Article 11 - Release or Substitution of Sureties on Bond Given in Action or Proceeding

California Code of Civil Procedure — §§ 996.110-996.150

Sections (5)

Added by Stats. 1982, Ch. 998, Sec. 1.

(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)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)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.

§ 996.120

Added by Stats. 1982, Ch. 998, Sec. 1.

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.

§ 996.130

Added by Stats. 1982, Ch. 998, Sec. 1.

(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)Upon the substitution of a sufficient surety, the court shall order the release of the original surety from liability on the bond.

§ 996.140

Added by Stats. 1982, Ch. 998, Sec. 1.

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.

§ 996.150

Added by Stats. 1982, Ch. 998, Sec. 1.

If a surety is ordered released from liability on a bond:

(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)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)The release does not affect the bond as to the remaining sureties, or alter or change their liability in any respect.