § 995.410(b) If the statute providing for a bond requires that the bond be approved, the court or officer may approve or disapprove the bond on the basis of the affidavit or certificate of the sureties or may require the attendance of witnesses and the production of evidence and may examine the sureties under oath touching their qualifications.
(c)CA Civil Procedure Code § 995.410(c) Nothing shall be construed to preclude approval of a bond in an amount greater than that required by statute.
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Section § 995.420

Explanation

This section explains when a bond starts to be valid. Generally, a bond is effective immediately once it's given or, if it needs to be approved, once it’s approved. But if there's a specific time set in another law for when the bond should take effect, that's when it starts working—unless someone objects before that time. If someone does object, the bond becomes valid when the court decides it's sufficient.

(a)CA Civil Procedure Code § 995.420(a) Unless the statute providing for a bond provides that the bond becomes effective at a different time, a bond is effective at the time it is given or, if the statute requires that the bond be approved, at the time it is approved.
(b)CA Civil Procedure Code § 995.420(b) If the statute providing for a bond provides that the bond becomes effective at a time other than the time it is given or approved, the bond is effective at the time provided unless an objection is made to the bond before that time. If an objection is made to a bond before the time provided, the bond becomes effective when the court makes an order determining the sufficiency of the bond.
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Section § 995.430

Explanation

This law says that a bond will stay valid until one of four things happens: the guarantors pull out or replace it, the purpose it's for is completed or dropped with no issues, a court decision uses up the bond, or its set time runs out. If no time is set, the bond keeps going.

A bond remains in force and effect until the earliest of the following events:
(a)CA Civil Procedure Code § 995.430(a) The sureties withdraw from or cancel the bond or a new bond is given in place of the original bond.
(b)CA Civil Procedure Code § 995.430(b) The purpose for which the bond was given is satisfied or the purpose is abandoned without any liability having been incurred.
(c)CA Civil Procedure Code § 995.430(c) A judgment of liability on the bond that exhausts the amount of the bond is satisfied.
(d)CA Civil Procedure Code § 995.430(d) The term of the bond expires. Unless the statute providing for the bond prescribes a fixed term, the bond is continuous.
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Section § 995.440

Explanation

If you have to provide a bond for a license or permit, it must stay active for the entire time the license or permit lasts, including any renewals, unless the bond is canceled or the insurer backing it withdraws.

A bond given as a condition of a license or permit shall be continuous in form, remain in full force and effect, and run concurrently with the license or permit period and any and all renewals, or until cancellation or withdrawal of the surety from the bond.
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