A bond posted pursuant to Section 11230 to secure the faithful performance of a commitment by the developer to complete common facilities and common-area improvements shall be in substantially the following form:

Bond for Completion of Common Facilities

Bond No._________________________

Premium: $ ____________________

(Name of developer), 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 homeowner 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 11230 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 time-share development known as ______________________________ (Name of time-share), 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 action.

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.

This obligation may be reduced from time to time proportionate to the percentage of the covered improvements which have been completed, upon presentation to the SURETY and OBLIGEE of a statement of an architect or engineer familiar with the project certifying the percentage completion of the improvements.

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 SURETY, its successors and assigns, are jointly and severally liable on the obligations of the bond, chapter 2 (commencing with section 995.010), Title 14, part 2, Code of Civil Procedure and Article 2, Chapter 2, Part 2, Division 4, Business and Professions Code.

The PRINCIPAL and SURETY may be served with notices, papers and other documents under chapter 2 (commencing with section 995.010), Title 14, part 2, Code of Civil Procedure at the addresses given below.

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 ____________________, 20___

This bond is executed under an unrevoked power of attorney.

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.