Bonds and UndertakingsRelease Or Substitution of Sureties on Bond Given in Action Or Proceeding

Section § 996.110

Explanation

If someone has guaranteed a bond in a legal case, they can ask the court to let them off the hook from any future responsibility at any time. If this happens, the person who the bond is for can ask the court to find a new guarantor to replace the old one. The person making these requests must inform both the other party involved and the bond beneficiary at least 15 days before the court hearing by giving them a copy of what they filed and a notice about the hearing date.

(a)CA Civil Procedure Code § 996.110(a) A surety on a bond given in an action or proceeding may at any time apply to the court for an order that the surety be released from liability on the bond.
(b)CA Civil Procedure Code § 996.110(b) The principal on a bond may, if a surety applies for release from liability on a bond, apply to the court for an order that another surety be substituted for the original surety.
(c)CA Civil Procedure Code § 996.110(c) The applicant shall serve on the principal or surety (other than the applicant) and on the beneficiary a copy of the application and a notice of hearing on the application. Service shall be made not less than 15 days before the date set for hearing.
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Section § 996.120

Explanation

This law section basically says that if someone wants to replace or let go of a surety (a person or company that promises to pay if someone else can't), the court first checks if it would harm the person who benefits from the bond. If releasing the surety won't reduce the bond below what's legally needed, then no replacement is needed, and the surety can be released. If replacing the surety wouldn't cause harm, the court will order a new one to be substituted within a reasonable time.

Upon the hearing of the application, the court shall determine whether injury to the beneficiary would result from substitution or release of the surety. If the court determines that release would not reduce the amount of the bond or the number of sureties below the minimum required by the statute providing for the bond, substitution of a sufficient surety is not necessary and the court shall order the release of the surety. If the court determines that no injury would result from substitution of the surety, the court shall order the substitution of a sufficient surety within such time as appears reasonable.
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Section § 996.130

Explanation

This law explains that if a new surety (someone who takes on the obligation of a bond) is put in place, they must comply with all the rules related to bonds, including rules about inadequate or overly large bonds. Once a new and acceptable surety is established, the court will release the original surety from any responsibility for the bond.

(a)CA Civil Procedure Code § 996.130(a) If a substitute surety is given, the substitute surety is subject to all the provisions of this chapter, including but not limited to the provisions governing insufficient and excessive bonds.
(b)CA Civil Procedure Code § 996.130(b) Upon the substitution of a sufficient surety, the court shall order the release of the original surety from liability on the bond.
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Section § 996.140

Explanation

If a person who needs a bond doesn't provide a new qualified guarantor in the time given by the court, all benefits of the original bond stop immediately. The court will confirm this through a motion that doesn't require notifying the other party.

If the principal does not give a sufficient substitute surety within the time ordered by the court or such longer time as the surety consents to, all rights obtained by giving the original bond immediately cease and the court shall upon ex parte motion so order.
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Section § 996.150

Explanation

If a guarantor is officially released from their obligations on a bond, they are still responsible for anything that happened before they were released. They won't be held accountable for anything that happens after their release. Other guarantors on the same bond aren't affected by the release of one of them, and their responsibilities don't change.

If a surety is ordered released from liability on a bond:
(a)CA Civil Procedure Code § 996.150(a) The bond remains in full force and effect for all liabilities incurred before, and for acts, omissions, or causes existing or which arose before, the release. Legal proceedings may be had therefor in all respects as though there had been no release.
(b)CA Civil Procedure Code § 996.150(b) The surety is not liable for any act, default, or misconduct of the principal or other breach of the condition of the bond that occurs after, or for any liabilities on the bond that arise after, the release.
(c)CA Civil Procedure Code § 996.150(c) The release does not affect the bond as to the remaining sureties, or alter or change their liability in any respect.
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