§ 2792.3. Approved Form of Bond for Completion of Common Facilities.

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____________

HISTORY

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

Note: Authority cited: Sections 10080, 10226, 10149.2, 11001, and 11011.8, Business and Professions Code and Section 21082, Public Resources Code.