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§ 856. Security in Lieu of Bond.

16 CA ADC § 856Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 16. Professional and Vocational Regulations
Division 8. Contractors' State License Board
Article 6. Bonds
16 CCR § 856
§ 856. Security in Lieu of Bond.
(a) A certificate of deposit, submitted pursuant to Section 7071.12(a) of the code, shall:
(1) When filed in lieu of a contractor's bond
(A) by an applicant, show the name style as set out on page one of the application.
(B) by a licensee, show the name style as currently recorded in the official files of the Board.
(2) When filed in lieu of a bond of qualifying individual, show the name style as in (1) above and the name of the responsible managing individual.
(3) Be made payable to the Contractors State License Board. The word “trustee” shall not be included.
(4) Be issued for a period of not less than one year.
(5) Be automatically renewable at each maturity date.
(6) Provide that any interest earned shall be paid to the depositor.
(b) Assignment of a savings and loan association investment certificate or share account, or of a credit union certificate for funds or share account shall be upon a form prescribed and approved by the Registrar.
(1) The form shall show:
(A) The assignment of the account to the board.
(B) The name style as prescribed in subsection (a) above.
(C) The current address of the applicant or licensee.
(D) The name and address of the savings and loan association or credit union having custody of such funds.
(E) A declaration signed by an officer of the savings and loan association or the credit union that it received written notice of the assignment. This declaration shall include the title of the officer signing it.
(F) A receipt for the assignment from the Board with direction to the savings and loan association or the credit union that the earnings on the assigned account or certificate shall be paid to the assignor.
(2) The assignment form shall be accompanied by the savings and loan association pass book or investment certificate, the credit union certificate for funds or share account pass book of the assignor which shall show the name of the depositor-investor, that of the licensee or applicant, and the responsible managing individual, if applicable, and the amount of the assignment required by law.
(c) Eligible bearer bonds submitted pursuant to Section 7071.12(c) of the code shall be delivered to a bank in Sacramento, California, which shall act as agent for the applicant, licensee or responsible managing employee. The bank shall deliver the bonds to the Treasurer of the State of California only on order of the Registrar or an employee designated by the Registrar.
(1) The Registrar shall prescribe and approve the forms for the deposit or withdrawal of bearer bonds.
(2) Interest coupons shall remain attached to bearer bonds deposited with the Treasurer until such bonds are permanently withdrawn from the depository, not be resubmitted for deposit.
(3) In order to insure that sufficient security is on deposit, the bid price of bearer bonds, as recorded in the bond securities listed on the Pacific Coast Stock Exchange or some other authoritative source on the first day of the month in which such bonds are submitted for deposit, shall be at least 25% in excess of the amount of the surety bond or cash deposit required to be submitted.
The Registrar shall prescribe such procedures and forms, and issue such orders as necessary to accept and process any cash deposit submitted pursuant to Section 7071.12(d) of the code. Personal checks shall not be accepted as cash.

Credits

Note: Authority cited: Section 7008, Business and Professions Code. Reference: Sections 7071.5, 7071.6, 7071.8, 7071.9, 7071.10 and 7071.12, Business and Professions Code.
History
1. Change without regulatory effect amending section heading filed 11-9-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 45).
This database is current through 5/19/23 Register 2023, No. 20.
Cal. Admin. Code tit. 16, § 856, 16 CA ADC § 856
End of Document